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NY removes nuke fallout shelter signs

NEW YORK — New York City has quietly begun removing some of the corroding yellow nuclear fallout shelter signs that were appended to thousands of buildings in the 1960s, saying many are misleading Cold War relics that no longer denote functional shelters.

The small metal signs are a remnant of the anxieties over the nuclear arms race between the United States and the former Soviet Union, which prompted US President John F. Kennedy to create the shelter program in 1961 in cities across the nation.

The signs, with their simple design of three joined triangles inside a circle, became an emblem of the era.

While some New Yorkers may barely notice them today, to others they can be an uneasy reminder that the threat may have altered and diminished, but it has not vanished.

Although the Cold War era has long ended, North Korea continues working to develop nuclear-tipped missiles capable of hitting the United States amid bellicose rhetoric from Washington and Pyongyang.

A nuclear explosion is now seen as even less likely than during the Cold War. But should catastrophe ever strike, the signs, which still linger in their thousands, would be best ignored, city officials and disaster preparedness experts say.

In the aftermath of a nearby nuclear explosion, any survivors counting on the signs to lead them to safety from radioactive fallout after needlessly dashing outside would likely find themselves rattling locked doors or perhaps breaking into what is now a building’s laundry room or bike-storage area. Maintenance of the shelter system, which once entailed federal funding to stock shelters with food and water, ended decades ago.

The removal of some of the signs from public school buildings, which has not previously been reported, is intended to partly reduce this potential confusion, according to the city’s Department of Education.

Michael Aciman, a department spokesman, confirmed that any designated fallout shelters created in the city’s schools are no longer active and said that the department was aiming to finish unscrewing the signs from school walls by roughly Jan. 1.

Although some of the tens of thousands of fallout shelter signs placed around the city by the federal government’s Office of Civil Defense have vanished as old buildings have been renovated or demolished, city officials say this is the first coordinated effort to remove them. The Office of Civil Defense was eventually abolished in the 1970s, subsumed into the Federal Emergency Management Agency (FEMA).

“FEMA does not have a position regarding the signs,” Jenny Burke, a FEMA spokeswoman, wrote in an e-mail on Tuesday last week.

Although the agency does not maintain lists of the old shelter locations, she added, “as a part of an ongoing planning effort, the agency is conducting research to retrieve Office of Civilian Defense records.”

The city’s removal appeared somewhat haphazard: on one Brooklyn street, a sign on a school photographed by Reuters last month was subsequently removed, while a second school a few blocks away still had its sign attached, albeit with a screw missing.

As a history buff, Jeff Schlegelmilch is fond enough of the signs that he stuck a replica on his office door at Columbia University’s National Center for Disaster Preparedness, where he is deputy director.

“I love seeing the signs, but, as a disaster planner, they have to come down,” he said. “At best, they are ignored; at worst, they’re misleading and are going to cost people’s lives.”

The consensus now, from the federal government downward, was that designated shelters were an outmoded concept, and updated contingency plans have been widely adopted since al Qaeda’s attack on the United States on Sept. 11, 2001, Mr. Schlegelmilch said.

Were a nuclear explosion ever to happen, those far enough from the blast center to survive would do well to head to the lower interiors of any standard residential or commercial building, ideally a windowless basement, to shelter from radioactive particles outside, which can burn skin and cause serious illness and death.

Cars, on the other hand, “are terrible,” Mr. Schlegelmilch said: the particles sail right through a vehicle’s thin exterior.

NYC Emergency Management, the agency that runs the city’s disaster preparations, was not involved in the decision but staff there welcomed the signs’ removal. Nancy Silvestri, the agency’s press secretary, said even once the signs are gone from schools, many would remain on apartment buildings and other structures. City officials are uncertain who has jurisdiction over those, she said.

Eliot Calhoun, the agency’s Chemical, Biological, Radiological, Nuclear, and Explosives Planner, sees the signs as unhelpfully muddying the waters.

He has spent years endlessly finessing a message, designed to flash as an alert on cellphones, that he hopes he will never have to send.

In the nerve center of the agency’s Brooklyn headquarters, he called up onto a screen its current form: “Nuclear explosion reported. Shelter in basement/center of building, close windows/doors.”

“Every single time I look at it I change it a little bit,” he said.

“When you only have 90 characters and you’re trying to save lives you can really think too much about it.” — Reuters

Asset-backed bonds getting too rich for investors’ tastes

WHEN BOND SPREADS are tight across the entire risk-asset spectrum, investors typically crowd into to structured-finance bonds such as consumer asset-backed securities (ABS) to eke out more yield or earn carry. That may not be the case anymore.

ABS in the US have had a banner 2017, and the good times are expected to roll through next year. But with the expectation that spreads across ABS sectors will continue narrowing to record-tight post-crisis levels in 2018, investors are beginning to wonder whether these bonds still makes sense, especially in light of credit risk in some asset classes.

“This spread tightening in ABS could last for another six to 12 months,” said Jason Merrill, a structured finance analyst at Penn Mutual Asset Management, a fixed income manager and adviser with more than $24 billion of assets under management. “Many banks and issuers are of the mind-set that they want to keep dancing while the music is playing.”

As a result, it’s getting harder for investors to find value. For example, the AAA-rated slice of a subprime-auto bond from GM Financial priced at 18 basis points over Libor last month, down from 38 basis points for a similar bond a year earlier.

A smaller issuer in the same sector, Flagship Credit, priced at 35 basis points over a fixed-rate benchmark in November, compared to 68 basis points for a similar deal in January.

“Spreads will get tighter for awhile,” said Ken Purnell, head of ABS portfolio management at Invesco. “The macro view is very positive and is supportive of spreads remaining low.”

ABS spreads will hit new post financial-crisis tights in 2018, after rallying this year to the tightest levels of the past decade, say JPMorgan research analysts.

WORTH THE RISK?
Investors have historically been drawn to ABS in search for incremental yield when global rates are low. They like the sector’s short-duration bonds, generally high ratings, and the fact that a large portion of the market is floating-rate and amortizing, providing opportunity to reinvest at higher rates.

But as consumer ABS bonds get richer, investors have had to work harder to find attractive relative value, especially considering growing risks in sectors such as subprime auto.

“We’re not necessarily forecasting a recession or a slowdown, but are concerned that we’re not being adequately compensated for risk-taking in certain areas,” said John Carey, head of structured securities investments at BNP Paribas Asset Management, who invests in spread sectors to earn extra carry. “It’s a time to be nimble and tactical.”

MACRO HICCUP
As global central banks pull back from years of easy monetary policy and begin unwinding balance sheets, the question is, when will the music stop?

Investors are keeping an eye on rising delinquencies in subprime auto, marketplace lending and unsecured consumer loans. They don’t deny that there is weakness in these asset classes, but most buyers have faith in ABS structures and their built-in credit enhancements.

“I’m not worried about consumer balance sheets, as there has been a significant amount of household deleveraging since the crisis. Households have never been in a better position,” said Tracy Chen, the head of structured credit at Brandywine Global Investment Management, which oversees $74 billion. “The economy recovery and job growth look good as well. What I’m most worried about is a macro hiccup.”

Chen’s main concerns are geopolitical risk, the stability of the US administration, North Korea, normalization of the Fed balance sheet, potential Chinese economic slowdown and inflation.

“If inflation picks up, it may accelerate the pace of the Fed’s interest-rate tightening, which could make the next recession happen sooner than expected,” she said.

In fact, timing of the global wind-down of accommodative monetary policy and the unwinding of central-bank balance sheets may be among the top concerns of ABS investors as they head into 2018.

“G4 central bank balance sheets have continued to expand. But we think the ECB (European Central Bank) will stop buying bonds later on in 2018,” said BNP’s Carey.  Bloomberg

Welcoming 2018 with TRAIN

THE TRAIN stayed on track and reached its destination in time to take effect yesterday, Jan. 1, as targeted. 

Republic Act (RA) 10963, otherwise known as the Tax Reform for Acceleration and Inclusion (TRAIN) was signed by the President on Dec. 19, 2017, while vetoing certain provisions.  As provided in the RA, the new law takes effect on Jan. 1, following its complete publication in the Official Gazette. It was published on Dec. 27.

Hence, on the next payday this January, many employees will take home their salaries in full, without tax deduction. Pursuant to the revised withholding tax table issued by the Bureau of Internal Revenue (BIR) through Revenue Memorandum Circular (RMC) No. 105-2017, there is no withholding for those receiving P685 daily wage; P4,808 weekly wage; P10,417 semi-monthly wages; or P20,833 monthly wage. We must credit the BIR for preparing the Table well in advance even while the legislation has not yet been approved. You can access the withholding tax table through this link.

The Department of Energy (DoE) has likewise issued clarifications that, although the higher petroleum excise taxes take effect on Jan. 1, the higher taxes do not apply to old stocks which have been imported or released from the refineries earlier and excise taxes for which has already been paid at the old rates.

Several provisions of the TRAIN will require further interpretation which should be addressed in the implementing regulations to be issued by the BIR.

Among others, the veto message of the President opted to prioritize fairness and declared that employees of RHOs, ROHQs, OBUs and petroleum service contractors should follow the regular rates applicable to other individuals. However, the remaining provisions after the veto still suggest that employees of existing RHQs, ROHQs, OBUs and petroleum service contractors can continue to enjoy the 15% preferential income tax rate.

The new provisions for VAT zero-rating of services to the Philippine Economic Zone Authority (PEZA) and TIEZA entities were likewise vetoed. However, I note that, even prior to TRAIN and without these new provisions, there is a legal basis for the zero-rating of the services under the PEZA law (RA 7916), which was not repealed.

We will eagerly wait on how the BIR will interpret the Presidential veto on these provisions.

I am sharing the highlights of the TRAIN as prepared by our firm, P&A Grant Thornton. This summary is based on our interpretation of the provisions of the law. Please note that some of these may change, particularly on the gray areas discussed above, depending on the implementing regulations that will be issued by the BIR.

Lina P. Figueroa is a principal with the Tax Advisory and Compliance division of P&A Grant Thornton.

Nation at a Glance — (01/02/18)

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

Analysts’ December inflation rate estimates

THE GENERAL INCREASE in prices of widely used goods and services likely steadied in December from the preceding month’s pace, according to analysts asked in a poll last week, keeping the full-year pace within target for the first time in three years. Read the full story.

The best moments in the startup scene in 2017

With 2017 drawing to a close, let’s take a look back at some of the events that made the year bright and exciting for Filipino tech startups.

Here are some of the best moments in the startup scene this year:

Freepik

Filipino startups began to embark on trends following the success of new enterprises abroad.

Just barely two weeks before yearend, fintech startup Qwikwire launched its initial coin offering. From it, the company aims to raise $9 million for a new project called AQwire.

Qwikwire will sell its cryptocurrency called “Qye” in exchange of Etherium from February 2016 until the end of April next year.

AQwire, a decentralized platform where real-estate companies can sell properties to buyers inside and outside of the country, will be launched September next year.

Freepik

Last May 24, startup incubator Launchgarage teamed up with the Philippine Chamber of Commerce (PCCI), one of the oldest business chambers in the country, to conduct the “Supercollider Pitching Session.”

Ten tech startups from Launchgarage were given the opportunity to pitch their businesses to representatives from different illustrious business organizations, including the PCCI, the Philippines‑USA Economic and Business Council, and the Anvil Business Club.

The participating companies were Mober, Tralulu, GoodMealHunting, AltitudeX, Veer Technologies, Taxumo, Bloom Solutions, Magpie, Acudeen, and AirMighty.

Freepik

Numerous pitching competitions have been held this 2017 and one of the most notable ones is “Startups to the Resque” organized by DTI in collaboration with QBO Philippines.

The contest did not just allow the competing startups to showcase their products and business models, but challenged them to use their business venture in addressing environmental disasters, outbreaks or pandemics, and conflicts and violence.

Held during Slingshot ASEAN 2017, 20 startups (16 were from the Philippines) from across South East Asia vied for the title. Manila-based e-Learning company FrontLearners, Inc. won the grand prize worth $10,000 while ChatbotPH trailed and received $4,000. Singapore-based BillionBricks grabbed the third spot and went home with $2,000.

Freepik

Aside from monetary support, local startups have also been given an access to mentorship given by support-giving bodies. And this year, the Asian Institute of Management and Philippine Development Foundation led by Dado Banatao added another one to the list of organizations nurturing potential Filipino tech enterprises.

The two names collaborated to launch the AIM‑Dado Banatao Incubator which aims to support tech‑enabled startups in the country.

It’s a killer combo: one of the top business schools in Asia and a Silicon Valley alumnus.

Freepik

Accounting firm PwC Philippines or Isla Lipana & Co., in partnership with QBO Philippines, released a 50‑page report profiling the country’s startup ecosystem.

According to the report, which tapped 106 startup founders, there are currently over 300 startups in the country and 200 of which are still operating.

It revealed that most local startups eye expansion in the country and in some Southeast Asian countries. The report also showed that monetary support and tax exemption are among the top demand by new enterprises.

Freepik

The country also gave birth to its first unicorn this 2017.

Prefabricated property developer Revolution Precrafted was recognized as the first local startup to reach more than $1 billion valuation in the Philippines.

The two‑year‑old real estate company’s Series B round led by Singapore‑based venture capital firm K2 VC, whose previous investees include Uber, Spotify, led to the startup’s milestone.

2. Innovative startup bill

Last August 1, a bill aimed at developing the country’s startup ecosystem has been filed in the Senate.

Initiated by Sen. Bam Aquino, Senate Bill No. 1532 or the Innovative Startup Act seeks to reduce the barriers to the success of innovative enterprises by providing development program, tax breaks, and financial and technical assistance.

The bill also calls for a venture fund amounting to ₱10 billion.

Freepik

The Department of Trade and Industry (DTI) on October 20 mounted Slingshot ASEAN at the Philippine International Convention Center in Pasay City.

The conference drew more than 1,300 delegates and around 20 foreign angel investors. A startup alley, showcasing more than 80 startups from all over the region, was also put up.

In a press conference during the event, DTI Sec. Ramon Lopez shared the department’s plan to consider providing incentives such as tax exemption and venture funds to tech‑based startups in the country.

All in all, 2017 was huge start of a prosperous journey for innovative enterprises.

With numerous initiatives to support budding entrepreneurs in the country, it won’t impossible for local startups flourish in the global market in the coming years.

Financial marts end 2017 on a high

By Arra B. Francia, Reporter and Karl Angelo N. Vidal

THE country’s financial markets ended 2017 with a bang, with the Philippine Stock Exchange index (PSEi) soaring to a fresh high on the last trading day, and the peso rallying to its best level against the US dollar in six months.

EQUITIES
The PSEi, a barometer of investor confidence, climbed 0.27% or 23.33 points to close at 8,558.42 on Friday, its 14th record high finish for 2017.

The benchmark index also closed 25.11% up from its finish of 6,840.64 last year, the first time in three years it ended in positive territory.

Friday also saw the PSEi hit another all-time high in intraday trading at 8,640.04. The previous record was at 8,605.15 on Nov. 3.

“It’s a reflection of the confidence that investors continue to put in the Philippines, especially 2016, we have a new president. 2017, this is off an election year. It’s a very good performance for the market and for the entire Philippines in general,” PSE Chief Operating Officer Roel A. Refran said in an interview after Friday’s closing bell.

For analysts, the stock market’s strong performance comes as no shock, since investors have remained bullish on the Philippines given its solid economic fundamentals.

“The main catalysts that propelled our market to new highs were the government’s tax reform program as well as the bullish infrastructure projects of the current administration and favorable corporate earnings,” Timson Securities, Inc. equities trader Jervin S. de Celis said in a mobile phone message.

First Grade Finance, Inc. President and Managing Director Astro C. Del Castillo noted the same, saying some investors are already positioning themselves.

“It’s not a surprise. Toward the end of the year it was really expected. Some investors already positioned themselves, given the changing fundamentals. This will a combination of the infrastructure projects, tax reform, and the remittances of BPOs (business process outsourcing firms), continued excellent performance of OFW (overseas Filipino workers) remittances,” Mr. Del Castillo said in a phone interview.

Investors were back in the market amid sluggish trading in the last few days, with a value turnover of P7.26 billion from 3.34 billion issues changing hands. This is higher than the P6.4-billion value turnover on Thursday.

On a yearly basis, Mr. De Celis said foreign buying activity amounted to P56 billion, significantly higher than the P2.1 billion recorded in 2016.

“I guess that’s an indication that foreign investors are seeing a brighter outlook for our market as economic activity remains robust,” Mr. De Celis said.

Mr. Refran said this provides a good jumping board for 2018, with some analysts already predicting it would breach the 9,000 mark by the end of next year.

“We can only improve from here because next year will be a milestone year. Not only will we be moving to a new office in BGC (Bonifacio Global City), but really it’s building on the foundation that we have established, more products hopefully easier for investors to tap the capital market,” Mr. Refran said.

PESO
At the Philippine Dealing System, the peso closed at P49.93 against the greenback on Friday, gaining five centavos from its P49.98 finish on Thursday. This was the local unit’s best level since it closed at P49.91-to-the-dollar last June 19.

However, the peso closed weaker than its end-2016 finish of P49.72 against the greenback.

The local currency opened Friday’s session at P49.90 against the dollar. Its intraday low was at P50.01, while its best showing stood at P49.89.

Dollars traded soared to $742.2 million from the $625.3 million that changed hands during the previous session.

“The peso appreciated today as traders continued to sell off their positions towards the year-end,” a trader said in an e-mail on Friday.

Another trader noted market players are now winding down their positions given the weakness of the peso this year.

On Wednesday, Bangko Sentral ng Pilipinas Governor Nestor A. Espenilla, Jr. attributed the peso’s recent strength to the continuous flow of remittances, as well as the softness of the greenback brought by uncertainties on the newly-passed tax overhaul in the US.

The local currency performed weaker in 2017. From Jan. 3 to Dec. 29 this year, the peso traded at an average of P50.40, higher by P2.92 compared with the P47.48 average booked in the same period last year.

The peso hit an 11-year low of P51.76 on Oct. 27, while its best showing for the year was at P49.40 on June 5.

Although analysts are calling the peso the “worst performing currency” this year, for Ruben Carlo O. Asuncion, Union Bank of the Philippines’ chief economist, the weakness of the peso had a positive impact on the domestic economy.

“If we are talking about the impact of the peso’s performance on the general macroeconomy, then, it is a different talk altogether. We have better export earnings because of the peso. We have remittances continuously growing because of the weak peso,” Mr. Asuncion said in a text message.

“We have a better fiscal position because of its so-called ‘worst performance’.”

For next week, the peso will likely stay on the weaker end as analysts are weighing on the effects of a wider current account deficit, although some are saying that this will be tempered by the long-term effects of the local tax reform measure.

The local financial markets will reopen on Jan. 3, 2018.

BSP sees December inflation at 2.9-3.6%

By Melissa Luz T. Lopez, Senior Reporter

INFLATION likely steadied in December from a month ago despite higher fuel and rice prices, the Bangko Sentral ng Pilipinas (BSP) said on Friday, enough to keep the full-year pace well within expectations.

Price increases for basic goods and services may have logged between 2.9-3.6% this month, based on estimates made by the BSP’s Department of Economic Research. This matches the forecast range given for November when inflation actually settled at 3.3%, marking a decline after four straight months of rising rates.

This also compares to a 2.6% reading in December 2016. Despite the uptick, the inflation forecast still settles comfortably within the 2-4% target band set by the monetary authority.

The Philippine Statistics Authority will release December and full-year inflation figures on Jan. 5, 2018.

“Higher domestic petroleum and rice prices could contribute to upward price pressures, which could be partly offset by the decline in Meralco’s electricity rates and stronger peso,” the central bank said.

Retail pump prices have posted net increases from a year ago even as fuel companies implemented a rollback on Dec. 12. Year-to-date, diesel prices are up by P5.65 per liter while gasoline posted a net increase of P6.09/liter. Kerosene prices are likewise higher by P3.87/liter.

Global crude prices are on the rise in recent months after oil-producing nations agreed to extend supply cuts until 2018.

Meanwhile, power distributor Manila Electric Co. reduced electricity rates by P0.3785 per kilowatt-hour after five straight months of increases, on the back of lower generation charge and a stronger peso.

The peso recovered against the dollar this December to trade at six-month highs, and even closed at the P49 level versus the greenback on Friday — the last trading day for the year. BSP Governor Nestor A. Espenilla, Jr. attributed the recovery of the local currency to strong remittance and equity inflows, coupled with “attractive” domestic fundamentals which have been reinforced by the signing into law of the tax reform package.

Abroad, the “soft” dollar due to investor uncertainty over a parallel tax legislation in the US has also helped boost the local currency, the central bank chief said.

The milder exchange rate helped reduce import prices, which feed into the cost of widely-used goods.

These developments would allow inflation to match the BSP’s 3.2% estimate for the entire year, which would also pick up from the 1.8% average logged in 2016.

The inter-agency Development Budget Coordination Committee (DBCC) kept the annual inflation target at 2-4% for 2018 to 2020, with the central bank seeing that price movements will remain “manageable” despite the expected impact of higher fuel costs and additional excise taxes which will kick in by Jan. 1, 2018.

“Expectations of healthy economic growth alongside the tax reform program would create demand-side impetus to inflation. Nonetheless, the favorable effect of sustained investment spending by the national government on the economy’s productive capacity would help temper inflation pressures,” the central bank said on Thursday.

The DBCC conducted its second review for the year on Dec. 22, where economic managers decided to keep the annual economic growth target at 7-8% from 2018 to 2022.

Top officials ordered to comment on petition seeking to halt martial law extension in Mindanao

THE Philippines’ high tribunal ordered top government officials and lawmakers to comment on a petition seeking to stop the re-extension of martial law in Mindanao “within 10 days.”

This developed on Friday after the Supreme Court found the petition — filed by opposition lawmakers — “sufficient in form and substance.”

“Considering the allegations contained, the issues raised and the arguments adduced in the petition, it is necessary and proper, without giving due course to the petition, to require the respondents to comment on the petition and prayer for the issuance of a temporary restraining order or writ of preliminary injunction,” the Supreme Court said in the order.

Named as respondents were Senate President Aquilino Martin Pimentel L. Pimentel III, House Speaker Pantaleon D. Alvarez, Executive Secretary Salvador C. Medialdea, Defense Secretary Delfin N. Lorenzana, Budget Secretary Benjamin E. Diokno, and Armed Forces Chief of Staff General Rey Leonardo Guerrero.

The petition was filed by Albay Rep. Edcel C. Lagman, Akbayan party-list Rep. Tomasito S. Villarin, Caloocan Rep. Edgar R. Erice, Ifugao Rep. Teddy Brawner Baguilat, Jr., Magdalo party-list Rep. Gary C. Alejano and Capiz Rep. Emmanuel A. Billones last Wednesday, Dec. 27.

The petitioners cited that “there is no actual rebellion in Mindanao and the re-extension is extremely long even as the approval was made with undue haste and unscrupulous imprudence.”

On Dec. 13, the Congress voted 240-27 in joint session to allow the extension of martial law and suspension of the privilege of the writ of habeas corpus in Mindanao from Jan. 1 to Dec. 31, 2018. — Minde Nyl R. Dela Cruz

MBC raises stake in Elizalde Hotels

MANILA Broadcasting Company (MBC) is increasing its stake in affiliate Elizalde Hotels and Resorts, Inc. through a P240-million share purchase agreement.

In a disclosure to the stock exchange on Friday, MBC said it will be acquiring an additional 43.64% of shares in EHRI, bringing its total stake in the company to 80%. The deal comprises the purchase of 240,000 shares priced at P1,000 apiece.

“The acquisition aims to maximize MBC stockholders’ returns by investing in the high growth of hotel and resort business,” the listed company, chaired by Fred J. Elizalde, said.

MBC initially diversified into the hotel and resort business in 2016, when the broadcasting company decided to invest in EHRI.

The new transaction will be subjected to standard closing conditions, such as the delivery of original stock certificates and the execution of the necessary transfer documents.

Trading of MBC shares were suspended at 1:30 p.m. on Friday following MBC’s disclosure, as the Philippine Stock Exchange classified the transaction as “substantial acquisitions and reverse takeovers of the disclosure rules.”

The PSE said it will make further announcements on the lifting of the trading suspension. Shares in MBC last closed at P15.80 each on December 28.

Incorporated in 1947, MBC has a congressional franchise spanning 25 years allowing it to operate radio and TV shows in the country, starting 1994. Under its leadership are DZRH, Aksyon Radyo, Love Radio, Yes-FM, Easy Rock, Radyo Natin, and RHTV. — Arra B. Francia

Senate gets high satisfaction rating, survey says

THE Senate received the highest public satisfaction rating among top government institutions under President Rodrigo R. Duterte’s administration, the Fourth Quarter 2017 Social Weather Station (SWS) survey results showed.

Sixty-nine percent of those surveyed were satisfied with the performance of the Senate while 14% were dissatisfied, the poll results said.

The House of Representatives came next, with 59% of respondents saying that they were satisfied and 16% dissatisfied. Meanwhile, 54% were satisfied with the performance of the Supreme Court although 17% were dissatisfied. The Cabinet ranked fourth among the lot, with 53% satisfied and 15% dissatisfied.

The noncommissioned survey was conducted from December 8-16, 2017 using face-to-face interviews of 1,200 adults (18 years old and above) nationwide: 300 each in Metro Manila, Balance Luzon, Visayas, and Mindanao (sampling error margins of ±3% for national percentages, and ±6% each for Metro Manila, Balance Luzon, Visayas, and Mindanao).

SENATE
The Senate’s net satisfaction rating rose by one grade from good to very good, at +56 (correctly rounded) in December 2017, up by 10 points from +46 in September 2017, the SWS said, indicating that its rating remained under the “very good” range.

Based on the SWS net satisfaction ratings, those with 70+ and above are excellent; +50 to +69, “very good”; +30 to +49, “good”; +10 to +29, “moderate”, +9 to -9, “neutral”; -10 to -29, “poor”; -30 to -49, “bad”; -50 to -69, “very bad”; -70 and below, “execrable”. SWS considers the movement from one classification to another as either an “upgrade” or “downgrade”.

“The 10-point rise in the overall net satisfaction rating of the Senate was due to increases of 23 points in Mindanao, 10 points in Balance Luzon, 3 points in Metro Manila, and 1 point in the Visayas,” the polling group said.

For comparison, the Senate’s net satisfaction rating rose by one grade from good to very good in Mindanao, at +67 in December, up by 23 points from +44 in September.

It also rose by one grade from good to very good in Balance Luzon, at +54 in December, up by 10 points from +44 in September. Meanwhile, it stayed very good in the Visayas, at +53 (correctly rounded) in December, hardly moving from +52 in September. It also stayed good in Metro Manila, at +46 in December, up by 3 points from +43 in September.

Sought for comment, Senate President Aquilino L. Pimentel III said: “It’s a team/group effort. The majority is blessed to have hardworking members and also a reasonable and cooperative (not obstructionists) minority.”

HOUSE RATING
For its part, the House of Representatives logged a “good” rating, at +43 in December 2017, up by 9 points from +34 in September 2017.

SWS said the “9-point rise in the overall net satisfaction rating of the House of Representatives was due to increases of 14 points in Balance Luzon, 13 points in Mindanao, and 5 points in Metro Manila, combined with a 5-point decline in the Visayas.”

The net satisfaction rating of the House of Representatives rose by one grade from moderate to good in Balance Luzon, at +42 in December, up by 14 points from +28 in September. It rose by one grade from good to very good in Mindanao, at +52 in December, up by 13 points from +39 in September; and it also increased by one grade from moderate to good in Metro Manila, at +34 in December, up by 5 points from +29 in September. In the Visayas, it stayed good at +41 in December, although down by 5 points from +46 in September.

SUPREME COURT
The Supreme Court’s net satisfaction stayed good, at +37 in December 2017, up by 6 points from +31 in September 2017.

“The 6-point rise in the overall net satisfaction rating of the Supreme Court was due to increases of 8 points in Mindanao, 6 points in Balance Luzon, and 5 points in the Visayas, combined with a 1-point decline in Metro Manila,” SWS said.

SWS data also showed that the Supreme Court’s (SC) net satisfaction rating rose by one grade from good to very good in the Visayas, at +50 in December, up by 5 points from +45 in September, which also rose by one grade from moderate to good in Balance Luzon, at +35 in December, up by 6 points from +29 in September. It stayed good in Mindanao, at +41 in December, up by 8 points from +33 in September. SC’s net satisfaction also stayed moderate in Metro Manila, at +17 in December, hardly moving from +18 in September.

CABINET
Finally, the Cabinet also logged a “good” rating, at +38 in December 2017, up by 6 points from +32 in September 2017.

SWS explained that “the 6-point rise in the overall net satisfaction rating of the Cabinet was due to increases of 15 points in Mindanao, 8 points in Balance Luzon, and 3 points in Metro Manila, combined with a 7-point decline in the Visayas.”

The net satisfaction rating of the Cabinet rose by one grade from good to very good in Mindanao, at +52 in December, up by 15 points from +37 in September. It rose by one grade from moderate to good in Balance Luzon, at +35 in December, up by 8 points from +27 in September. It also increased by one grade from moderate to good in Metro Manila, at +31 in December, up by 3 points from +28 in September. It stayed good as well in the Visayas, at +32 (correctly rounded) in December, although down by 7 points from +39 in September. — Arjay L. Balinbin

AboitizPower unit prepays $320M loan

ABOITIZ Power Corp. (AboitizPower) on Friday said its subsidiary Therma Power, Inc. (TPI) has prepaid $320 million in loans to several banks.

AboitizPower said in a disclosure on Friday that TPI used internally generated funds to prepay the loan, which was part of a facility agreement dated Nov. 24, 2016 that allowed the company to borrow up to $650 million.

The facility agreement involved the following banks: The Bank of Tokyo-Mitsubishi UFJ, Ltd., DBS Bank Ltd., The Hongkong and Shanghai Banking Corporation Limited, Maybank Kim Eng Securities Pte. Ltd., Mizuho Bank, Ltd., and Standard Chartered Bank.

TPI had secured the loan to fund its investments totaling $1.2 billion in GNPower Coal Plant Ltd. Co. (GNPower Mariveles) and GNPower Dinginin Ltd. Co. (GNPower Dinginin), both of which operate plants in Bataan. The investments were indirectly made through United States-based Blackstone Group LP.

The acquisition placed TPI’s beneficial ownership interest in GNPower Mariveles at 66.1%, and 40% beneficial ownership interest in GNPower Dinginin.

GNPower Mariveles is a coal-fired power plant with a capacity of 604 megawatts, while GNPower Dinginin has two identical 668MW power blocks also powered by coal, for a total capacity of 1,336 MW.

The company finalized the transaction in December 2016, after securing the approval of both the Board of Investments and the Philippine Competition Commission.

AboitizPower noted the two Bataan plants would bring the company closer to meeting its target of 4,000 MW of installed capacity by 2020.

TPI is AboitizPower’s holding unit for its non-renewable power investments. The company also has interests in renewable power generating facilities. It is also one of the core businesses under Aboitiz Equity Ventures, Inc., which has subsidiaries and affiliates in financial services, food manufacturing, real estate, infrastructure, and portfolio investments.

AboitizPower booked P15.7 billion attributable profit in the first nine months of 2017, following a 29% increase in revenues to P92.9 billion during the period.

Shares in AboitizPower were up 10 centavos or 0.24% to P41.55 apiece on Friday. — Arra B. Francia