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PSE says Calata should have done more to protect investors

By Arra B. Francia, Reporter

THE Philippine Stock Exchange (PSE) said delisted firm Calata Corp. could have opted to buy back the shares of minority stockholders at a price lower than the book value, if it really wanted to protect its investors.

PSE President Ramon S. Monzon said there is no rule stating that all tender offers must be made at the book value, making it possible for Calata to buy out at least half of its minority shareholders.

“Nobody said that the tender offer price had to be at the book value. If he was sincere with trying to save your shareholder, if the book value is P3…then if you answer for half, then do it, if you really want to do it,” Mr. Monzon told reporters in a press chat last Wednesday.

A tender offer is at a fixed price, but usually at a premium over the current market price. It is also usually contingent on shareholders tendering a fixed number of their shares.

The bourse has officially kicked Calata out of the PSE last Dec. 11, after counting a total of 55 violations of PSE disclosure rules including the so-called black-out rule that prohibits principal officers and directors of a company to trade its shares within a prescribed period.

Some minority shareholders have previously asked the PSE to stop the delisting procedures in order to protect their investments.

Mr. Monzon denied the PSE did not consider the interests of minority shareholders, saying delisting Calata depended on the company’s decision on whether or not to proceed with the tender offer.

The PSE executive added Calata was given the option to voluntarily delist from the exchange.

“The PSE was prepared to voluntarily, not involuntarily, to just voluntary delist Calata if he would do the tender offer. Even though the penalty for his trading violations calls for involuntary, we were going to be flexible,” Mr. Monzon explained.

Companies that voluntarily delist from the PSE may reapply for listing six months after it exits the exchange. Those that undergo involuntary delisting procedures would have a five-year ban, while officers of the company are perpetually banned from joining the board of directors of a company seeking an initial public offering.

“So when he turned down our offer for a voluntary delisting, the delisting had to happen because of our rules. Otherwise, the SRC (Securities Regulation Code) will penalize us for not doing our work as an SRO (self-regulating organization),” Mr. Monzon said.

Asked whether the PSE will also be penalizing the brokers that executed the transaction that led to Calata’s violations, Mr. Monzon said: “I don’t think a broker is responsible for disclosure. That is the responsibility of the company or the compliance officer, but not the broker.”

“The broker is not required to disclose to the PSE or to CMIC (Capital Markets Integrity Corp.) or SEC how it has sold some shares. Kaya disclosure comes from the company, not the brokers,” he added, noting the CMIC is responsible for regulating trading participants.

Stocks slump anew on US tax reform concerns

THE BENCHMARK INDEX ended this week with a slump, tracking the general downturn of regional markets.

The 30-member Philippine Stock Exchange index (PSEi) dropped 1.46% or 124.02 points to close at 8,337.04 on Friday.

The broader all-shares index also shed 1.37% or 68.11 points to 4,870.43.

“Local market declined in line with the drop of most regional markets as it took cue from the retreat of US stocks on Thursday given the renewed concern that the tax reform legislation will be stalled again,” PCCI Securities Brokers Corp. Research Head Joseph James F. Lago said in an e-mail.

Friday’s performance saw a reversal of gains recorded earlier this week, as investors cheered the pending passage of the government’s tax reform program. The Tax Reform for Acceleration and Inclusion (TRAIN) bill ratified by both chambers of Congress is now up for enactment.

“Wednesday’s rally of the PSEi also seen as overdone in reaction to the passage of the first part of the country’s tax reform legislation, TRAIN, coupled with leading key valuations that are still higher than the region’s averages,” he added.

“Investors were also selling on the news as series of central bank meetings concluded for the year beginning the FOMC (Federal Open Market Committee) Wednesday night,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile phone message.

The Bangko Sentral ng Pilipinas also held its policy meeting on Thursday, choosing to keep interest rates steady throughout the year.

All sectoral indices moved to negative territory. The mining and oil sub-index saw the largest decline at 3.61% or 419.7 points to 11,181.86; followed by property, which ended 2.77% lower or 109.50 points at 3,833.28.

Holding firms dropped 1.65% or 141.48 points to 8,431.32; industrials lost 0.53% or 59.84 points to 11,127.42; services slipped 0.31% or 5.11 points to 1,694.03; and financials went down 0.15% or 3.45 points to 2,167.39.

Losers prevailed against gainers, 123 to 81, while 38 names were unchanged.

A total of 941.26 million issues valued at P10.73 billion changed hands, up from Thursday’s P7.62 billion.

Foreigners maintained a net selling position of P1.09 billion, a reversal of the previous session’s net purchases worth P1.06 billion. — Arra B. Francia

The leader of OLX Philippines’ anti‑fraud team is a woman

Since time immemorial, men have been the so‑called “protectors.” Women were relegated as “nurturers.” It’s a belief that’s been programmed into males and females since the day they were born, inevitably shaping the types of occupation they take on when they come of age. Taxing, physical work? Give it to the men. More caring, gentle work? That goes to the women.

But in this day and age, do these gender roles still matter?

At OLX Philippines, one of the biggest players in the online marketplace industry today, the herculean task of being the protector goes to a woman.

Marian Soria, a 33‑year‑old industrial engineer, is in charge of leading the anti‑fraud team of OLX Philippines, which records 32 million visits and 7.3 million listings every month.

At time where technology is changing the ways of selling and buying, more Filipinos participate in online transactions, making her job increasingly challenging.

“OLX is very particular on trust and safety of all users. I lead a dedicated group that takes care of fraud prevention, so in the customer support group, we have like 30 people working on fraud prevention,” Soria told SparkUpin an interview.

The 33‑year‑old established her credentials working in the tech industry for already about a decade. Her previous works include leading a team of fraud prevention analysts for Card Services of JPMorgan Chase Bank & Co.

“In any company fraud prevention or trust and safety are always important. It’s good that OLX is really concentrating on that one,” she added.

Being at the helm of the team, Soria is in charge of supervising the group in analysing more than 4,000 accounts every week.

“When we study those accounts we feed our findings into the system then looks for patterns, then we feed them into a predictive model that translates into an algorithm. That’s how we detect fraud,” she explained.

Since OLX Philippines created the team, Soria said the number of fraud incidents reported through the platform dropped by 73%.

“It’s really a success that we have this team analyzing, doing predictive model that could be fraud. Before we just have a dedicated person working on anti‑fraud campaign, but we beefed up on creating a dedicated team for that, and everyone is supporting fraud prevention for our whole customer support group,” she said.

For Soria, there are three key steps to protect users in their online transactions: educating, monitoring, and post‑auditing.

“Remember we’re online classifieds, we don’t hold their money or the items, so we want to build that community where sellers and buyers know each other. We want everyone to have that win‑win transactions, and for you to have that win‑win transaction you have to know your sellers and buyers,” she said.

 

Women in tech

Aside from implementing measures to detect and prevent fraud and other forms of online scams through the platform, Soria, a mother of two, is also up for the challenge of proving that women have a spot in the tech industry.

“At OLX, we value diversity, so when a company values diversity it creates better decisions and it becomes more creative. It creates balance,” she said. “We don’t feel any discrimination because our values is being very open and building on each other.”

Of her closest, nuclear tea of five members, three are women.

“We have to break that mentality that tech industry is male‑dominated,” she said. “When you increase the number of women in a tech company, that’s the time that you also increase mentoring, networking, and role modelling.”

“For women, it’s a matter of finding the right company that gives value to your belief that you can break into this industry.”

A Christmas like no other

Christmas celebration in the Philippines is known as the longest and merriest in the world. As September kicks in, Christmas carols and decors are already heard and assembled in malls and households until the Feast of Epiphany or Three Kings on Jan. 6.

The Christian roots and beliefs of Filipinos, together with the influences of western countries, have fascinatingly mixed with the local traditions, and have resulted to unique and exceptional festive. From get-together to meaningful masses at the church, the spirit of Christmas, which is a celebration of love and thanksgiving, is sincerely observed throughout the archipelago.

Aside from gigantic Christmas trees and gleaming lights in the streets and malls, unique Filipino decorations such as “parol” and “belen” add excitement to the much-awaited season.

“Parol” is a five-point, star-shaped Christmas lantern made from bamboo strips, colored with a Japanese paper or cellophane paper, and illuminated with candle or “kalburo”. This iconic Filipino Christmas lantern is as important as the Christmas tree of the Western countries because hanging “parol” outside the house represents the star of Bethlehem that guided the three wise men to the manger of the newly born Jesus Christ.

Initially, “parol” is made to light up the way of Filipinos who go to church for the “Simbang Gabi”. Instead of putting the lanterns away, people bring and hang them outside their houses. As years went by, the Filipino lantern evolved into something brighter and creative. “Parol” made from various shapes were invented, and “parol” made from capiz shells and colorful lights became popular. Schools and communities across the country hold “parol-making” contests to make the season more exciting and to see who can make the best-looking “parol”. In the city of San Fernando, Pampanga, a Giant Lantern Festival is held every year, where giant and stunning stars are presented and lit up on the streets.

Another traditional Filipino Christmas symbol is the “belen”. It is a tableau representing the nativity scene or the birth of Jesus Christ. “Belen” was introduced in the Philippines by the Spanish Franciscans during the colonial period. Normally, it is a manger surrounded by the Virgin Mary, St. Joseph, the shepherds, their flock, the Three Kings and some animals and angels. It can be seen in churches, homes, schools and office buildings, in which different materials are used to come up with meaningful and beautiful display.

Before the actual Christmas day, various traditions and practices are observed in the country. Christmas parties are organized in offices, schools and communities in the second to third weeks of December. Different contests and parlor games are held, but the much awaited part is the exchanging of gifts.

In the Philippines, a unique form of exchange gift is called “Monito-Monita”. Days before the party, participants’ names, together with their wish or preferred gift, are written in a paper and draw to every participant. To make it more exciting, the name of a person’s “Monito” or “Monita” shall be kept secret until the revelation day. As part of the tradition, some groups agree to give their “Monito” or “Monita” a small gift every day or every week, depending on the category or theme.

“Simbang Gabi” or “Misa de Gallo” is also practiced by Filipinos. It is a nine-day series of masses from Dec. 16 to 24 to honor the Blessed Virgin Mary. Many Filipinos aim to complete the “Simbang Gabi” in the hope of having their wish granted. The tradition was introduced by the Spanish friars to primarily allow farmers to attend the mass before working in the fields.

After attending the “Simbang Gabi”, it has been part of the Filipino tradition to buy and eat native delicacies such as “puto bumbong” and “bibingka”, sold outside the churches.

“Puto bumbong” is traditionally made from a special variety of heirloom sticky or glutinous rice called “Pirurutong”, which has a distinctly purple color. After it is soaked in salted water and dried overnight, it is poured into bamboo tubes and steamed until done. To make it more appetizing, it is served with sugar, cheese and condensed milk.

On the other hand, “bibingka” is a round rice cake made with rice flour and coconut milk, baked in a clay oven with the coals underneath and on top. It is topped with cheese and egg or salted egg, and brushed with butter.

Dec. 16 also marks the start of caroling, where a group of people, usually kids, together with their instruments such as drums, guitar and tambourine, sing Christmas songs to every houses they visit. In return, the homeowners rewarded the carolers with money or present. Today, caroling has become a fund-raising activity by some groups to generate fund for their Christmas party or for a special cause. Although caroling officially starts on Dec. 16 to 24, Christmas songs, especially Jose Mari Chan classics, are played in shopping malls and on the radio as early as September.

On Christmas Eve, another unique Filipinos tradition called “panunuluyan” is observed. It is a dramatization of the search for Bethlehem by Joseph and Mary right before the birth of Jesus Christ, which is staged in many towns, cities, and provinces of the country. The “panunuluyan” procession commences with the images of St. Joseph and the Virgin Mary being wheeled out on floats out of the church at around 7 p.m. The ritual is completed in reenactments, seasonal hymns, prayers, fellowship and a reflection on the Christian’s journey towards salvation.

Many people stay up late to welcome the most important day of the season, the Christmas day. After hearing the last mass or the Christmas Eve mass from the church, family members, friends and neighbors dine together for a feast called Noche Buena. During the grand dinner, native and foreign cuisines such as roasted pig, pancit, ham, rice cakes and queso de bola are served. Noche Buena has been the tradition of many Filipinos to wish everyone a merry Christmas.

Amidst the grand celebration, the true essence of Christmas remains at the heart of Filipinos. A lot of ways are practiced by Filipinos to express their love and gratitude. On the actual day, children often wear their finest clothes when visiting their relatives and godparents, and observe the Filipino tradition of “pagmamano” as an act of respect to elders. Most of the time, the children are rewarded with “aguinaldo” or gifts like toys or money. The act of gift giving is extended until the first day of the new year. — Mark Louis F. Ferrolino

Celebrate the holidays at these fine hotels

Hotels are making the Christmas season even more Christmassy with their awesome deals, discounts and treats, some of which are listed below. But hurry up, these festive offerings are for the taking for a limited period of time.

The Peninsula Manila in Makati City is holding a “Pen Days of Christmas” promo. For a minimum of P12,400 per night in a deluxe room, one gets the following additional benefits in return: buffet breakfast for two adults and two children under the age of 12 at the Escolta restaurant; complimentary Peninsula Santa hamper (one per stay); 20% savings off at the hotel’s food and beverage outlets (except at Escolta on Christmas eve); a special Christmas gift (one per stay, to be received either on Christmas eve or Christmas Day); complimentary shuttle service to nearby malls; complimentary use of the hotel’s fitness center, spa facilities and swimming pool; and complimentary Wi-Fi connection and local city phone calls. This promo is valid only until Jan. 10, 2018 (except from Dec. 29 to 31, 2017). Those who will book a suite can avail themselves of a 50% savings on a second room — superior room to grand deluxe room categories.

At the Shangri-La at the Fort, in Bonifacio Global City, booking a holiday staycation can save one as much as 10% on the best available room rate; the price starts at P8,550 per night. Besides the discount, an individual or family staycationing for the holidays are allowed the use of the gym at Kerry Sports Manila and outdoor swimming pools, as well as access to wired and wireless Internet services. The offer is valid from until Jan. 7, 2018, except on Dec. 24 and 31, 2017. Reservations can be made until Jan. 7, too. But if a family happens to be staying at the hotel on Christmas eve, its members cannot miss the delectable five-course dinner, which includes a glass of Imperial Piscine. The dinner is priced at P4,500 net per person. The following morning, on Christmas day, they can avail themselves of a four-course brunch, which costs P3,500 net per person and is going to be prepared by Nathan Griffin, chef de cuisine of the Raging Bull Chophouse & Bar.

Since Dec. 1, Hotel Jen Manila in the capital has started accommodating people who have availed themselves of the hotel’s holiday special offer — a stay at its deluxe room, and its attendant benefits, which include a buffet breakfast for two persons at the Latitude restaurant, a 20% discount on either lunch or dinner at the same restaurant, a complimentary shuttle to SM Mall of Asia (one of the largest shopping centers in Asia) and late check-out, until 3 p.m. The promo will last until Jan. 31, 2018. It will not be in effect on Dec. 31, 2017, though. But one can take advantage of a different but no less exciting promo: Countdown to 2018 at Windows by the Bay. That celebration includes unlimited cocktails and light bites, a glass of sparkling wine for toasting and music from a guest DJ. Registration will start at 10 p.m.

For the holiday season, Marriott Hotel Manila in Pasay City is offering a holiday room package, which starts at P12,888. This includes a nice mix of delights: premium room accommodation at the new West Wing; P3,000-worth of food and beverage credits per night of stay that may be used in any food and beverage outlet (Marriott Café, Cru Steakhouse, Man Ho, in-room dining, Still, Gourmet Express and Great Room); P1,500-worth of Christmas Train credits per night of stay; and a special nightly holiday turndown amenity. It is only valid until December 30, 2017, and one is required to use the promotional code H09 when making an online reservation. There is a special offer for members of Marriott Rewards, which is valid until Dec. 30. For every night of their stay in a deluxe suite at the West Wing of the hotel, they earn 2,000 bonus points. The required promotional code is M12.

Discovery Primea in Makati City is knocking 15% off the best rates for its Business Flats and Business Suites, and 20% off its Executive and Primea Suite throughout the holidays. In addition, guests checking in get to enjoy 20% off all food and beverage consumption, even a complimentary use of the hotel’s handy smartphones during their stay. The offer will last until Jan. 14, 2018, and when booking, use the promo code PXMAS. While staying at Discovery Primea, try the splendid Italian, French and Spanish cuisines at Restaurant Tapenade on Christmas eve, Christmas Day and New Year’s eve. If that is not enough, there is another restaurant at the luxury hotel, FLAME, where the executive chef Luis Chikiamco and his team prepare and serve multi-course meals that are playful, ambitious and sublime. Afterward, one can head to Terazi Spa for a 90-minute relaxing massage, which also entitles guests to a complimentary voucher for a full-body scrub.

Last-minute guide to choosing the best gifts

It’s that time of the year again. Christmas is approaching fast. Whether you celebrate the holiday or not matters little; it’s the season of giving and love. Everyone deserves something special this Christmastime, and what better way to show how much you care about your loved ones than by giving them the perfect gift?

If you still don’t know what to give them, or are still looking, don’t fret! It’s not too late. Ditch the picture frames and mugs, because we’ve made a list of gift ideas perfect for your loved ones, friends, and colleagues, regardless of their personalities.

For anyone: Books

Take a trip to any major bookstore and you can almost always find something that someone will be interested in. Do you have any friends who are into photography? Why not get them a manual that can help them take better shots, or even a book filled with the work of their favorite photographer?

If you have any religious relatives, you can head over to the Religion section and buy them a copy of Pope John Paul’s biography, or even a simple Christian devotional like Our Daily Bread. Otherwise, you can just look up the Fiction best-sellers, pick one and giftwrap it for your Christmas party.

Better yet, order your books online. Most major bookstores in the Philippines now offer delivery services on their Web sites for maximum convenience.

For office workers: A cotton or fleece jacket

For Filipinos who have lived and grown up in the Philippines, where temperatures can reach up to a blistering 36 degrees centigrade, it can be quite an unnecessary expense to buy a thick jacket for warmth. It used to be simply way too hot to be of any use anywhere outside Baguio.

But with the continuing rise of the business process outsourcing industry, more and more Filipinos have the opportunity to work in airconditioned offices, where more often than not the temperatures can get more than a little freezing. Most offices don’t allow the thermostat to be touched at all, making it imperative to have something to keep you warm. Your officemates can do far worse than have a new jacket to let them be more comfortable at work.

For everyone: Umbrellas

The hot climate is only half of the experience of living in the Philippines. The other half involves the difficult, often brutal, rainy season. Anyone who has lived in the country for more than a year can agree that commuting under the pounding rain and buffeting winds is a miserable experience. One cannot have too many umbrellas here. Most people would benefit from having spare umbrellas at home for the possibility of theirs getting lost, broken, or stolen.

For people you don’t know that well: Socks

Boring? Maybe. Useful? Definitely. Socks are often ridiculed and stigmatized as being an unattractive, disappointing gift, but no one can deny their significance to daily life. A good pair of socks can last years if well taken care of (there’s very little chance for any adult to outgrow them), and a really comfortable pair can provide a huge improvement to quality of life. They can come in various designs and colors as well, giving a layer of customizability and personality to the wearer.

Will it make your Secret Santa excited and awed? Maybe not. Should you give socks as a gift for the holiday? If you seriously don’t have an idea what to give as a gift, why not? They’re way better than picture frames.

For travelers: A passport bag

Your passport is the single most important object you bring with you when you go abroad. It serves as your identification, and your way back home. Losing a passport in a foreign nation is a heap of trouble that no one deserves to go through.

A passport bag, a wearable one preferably, can do a lot to ease the stresses of traveling. As long as you keep the bag on your person, you never need to worry about losing anything valuable. The only caveat to giving this as a gift is that your recipient may already have one. Be sure to check before buying.

For the ambitious: Colognes or perfumes

Among the list of things that can improve your standing as a professional is how you look and carry yourself. Hygiene, clothes, and confidence can make all the difference between getting a boost in your career, or getting stuck at a dead-end. How you smell can play a part in that. While you can’t really give away confidence or good hygiene, you can provide your friends and loved ones a subtle improvement to their self-image.

For friends and family who tell you they don’t want anything: Time

Through the shopping rush and mad scramble for gifts, there are those who acknowledge the stress and difficulties of the season. They are the ones who insist they don’t need nor want anything, and would much rather stay at home rather than join the throngs of people celebrating the holidays at the mall. These types of people are perhaps the most challenging ones to find a gift for, so it’s probably best to stop trying to look for one.

Rather, just spend time with them. Talk with them, make them feel appreciated, and celebrate the holiday discovering the true meaning of the season. Plus it’s free. — Bjorn Biel M. Beltran

Attack of the Nerds

By Joseph L. Garcia

I hid the best way I thought I could, but the bright lights on my black clothing betrayed my location. A girl on my side had been shot in the face, and she raised her hands in surrender. Taking a deep breath, I jumped up from my hiding place and shot, and shot, and shot — one bullet after another. A bullet from another marksman explodes on contact on my chest, and I knew it. In my short life, I felt a blaze of joy and exhilaration from the knowledge that I fought for something, but now I was dead. Which meant I had to raise my hands, jog out of the arena, and come back to life, unscathed: ready for another round. This was one of the games offered in Attack Arena, a large building in Quezon City that serves as a combat gym of sorts. There’s the shooting activity I enjoyed — no real bullets, they’re all made of gel; Forge Martial Fitness, an activity teaching the principles of medieval swordplay; and Archery Attack (a concept imported as a franchise from Australia), characterized by realistic archery fights — no forms and bull’s-eye targets here, your target is your moving opponent.

Foam-tipped arrows whizzed around to the tune of epic battle music (Think the “Duel of the Fates” from Star Wars) as BusinessWorld interviewed Ralph Lao, general manager of Attack Arena.

“The people who play here are nerds! They’re geeks and nerds!” declared Mr. Lao. He was good-looking, but yes, he wore glasses, and had an enthusiasm that was just so… uncool.

It wasn’t always easy to be a geek (geeks are experts at obscure areas of knowledge; nerds are academic intellectuals — both worlds may intersect). Before the culture was glamorized by shows such as The IT Crowd and The Big Bang Theory, it was characterized by loneliness, knowing that for miles around, you were the only one who cared about, oh, The Lord of The Rings, or Star Trek, or comics. While the winners of the genetic lottery, the popular kids, talked about sports, and cars, and parties, geek boys and girls had to content themselves with small, secret gatherings where they discussed their favorite shows or played Dungeons and Dragons. Of course, it’s different now: the popular kids are now well-aware of who the X-Men are, and it’s the geeks who have unbelievable powers in the highest bounds of industry.

Mr. Lao sat at the side of the arena as he watched a group of kids duke it out in the arena, while another one in glasses admired a shield. “Most of them that start out are not very athletic people,” he noted. “It’s kind of like video games, but you really get to do it in real life.”

Mr. Lao discussed what his arena is all about: “Really having fun interactions, and really having fun in a physical way. Away from digital play.

“I become a space, literally, for them to hang out, to have fun,” he said. “I really had plans to develop new recreational activities to bring people together.”

Gyms can be unfriendly, and the rigorous, controlled workouts are a bit of a block to the wide creative worlds living inside the mind of the geek. “Pain is always a hindrance to making new friends. But pain — we make it here as a way to make friends.”

Movies may make the stereotype that geeks are often separated and ostracized from the rest of the crowd. What this ignores is that geek-dom is still a form of social organization, and organizations are marked by collecting those who are similar, and excluding those who are different. The tables have turned, and with the mainstreaming of geek culture, geeks now own the popular table. “We don’t want the asshole, the die-hards to be part of the community early on. It creates a bad image for everyone,” said Mr. Lao, discussing die-hard geeks and nerds who would exclude people from groups for a lack of knowledge on a certain subject, or for not adhering to certain codes of conduct.

SWORD PLAY
Ijohn Kaw, the arena’s weapons dealer (foam swords and toy guns), owns two stores at UP Town Center and Ayala Malls The 30th that are just filled with geek toys, like swords used by anime and movies characters. His clients, he says, are mostly dads, and not their kids.

“My passion was video games,” he said — maybe that marks him as a geek too. “Glee,” he said, when asked how he felt when he holds in his hands a weapon from Lord of The Rings or some anime. He told me he had something that would knock my socks off: and he presented me with a sword used by She-Ra, He-Man’s sister. The glee I expressed marks me now as one of them. “People get a high seeing their [favorite] items brought to life,” he said.

A student at Forge Martial Fitness, the swordplay classes in Attack Arena, showed up to an interview with BusinessWorld carrying his sword. Marc Ferdinand Castaneda showed up wearing glasses, unstyled hair rising up in spikes, a brush of facial hair, and a reasonably firm physique because of his swordfighting activities. Asked when and why he carries his sword, he said he didn’t carry it on most days: just usual days. “When I’m just walking around, and just thinking.”

He owns two swords, a metal one that he had forged, weighing about 2.8 lbs, and a plastic sword at about 2 lbs., which he bought in, of all places, Cash and Carry.

Mr. Castaneda is training under the straightforward and efficient German school of longsword, as opposed to, for example, the more florid Italian style. “It’s more like a fantasy for me, really. I’ve always had this fascination for knights, for the Medieval times.”

His first brushes with Medieval fantasy include of course, the legends of King Arthur in Camelot, and the movie Robin Hood: Men in Tights.

While his current training benefits him physically with the goal of improving his arms, legs, core, and extending his endurance, he speaks about the emotional benefits of his training. “I’m an overthinker. I tend to think too much,” he said. To him, logic must rule over all his decisions.

“There are always things that will be beyond logic,” said Mr. Castaneda, a writer for a media network. “They won’t always make sense, but they feel right. The level of swordplay allows me to tap into this: a more primal way of thinking, that isn’t necessarily thinking.”

“Emotionally, it’s a release. It releases a lot of pent-up stress, anxiety: because it focuses on you and something else instead of your problems,” said Mr. Lao about the activities his arena offers. “It’s bridging the gap from where it’s not cool to dress up or play-act characters from your fantasies.”

Q3 FDI pledges end 4 quarters of decline

By Arianne Kristel R. Pelagio

FOREIGN direct investment (FDI) commitments rose in the third quarter, partially recovering from four straight quarters of decline.

Preliminary Philippine Statistics Authority (PSA) data show that approved FDI pledges — which are commitments until capital actually flows in — registered with the country’s seven investment promotion agencies (IPAs) grew 61.1% year-on-year to P43.018 billion in the third quarter from P26.711 billion a year ago.

Combined investment pledges by both foreigners and Filipino nationals totalled P274.368 billion, 105.1% more than the year-ago’s P133.787 billion.

IPAs are government agencies that by law are authorized to grant tax and non-tax incentives to investors putting up businesses or expanding existing ones in priority sectors. The seven IPAs are the Board of Investments (BoI), Clark Development Corp. (CDC), Philippine Economic Zone Authority (PEZA), Subic Bay Metropolitan Authority (SBMA), Authority of the Freeport Area of Bataan (AFAB), BoI-Autonomous Region in Muslim Mindanao (BoI-ARMM) and Cagayan Economic Zone Authority (CEZA).

The three months to September saw PEZA contributing the most to FDI pledges at 79.2% with P34.052 billion, up fivefold from last year’s P6.374 billion.

This is followed by the BoI with a 16.3% share at P7.014 billion, though 64.4% less than a year ago.

Rounding the rest of the IPAs were CDC’s P1.064 billion with a 2.5% share, BoI-ARMM’s P690 million (1.6% share), AFAB’s P142.194 million (0.3%), SBMA’s P51.138 million (0.1%) and CEZA’s P4.95 million (0.01%).

Foreign investment pledges from CDC and AFAB in the third quarter saw significant increases from their 2016 figures of P79.418 million and P7.004 million, respectively.

On the other hand, foreign investment commitments to SBMA and CEZA were both down 90.4% and 77.9% year-on-year, while previous data from BoI-ARMM were not available.

Actual net FDI inflows in the third quarter — tracked separately by the central bank — climbed 35.8% year-on-year to $2.264 billion from $1.667 billion. That brought nine-month net FDI inflows to $5.839 billion, still down 0.2% from the past year.

Economists attribute the investment inflows to the country’s bright overall economic prospects.

“The latest foreign investments report provides evidence of investors’ continued confidence in the Philippines’ growth story, which is primarily fueled by the country’s growing middle class and young population,” said Guian Angelo S. Dumalagan, market economist at the Land Bank of the Philippines (Landbank).

This view is shared by Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines (UnionBank), who said that the factor for this surge “has always been the strength, resiliency and robustness of Philippine economic growth in the last decade or more.”

“Note that there is a momentum that is building up in favor of increasing infrastructure spending and important structural reforms that support investment growth through sustained and increasing government spending, particularly on infrastructure, education, and other social services,” he said.

By industry, manufacturing continued to make up bulk of the foreign investment pledges with a 58.2% share of the total at P25.053 billion, 395% higher than the past year’s P5.061 billion. Real estate activities followed with a 23.5% share or P10.097 billion while administrative and support service activities came third with 6.7% or P2.861 billion, a 25.9% increase from P2.273 billion a year ago.

Meanwhile, investment pledges in information and communication technology was P1.186 billion, 356.3% more than P259.9 million previously.

The other industries with foreign investment pledges during the quarter were, in order of magnitude: electricity, gas, steam and air conditioning supply; accommodation and food service activities; construction; wholesale and retail trade, repair of motor vehicles and motorcycles; financial and insurance activities; agriculture, forestry and fishing; transportation and storage; arts, entertainment and recreation; professional, scientific and technical activities; other service activities; and education.

Japan was the biggest source of investment commitments in the third quarter with P21.374 billion, increasing 784.2% year-on-year and accounting for 49.7% of the total for that period. It was followed by Taiwan and Australia, pledging P8.852 billion (20.6% share) and P2.763 billion (6.4% share).

CALABARZON — the region immediately south of Metro Manila that consists of Cavite, Laguna, Batangas, Rizal and Quezon — got the most FDI commitments in the third quarter at 50.4% of the total at P21.699 billion. This was 691.9% bigger than the amounts recorded in 2016’s comparable three months. “The fact that majority of foreign investments are focused in CALABARZON is a positive sign, as it suggests that growth is branching outside of the National Capital Region — a trend which is supportive of inclusive growth,” Landbank’s Mr. Dumalagan noted.

Economists remained positive on foreign investment commitments in the months ahead.

UnionBank’s Mr. Asuncion said he expects “year-end level for FDI” pledges to exceed last year’s total. “The Philippines has been at the top of mind of various sophisticated investors. In the first half of the year, investment inflows were rather soft, but I still expect 2017 to top the investment level last year,” he said.

For Landbank’s Mr. Dumalagan: “Moving forward, foreign investments might remain strong, especially if the government is able to roll out its ambitious infrastructure projects, which are expected to improve the country’s productive capacity and consumer spending.”

Q3 FDI pledges end 4 quarters of decline

Star Wars: The Last Jedi mostly finds its force with critics

LOS ANGELES — Star Wars: The Last Jedi won warm reviews from most critics on Tuesday, a day before the latest installment in the sci-fi saga began hitting movie theaters worldwide in what is projected to be the biggest-grossing movie of 2017.

The Walt Disney Co. movie received four or five stars from most reviewers, along with praise for its energy and emotion. The Last Jedi scored a 94% “fresh” rating on aggregator site RottenTomatoes.com.

The film, arriving in movie theaters from Dec. 13, picks up from 2015’s Star Wars: The Force Awakens, which took in more than $2 billion at the global box office to become the third-biggest-grossing movie of all time.

Written and directed by Rian Johnson, The Last Jedi kicks off with the Resistance fighting Supreme Leader Snoke’s First Order, which is trying to take control of the galaxy.

The movie features the final appearance of Carrie Fisher, who plays the franchise’s Princess Leia. The actress died at age 60 last December, weeks after completing filming.

Numerous critics including The Hollywood Reporter felt that at 2-1/2 hours, the movie’s run time was a little too long. But the Hollywood Reporter added, “there’s a pervasive freshness and enthusiasm to Johnson’s approach that keeps the film, and with it the franchise, alive, and that is no doubt what matters most.”

The London Times newspaper deemed it the best Star Wars movie yet, calling it a “film of wit and wonder, of eye-gouging visual spectacle, and one that is buttressed by entirely unexpected, and frequently devastating, emotional power.”

Entertainment Weekly said The Last Jedi was a “triumph with flaws,” while USA Today said it was “a stellar entry” in the Star Wars franchise.

The Washington Post praised the film’s “irreverent humor and worshipful love for the original text.”

Variety was among a handful of less enthusiastic reviews, calling the film “ultimately a disappointment.” CNN said Last Jedi felt “like a significant letdown, one that does far less than its predecessor to stoke enthusiasm for the next leg in the trilogy.”

Before the reviews were out, Boxoffice.com projected that Last Jedi would haul in $185 million to $215 million in North America in its first weekend, which would rank as one of the biggest film debuts in history.

Disney said in November that Johnson will oversee a new trilogy of Star Wars films that will not follow the Skywalker saga, which George Lucas kicked off in 1977. — Reuters

BSP steadies policy until at least Feb., maintains inflation forecasts

By Melissa Luz T. Lopez
Senior Reporter

THE BANGKO SENTRAL ng Pilipinas (BSP) held fire on monetary policy yesterday as inflation remains within target and with economic growth remaining upbeat, which came despite a fresh rate hike in the United States that would trigger rising global yields.

As expected, the Monetary Board kept borrowing rates unchanged during its eighth and final policy review for 2017.

Rates stayed at 3.5% for the overnight lending rate, 3.0% for the overnight reverse repurchase rate, and 2.5% for overnight deposit.

The BSP will hold its next monetary policy review on Feb. 8, 2018.

The central bank last hiked key rates in September 2014, although procedural cuts were introduced in June 2016 for the shift to an interest rate corridor scheme.

“The Monetary Board’s decision is based on its assessment that the outlook for the inflation environment has been broadly unchanged,” BSP Governor Nestor A. Espenilla, Jr. said in a statement, adding that domestic economic activity has remained firm.

Inflation averaged 3.2% in the 11 months to November, with last month’s 3.3% pace reflecting the first slowdown in five months.

The 11-month average also settled within the 2-4% target range set by the central bank and matches the BSP’s forecast for 2017.

The BSP’s decision followed a third rate increase for 2017 introduced by the US Federal Reserve during its two-day review ending Wednesday that has long been factored in by markets amid the US’ slow but steady economic recovery. US monetary policy makers increased rates by another 25 basis points at the end of their Dec. 12-13 review. Fed officials also maintained their estimate of three more interest rate increases in 2018 and 2019.

Central bank officials have said that they need not move in sync with the Fed, as they focus more on domestic developments in setting interest rates.

“[T]here’s hardly any need to tighten monetary policy. We are saying this because the so-called overheating concerns due to high credit growth is at least misplaced. The economy continues to grow and an economy that is growing needs robust provision of domestic credit,” BSP Deputy Governor Diwa C. Guinigundo said in a briefing yesterday.

The BSP also kept the 20% reserve requirement ratio (RRR) on Thursday, but pointed out that it remains to be a “medium-term commitment” of the monetary authority.

“Until such time we are prepared to ease monetary policy and if the capital markets are sufficiently developed… that should usher in the proper environment for considering the possible reduction in the reserve requirement,” Mr. Guinigundo said.

Economists tapped in a BusinessWorld poll said an RRR cut may be introduced next year.

UBS economist Alice Fulwood said in a conference call yesterday that the BSP will likely hike policy rates three times in the second semester of 2018, in order to apply the brakes on inflation.

Capital Economics said the BSP may have room to keep rate adjustments on hold even all through 2018, and dismissed fears about double-digit bank lending growth as this merely supports additional production activities.

“[W]e believe next year will be more momentous,” HSBC Global Research said separately, noting that “market demand for liquidity continued to lift TDF (term deposit facility) rates and inflationary risks for 2018 are tilted to the upside.”

“We expect a 100bp cut to the RRR in 1Q18 to inject liquidity and fulfill policy objectives, and a 25bp policy rate hike in 2Q to limit inflationary risks,” HSBC Global Research economist Noelan Arbis said in a note.

“We do agree with the BSP that overheating concerns are misplaced, which is why we do not expect another rate hike until 3Q19 if one were to happen in 2Q18.”

INFLATION STEADY
The BSP also maintained inflation forecasts until 2019, even as overall price hikes are likely to pick up amid rising oil costs and the tax reform program that will be implemented starting January.

The BSP kept its annual inflation estimates at 3.2% this year, 3.4% next year and 3.2% in 2019.

Mr. Guinigundo said oil prices of up to $65 per barrel “would not be enough to upset” inflation to go beyond four percent.

Higher levies from the tax reform program that Congress ratified last Wednesday are also expected to prod price hikes further, even as the impact should be “transitory.” Resulting added revenues will spur economic output by supporting infrastructure projects.

Fed raises interest rates, leaves outlook unchanged

WASHINGTON — The Federal Reserve raised interest rates on Wednesday but left its rate outlook for the coming years unchanged even as policy makers projected a short-term jump in US economic growth from the Trump administration’s proposed tax cuts.

In an early verdict on the tax overhaul, Fed policy makers judged it would boost the economy next year but leave no lasting impact, with the long-run potential growth rate stalled at 1.8%. The White House has frequently said its tax plan would produce annual GDP growth of 3-4%.

The expected fiscal stimulus, coming on the heels of relatively bullish data, cleared the way for the US central bank to raise rates by a quarter of a percentage point to a range of 1.25% to 1.50%. It was the third rate hike this year.

But the Fed’s forecast of three additional rate increases in 2018 and 2019 was unchanged from its projections in September, a sign the tax legislation moving through Congress would have a modest, possibly fleeting, effect.

The rate increase represented a victory for a central bank that has struggled at times to deliver on its promised pace of monetary tightening. It also allowed Fed Chair Janet Yellen, at her final press conference before her term ends in February, to signal an all-clear for the US economy a decade after the onset of the 2007-2009 recession. “At the moment, the US economy is performing well. The growth that we’re seeing, it’s not based on, for example, an unsustainable buildup of debt… The global economy is doing well, we’re in a synchronized expansion,” Ms. Yellen said. — Reuters

“There is less to lose sleep about now than has been true for quite some time, so I feel good about the economic outlook.”

But the central bank’s projections also contained some potential dilemmas for incoming Fed chief Jerome Powell.

The Fed now envisions a burst of growth, ultra-low unemployment of below four percent in 2018 and 2019 and continued low interest rates — yet little movement on inflation. Ms. Yellen said the persistent shortfall of inflation from the Fed’s two percent goal was the major piece of “undone work” she was leaving for Mr. Powell to figure out.

In its justification for Wednesday’s rate increase, which was widely expected by financial markets, the Fed’s policy-setting committee cited “solid” economic growth and job gains.

US stocks extended gains after the release of the policy statement before ending mixed, while Treasury yields dropped. The dollar fell against a basket of currencies.

Traders of US short-term interest rate futures kept bets the Fed would raise rates only twice next year.

The Fed now sees gross domestic product growing 2.5% in 2018, up from the 2.1% forecast in September. The pace of growth is expected to cool to 2.1% in 2019, slightly higher than the prior forecast of 2.0%.

“Changes in tax policy will likely provide some lift to economic activity in coming years,” Ms. Yellen said, adding that “the magnitude and timing of the macroeconomic effects of any tax package remain uncertain.”

The impact would “mainly” work to raise aggregate demand as households and companies have more money to spend, Ms. Yellen said, with “some potential” to raise investment and the economy’s longer-term growth.

The Fed also said on Wednesday it expected the nation’s unemployment rate would fall to 3.9% next year and remain at that level in 2019, well below what is considered to be full employment.

It previously had forecast a jobless rate of 4.1% for those two years.

But inflation is projected to remain shy of the central bank’s goal for another year, with weakness on that front still enough of a concern that policy makers saw no reason to accelerate the expected pace of rate increases.

“It shows at least some members of the Fed don’t see any reason to keep hiking rates in an environment where the economy is growing more strongly but certainly not overheating and where inflation hasn’t become a problem and doesn’t look like it is going to be one,” said Kate Warne, investment strategist at Edward Jones.

Policy makers do see the federal funds rate rising to 3.1% in 2020, slightly above the 2.8% “neutral” rate they expect to maintain in the long run. That indicates possible concerns about a rise in inflation pressures over time Chicago Fed President Charles Evans and Minneapolis Fed President Neel Kashkari dissented in the policy statement on Wednesday. — Reuters

GMR-Megawide submits lowest offer to upgrade Clark airport

By Patrizia Paola C. Marcelo,
Reporter

THE consortium of Megawide Construction Corp. and Bangalore-based GMR Infrastructure Ltd. has submitted the lowest-cost offer to upgrade the Clark International Airport (CIA), according to the Bases Conversion and Development Authority (BCDA).

The BCDA opened on Thursday the financial bids for the Clark International Airport (CIA) Phase I terminal upgrade, showing the GMR-Megawide consortium submitted the lowest offer at P9.36 billion. This was 25% lower than government’s set ceiling of P12.5 billion for the new airport terminal building.

“They (GMR-Megawide) are the lowest rated bid right now, but we are going to make sure they are responsive as well,” Joshua M. Bingcang, BCDA vice-president and chairman of the Special Bids and Awards Committee (SBAC), told reporters.

Sinohydro Corp. made the second lowest bid at P10.68 billion, followed by China Harbour Engineering Company Ltd. (P11.73 billion), China State Construction Engineering Corp. Ltd. (P12.3 billion), and the consortium of Tokwing Construction Corp. and China Machinery Engineering Corp. (P12.5 billion).

Only Megawide and Tokwing are the Philippine-based companies involved in the bidding.

The BCDA said the SBAC will do post-qualification evaluation and will award the contract on Dec. 18. Groundbreaking for the Clark project is scheduled on Dec. 20.

Mr. Bingcang said the SBAC will communicate with GMR-Megawide consortium’s clients to get feedback on past projects, as well as its banks to verify its funding capabilities.

If the GMR-Megawide consortium fails to meet the post-evaluation qualifications, the BCDA will then consider Sinohydro’s bid.

In 2014, the GMR-Megawide consortium won the contract for the P17.52-billion Mactan-Cebu International Airport (MCIA) Passenger Terminal Building project under the Aquino administration’s flagship public-private partnership (PPP) program and the concession to develop MCIA for a period of 25 years.

In June this year, the GMR-Megawide consortium submitted a P208-billion unsolicited proposal for the 50-year long-term development of MCIA.

Megawide is also awaiting approval of the East-West Railway Project. It announced in July that it acquired a stake in the consortium composed of East-West Rail Transit Corporation and Alloy MTD, giving it the right to participate in the Philippine National Railways’ (PNR) rail project.

Megawide is also the private partner for the Southwest Integrated Terminal Exchange (SWITX) an intermodal transport terminal intended to provide connectivity for commuters in the southern parts of Metro Manila.

Other PPP projects awarded to Megawide include the modernization of Philippine Orthopedic Center together with World Citi, and the school infrastructure project phase I and II.

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