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Zamboanga City gov’t spent P1.1B for security since 2013 siege

PEACE AND security initiatives have been at the top of the Zamboanga City government’s priorities after the siege in 2013, spending P1.1 billion since 2014, Mayor Ma. Isabelle Climaco-Salazar reported yesterday, Jan. 16, during her State of the City Address (SOCA). “This is the highest ever invested by any administration of the city,” she said, adding that, “this effort has maintained zero bombing and zero kidnapping in the city for more than three years already.” The peace and security budget has been spent on the enhanced police integrated patrol system in strategic areas, especially in coastal areas, and for the purchase of new police patrol cars and other equipment. Ms. Climaco said the local government is also focusing on the development of 11 islands in the east coast to boost tourism. For 2018, the city has P3.422 billion total budget, which is 9.4% higher than the 2017 allocation. — Albert F. Arcilla

The march toward electric cars is accelerating

For years, we’ve been hearing about electrification in the automotive industry and how global markets will soon be awash with electric cars. And for years, we’ve treated it as mere press-release talk, the kind automakers ask their PR agencies to craft and circulate in order to make them look good in an increasingly environment-conscious world.

Well, it seems EVs are way past the propaganda stage now. Their reality is here, staring us in the face and ready to pull the plug on the petroleum party. With all due respect to Mazda and its stubborn allegiance to the internal-combustion engine, electric vehicles are about to flood the market and there’s nothing even a petrol-powered RX-7 successor can do about it. All indicators are pointing to exactly this direction.

First, there’s Toyota partnering with Panasonic for a feasibility study on car battery development. Actually, the cooperation is nothing new — the two companies have had a business relationship since 1953. But by publicizing what is essentially just the start of some research on possible prismatic battery production, the two Japanese corporate giants are serving notice that they intend to lead the way in the industry’s transition to EVs. They are already marking their place in a new territory, and it’s entirely possible that the announcement sent rivals quaking in their boots.

And then, at around the same time and as if on cue, Nagoya-based NGK Spark Plug issued its own communiqué stating that it is now shifting its focus on next-generation solid-state batteries.

A Reuters report quotes an NGK engineering official as saying: “We realized that it was inevitable that the industry would at some point shift from the internal-combustion engine to battery EVs, and that ultimately this could make our spark plug and oxygen sensor businesses obsolete.”

Translation: “There’s no point in pushing back. Conventional car engines are on the way out. We’re going electric whether we like it or not.”

Perhaps more tellingly, China has just banned the production of 553 car models in its home market, including those from big-name brands like Audi, BMW, Mercedes-Benz, Toyota and Volkswagen. The reason given is that said cars no longer meet the government’s fuel-economy requirements. You can be sure, however, that this is just the first step toward flushing gasoline and diesel vehicles out of the badly polluted country. China, as you know, is aggressively pushing for electric propulsion, precisely why many car companies have had no choice but to follow suit considering the size of the Chinese auto market.

And so everyone is falling in line under the EV banner.

At the ongoing Detroit Auto Show, Ford has revealed its plan to invest a total of $11 billion in electric cars so that it can have 40 different hybrid or full-electric models by 2022.

For her part, General Motors CEO Mary Barra has assured investors that her company will become profitable in the EV business by 2021.

Lexus, in showing off a highly futuristic crossover concept called LF-1 Limitless, has laid down its ambitious near-term goal, “By around 2025, every Lexus model around the world will either be available as a dedicated electrified model, or have an electrified option.”

Even the traditionally conservative Jaguar Land Rover has said that it will have to determine in the next 12 months if its business will be best served by building electric cars. No one is exempt from the ripple effect that the EV revolution is generating all around the world.

Countries are witnessing the shift themselves.

Norway, for instance, has declared that half of its new-car registrations in 2017 were courtesy of electric or hybrid vehicles. That’s 50%, and it’s only going to increase further in the coming years.

In Germany, Chancellor Angela Merkel professes an inclination toward banning gasoline and diesel automobiles, even as a new study claims the country’s roads will have 40% EVs by 2035.

The Philippines? We are very much behind in the EV race — we don’t even have public charging stations ready for use — but the newly approved tax reform law, which completely exempts electric cars from excise tax, will no doubt encourage car manufacturers to bring in their electric offerings. Nissan Philippines is said to be already considering introducing the all-new Leaf in our market. Expect others to follow, especially when Meralco finds a way to install its charging stations across Metro Manila (at least initially).

I was previously suspicious of this whole EV shift, believing there was simply a generously funded lobby coalition wanting to upend the industry and take the business away from petroleum companies. But when automakers themselves are rushing to overhaul their product lines to make room for electrification, you know the trend is legit.

Let’s enjoy our fuel-powered cars while they’re still here. The way we travel in a decade’s time may no longer involve a gasoline pump.

Trade performance of major items

Indian bonds slide as RBI says banks must manage rate risks

INDIAN SOVEREIGN BONDS and the rupee tumbled after a central bank official warned banks they can’t keep relying on the regulator to manage their interest-rate  risks, as the rout in the debt market extended into its sixth month.

“The regular use of regulatory help isn’t desirable from the point of view of efficient price discovery in the bond market and effective market discipline,”  Viral Acharya, deputy governor of the Reserve Bank of India, said late Monday at a meeting of traders. “Interest-rate risk of banks cannot be managed over and over again by their regulator.”

Acharya’s comments “added to the nervousness of an already jittery market,” said Vivek Rajpal, a rates strategist in Singapore at Nomura Holdings Inc. “Sentiment is already weak due to additional borrowings, uncertainty around the budget and higher oil prices,” he said.

Ten-year sovereign yields are set to advance for a sixth straight month in January, the longest streak since 2000. The yield on the new benchmark due January 2028 jumped 10 basis points to 7.38% and is up 27 basis points since it started trading on Jan. 5.

“With relatively high duration and concentration of government securities in investment portfolio, bank earnings and capital remain exposed to adverse yield moves,” Acharya said.

Government securities accounted for around 82% of commercial banks’ total investments in the fiscal year to March 2017 and around 84% for state-run banks, he said, adding the exposure “has noticeably increased since 2014.”

Lenders including State Bank of India and Central Bank of India have asked the RBI to let them spread the losses incurred on the sovereign debt in the three months ended December over two quarters, The Economic Times reported on Jan. 4.

“The market is taking it as the RBI may not be willing to go out of the way to help manage the losses,” said Vijay Sharma, executive vice president for fixed income at PNB Gilts Ltd. in New Delhi.

“Hence, it’s expected that demand for government securities may take a further beating.”

Stock prices of most state-run banks skidded while the rupee suffered its biggest loss in nearly a month, falling as much as 0.7%. The currency traded down 0.6% to 63.86 a dollar as of 12:45 p.m. in Mumbai. Shares of State Bank of India, the nation’s largest state-run lender, declined 1.2% to 298.90 rupees, while Punjab National Bank fell 1.9% and Bank of Baroda slumped 2.4%.  Bloomberg

Are Filipinos racists like Trump?

According to critics, President Donald Trump is not just a racist, he is also a barefaced liar and a coward who doesn’t have the cojones to admit his spiteful attitude towards people of color. This biting criticism follows Trump’s denial that he had referred to African nations, as well as Haiti — all predominantly populated by blacks — as “shit-hole countries.”

While Sen. Lindsey Graham, a Republican, and Sen. Dick Durbin, a Democrat, have confirmed that Trump did make the racist remarks at a bipartisan meeting in the White House to discuss immigration matters, the Republican leadership has been deafeningly silent on this issue, and some have actually supported Trump’s denial that he ever made his vulgar statement.

Ironically, this makes the neo-Nazis more forthright and truthful — in fact, even manlier — than Trump and the Republicans because they have openly declared their racism and contempt for people of color, and to hell with what others think.

In the wake of the racism-laced controversy in the US, which has reverberated across the world, Filipinos in America are, in a manner of speaking, anxiously waiting for the other shoe to drop.

Will Trump eventually come around to calling the Philippines a shit-hole country? Hopefully not. Of course, we can guess President Rodrigo Duterte’s automatic response:

P– ina mo rin!”

At any rate, no matter how much Trump and the Republicans deny it, and no matter how religiously America observes Martin Luther King Day, racism is still a harsh reality in the US — but not just in the US. It is also a harsh reality in many parts of the world..

And, oh yes, in the Philippines, as well.

When I was still actively delivering talks on multi-cultural marketing, one of the points I often made was the Filipinos’ perception of how we look. I would use Filipino movie personalities to illustrate my point, with photos of the fair-skinned, tall-nosed, thin-lipped mestizo stars as “the way we think we look” and photos of brown-skinned Malayan-looking character actors as “the way we actually look.”

Call it denial or upward strivings, the desire to look tisay/tisoy isn’t new. This attitude goes back to colonial days when Las Islas Filipinas were subjugated by the Spaniards. Lapu-lapu’s massacre of Magellan and his men could not stop the white man’s dominance of the natives. Thus was white superiority established and ingrained in the Pinoys’ psyche. And with that was developed latent racism.

Those of us who consider ourselves relatively enlightened may never openly admit it, but white trumps brown and, even more so, dark or black in many aspects of our lives.

Rizal parodied this attitude in Noli Me Tangere. His characterization of Doña Victorina de los Reyes de Espadana who tried very hard to look like a Spanish mestiza by wearing heavy makeup, among other pretensions, is still apparent in the Philippines. As a matter, even more so.

To this day, a whiter, fairer skin is what many Filipino women (and even men) aspire for, thus creating a huge market for skin whitening products.

A big market for hair coloring has also been created with the average Pinay’s perception that blonde is beautiful — or, at least, brownish is chic.

But that is the harmless aspect of this “upward striving.” The bad part is the way dark-skinned persons are regarded. On TV and in the movies, dark-skinned characters are the butt of jokes and variations on the Cinderella and Ugly Duckling plots invariably have the heroine starting out as a dark-skinned rag doll who is transformed into a fair-complexioned princess.

Of course, the Spaniards cannot claim sole credit for our white-is-beautiful mentality. America’s colonization of the Philippines at the turn of the century provided another dimension to what I refer to as our “inferiority complexion.”

It isn’t a compliment when Filipinos are described as having been reared for centuries in a convent and, subsequently, indoctrinated in Hollywood.

But this is not unique to the Philippines. In some Asian countries (like India) and in Latin America, latent racism is still prevalent, with the fairer skinned being regarded as superior to those with darker complexions.

The arrival of Christopher Columbus in the New World, which is honored as a public holiday in the US, is observed as Dia de la Raza or Day of the Race in Mexico and other countries that came under the heel of the Spanish conquistadors.

While that day commemorates the Hispanic heritage of Latin America, it also recalls the genocide committed by Columbus and those who came after him, who literally wiped out, not just the native population but their traditions and cultures, as well.

This may have been the most severe manifestation of the white man’s superiority, not just militarily, politically and economically but also in terms of the psyche of those who were colonized.

It was hoped that the election of Barack Obama as the first African-American president would usher in an age of racial enlightenment in the US. In fact, that may simply have further threatened the white supremacists who still thrive in substantial numbers across America.

It seems that the election of Donald Trump to the presidency has given the Jim Crow advocates something to literally crow about.

Through the years, Trump was always regarded with uneasiness because of his racist tendencies. In the 1970s, the FBI investigated Trump for discriminating against blacks in his rental apartments. During the presidential campaign, he characterized Mexicans as rapists and criminals and, as the Republican presidential nominee, he questioned the credentials of a US district court judge because of the latter’s Mexican heritage. Among his very first acts as President, Trump issued executive orders discriminating against intending immigrants from Muslim countries.

Now comes his explosive slur against “shit-hole” — meaning predominantly black — countries.

Of course, the ostensibly enlightened Pinoys frown on such blatant racism — until they are asked how they would like their daughters to marry people from those “shit-hole countries.”

 

Greg B. Macabenta is an advertising and communications man shuttling between San Francisco and Manila and providing unique insights on issues from both perspectives.

gregmacabenta@hotmail.com

Top 10 ‘retail selling in department stores’

PSEi ekes out modest gain after intraday record

By Arra B. Francia, Reporter

SHARES charged to another all-time intraday high before pulling back to post a modest gain at the end of Tuesday’s trading session as investors resumed profit taking.

The 30-member bellwether index added 0.08% or 7.41 points to finish at 8,865.13 yesterday, paring down early morning gains that saw the Philippine Stock Exchange index (PSEi) reach an intraday high of 8,969.18, a fresh record intraday peak.

The broader all-shares index, meanwhile, barely moved to finish at 5,127.25, inching up by 0.01% or 0.66 point.

“During early trade, optimism about consumer giant growth prospects lifted the index to all-time high. However, profit taking prompted investors to close at almost unchanged,” IB Gimenez Securities, Inc. Research Head Joylin F. Telagen said in a text message, citing Jollibee Foods Corp. (JFC).

Shares in JFC were the most actively traded on Tuesday, jumping 5.23% or P13.80 to finish at P277.60 apiece.

Summit Securities, Inc. President Harry G. Liu likewise attributed the market’s short-term movements to profit taking as the index tests a new record high.

“I think the market today was purely on a very technical behavior, because there’s no fundamental crisis on sight, only direction like the infrastructure program, tax amnesty, possible constitutional change on foreign ownership,” he said in a phone interview on Tuesday.

Mr. Liu noted that trading volume would have to keep up in order to cement the market’s rise.

“We’re seeking a technical high, where it will be resisted. On a new high, the thing that you have to look at is volume. If there’s no volume, then that means it will still be within the range where it tries to consolidate,” he added.

The market saw a total of 627.30 million shares switch hands on Tuesday valued at P7.40 billion, rising from the P5.58-billion volume recorded on the day before.

Four sectoral indices closed in positive territory, with the mining and oil counter leading the day’s gains at 12,183.16, climbing 2.33% or 277.61 points. Industrials followed, rising 1.52% or 176.84 points to 11,767.99; services went up by 0.62% or 10.05 points to 1,628.67; and property added 0.33% or 13.63 points to 4,054.26.

On the other hand, financials and holding firms finished on a negative note, giving up 0.64% to 2,290.48 and 0.45% to 9,046.58, respectively.

Advancers outpaced decliners, 108 to 102, while 61 issues were unchanged.

Foreign buying prevailed on Tuesday to yield a net inflow of P698.79 million, higher than Monday’s P419.91-million net purchases.

American markets were closed on Monday in commemoration of the Martin Luther King Jr. holiday.

Meanwhile, most Asian indices were up on Tuesday, pushed primarily by tech and automobile stocks.

The Cranberries singer Dolores O’Riordan, 46

LONDON — Irish singer-songwriter Dolores O’Riordan, frontwoman of the multimillion-selling rock band The Cranberries, died suddenly in London on Monday, aged 46, her publicist said.

“Irish and international singer Dolores O’Riordan has died suddenly in London today, family members are devastated,” Lindsey Holmes said in a statement.

“The lead singer… was in London for a short recording session,” she added. “No further details are available at this time.”

A spokeswoman for London’s Metropolitan police said officers are “dealing with a sudden death” after they were called to a hotel in Park Lane, in the center of the British capital, at 0905 GMT this morning.

She did not confirm the identity of the person found.

“A woman in her mid-40s was pronounced dead at the scene,” the spokeswoman said. “At this early stage it is being treated as unexplained and enquiries continue,” she added.

Irish Prime Minister Leo Varadkar was among the first to pay tributes, calling O’Riordan “the voice of a generation.”

“For anyone who grew up in Ireland in the 1990s, the Cranberries were an iconic band, who captured all of the angst that came with your teenager years,” he said in a statement. “Her voice and her contribution to music will be remembered far beyond her native county for many years to come.”

FAMILY ‘VERY DEVASTATED’
The London Hilton on Park Lane confirmed “with deep regret” that an unnamed guest had “sadly passed away” at its hotel.

“Team members acted swiftly to alert the Metropolitan Police and we are cooperating fully with their investigation,” a spokeswoman said.

The Cranberries achieved international success in the 1990s with their debut album Everyone Else is Doing it, So Why Can’t We? which included the hit single “Linger.”

Follow-up album No Need to Argue went to No. 1 in Australia, France, and Germany, and No. 6 in the United States.

The album also gave rise to politically charged single “Zombie,” an angry response to the deadly Northern Ireland conflict, which hit No. 1 across Europe. The band sold around 40 million records worldwide.

O’Riordan, from Friarstown in the Irish county of Limerick, will be buried in Ireland, according to the parish priest in her home town.

James Walton, priest at Ballybricken and Bohermore parish, told Britain’s Press Association her family “is very devastated and upset.”

“Her family are still waiting for more details to come from London about her death,” he said.

“The plan is for her to be buried here at home. When that will be will depend on when her body is released.”

‘IMMENSE INFLUENCE ON ROCK’
The Cranberries, formed in 1989 but went on a hiatus in 2003.

O’Riordan told AFP in a 2012 interview that “we were stuck in a rut. We just needed a break.”

She headed to Canada, where she gave birth to her third child, but The Cranberries reformed in 2009 after getting together for a one-off show.

“At home I’m a house-keeper and a mum. The kids are, like, ‘What’s for dinner? Where are my clothes?’. On tour it’s, like: ‘room-service,’” she said of the comeback.

She hit the headlines in 2014 after pleading guilty to assaulting three police officers and a flight attendant during a flight from New York to Ireland, and was diagnosed with bipolar disorder shortly afterwards.

The band was forced to cancel 14 concerts last year due to “medical reasons associated with a back problem” for O’Riordan.

The singer’s last Facebook posting came shortly before Christmas.

“Hi All, Dolores here. Feeling good! I did my first bit of gigging in months at the weekend, performed a few songs at the Billboard annual staff holiday party in New York with the house band,” it read.

“Really enjoyed it! Happy Christmas to all our fans!! Xo.”

The band recently played in South America, with O’Riordan tweeting pictures of a show in Lima, Peru.

O’Riordan married Don Burton, former tour manager of Duran Duran, in 1994 but the couple, who had three children together, divorced in 2014.

British 1980s band Duran Duran posted on their official Twitter page that “we are crushed to hear the news about the passing of Dolores O’Riordan. Our thoughts go out to her family at this terrible time.”

The Cranberries released their final album Something Else last year. — AFP

ADB grant to help fund Mindanao Railway initial planning

THE GOVERNMENT is planning to tap a $5-million grant from the Asian Development Bank (ADB) to prepare the first phase of the Mindanao railway, the Department of Finance (DoF) said.

The program is called the Strengthening Infrastructure Capacity and Innovation for Inclusive Growth technical assistance grant made in October.

“The Department of Transportation (DoTr) has proposed that preparation activities for the Tagum-Davao-Digos segment of the Mindanao Rail Project be covered by the ADB grant,” the DoF said in a statement.

The DoTr’s planning exercise is separate from the National Economic and Development Authority’s (NEDA) plan to utilize the funds for its Project Facilitation, Monitoring and Innovation Task Force — an interagency committee to address infrastructure development bottlenecks.

The Mindanao Rail project-Phase 1 spans 102 kilometers traversing the cities of Tagum, Davao, and Digos.

As approved by NEDA Board, it would cost some P35.26 billion, to be funded out of the government budget, and is targeted to start construction by the third quarter this year.

The government expects the first phase to be completed before 2022.

Aside from the technical assistance grant, the ADB also provided a $100-million loan in October for the preparation of its infrastructure projects — a majority of which will be implemented by the DoTr and the Department of Public Works and Highways.

The government on the other hand will provide counterpart funding of $60 million for the infrastructure preparation facility.

The administration plans to spend some P8.4 trillion in infrastructure until 2022, which is expected to boost economic growth to 7-8% starting this year. — Elijah Joseph C. Tubayan

How PSEi member stocks performed — January 16, 2018

Here’s a quick glance at how PSEi stocks fared on Tuesday, January 16, 2018.

Nation at a Glance — (01/17/18)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

How this food business won the heart of ‘u‑belt’ students

In a world of sushirritos and avocado toast, a Filipina millennial decided to bet on something else.

Kathleen Ragos, whose foray into the food business happened on her senior year in college in 2009 with a Morayta‑located kiosk called “Kubo” (that offered iced coffee called “Star Kubo”), decided in 2011 that the students in the university belt area were ready for budbod: a dish of glutinous rice wrapped in a banana leaf, the specialty of her hometown Rizal.

“I enjoyed it because there was a growing following, that’s when we decided to move the business to a 24‑seater place. We grew every semester until we could expand into a 90‑seater venue,” she recounted in an interview with SparkUp.

For Ragos, an education graduate, venturing into business is different from what she was supposed to pursue as a career, but her firsthand experience as a student constantly looking for affordable food and good service led her to put up the business.

Next month, her store, which is now called Juana’s Budbod and Coffee is opening its first branch at an SM mall.

“They (SM) are scouting for new potential concepts. They have invited us for a talk, deliberated over a panel if our concept and food are great. Gladly, we passed,” she said.

Though Cavite is relatively far from budbod’s origin, Ragos is confident that the dish “will be a hit in Cavite” with the “fast paced lifestyle of Caviteños who love to eat.”

STUDENT ROOTS

Juana’s story is a story of succeeding in the otherwise competitive student crowd. While places near schools command a high foot traffic (the Far Eastern University in Manila, for example, has a total of 30,000 students), it also means more competition—not just in terms of pricing but also concept.

“We like the creativity behind the simple concept of budbod. The usual comfort food in the university belt are oily food, so we make sure that our preparation is healthy and we serve vegetables on the side,” she said.

That eventually became a value that ran deep in the company’s veins: “We stick to our core principle to remain classic. Budbod is very powerful for us in a sense that it is served in a very unique way, and is eaten in a very unique way, but it looks simple. Everybody who sees budbod is interested to try it.”

Currently, at the lone Mendiola outlet, the flavourful thick rice sprinkled with meat and spices and served with ensalada (tomato, onion, salted egg salad) and Dalandan juice starts at ₱89. A group can also avail of its boodle fight version of the sticky delicacy.

Aside from the meals, Juana’s has a homey feel that harks to the provinces—something that those who hail from faraway lands may revel in when they’re tired of the typical urban, minimalist interiors of most Manila food shops.

For Ragos, running a business with students as the target market has its pros and cons. The business forces them to strictly base their products’ prices on the usual budget of college students, which, on the brighter side, teaches them to minimize cost.

“We carefully studied how to increase the yield of our meats without sacrificing the home‑cooked quality of the food, the process to achieve a good performance despite less manpower,” she said.

With their operation immensely depending on students’ schedule, Ragos said they have “play around their business model” to address lapses during off‑peak seasons, holidays, typhoons, and floods, which all prompt schools to suspend classes.

“We attend to the most obvious challenges of the business. We respond, correct, and develop what must be. We use tools to align everyone in the company with our vision and strategies, so that together we maintain the magic, synergy and charm of the business,” she said.

Putting up a food shop—or even just a small stall—in the vicinity of a school is probably the most ideal business. After all, where will students resort to after a long day? But succeeding in such venture requires more than sparing money and time. It takes courage to resist competition, the constant market movement because of trends, and ever‑changing taste of students.