Facebook Instagram Linkedin X Youtube
Home Blog Page 13601

RBI seen holding interest rates as slowdown bites

INDIA’S CENTRAL BANK is expected to keep its benchmark rate at a seven-year low this week amid slowing growth in Asia’s third-largest economy.

With inflation climbing fast toward the Reserve Bank of India’s (RBI) medium term target, the Federal Reserve starting to shrink its balance sheet and growing speculation the government may loosen purse strings to bolster the economy, the room for lowering rates in the coming months is narrowing.

Nevertheless, the RBI is expected to paint a subdued picture of the economy and could downgrade its forecasts for gross value added – a key input of gross domestic product that strips out taxes and subsidies – for the rest of the year.

That could prove to be bad news for India and might hurt inflows from foreign investors, who are already pulling out money from Indian assets. This has seen the rupee hit a six-month low last week.

A survey of economists conducted by Bloomberg News showed the RBI is expected to hold the repurchase rate at 6% until end-2017.

A separate survey forecast India’s growth at 6.8% in 2018, down from 7.3% earlier.

For the third-quarter of 2017, India is expected to grow at 6.6%, year-on-year, down from a previous forecast of 6.9%, as it grapples with uncertainty caused by a newly introduced goods and services tax, a banking system tackling bad loan problems and companies refusing to invest more as they try to lower debt taken during the boom years.

“We are in agreement with financial market and analyst expectations of a rate hold,” said Shilan Shah, India economist at Capital Economics, Singapore. “Further ahead, some are still expecting further, albeit modest, policy loosening. However, with core price pressures building, we expect rates to stay on prolonged hold.”

JUGGLING ACT
The RBI faces a juggling act over whether to bolster growth or retain its prime target of keeping inflation checked at 4% in the medium term. At the last meeting in August, it opted to cut interest rates to give an “urgent” boost to flagging investments.

At the same time, Governor Urjit Patel and his deputy Viral Acharya stressed the need for better monetary policy transmission, highlighting what many economists see as signals that the RBI was probably reaching the end of its rate-easing cycle.

“We will watch out for the evolution of domestic growth-inflation dynamics,” said Madhavi Arora, an economist at Kotak Mahindra Bank Ltd. “If growth and inflation continue to surprise on the downside, RBI could cut an additional 25-50 basis points in the next six months. Our base case currently is for status quo for rest of FY2018.”

While growth slowed to a three-year low in the April-June quarter from a year earlier, inflation in August accelerated to its fastest since March as food prices rebounded. Core prices, which strip inflation of volatile food and fuel items, also rose.

“We expect the RBI to leave policy rates unchanged, as momentum of core inflation has been much higher than expected and because the growth slowdown is due to non-monetary factors,” said Sonal Varma, chief India economist at Nomura Holdings Inc. in Singapore.

India’s manufacturing sector grew in September on the back of an increase in new orders and output, a private survey showed on Tuesday. However, fresh export orders fell, unwelcome news for an economy where demand for goods from overseas markets had dragged down growth in the April-June quarter. The Nikkei India Purchasing Managers’ Index was at 51.2, unchanged from August, with a number above 50 indicating expansion.

FISCAL RISKS
Investors are waiting to see whether the government will spend more to boost the economy and if that would entail any fiscal slippage. Any extra spending could prove to be inflationary and might crimp room for the RBI to lower rates.

Speculation has been swirling about a stimulus to the economy that has been bogged down by an unprecedented cash ban and tax reforms. With elections a little more than a year away, pressure has been building on Prime Minister Narendra Modi to spur investment and create jobs for the swelling workforce.

“Risk of fiscal slippage, higher oil prices and a weaker currency are additional reasons to stay on guard,” Nomura’s Varma added. — Bloomberg

Catalan leader calls for international mediation amid fierce opposition to region’s independence bid

MADRID/BARCELONA — The secessionist leader of Catalonia called for international mediation on Monday in the region’s dispute with Madrid, a day after hundreds of people were hurt as police swung truncheons and fired rubber bullets to disrupt an independence referendum.

Results showed voters had overwhelmingly backed independence in the referendum, which Spain has ruled illegal and which opponents of secession mostly boycotted.

The vote was valid and must be implemented, said Catalan leader Carles Puigdemont.

“It is not a domestic matter,” he told a news conference on Monday. He said it was “obvious that we need mediation,” adding: “We don’t want a traumatic break … We want a new understanding with the Spanish state.”

Prime Minister Mariano Rajoy met leaders of other political parties and his conservative government issued a statement saying he was seeking a joint response to the crisis. He also spoke to other European leaders and thanked them for supporting Spain’s constitutional order, the statement said.

In Barcelona, hundreds of students gathered in a central square to protest at Sunday’s police crackdown, chanting pro-independence slogans and waving Catalan flags.

The government crackdown had “provoked an unacceptable totalitarian situation using state violence,” student Albert Lopez said. Another protest was held later outside the headquarters of the Spanish National Police in Barcelona.

Elsewhere, life in the city returned to near normal, but the violence had clearly left people in shock and may have hardened attitudes among those who favor independence.

“There is no possibility of dialogue now with the government. We are clear on that,” said a 51-year-old retired worker who declined to give his name.

Spain’s wealthiest region, wedged in the northeast on the Mediterranean coast below the mountainous border with France, has its own language and culture, and a growing minority there have nurtured hopes of independence for years. Madrid says the constitution prohibits secession and is non-negotiable.

The crisis could deepen further if the Catalan regional parliament uses the vote as justification for a unilateral declaration of independence, as foreseen in the referendum law enacted by the region but rejected by Madrid.

With 95% of the vote counted, authorities said the “Yes” vote stood at 90.1%, on a turnout of 2.26 million out of 5.34 million registered voters.

Polls before Sunday’s vote put support for secession at only around 40%, but most opponents were expected to boycott the vote. The Spanish government has taken the risk that its violent crackdown could increase support for the secessionists.

Mr. Puigdemont, who held the vote in defiance of a court order, urged Mr. Rajoy to say whether he was in favor of mediation, which he said should be overseen by the European Union (EU). He said Brussels had been timid and lacked courage on the matter.

An EU spokesman declined to say whether the Union would mediate, although it would be unusual for Brussels to take such a step within one of the bloc’s own member states.

Other European leaders have mostly shied away from commenting on what they consider an internal matter, although some have expressed alarm at the violence.

Mr. Rajoy held meetings on Monday with Pedro Sanchez, leader of the opposition Socialists, and centrist Albert Rivera.

Mr. Rivera called on Mr. Rajoy to suspend Catalan autonomy and hold elections in the region to change the nationalist-led government there, something Madrid has not ruled out.

Mr. Sanchez urged the prime minister, who takes a hard line against Catalan separatism, to start a dialogue with Mr. Puigdemont. He disapproved of the police charges which left many injured on Sunday, a Socialist Party statement said.

Spain’s two biggest trade union federations, the General Union of Workers and Workers’ Committees (Comisiones Obreras), distanced themselves from calls by pro-independence groups and trade unions in Catalonia on Sunday for a general strike in the region on Tuesday.

Elsewhere in Spain, Catalonia’s bid for independence is fiercely opposed and led to pro-unity demonstrations in many cities from Zaragoza to Madrid over the weekend.

“I don’t agree with the police charging at people but, on the other hand, when you do something illegal you have to take responsibility for the risks,” said Madrid resident Gemma Lopez.

MARKETS RATTLED
Any move to impose central control over the region of 7.5 million people risks hurting Spain’s emergence from years of recession. Financial markets were rattled. Spain’s borrowing costs surged and its blue-chip stock index fell 1.2%.

Ratings agency Fitch said the confrontational nature of the vote in Catalonia increased Spain’s near-term political risks and would make a negotiated solution more complicated, but said it views Catalonia’s secession from Spain as very unlikely.

Catalonia is a center of industry and tourism accounting for a fifth of Spain’s economy, a production base for major multi-nationals from Volkswagen to Nestlé, and home to Europe’s fastest-growing sea port. Although it already has extensive autonomy, its tax revenues are crucial to Spain’s state budget.

The events in Catalonia have forced Mr. Rajoy to delay talks over next year’s budget after a key political group withdrew support for his minority government until the issue is resolved. But other parties’ sharing his opposition to Catalonia’s secession suggests that his position is not in danger.

The ballot, which asked voters if they wanted an independent republic, has no legal status as it was banned by Spain’s Constitutional Court for being at odds with the 1978 constitution, which states Spain cannot be broken up. — Reuters

Mueller, Morales, Dotard, and Duterte

The similarities are too striking to ignore.

Both US President Donald Trump (whom North Korean dictator Kim Jong-Un called a “dotard”) and President Rodrigo Duterte (whom a mischievous columnist dubbed “Dutertard”) are uneasy over investigations by Special Counsel Robert Mueller and by Ombudsman Conchita Carpio-Morales, respectively, for possible violations of law.

The results could, presumably, be an impeachment complaint against the sitting heads of state. But that is where the similarity ends.

If Mueller succeeds in building a case for obstruction of justice or for collusion with Russia, an impeachment proceeding could be taken against Trump, even if both houses of the US Congress are controlled by the Republicans.

An impeachment can only be initiated by Congress. Although the Republicans, in general, have been hesitant to speak out against Trump’s listless presidency, there have been signs of a break from the ranks, and not just by maverick Senator John McCain. Even GOP stalwarts, House Speaker Paul Ryan and Senate Majority Leader Mitch McConnell have become visibly irked by Trump’s bluster and mindlessness.

It may be recalled that President Richard Nixon, a Republican, was forced to resign, in the wake of the Watergate scandal, after a visit by key GOP legislators. If Mueller, backed by US media and with an outcry from the American public, presents a strong case for Trump’s impeachment, the Republican dam could break, in a manner of speaking, and The Donald will have to leave the White House.

Not the case in the Philippines.

Even if, by some miracle, Ombudsman Morales builds a convincing case of corruption or unexplained wealth or violations of the Constitution against Duterte, there is no way that House Speaker Pantaleon Alvarez and his congressional Mafiosi will find “sufficient form and substance” in an impeachment complaint that may be filed against their Malacañang patron.

There is a possibility that an impeachment complaint against Duterte could have a chance of being adjudicated in the Senate — if it ever gets to that stage — but Duterte point guards Senators Koko Pimentel, Tito Sotto, Manny Pacquiao and Dick Gordon, may have the trash bin waiting to greet the complaint at the entrance to the hallowed halls of the Senate.

As the Mafia in New York would put it, “Fuggedaboudit!”

On the other hand, the late unlamented president Ferdinand Marcos appeared formidable too, during his time. But he was eventually taken down. Even in the Philippines, nobody rules forever. Besides, one predictable characteristic of Philippine politics is the unpredictable loyalty of so-called allies. Filipino politicos are quintessential survivors and would make a pact with the devil to remain in power — ask Senator Dick Gordon.

In other words, even Duterte’s seemingly formidable fortress can be eroded from within. However, don’t count on the leaders of the opposition Liberal Party to do it. Their disappointing tenure, under President Benigno S. C. Aquino III, is too recent to present as a preferable alternative to a Duterte administration.

A changeover from Duterte to the LPs would be like falling from the frying pan into another frying pan.

There is also a vast difference between Da Apo of the Ilocanos and the King of Mount Apo in Davao. Marcos, despite wanting to be president for life, was nearing the termination of his immortality. The US was aware of it and was just waiting for a reason to unplug the life support. Worse yet, Marcos made the mistake of threatening the master intriguers in his administration, led by Defense Secretary Juan Ponce Enrile and PC Chief Gen. Fidel V. Ramos.

However, We Belong, the group of young military officers that led the incipient uprising against Marcos, was not formed overnight. For the revolutionary embers to burst into flame, it took years of intrigue between Ramos vs. AFP Chief of Staff Gen. Fabian Ver, on one hand, and between Presidents-in-waiting First Lady Imelda Marcos vs. Enrile, on the other hand.

Even assuming that there is some revolutionary fervor currently throbbing in the hearts of some officers of the AFP, it will take years and a charismatic leader to transform that fervor into a willingness to fight and die for a cause. The generals are too comfortable in their positions to bother about staging a revolution that will simply kick out one group of opportunists, only to install another group of opportunists.

Besides, is there such a charismatic leader in sight?

Certainly not Senator Antonio Trillanes IV. He is currently useful as a pain-in-the-ass against Duterte, but Trillanes is not beyond reproach. He has been described by some as Judas Incarnate.

What about former President Ramos? Does the old soldier still have the fire to return from retirement and lead his people to redemption, like Gen. Douglas MacArthur and British leader Sir Winston Churchill? Ramos’s detractors insist that he, too, is not beyond reproach.

What about the Central Intelligence Agency, which has a reputation for replacing pesky national leaders of strategically important countries? I think the CIA has more than enough on its hands to bother about Duterte who, in spite of his bluster and much-publicized Chinese leanings, still wants to be on the good side of America. Besides, Duterte’s term is finite and all too short. One more indication that the CIA may not be motivated to take out Duterte is the fact that Malacañang is preparing to welcome Trump to Manila in November this year.

In sum, the options to replacing Duterte are not attractive at this point. Ombudsman Morales and her deputy, Arthur Carandang, will make a lot of noises about digging up evidence of unexplained wealth against Duterte, but it is not likely that they will come up with anything substantive while Duterte is in office. Some pundits think that solving the traffic mess in Manila is more likely to happen than for Morales and Carandang to build a case against Duterte.

Does anyone actually believe that the Anti-Money Laundering Council or the National Bureau of Investigation or the Justice Department will cooperate with them?

Fuggedaboudit!

Duterte has been giving broad hints about extending his tenure (whether through a declaration of martial law, or the implementation of federalism or through his preferred successor, Sara Duterte-Carpio), but by his own admission, only two out of five statements he makes are the truth. So, one never knows what is on Duterte’s mind.

Only one thing is certain: the charade will go on and on to provide entertainment to the Filipino people. Recently, Trump boasted that the viewership of the NFL has dived because American football fans now prefer to listen to Trump’s speeches.

That, of course, is another Trump hyperbole.

But, what may be a fact is that in the Philippines, televiewers follow the endless investigations by Congress and the Ombudsman, as well as the antics of Duterte, more avidly than the TV soaps.

 

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

gregmacabenta@hotmail.com

Local stocks rise further to track global markets

STOCKS extended their climb to reach a new record high on Tuesday as investors anticipate the nearing approval of the government’s tax reform package.

The bellwether Philippine Stock Exchange index (PSEi) rose 0.68% or 56.65 points to 8,312.93.

Yesterday’s close was a fresh peak for the main index, eclipsing the 8,294.14 logged last Sept. 18.

The all-shares index climbed 0.5% or 24.64 points to 4,892. 

“Philippine stocks broke new ground once more and US stock benchmarks traded in record territory Monday afternoon, as equities resumed a steady run-up that could set the tone for the final three months of 2017,” said Regina Capital Development Corp. Managing Director Luis A. Limlingan in a text message.

“The moves for stocks occurred amid an upbeat tone on Wall Street despite a mass shooting event in Las Vegas that is being described as the worst in US history.  European stocks kicked off the week in an upbeat mood on Monday, getting a boost from a weaker euro that tumbled after violent clashes in Catalonia in Spain,” Mr. Limlingan added.

US stocks started the fourth quarter on a strong note on Monday, with all three major indexes hitting record high closes as data pointed to underlying strength in the economy.

The Dow Jones Industrial Average rose 152.51 points or 0.68% to 22,557.6; the S&P 500 gained 9.76 points or 0.39% to 2,529.12; and the Nasdaq Composite added 20.76 points or 0.32% to 6,516.72. All three posted record high closes.

“On catalysts, I’m looking at the passing of the tax reform package of the government,” said Ramon Emmanuel B. Badiola, equity analyst/trader at Meridian Securities, Inc. in a phone interview yesterday, although noting that the proposal’s impact will “not [be] that high in terms of the value,”

The Senate version of the tax reform bill is expected to generate up to P59.9 billion in additional revenues in the first year of implementation, much lower than the projected revenue programmed in the 2018 national budget and 55.23% lower than the P133.8 billion estimated net gain from the House version of the bill.

“We’re also eyeing the positive results of third-quarter earnings,” Mr. Badiola added.

Most sector counters went up on Tuesday.

Services led the charge, surging 1.17% or 20.10 points to 1,731.38; financials jumped 1.03% or 20.46 points to 1,996.97; holding firms climbed 0.52% or 44.05 points to 8,427.25; property went up 0.38% or 14.89 points to 3,901.92; and industrials inched up 0.08% or 9.25 points to 11,115.77. Only mining and oil closed in the red, falling 0.06% or 8.60 points to 13,879.19.

Advancers outnumbered losers at 105 to 94 as 55 issues were unchanged.

Value turnover went down to P7.25 billion from Monday’s P7.41 billion as 1.47 billion shares changed hands.

Foreigners continued to dump shares with net selling at P689.83 million, higher than Monday’s net outflow of P271.46 million. — Janina C. Lim with Reuters

Let me tell you about my dinner with Maria Ozawa

Last month, Lexus Manila executive vice-president Ichiro Suzuki (yes, same name as the baseball player) sent me a text message, wishing to plan a casual dinner. We had bonded together at the August launch of the LC500 grand tourer; perhaps he simply wanted to hang out for some drinks and tall tales from our youth.

What, in fact, he had in mind was to have me meet Maria Ozawa, who is now based in Manila with a Filipino boyfriend and a couple of bars to manage. This dinner took place last week, at the classy Nobu Restaurant in City of Dreams. We had a beer before Ms. Ozawa’s arrival, whereupon I asked Suzuki-san the big question: What does his company intend to do now that their sales director has been poached by BMW?

His countenance registered surprise. Either because he didn’t know how to answer, or he couldn’t believe I wanted to talk shop even with the knowledge that Maria Ozawa was just minutes away from joining us for a proper Japanese meal. He guardedly said they were already making arrangements for a smooth transition. When I inquired if they were worried that they stood to lose their sales director’s impressive network of VIP clients, Mr. Suzuki replied: “That would be interesting… to see which of the two is more important — personal loyalty or brand strength.”

I took it to mean that the Japanese executive was himself wondering whether luxury car buyers in this country based their purchasing decision on personal influence or on the product itself. If it were the former, there could be significant customer migration from Lexus to BMW next year. If it were the latter, Lexus would have nothing to be anxious about. Suzuki-san is aware that his brand has gone from strength to strength since formally opening its Bonifacio Global City facility in January 2009, and is now challenging both BMW and Mercedes-Benz for the top spot, sales-wise, in the local premium car segment. Last year, Lexus sold a total of 670 units against BMW’s 1,016. This year? Through August, Lexus had already sold 805 vehicles, comfortably ahead of BMW’s 689.

Surely, in Mr. Suzuki’s mind, all of this sales success couldn’t have been just the handiwork of one individual. While a gifted and well-connected sales strategist can indeed drive traffic to the showroom and engage people, in the long run the customers come back because of more crucial factors — chief among which being product quality and after-sales service.

Our work-related conversation was, to my absolute annoyance, interrupted by the appearance of Maria Ozawa. If she thought that she could rudely barge in on our business chat like that just because she possessed a beautiful face, she was right. Because I completely forgot about Lexus and BMW as soon as she sat next to me. Just kidding. The truth is that I couldn’t take my mind off the transferring sales boss, especially when Maria told me what the yakuza did to members who wanted to quit their organization. I assure you I’m not a putrid deviant who’d rather visualize a bespectacled dude than a winsome lady, but I was developing the outline for this story in my head.

The sales director in question is Adrian Spencer Y. Yu, who has certainly come a long way since his days as a sales agent at Honda Cars Makati in the 1990s, his first job. From there, he moved to PGA Cars, the local distributor for Audi and Porsche, in January 2000, working his way up to the general manager post and in the process expanding his network in the upper echelons of the business community. In October 2008, he crossed over to Lexus Manila, where he would receive mentorship from then company president Daniel M. Isla.

Allow me to underline the weight of that last sentence.

Pre-Lexus, the 42-year-old industry veteran had been notorious in motoring circles for being an obnoxious character. I know this from experience, but that’s another story. Under Mr. Isla’s guidance, he slowly transformed into a mellower, more agreeable version of himself. “The most important thing I learned from him is how to deal with people — dealing with customers and, most importantly, [sales] team members,” Spencer revealed. “I learned the value of making team members happy and motivated.”

Imagine a salesperson with a vast network, and then give him serious people skills. That’s what BMW is getting here. Someone who has the mobile numbers of Audi owners on his phone, and the Lexus philosophy under his belt. Deadly, if you ask me.

But how did Mr. Yu find his way to BMW?

Two decades ago, one of Spencer’s clients at Honda was a man by the name of Ramon S. Ang, who bought an Accord and a CR-V from him. Mr. Ang would continue to do business with Spencer through his stints at PGA Cars and Lexus Manila. Spencer would personally deliver the cars to his high-profile customer, eventually gaining the latter’s trust and confidence.

Mr. Ang, of course, is the president of San Miguel Corp., which has recently acquired 65% of BMW distributor Asian Carmakers Corp. (to be renamed SMC Asia Car Distributors Corp.). By all relevant accounts, the guy is a micromanager who likes appointing lieutenants he feels are loyal to him. It still isn’t clear what Spencer’s exact designation at BMW will be. What is clear is that RSA, perhaps Lexus’s most prized client before he decided to take over BMW in our market, liked what he saw in his fresh hire.

Mr. Yu is staying at Lexus until the end of this month, after which he plans to take a well-deserved break before commencing his tenure at BMW in December. Current Lexus Manila president Raymond T. Rodriguez declined to comment on this development, but according to his predecessor, “the company is in cruise control.”

Oh yeah… Maria Ozawa. Over sake and teppanyaki, she shared that if one wanted out of the yakuza, that poor soul had to cut a finger or two as some sort of indemnity. Thankfully, Lexus is not an organized crime syndicate. So yes, Spencer can go use all 10 of his digits to tally BMW sales.

 

You may e-mail the author at vbsarne@visor.ph.

IMF finds wide use of informal channels for forex

AN INITIATIVE to develop the Philippine capital markets has found that many Filipinos still turn to informal channels for foreign exchange transactions.

In a statement on Monday, the International Monetary Fund (IMF) and the Philippine Chamber of Commerce and Industry (PCCI) said they met to draft recommendations on capital market development to the Bangko Sentral ng Pilipinas, which the IMF is advising.

IMF lead financial sector expert Annamaria Kokenyme noted that formal foreign exchange transactions are hindered by regulatory frameworks, documentation requirements and risk management operations, which lead to greater usage of informal channels.

At present, the Philippines is heavily dependent on the informal channels to undertake foreign currency transactions, raising the risk of money laundering.

PCCI President George T. Barcelon said there is difficulty in monitoring the flow of funds when the remittances are not coursed through official channels.

“With (the) issue of dollar remittances, it’s hard really to monitor everything because of the overseas Filipino workers. We all know that the official remittances are about $30 billion,” Mr. Barcelon said.

“Some are coursed through banks and most are through quasi-banking institutions… and sometimes people deliver physical money and it’s hard to trace.”

PCCI Honorary Chairman Edgardo Lacson said the dependence on the informal market is due to the simpler procedures and the lack of documentation.

PCCI Chairman emeritus Alfredo M. Yao also noted that documentary stamps required by the banking system is deterring the development of the oil industry, whose main commodity is globally priced in dollars.

Current law allows corporations to exchange $1 million a day without documentation. — Anna Gabriela A. Mogato

Entry of Macquarie, GIC to boost EDC long-term growth

FIRST GEN Corp. on Tuesday said its partnership with Philippines Renewable Energy Holdings Corp. (PREHC) in managing Energy Development Corp. (EDC) is expected to  support the long-term growth prospects of the Lopez-led renewable energy company.

PREHC, a consortium of investors comprising funds managed by Macquarie Infrastructure and Real Assets (MIRA) and Arran Investment Pte Ltd of Singapore’s GIC Pte Ltd., became a substantial shareholder of EDC after it acquired 31.7% of the listed company through a $1.3-billion tender offer. 

“We believe MIRA and GIC are the right partners for this juncture in our corporate history: they’re long-term and astute capital, they have complementary perspectives and they’re willing to help us push the frontiers of innovation as we build EDC into a platform that’s well-positioned for a dynamically changing energy landscape,” said First Gen and EDC Chairman Federico R. Lopez in a statement on Tuesday.

First Gen said it continues to hold a majority stake in EDC and maintains day-to-day control of the company.

MIRA along with Arran affiliate GIC are long-term investors with a track record in global infrastructure and renewable energy. They own and operate a combined installed capacity of over 11,000 megawatts (MW) globally.

Ang Eng Seng, chief investment officer for infrastructure at GIC, said the company believes “EDC’s unique portfolio of renewable energy assets will continue to generate stable and sustainable returns.”

“This investment in EDC marks our first infrastructure commitment to the Philippines and we look forward to growing the company with our partners in this vibrant energy market,” he said.

EDC claims to be the largest “vertically integrated geothermal company in the world” with 1,471 MW of clean and renewable power assets under its portfolio. First Gen will contribute its experience in the power, utilities and energy sectors in the partnership with PREHC. It has 3,489 MW under its portfolio of power assets.

David Luboff, MIRA senior managing director, said: “As a world-leader in the geothermal energy industry, EDC is an important supplier of clean and sustainable power to the Philippines. We are delighted to have acquired a significant interest in such an outstanding company on behalf of our investors. We’re also pleased to be forming a long-term partnership with First Gen and GIC to bring our combined expertise to EDC.”

On Tuesday, First Gen shares rose by 0.95% to P19.16 each, while EDC shares jumped by 2.36% to P5.64 each. — V.V. Saulon

Team-first guy

Two years ago, Tristan Thompson missed the Wine & Gold Scrimmage. At the time, he was deep in negotiations with the Cavaliers, so intent on a max contract as to skip training camp. He would eventually settle for a five-year deal worth $82 million, around $12 million less than his target but, significantly, at par with that inked by far-more-heralded forward Draymond Green with the Warriors. And the rest is history: He went on to play heavy minutes, and, by the time the playoffs came, a starter’s role that translated to a championship and justified the $60-million luxury tax his employers had to pay in part because of his above-market salary.

Yesterday, the Cavaliers hosted the Wine & Gold Scrimmage anew, and Thompson was an integral part of the three-quarter affair. He didn’t hold out, not even after head coach Tyronn Lue informed him of his revised role as a reserve. On the contrary, he accepted his marching orders with aplomb, viewing them as motivation for him to keep proving himself. It helped, of course, that he understood from where his move to the bench came; the 2016 titleholders now boast of arguably their deepest roster ever, one best suited for small ball, and one that necessitates him making sacrifices for the good of the collective.

Still, it’s with no small measure of selflessness that Thompson relinquishes his place in the pecking order. With All-Star Kevin Love slated to man the front line on tip-off alongside top dog LeBron James and new acquisition Jae Crowder, he willingly consented to being a sub — or, to be more accurate, a supersub. “I’m going to go for Sixth Man of the Year, push myself to do that,” he disclosed after the Wine & Gold Scrimmage. “I feel like with the second unit we have and the energy that I bring off the bench, I’ll put myself in pretty good position.”

All things considered, the unique dynamics that figure to shape the Cavaliers’ competitiveness through the regular season and what they hope to be a successful Finals run will improve and stay solid only with complete player buy-in. This is especially true of the regulars, whose job includes allowing incoming talent to settle in as fast as possible. And, creditably, Thompson has welcomed the challenge. “I’m a team-first guy. I understand that, at the end of the day, it’s about winning, and if we win, we all look good, whether we come off the bench or we start.” Indeed.

 

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

How PSEi member stocks performed — October 3, 2017

Here’s a quick glance at how PSEi stocks fared on Tuesday, October 3, 2017.

DA to maintain policy regulating corn sweetener imports

THE Department of Agriculture (DA) said it will continue to regulate the importation of High-Fructose Corn Syrup (HFCS), which is favored by the food industry and has depressed sugar prices.

“Sugar Order No. 3 is here to stay,” Agriculture Secretary Emmanuel F. Piñol said in a statement, referring to an order issued by the Sugar Regulatory Administration (SRA), which claims the authority to regulate HFCS as part of its mandate to promote the development of the sugar industry.

Mr. Piñol said he and newly-installed SRA head Hermenegildo R. Serafica will work together to ensure the sugar industry’s interests are looked after.

The sugar industry has expressed concern that Sugar Order No. 3 will be canceled, after Mr. Piñol announced plans to put the policy on hold pending consultations with HFCS users, including Coca-cola FEMSA Philippines, Inc.

Sugar Order No.3, signed in February, sets the guidelines for the release of imported HFCS and chemically pure fructose.

The SRA has said an estimated 373,000 tons of the sweetener entered the country last year, up 58.72%. — Janina C. Lim

Nation at a Glance — (10/04/17)

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

The changing face of Philippine trade

1...13,60013,60113,602...14,238Page 13,601 of 14,238
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube