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Lav is lav is phantosmia

By Juaniyo Arcellana

IN THE dichotomy of anti-reviews, there must be at least one Lav Diaz film that doesn’t turn out the way you expect it, the plot full of pitfalls and booby traps, twists and turns unpredictable as the weather, a narrative that can only come from the director’s fertile imagination.

Whenever he has a new film, slated for premiere at a festival in Europe, he sends an advance screener for review, comment or appreciation, even icy silence, but “only if you have the time.” It is no easy task to watch a Lav Diaz film in the age of attention deficit disorder, to sit still for four hours in a world restless as a pop-up advertorial or click bait. There is no rushing cinema, surely not Phantosmia, Diaz’s exploration of a retired master sergeant’s olfactory phantoms now part of the director’s almost 20-strong filmography.

For all the stock in trade scenes in black and white: burning huts and crackling flames that may remind the viewer of a line from Moby Dick, do not stare too long into the fire young man, or the steady thrumming of rain on makeshift roofs or sodden ground such that you can smell the crush of grass on mud, indeed like a phantosmia, there can be no cinema as pure as this.

Though it is getting dark soon we will have to cope with the travails of master sergeant Hilarion Zabala, played by Ronnie Lazaro, walking straight out of the set of Diaz’s work of not too long ago, Kapag Wala Nang mga Alon. Lazaro it seems has made a career out of playing flawed, nearly demented, anti-heroic characters who somehow carry the narrative to cathartic conclusion, in the best tradition of Dostoevsky protagonists, or even the director’s own last holdout of vaudeville essayed by John Lloyd Cruz in Historia ni Ha, Sid Lucero reprising Raskolnikov in Norte, End of History, even Charo Santos as the woman who faded into the ranks of the disappeared in Ang Babaeng Humayo.

Part of the stock in trade are the memorable characters, personas that seem to have been built up from the dregs of waking, troubled dreams, and the location itself in some far-flung God forsaken barrio that serves as a backdrop for tableaux almost like a separate actor.

Make no mistake but Lazaro cuts a tragicomic figure as Zabala, who has to deal with his nasal ailment while coming to terms with his past as military operative who had engineered bloody dispersals and rubouts, on top of having left his family, but now finds himself alone but not abandoned — he still has his daughter, played by Toni Go, but is however still alienated from his musician son.

The image of the sergeant with a hankie on his nose may in fact be a throwback to the actor’s performance art in the now shuttered Pinaglabanan Galleries more than 30 years ago, wherein he adopted a persona of cowboy style holdupper much to the consternation of gallery goers deep in their happy hour cocktails.

It was, after all, Lav Diaz who gave us Dolly de Leon when first we saw her in Historia ni Ha, with their motley band heading for an island of illusory promises, complete with plodding carabao in flash flood and mud which may be familiar enough for monsoon drenched citizens. This time Hazel Orencio has yet again mastered the art of the contrabida, who pimps her adopted daughter Reyna as played by late blooming ingenue Janine Gutierrez, who has barely a page of spoken dialogue save for a few stutters here and there, but how she draws subtle attention like an innocent Erendira by providing the preternaturally damned sergeant a foothold on redemption in a penal colony called Pulo.

We are however not in the business of spoilers, much less spoiler alerts, because this may be reserved for a separate character, Dong Abay, late of Yano and Damo, as a poet that serves as a one-man Greek chorus, particularly in his ruminations on death and how it can be a door to what must not be said or known for the nonce, that’s how occult death is though not altogether forbidden as can be heard in Abay’s phrasing and enunciation, not everything is in need of a guitar. Paul Jake Paule meanwhile is the penal colony administrator and the sergeant’s bete noire, slowly ripening to his just deserts.

Have to hand it to Diaz and the Lavteam, the way they regularly come up with these quiet gems that have surely made a mark in the senses of cinema, and with the prices of movie tickets these days will surely give you more than your money’s worth.

In Venice, where floods are a way of life, we can almost see the reviews coming out, in Variety or some avant-garde magazine on Phantosmia and its gallery of forsaken characters in black and white, like a perpetual magic hour, nonchalantly slouching toward a Bethlehem of the mind and some form of deliverance.

Del Monte Pacific Limited to hold Annual General Meeting on Aug. 30

 

 


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Filinvest REIT income up 7%, says ‘prudence’ key

THE GOTIANUN family’s Filinvest REIT Corp. (FILRT) recorded a 7% increase in its first-half net income to P601 million from P561.31 million a year ago, attributed to lower costs and expenses.

First-half revenue fell by 11% to P1.4 billion from P1.58 billion last year due to the “overhang of the temporary drop in occupancy in the first quarter due to rightsizing of some tenants brought about by hybrid work,” FILRT said in a statement to the stock exchange on Thursday.

However, FILRT’s net income improved as costs and expenses during the period fell by 3.1% to P643 million on “prudent” management of company resources.

FILRT is the real estate investment trust of listed property developer Filinvest Land, Inc.

As of end-June, FILRT’s property portfolio had an 81% occupancy rate as the company is signing new traditional companies to replace business process outsourcing (BPO) tenants that have downsized due to the shift to work-from-home or hybrid setups of its employees.

FILRT’s portfolio consists of 17 office buildings and one resort lot totaling 330,448 square meters (sq.m.).

“We are pleased with the steady improvement in occupancy of FILRT. Our deliberate efforts in rebuilding the tenancy of our office buildings are starting to pay off. We have been signing fresh names, particularly multinational BPO new entrants in the Philippines from Singapore and New Zealand, to name a few, as well as traditional companies,” FILRT President and Chief Executive Officer Maricel Brion-Lirio said.

“We are looking to expand our portfolio and further diversify our tenant base as we continue to gain momentum,” she added.

FILRT also said it is not affected by the recent government ban on Philippine offshore gaming operators (POGOs).

“FILRT has no POGO exposure and has been free of POGOs since the second quarter of 2022,” it noted.

As of end-June, the company said that 13,126 sq.m. of new leases have been signed while 20,472 sq.m. already have letters of intent from prospective companies.

“On tenant retention, over 26,204 sq.m. or 46% of expiring leases for 2024 have already renewed, with another 16,270 sq.m. or 29% awaiting finalization of the renewal contract,” it said.

“FILRT has been deliberately diversifying its tenant mix, with the addition of traditional tenants and coworking locators. The current overall tenant mix is comprised of 76% multinational BPO companies, 12% traditional and co-working spaces, 11% hospitality, and the balance for retail,” it added.

On Thursday, FILRT shares rose by 1.67% or five centavos to P3.05 each. — Revin Mikhael D. Ochave

Lending growth steady in June

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By Luisa Maria Jacinta C. Jocson, Reporter

BANK LENDING continued to post double-digit growth in June, the Bangko Sentral ng Pilipinas (BSP) reported.

Outstanding loans of universal and commercial banks rose by 10.1% year on year to P12.09 trillion in June from P10.99 trillion a year ago, preliminary data from the BSP showed.

The June growth rate was unchanged from May’s pace, which was the fastest since the 10.2% recorded in March 2023.

On a seasonally adjusted basis, big banks’ outstanding loans inched up by 0.4% month-on-month.

The growth in outstanding loans to residents slightly slowed to 10.1% in June from 10.2% in the previous month, while the increase in loans to nonresidents picked up to 9.8% from 8.1% in May.

Central bank data showed that outstanding loans for production activities accounted for the bulk or 85.6% of overall lending.

Loans for production activities rose by an annual 8.3% in June to P10.3 trillion, a tad slower than the 8.4% growth in May.

The year-on-year growth was mainly driven by increases posted in loans for transportation and storage (26.2%), real estate activities (12.3%), wholesale and retail trade, and repair of motor vehicles and motorcycles (9.3%), manufacturing (8.9%) and air-conditioning supply (5.7%).

Meanwhile, consumer loans to residents jumped by 25% year on year to P1.4 trillion in June. However, this was slower than the 25.6% expansion seen in May.

Broken down, increases were seen in credit card (28.8%), motor vehicle (20.7%), and salary-based general purpose consumption loans (17.4%).

“It seems there is some marked resilience on demand for financing. It’s double-digit and sustained. It’s a good sign for second-quarter GDP (gross domestic product) growth. It is also aligned with financials and how they have performed for the first half so far,” Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, Inc., said in a Viber message.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the steady increase in credit recorded in June is a “good sign for the economy as a bright spot” as it was faster than the GDP growth seen last quarter.

Philippine GDP expanded by 6.3% in the second quarter, the government reported on Thursday. This was faster than the revised 5.8% growth in the first quarter and the 4.3% clip a year ago.

Economic growth averaged 6% in the first semester. The government is targeting 6-7% GDP growth this year.

“It is interesting to note that loan growth has always been faster than GDP growth for many years and decades, though the gap has narrowed in recent years, especially since the COVID-19 pandemic, as bank loan growth came from double-digit levels especially before the pandemic,” Mr. Ricafort added.

“This is also consistent with the continued recovery of many businesses, especially those that were hit hard since the pandemic, such as local and foreign tourism, MSMEs (micro, small and medium enterprises), other services industries, among others, moving closer to, if not exceeded, pre-pandemic levels.”

However, Mr. Ricafort noted that elevated interest rates have continued to dampen demand for credit. The Monetary Board has raised borrowing costs by a cumulative 450 basis points from May 2022 to October 2023, bringing its policy rate to an over 17-year high of 6.5%.

It will hold its next rate-setting meeting on Aug. 15.

MONEY SUPPLY
Meanwhile, separate BSP data showed that domestic liquidity (M3) grew by 6.6% in June, slightly faster than the 6.5% increase posted in May.

M3 — which is considered as the broadest measure of liquidity in an economy — rose by 6.6% to P17.5 trillion in June.  Month on month, M3 inched higher by 0.5%.

Domestic claims increased by 10.5% in June, slower than the 10.7% expansion in May.

Broken down, net claims on the central government rose by 12.1%, also slightly slower than the 12.2% in the previous month.

The BSP said this was due to the “sustained borrowings of the National Government and the decline in its deposits with the BSP.”

Claims on the private sector grew by 11.7% in June from 11.6% a month earlier, mainly due to the “continued expansion in bank lending to non-financial private corporations and households.”

Net foreign assets (NFA) in peso terms went up by 8.3% in June from 4.9% in May.

“The BSP’s NFA grew by 12.3%. Meanwhile, the NFA of banks contracted on account of higher bills and bonds payable,” it added.

Entertainment News (08/09/24)


Transformers comic cover celebrates jeepney

THIS year’s SuperManila Comic Con, happening on Sept. 7 and 8, will see the exclusive release of Transformers #1 40th Anniversary Edition featuring a limited edition Philippine variant cover. Illustrated by up-and-coming Filipino comic superstar Von Randal with colors by Ellery Santos and Rex Espino, the cover art depicts Optimus Prime and Hound (an Autobot who transforms into a classic US military jeep) in the process of transforming. Optimus Prime can be seen converting into his iconic red truck form while Hound transforms into a green Pinoy jeepney, complete with chrome stallions as hood ornaments, a prominent Manila label, and route signages for Cubao and Welcome Rotonda. “The team behind SuperManila really wanted an iconic Pinoy cover for our biggest comic convention this year. After reading the Transformers’ 40th anniversary issue and seeing that the character of Hound and his classic US jeep form were prominently featured, we realized we had the opportunity of showcasing the beloved jeepney, at least for the comic book’s variant cover,” said SuperManila organizer Ivan Guerrero. After World War II, US military jeeps became a familiar sight on Philippine roads and eventually transformed (just like Hound) into the iconic jeepney.
With a print run of only 1,000 copies, SuperManila organizers expect the issue to be a highly sought-after collector’s item. Launched in 2019, SuperManila Comic Con (SMCC) is a celebration of Filipino creativity in entertainment and pop culture, and is a showcase of leading pop culture brands present in the Philippines such as Lego, Uniqlo, and Funko. Scheduled to attend the convention are Marvel Editor-in-Chief CB Cebulski and superstar cover artist Artgerm, alongside Filipino talent like toy designer and street artist Quiccs. Other headlining guests include Eisner Award-winning artist Peach Momoko, Marvel Secret Wars creators Bob Layton and Mike Zeck, and Filipino artists Carlo Pagulayan and Stephen Segovia. There will be interactive exhibits, activities, and exclusive merchandise. SuperManila is also dedicated to Filipino comic book talent, providing a platform for rising Filipino artists and writers to showcase their work. Tickets to SuperManila Comic Con can be bought at www.supermanila.ph.


Maestro Yoshinao Osawa conducts PPO

ON Aug. 10, at 3 p.m., Japanese conductor Yoshinao Osawa will be returning to the Philippine stage to once again conduct the Philippine Philharmonic Orchestra (PPO) in a special concert. Titled Nostalgia: Music from MOVIE MUSICALS and More!, the concert at the Aliw Theater at the CCP Complex in Pasay City is free and open to the public. Its repertoire promises to incorporate bittersweet nostalgia that transports listeners to different worlds and eras.


First K-Pop academy in PHL culminates in recital

THE KOREAN Cultural Center in the Philippines (KCC) recently concluded the first-ever K-Pop Academy, which ran from July 5 to Aug. 2. It culminated in a recital on Aug. 3, showcasing the talent and hard work of its participants. Classes were led by mentors including AUSPICIOUS from Korea, P-pop girl group KAIA, and Ace Dance Studio’s Ciel Go. At the recital, the Boy Group Dance class delivered a high-energy performance of The Boyz’ “Thrill Ride,” while the Girl Group Dance class gave a rendition of Twice’s “Yes or Yes.” The KPOP Academy will return once again next year.


Ice Seguerra’s OPM videoke concert tickets out

TO CELEBRATE Ice Seguerra’s birthday in September, she will have a show called the Ultimate OPM Videoke Concert Party. It will take place on Sept. 13, 8 p.m, at The Music Museum, Greenhills Shopping Center, San Juan. Tickets are now available via TicketWorld.


Pinoy favorite in ASEAN singing contest

THE WINNERS of the CIMB Rising Start Singing Competition, aimed at discovering talented individuals in the ASEAN region, have been announced, following the finale in Jakarta on July 31. The top prize was awarded to Sharifah Nurilmuhayati from Malaysia, while Indonesian singers Jesica Theresia Koloay and Annisa Ayu Jamaluddin secured second and third places, respectively. Marvin Ilagan from the Philippines received the Favorite Award. The contest, spearheaded by CIMB Niaga in Indonesia, featured eight finalists from across ASEAN countries. A Bulacan native, Mr. Ilagan represented the Philippines alongside fellow Pinoy finalist Gwen Arada from Batangas City. The two were selected among the top 10 local auditionees and won the opportunity to fly to Jakarta for the regional competition.


Puregold’s Flow G hand choreography tilt

IN a P-Pop and original Pilipino music (OPM) collaboration with a brand-new TikTok challenge from rap star Flow G, Puregold puts up a competition open to all. The Puregold #PanaloNaWalangHalo TikTok Challenge will see fans trying to do a set of Flow G-themed hand choreography all month long, with winners selected every week until Aug. 30. To join the contest, fans must have a TikTok account and follow the official Puregold TikTok page, @puregoldph. They must record their performance while using the “Nasa Atin ang Panalo” Hand Choreo filter on TikTok to accompany Flow G’s “Nasa Atin ang Panalo” single. These must be posted on TikTok with captions that include the hashtags #PuregoldNasaAtinAngPanalo, #PuregoldxFlowG, and #PanaloNaWalangHalo.


Beetlejuice Beetlejuice in cinemas in September

BACK to make all nightmares come true is Beetlejuice, in a sequel to the beloved classic. Beetlejuice Beetlejuice, directed by Tim Burton and starring Michael Keaton, Winona Ryder, and Jenna Ortega, opens in Philippine cinemas on Sept. 4. It takes place after an unexpected family tragedy, when three generations of the Deetz family return home to Winter River. Still haunted by Beetlejuice, Lydia’s life is turned upside down when her rebellious teenage daughter discovers the mysterious model of the town in the attic and the portal to the Afterlife is accidentally opened.


Harlem Globetrotters come to Asia

THE WORLD-FAMOUS Harlem Globetrotters are coming to Philippines. The Globetrotter stars will dribble, spin, slam, and dunk their way past their rivals, the Washington Generals, with trick shots, expert ball-handling skills, and laughs. There will also be opportunities for pre-game, post-game, and in-game fan engagement. The Asia tour, scheduled for Nov. 12 to 24, now has a waitlist for tickets via TicketWorld.


Filipino film in TIFF’s Centrepiece Programme

THE FILM Sunshine, written and directed by Antoinette Jadaone, is set to have its world premiere at this year’s Toronto International Film Festival (TIFF), under the Centrepiece Programme. Sunshine tells the story of a young gymnast who finds out she is pregnant on the week of the national team tryouts. On her way to a seller of illegal abortion drugs, she meets a mysterious girl who eerily talks like her. When her self-induced abortion fails, she comes face to face with the harsh reality of how pregnant women of all ages and backgrounds in the Philippines are violently robbed of the chance to choose for themselves and their bodies. The 49th Edition of TIFF runs from Sept. 5 to 15. Ms. Jadaone and the film’s producer Geo Lomuntad will attend the film festival.


Filipino musicians in AXEAN music showcase

AFTER mounting successful in-person events in Singapore for two consecutive years, AXEAN has announced its return, this time in Indonesia. Filipino artists such as chart-topping R&B artist Maki, indie-folk collective Munimuni, electronic producer crwn, and soul-jazz chanteuse Muri lead the first wave of acts performing at the international music festival. It will take place in Jimbaran Hub, Bali, Indonesia, from Sept. 28 to 29.


Better Days duo release new single

MUSICIANS Nim Garcia and Nigel Aboy, who now make up the duo Better Days, have dropped their latest single, “Miss Suzy.” Known for their easy-listening tunes, the band delivers a song with themes of infatuation, yearning, and the whimsical dreams of falling in love. Mr. Garcia, who penned the song, drew inspiration from his own college days, recounting a personal experience with a crush he affectionately called “Miss Suzy.” The song is now available on all major streaming platforms.

Philippines’ quarterly GDP performance

THE PHILIPPINE ECONOMY expanded faster than expected in the second quarter, as higher government spending and investments offset “anemic” household consumption, government data showed. Read the full story.

Philippines' quarterly GDP performance

BSP looks to enhance reporting guidelines

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THE BANGKO SENTRAL ng Pilipinas (BSP) is looking to enhance its guidelines on its supervised financial institutions’ (BSFIs) reporting governance frameworks, including changes to sanctions and penalties for violations of its standards.

The Monetary Board is seeking to amend its rules covering firms’ reporting governance framework in the Manual of Regulations for Banks (MORB), based on a draft circular posted on the BSP’s website.

“The Bangko Sentral espouses data-driven decisions to effectively deliver its mandate of promoting financial stability. In this respect, the Bangko Sentral expects its BSP-supervised financial institutions to implement a sound reporting governance framework that promotes the integrity, accuracy, and timeliness of prudential reports submitted,” it said.

The central bank said BSFIs’ reporting governance frameworks must outline “the policies, expectations, as well as systems and resources necessary to generate complete, accurate, timely, and adaptable reports submitted to the Bangko Sentral and used by BSFI management in defining strategies, managing risks, and making decisions.”

A BSFI’s board of directors shall be responsible for establishing a reporting governance framework and overseeing its implementation, it said.

Under the draft rules, a BSFI’s framework must include board-approved policies that define the roles and responsibilities of their personnel in ensuring the quality of their prudential reports, including data collection, validation and submission, as well as governance processes for reporting issues.

It should also have “well-documented standards, policies and procedures” for the validation, review, approval and submission of reports; the reporting of “significant or unusual transactions, events, or activities” that could have a material impact on the quality of their reports; and keeping backup copies of essential business information, software and other relevant documents needed for the restoration of critical operations, among others.

The framework should also include a management information system, data architecture, and technology infrastructure that is “commensurate with the nature, scope, operational complexity, and systemic importance of the BSFI’s business activities” and can leverage technology and data analytics to support changes in reporting requirements and facilitate the production of quality reports.

The BSP said under its reporting standards, regulatory reports must be complete, accurate, timely, and adaptable.

Under the draft, monetary penalties for non-compliance with the BSP’s reporting standards will be based on the asset size of BSFIs. Current rules base these fines on the type of bank.

“A prudential/regulatory report that does not meet the reporting standards set out by the Bangko Sentral shall be subject to a penalty imposed for each calendar day that a violation is incurred, until such time that the report has been determined compliant with the standards,” the central bank said.

“In addition to the continuing monetary penalties that shall be imposed on BSFIs for reporting violations, non-monetary sanctions on the BSFI, its directors, officers, and personnel as provided under existing laws and regulations may be imposed,” it added.

If the draft circular is approved, it shall apply to reports falling due beginning January 2025. — L.M.J.C. Jocson

Nickel Asia says RE subsidiary’s 2028 1-GW target is still ‘on track’

Nickel Asia Corp. (NAC) on Friday said its renewable energy (RE) subsidiary Emerging Power, Inc. (EPI) remains “on track” to achieve its 1-gigawatt (GW) target by 2028.

The clarification was issued following an Aug. 9 BusinessWorld report headlined “Nickel Asia’s Emerging Power delays 500-MW goal to 2026,” which has now been taken down.

“We would like to reiterate that our target commitment through Emerging Power, Inc. (EPI), our subsidiary, is for our renewable energy projects to target a 1GW capacity by 2028,” NAC said.

The company said that Emerging Power is “not delayed and in fact we are on track to reach this because EPI’s subsidiary Jobin-SQM Inc. has a 172-MW Solar Plant already in operation.”

NAC further noted, “By next year we will have two more projects coming online such as our solar projects located in Subic Cawag that will have a capacity of up to 145 MW and the Phase 1 of our San Isidro Solar Project, which is planned to be operating at a 2 x 120 MW capacity.”

NAC added that these upcoming projects are critical milestones that bring Emerging Power closer to its goal of achieving 1-GW capacity by 2028.

The company also corrected a detail in the previous report, which said that NAC’s annual stockholders’ meeting occurred this week. It clarified that the meeting was actually held on June 7, 2024.

BusinessWorld acknowledges these clarifications provided by Nickel Asia.—Adrian H. Halili

Amazon Prime Video plots Hollywood expansion

MEDIA-AMAZON.COM

WHEN Mike Hopkins was approached about leading Amazon Prime Video, his view of the streaming service matched one held widely in Hollywood — it was nothing more than a perk for subscribers of the online retailer’s two-day delivery service.

But Amazon founder Jeff Bezos had much bigger ambitions for the service that offers movies, television shows and original programming.

“After meeting with Jeff, it was very clear that he really saw this as an opportunity to build a media company,” said Mr. Hopkins, an entertainment industry veteran of Fox Networks, Sony Pictures, and Hulu who has in the last four years plotted Prime Video’s path to mainstream Hollywood player.

Under Mr. Hopkins, Prime Video is being recast in the mold of a traditional media company, with its own film studio and theatrical distribution arm, a growing slate of original movies and series featuring A-list actors, an expanding roster of professional sports and advertising. “We … like the progress of Prime Video,” Amazon Chief Executive Officer (CEO) Andy Jassy told investors this month.

Prime Video’s gathering star power — and live sports — position it to capture a greater share of the $28.75 billion in digital advertising revenue Emarketer projects will be spent this year on streaming, as marketers trim their investment in traditional television. Morgan Stanley estimates Prime Video ads could generate $3.3 billion in sales this year and more than double to $7.1 billion within two years.

Even so, Prime Video continued to lag behind industry leaders YouTube and Netflix by share of streaming television viewing in the US for the month of June, as measured by Nielsen. And, while more of its shows have broken into Nielsen’s Top 10 ranking of the most-streamed original series in 2023, Netflix remains dominant.

SPORTS, STARS, AND ADS
Still, Amazon’s aspirations to create a single entertainment destination that offers something for every taste are coming into clearer focus, say nine agents, ad buyers, and entertainment industry executives.

Prime Video became the first streaming service to land an exclusive deal with the NBA, creating year-round sports programming that, by 2025, will include the NFL football, NASCAR car racing, the WNBA Finals, and Champions League soccer.

And in a threat to traditional studios, Amazon plans to more than double the number of theatrical releases from six this year to as many as 16 by 2027, Reuters can report for the first time. That number does not include movies made for non-US audiences, the five or six it typically acquires from other studios, and the dozen or so movies it plans to distribute directly on Prime Video. That output would rival that of Hollywood’s most prolific studio, Universal Pictures.

Prime Video increased its outlay by $1.7 billion to $13.6 billion this year as it deepens its investment in professional sports and increases the volume of content production, market researcher Ampere Analysis estimates, while other studios tighten spending on content.

Amazon’s talent roster increasingly features Hollywood’s A-list, like Reese Witherspoon, Jake Gyllenhaal, and Octavia Spencer, alongside sports standouts such as tennis great Roger Federer. It even struck a deal with Netflix’s former film chief, Scott Stuber, to revive the storied United Artists label at Amazon MGM Studios.

Prime Video now understands “they need premium content and celebrities in order to attract advertisers,” said Jessica Brown, managing director of digital investment for media buyer GroupM. “Before, they had the reach and scale, but they didn’t have the content story.”

“You need to be culturally relevant,” she said.

Madison Avenue took notice when Prime Video this January began showing ads to its roughly 115 million US viewers, instantly becoming the largest ad-supported subscription streaming service, domestically, according to Emarketer.

Advertising executives said that reach and the purchasing insights gleaned from Amazon’s online retail store offer a distinct opportunity. Notably, Amazon can offer to instantly sell consumers goods they see during commercial breaks.

“That is reverberating through the marketplace right now,” said Kevin Krim, CEO of marketing analytics firm EDO, adding that the flood of new inventory may also be driving down advertising prices for others.

ENTERTAIN EVERYONE
Amazon has at times struggled creatively. Despite hits like The Boys — about vigilantes who seek to expose corrupt superheroes, which hit No. 1 in more than 165 countries when the fourth season debuted — it also produced expensive misses like Citadel, a thriller with tepid reviews that failed to make Nielsen’s streaming rankings in the US.

A creative team is courting more broadly appealing fare with global reach, said Mr. Hopkins. The ideal Prime Video project has been described by talent agents as the equivalent of an airport novel, a story that’s page-turning and commercial. It’s Amazon’s answer to Netflix’s programming philosophy of offering a “gourmet cheeseburger,” or well-executed entertainment that’s also widely popular.

“We want to be lots of people’s No.1 show or film,” said Mr. Hopkins, head of Prime Video and Amazon MGM Studios.

Amazon is focused on four different audience segments — including men and women over age 35, and those under 35 — that it can serve with a reliable stream of content that’s budgeted in a way that reflects the size of the potential audience, said Mr. Hopkins. Projects with broad appeal would have larger budgets than those targeted at a narrow demographic, he said. Agents say Amazon is on the hunt for young adult fare like The Summer I Turned Pretty, a teen romance, action-thriller series in the vein of Tom Clancy’s Jack Ryan, which appeal men over age 35, and female-skewing stories like The Idea of You, about a love affair between a single mother and the lead singer of a boy band, which attracted nearly 50 million viewers worldwide in its first two weeks.

“We don’t want to have a Saltburn and then nothing else for that audience for six months,” Mr. Hopkins said in an interview, referring to the popular Amazon MGM psychological thriller about an Oxford student’s entanglement with a classmate’s eccentric family.

Amazon continues to place calculated big bets. The $150 million it spent to adapt video game Fallout as a critically acclaimed series became Prime Video’s second most watched series.

Instantly recognizable characters and stories are critical, because Amazon tends to attract viewers seeking specific shows, according to one agent who requested anonymity to preserve his relationship with the company. “People aren’t just trolling around on Amazon like they do on Netflix,” he said.

It’s a far cry from Amazon’s early foray into video streaming, when it attempted to crowdsource content from customers.

The transition accelerated with Amazon’s $8.5-billion acquisition of MGM, the studio behind the James Bond and Legally Blonde franchises. That deal gave Amazon a trove of intellectual property which it could mine, without engaging in costly bidding wars for sought-after projects, said Mr. Hopkins.

He said Amazon wanted to avoid an “arms race.”

“We decided it would be better for us, in the long run, to own a studio that had really good IP, and then develop our own things,” said Mr. Hopkins.

Sports are another critical pillar of Mr. Hopkins’s media strategy.

The final element of Mr. Hopkins’ plan is to recreate “Prime without the shipping.” Amazon has amassed a deep library of content, spanning free, ad-supported TV-like channels, rival streaming services like Paramount+, recently released movies to rent or buy, all accessible via Prime Video’s newly redesigned app.

“What we’re really trying to build is not just a single subscription service — I think we’ve proven that we can play a much broader game,” said Mr. Hopkins, adding that as CEO Jassy has said, “We’re on track to be a meaningfully profitable business in our own right.” — Reuters

Crossroads for Philippine monetary policy

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The broadsheets said it all: July inflation overshot target, surged to 4.4% in July. From various angles, the July inflation rate of 4.4% sent jitters to most of the financial markets. Market analysts have been betting on an early cut in the Bangko Sentral ng Pilipinas (BSP) policy rate by at least 25 basis points (bps) in the next monetary policy meeting. Such a view is anchored on the average inflation of 3.5% for the first six months of 2024 against the whole-year target of 2-4%. BSP’s baseline inflation forecasts of 3.3% for this year and 3.2% and 3.3% for 2025 and 2026, respectively, further strengthened the increasingly dovish sentiment about the direction of monetary policy.

And dovish sentiment it was that galvanized this broadsheet’s median estimate of only 4% for the July inflation print. Of the 15 analysts, only five submitted estimates that exceeded the 4% upper inflation target this year with a low of 4.2% and a high of 4.6%. Only one hit the mark.

True, the July inflation rate was the fastest in nine months since it leaped to 4.9% in October 2023. Stripped of any seasonality, however, month-on-month inflation sprinted to 0.6%, the highest since September 2023’s 1.2% except during February 2024 when it hit 0.9%. Annualized, July 2024 inflation easily converts to 7.2%.

No wonder, if the previous weeks’ headlines bannered the confidence of the monetary authorities in cutting the policy rates even ahead of the US Fed, there has been some retreat in the messaging this week. While a rate cut remains on the table for next week, the BSP is “a little bit less likely” to do it. Keeping the rate steady seems to be gaining more ground given the “evolving inflation conditions.” July inflation to the BSP was “slightly worse than expected.”

In case the assessment goes awry, the BSP declared, an off-cycle adjustment is possible. Of course, this is not good for optics because it will show the patience of the BSP was rather too prolonged. Neither is it good for keeping inflation expectations firmly moored.

But we continue to maintain our high regard for both the BSP and monetary policy, especially since July 2022. For monetary policy has succeeded in catching up with the curve, reducing core and headline inflation to within the 2- 4% target starting December 2023 and elevating market confidence in the fight against inflation.

As we indicated in our column in another broadsheet two weeks ago, “it is not correct to suggest that today, the BSP should have eased monetary policy.” And the BSP was right in holding the line despite the preponderance of downside risks to inflation during its June 2024 policy meeting. The Monetary Board was particularly prudent in resisting the sirens’ song to ease early despite the decelerating trend in actual inflation, within-target forecasts and downside risks.

The likelihood of an out-of-target June and July inflation which could eventually dislodge short-term inflation expectations must be within the radar of the BSP. Inflation continues to be driven by the prospects of a lower tariff rate on imported rice, but that took ages to be established. Supply constraints, food in particular, are just too unpredictable while the global dynamics remained too erratic for the BSP to be sanguine about the sustained disinflationary path.

If they eased monetary policy two months ago, that stance would have been proven wrong by the 4.4% July inflation. Yes, the inflation blip of one month does not make a long-term trend but that single point might be enough to affect inflation expectations, disrupt capital inflows and drive the weakness of the peso. They are bad for controlling inflation.

The policy choices of the BSP are quite different from those of the US Fed.

There is an emerging view that the US Fed is behind the curve; it should have started on an easing cycle many months back. Second quarter 2024 real GDP in the US is projected to tip at 2.8% compared to the first quarter’s 1.4%, or double. The US economy expects strong support from higher consumer spending, inventory management, and business investment. But unemployment is now at its highest since 2021 due to the corporate cost-cutting cycle, and it is expected to peak at 5.5%. With declining recruitment, jobless claims are spiking. Net profit margins of S&P 500 firms plummeted to their lowest levels at the end of last year. These labor market indicators convince many that a recession is likely in the US.

With a long lag, a monetary policy reversal of the US Fed is not only urgent, but it should have been done some way back. Instead of a baby step of 25 bps increase, market pulse shows a greater probability for a 50 bps.

The Philippine case is very different, perhaps the US economy’s antonym. We don’t see the urgency in pulling back the tight monetary lever at this point when the economy expanded by 6.3% for the second quarter of 2024. Unlike in the US with rising unemployment, the latest unemployment rate for June 2024 stood at 3.1%, down from May’s 4.1% and 4.5% a year ago.

Most important, headline inflation has just blipped. There are no indications that the uncertainties on the supply side could recede except for the favorable impact of a reduced rice tariff.

As we stressed in our earlier pieces, part of the reason why the credit market seems weak is the lending banks’ own decision to be procyclical. They were tightening their loan standards at a time when interest rates had been driven up by the BSP’s leading interest rates. Any weakness in the financial markets cannot be entirely attributed to strict money policy because weak capital flows also derive from inflation concerns in the country. The BSP should continue to do its job of promoting price stability and in the process also inspiring confidence among investors and consumers alike.

Given the high output growth, positive developments in the labor market as well as the reported expansion in manufacturing, higher capacity utilization, and sustained improvements in the country’s purchasing managers’ index, the country’s output gap must have remained positive. A vigilant BSP is crucial in safeguarding macroeconomic stability.

It is also wise for the BSP to be mindful of the remaining upside risks coming from higher food prices, transport charges, higher power rates and global fuel prices. In particular, Philippine Statistics Authority data illustrated that the production value of agriculture and fisheries actually dropped by 3.3% in the second quarter due to El Niño. Extending to the third quarter, El Niño could also upset food production during the same period.

If there is anything that could undermine the integrity of inflation targeting and pull back the BSP’s achievement in promoting price stability without causing a recession in the Philippines, it is to adjust monetary policy for reasons other than prices and sustainable growth, in that order. Monetary policy is not about reducing the cost of borrowing to allow governments to borrow cheaply. Monetary policy is not about enabling consumers to borrow from lending institutions to spend on travel and other personal effects, even if that is their own decision to make. Monetary policy is all about ensuring inflation is at appropriate level that both business and households, and even governments, can ignore it because price stability has produced the right costs for goods, services and money for business, households, and governments alike.

All up, we expect the BSP to be more patient in keeping its policy rate steady. We recall Raghuram Rajan, formerly of the IMF and the Reserve Bank of India likening the task of central banks to juggling six balls. For the US Fed, as for the BSP, it is not just interest rates going up or down, it has to monitor and weigh the impact of the exchange rate, long-term yields, short-term yields, and credit growth. And the central bank has to respond to all these and more potential disturbances in the economy. Very few would envy the BSP when it decides on the future path of monetary policy next week.

 

Diwa C. Guinigundo is the former deputy governor for the Monetary and Economics Sector, the Bangko Sentral ng Pilipinas (BSP). He served the BSP for 41 years. In 2001-2003, he was alternate executive director at the International Monetary Fund in Washington, DC. He is the senior pastor of the Fullness of Christ International Ministries in Mandaluyong.

Job quality remains an issue as joblessness dips — DoLE

REUTERS

THE Department of Labor and Employment (DoLE) said underemployment remains a concern even with the decline in joblessness, after jobholders who said they are seeking more work rose to 12.1% in June from 9.9% in May.

Labor Secretary Bienvenido E. Laguesma said in a statement on Thursday that the rise in underemployment was due to “seasonal factors,” without elaborating.

DoLE is working with the Trabaho Para sa Bayan Inter-Agency Council, chaired by the National Economic and Development Authority, to implement the national employment masterplan.

“Through strategic partnerships with the private sector and targeted interventions, we aim to transform challenges into opportunities, ensuring that the benefits of economic growth are shared equitably and that no one is left behind,” he added.

Meanwhile, the Federation of Free Workers (FFW) urged the government to improve job quality, including the share of the workforce holding regular-employee status, to ensure economic growth.

“FFW holds that the high percentage in the service sector includes the prohibited ‘labor-only’ contracting and contractual job arrangements which workers (consider) abusive and exploitative,” FFW President Jose G. Matula told BusinessWorld via Viber.

“FFW recognizes the significance of these numbers but remains concerned about the quality and security of jobs, particularly in the services sector,” he added.

Another labor group, Kilusang Mayo Uno, called for better job quality.

“The jobs created by the Marcos Jr. administration are of low quality and temporary. The majority of these jobs are in construction, wholesale and retail trade, and food service. Notably, there has been a reduction in agricultural jobs,” Secretary-General Jerome M. Adonis said in a statement.

Mr. Adonis called for the government to implement a liveable minimum wage, which it estimated at P1,200 per day.

“It should also develop a genuine program for creating long-term regular jobs that align with the goals of national development,” he said.

“Workers should assert these demands through various means: forming unions, engaging in dialogue, and staging widespread protests to advance their call,” Mr. Adonis added.

The unemployment rate in June dipped to 3.1%, the lowest in two decades, the Philippine Statistics Authority said on Wednesday.

Jobless numbers amounted to about 1.62 million in June, against 2.11 million in May.

The employment rate was 96.9% in June, equivalent to about 50.28 million individuals holding jobs, compared to 95.5% in May, equivalent to 48.87 million people.

The Labor Force Survey found that the service sector remained the top employer, with 58.7% of the workforce employed in the industry, followed by agriculture with 21.1% and industry with 20.2%.

“The labor market continues to demonstrate remarkable strength and resilience… This positive trend is driven by robust economic growth, particularly in construction; wholesale and retail trade; repair of motor vehicles and motorcycles; and accommodation and food service activities sectors,” Mr. Laguesma added. — Chloe Mari A. Hufana

How each segment contributed to Q2 2024 GDP

THE PHILIPPINE ECONOMY expanded faster than expected in the second quarter, as higher government spending and investments offset “anemic” household consumption, government data showed. Read the full story.

How each segment contributed to Q2 2024 GDP