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Over a cup of coffee

CLAY BANKS-UNSPLASH

WE BORROW for this piece the title of a long-ago column (and TV talk show) by Teodoro Valencia (1913-1987) who spearheaded the refurbishing of Rizal Park in the 1960s. This opinion leader also presided over regular coffee sessions at the lobby of a now demolished five-star hotel along Ayala Avenue. The regulars there even had coffee mugs with their names on them.

What is it about coffee that continues to hold its mystique as the beverage of choice for off-the-record conversations or intimate meetings? How did taking coffee evolve into a chat occasion for two (or more) so that an invitation for a cup has become a low-cost alternative to a date or an informal business conversation? It’s certainly cheaper than a steak lunch and quieter than a single malt whiskey bar visit.

People are willing to pay a high price to take coffee at a franchised chain in its various forms, hot or iced, various flavors not limited to milk, regular, or decaf, in small cups or big mugs. Caffeine consumption and the proliferation of coffee shops seem to have little to do with a healthy lifestyle. (Does it really cause hemifacial spasms?) These coffee places offer solid alternatives too like cakes, sandwiches, and breakfast offerings that don’t require utensils.

What brings people to coffee shops? (Clue: it’s not just the caffeine rush.) And why do they stay longer there than in restaurants where they don’t tarry after finishing the meal? In the interest of full disclosure, the findings in this piece are based merely on observations.

Why does a big group for lunch move to another place for coffee, maybe with a smaller cohort?

Those who take coffee after lunch may not do so in the same restaurant where they had their meals, even if coffee in all its forms is available there. In a lower voice, the host may convince the targeted counterparty to take coffee and dessert in another place, within walking distance from the lunch venue.

The intent of shedding other lunch mates becomes clear as another agenda (like shared services) is proposed with the designated coffee mate, hence the expression — do you want to have coffee after? Coffee is considered both a stimulant and a diuretic. This is why coffee places are near toilets or have one in the premises which are usually open to either gender, though not at the same time. Even the queue for the washroom is mixed.

Coffee is a beverage that is bitter which describes how the relationship later turns out, if such intimacy as dessert, perhaps sugar-free cheesecake, is not added to the mix. Coffee can become the code word for a tryst, hence the cryptic text message: do you want another cup?

What about solo coffee drinkers? It is possible that coffee couples are reduced to becoming solos with either a late cancellation (Sorry, I can’t make it as I just had a hip replacement.) or maybe a walkout after the first cup. (I didn’t like the way you stared at me, when you were stirring your decaffeinated cafe latte with the stick.)

Intentional solo coffee drinkers may camp out at a corner table working with their computers. This is sometimes lumped under a work-from-home protocol where the background wall must be white or blurred. The coffee place with its free WiFi serves as an office where these solo drinkers answer e-mails and join webinars. Their average stay in the shop is two hours and 13 minutes. They order the minimum amount needed for WiFi access, consisting of plain coffee (small) and a bagel or corned beef pandesal. The tiny uneaten portions serve as props to show they are paying customers savoring the music.

Some soloists merely sit back and lounge as if they’re on the sidewalks of the Champs Elysees. They pick tables outside observing the ebb and flow of life, meditating on materialism and how it erodes the soul, the safety of municipal bonds, and the fate of contested waterways. Some solo drinkers not busy with computers don sunglasses and take a nap.

Coffee then is ritualistic more than nutritional, though the brew is thought to have therapeutic properties to prevent cancer and stimulate alertness. Such attributes are required over conversations that induce sleep… but require one’s full concentration.

 

Tony Samson is chairman and CEO of TOUCH xda

ar.samson@yahoo.com

BDO ends bond offer early amid strong demand

BW FILE PHOTO

BDO UNIBANK, Inc. on Tuesday ended the public offer period for its third peso-denominated ASEAN Sustainability Bond issue, three days ahead of the original schedule, as it saw robust demand from the market.

“Originally set to run from July 8 to 19, 2024, the bank decided to close the offer period early, on July 16, 2024, following strong demand from both retail and institutional investors,” the Sy-led bank said in a disclosure to the stock exchange on Wednesday.

The bonds will still be issued, settled, and listed on July 24, BDO added.

The bank did not disclose the final amount raised from the sustainability bond offering.

BDO wanted to borrow at least P5 billion from the 1.5-year peso-denominated notes with an option to upsize.

The bonds carry a coupon rate of 6.325% per annum. They were offered for a minimum investment amount of P500,000 and in increments of P100,000 thereafter.

BDO earlier said it will use the issue’s proceeds to finance or refinance eligible assets under its Sustainable Finance Framework and diversify its funding sources.

The Securities Exchange Commission has confirmed that the issuance complies with requirements under the ASEAN Sustainability Bond Standards and the SEC ASEAN Sustainability Bond Circular.

ING Bank N.V. Manila Branch was tapped as the sole arranger for the issuance. ING Bank is also a selling agent along with BDO.

Meanwhile, BDO Capital & Investment Corp. was appointed the financial advisor for the transaction.

BDO’s last issued ASEAN Sustainability Bonds in January, where the bank raised P63.3 billion, above the P5-billion target. The 1.5-year notes carry a coupon of 6.025% per annum.

It also borrowed P52.7 billion from its first ASEAN Sustainability Bond issue in January 2022.

BDO’s net income grew by 12.12% year on year to P18.5 billion in the first quarter as its core businesses remained strong.

Its shares dropped by 40 centavos or 0.29% to close at P139.40 apiece on Wednesday. — A.M.C. Sy

Imprisoned Rust armorer seeks release after Alec Baldwin dismissal

ACTOR Alec Baldwin in a scene from Rust. — IMDB

TAOS, N.M. — Hannah Gutierrez, the armorer imprisoned for the 2021 Rust shooting, on Tuesday filed a motion for her conviction to be dismissed after charges against actor Alec Baldwin were dropped on prosecutors withholding evidence linked to the 2021 fatality. A lawyer for Ms. Gutierrez said the buried evidence of live rounds, and other information concealed from defense lawyers, were grounds for dismissal or a new trial.

Should Ms. Gutierrez be successful in her motion it would mark a complete unraveling of New Mexico’s criminal prosecution of the rookie weapons handler and Mr. Baldwin for the death of Rust cinematographer Halyna Hutchins. The motion followed the dismissal of charges against Mr. Baldwin during his trial on Friday as a judge ruled prosecutors deliberately hid the existence of live rounds handed into police that could reveal the source of the round that killed Hutchins.

The Ukrainian director of photography died when Baldwin’s gun fired a live round inadvertently loaded by Gutierrez as the actor set up a camera shot in a movie-set church southwest of Santa Fe, New Mexico.

In Ms. Gutierrez’s motion to dismiss, lawyer Jason Bowles said he contacted state prosecutor Kari Morrissey in January requesting that the FBI test the live rounds that were eventually handed into police on March 6, the day Ms. Gutierrez was convicted.

Bowles said Morrissey responded by saying she did not plan to retrieve the rounds or test them as they looked different to six live rounds found on the set of Rust.

Three of the rounds handed in by Troy Teske, a friend of Ms. Gutierrez’s stepfather Thell Reed, were similar to live rounds found on the Rust set.

Bowles listed other instances of prosecutors failing to disclose evidence to defense lawyers, including an interview with Rust props supplier Seth Kenney and a supplemental report on Mr. Baldwin’s gun by firearms expert Lucien Haag.

Judge Mary Marlowe Sommer must now schedule a hearing on Ms. Gutierrez’s motion to dismiss. — Reuters

Prime Infra switches on 64-MW solar plant in Cavite

RAZON-LED Prime Infrastructure Capital, Inc. (Prime Infra) and its wholly owned subsidiary Prime Solar Solutions Corp. have inaugurated their 64-megawatt (MW) solar power plant in Maragondon, Cavite.

“The completion of the Maragondon solar power plant is a significant milestone for Prime Infra’s portfolio,” Prime Infra President and Chief Executive Officer Guillaume Lucci said in a statement on Wednesday.

Mr. Lucci said that the power plant is “certainly a part of Prime Infra’s wider sustainable strategy.”

The company’s power plant in Cavite is one of two power plants under Prime Solar’s first project, supplying up to 128 MW of power.

The other is the 64-MW solar power plant in Tanauan, Batangas, which was inaugurated in May.

Mr. Lucci said that the total capacity is expected to power about 84,000 households and displace over 100,000 tons of coal per year.

Both the Maragandon and Tanauan solar power plants were constructed in April 2023. — Sheldeen Joy Talavera

FTC seeking details on Amazon deal with AI startup Adept — source

THE US Federal Trade Commission (FTC) has asked Amazon.-com to provide more details on its deal to hire top executives and researchers from artificial intelligence (AI) startup Adept, a person familiar with the matter told Reuters.

The request reflects the FTC’s growing concern about how AI deals have been put together and follows a broader review of partnerships between Big Tech and prominent AI startups.

The informal inquiry into Amazon, which has not previously been reported, centers on last month’s announcement that Adept Chief Executive David Luan and others were leaving to join Amazon, which would also license some of the startup’s technology.

Such inquiries do not necessarily result in an official investigation or enforcement action.

Amazon is trying to catch up with rivals Google and Microsoft, which partners with OpenAI, in developing its own large language models that can respond almost instantaneously to complicated prompts or queries.

Reuters previously reported on Amazon’s efforts to establish a new organization called the Artificial General Intelligence (AGI) team, focused on developing large language models. Luan is now running the “AGI Autonomy” team, consisting of many former Adept employees, and reporting to Rohit Prasad, head of the AGI team.

Founded in 2022, Adept made a splash by raising over $400 million from venture capital investors with the aim to train large language models to perform general tasks for enterprise clients. Once valued at over $1 billion, it released some open-source models but failed to launch successful commercial products. It’s unclear whether Amazon has compensated Adept investors, or the details of the licensing fees.

Amazon, Adept, and the FTC declined to comment.

The regulator is already investigating a similar move by Microsoft, which hired away much of another startup, Inflection AI’s leadership and employees and agreed to pay a roughly $650 million licensing fee. The FTC is looking into whether the deal was a play to skirt merger disclosure requirements, a source told Reuters last month.

This is not Amazon’s first AI startup bet. Amazon has invested $4 billion in AI startup Anthropic since September, taking a minority stake in the San Francisco company.

The FTC earlier this year launched a study of investments and partnerships in the AI space, demanding information on Microsoft’s relationship with OpenAI, and Anthropic’s tie-ups with Google and Amazon.

The extensive document request, made in January, seeks details on how AI company partnerships with Big Tech influence strategy, pricing decisions, access to products and services, and personnel decisions.

US antitrust enforcers also expressed concern about Big Tech companies wielding their existing advantages in AI to shut out smaller competitors. The FTC and Justice department have staked out responsibility for potential probes into Microsoft, OpenAI, and chipmaker Nvidia. — Reuters

How PSEi member stocks performed — July 17, 2024

Here’s a quick glance at how PSEi stocks fared on Wednesday, July 17, 2024.


Philippines lands 31st in AI responsibility index

The Philippines ranked 31st out of 138 countries after scoring 35.46 out of 100 in the inaugural Global Index on Responsible AI (GIRAI) by the Global Center on AI Governance. This was better than the Asia and Oceania average of 19.80. The country placed fourth highest in the East and Southeast Asian region. The index assessed countries based on performance towards responsible artificial intelligence (AI) — the design, development, deployment, and governance of AI in a way that protects human rights and upholds AI ethics.

Philippines lands 31<sup>st</sup> in AI responsibility index

World Vision Philippines launches 2024 back-to-school campaign

source: World Vision Philippines

Encouraging children to get one step closer to achieving their dreams is the goal for a humanitarian organization that recently launched its 2024 back-to-school campaign. 

Dubbed #OneBagOneDream, World Vision Philippines aims to raise enough funds to provide learning kits worth P1000 to about 24,000 Filipino children. 

“[This initiative] provides opportunities for people to escape poverty, so they can become better versions of themselves,” Jun N. Godornes, World Vision Philippines’ interim national director said in the July 16 media launch. “It provides opportunities for sustainable change.”

source: World Vision Philippines

World Vision Philippines raised P2.5 million last year, according to Precious Hope T. Basco, its resource development director officer-in-charge. 

The funds, Ms. Basco said, were used to distribute school supply kits for 24,000 children nationwide. 

“We’re hoping to reach at least the same amount this year – or even more,” she said in the same event. 

World Remit, a digital remittances brand, found in 2023 that Filipino families must set aside at least 51% of their monthly income to cover essential school items, including pencils and notebooks. 

According to the report, the average number of children per household is between two to three, and the cost of sending each child back to school is P2,661. 

This year, the Department of Trade and Industry’s (DTI) 2024 price guide for school supplies showed that nearly a quarter (24%) of the stock keeping units (SKUs) have increased prices this year. 

“We increased to P1000 per school kit this year, up from P1000 for every two school kits last year, because school supplies cost more now,” Ms. Basco said. 

The organization’s priority areas include Aklan, Leyte, Cebu, Misamis Occidental, and North Cotabato, she added. 

“We stay until several kids graduate at least from K-12. That already elicits a significant change in the lives of Filipino families,” Mr. Godornes said. 

About 18.6% (7,856,000) of children aged 5 to 24 years were not attending school, based on the Philippine Statistics Authority’s Annual Poverty Indicator Survey of 2023. Of those who were not attending school, 9.9% said the reason was the high cost of education or financial concerns.Patricia B. Mirasol

Business groups back POGO ban, call economic impact minimal

MORE THAN 160 Chinese nationals who worked for POGO Zun Yuan Techonology, Inc. were deported on May 14, 2024. — PRESIDENTIAL ANTI-ORGANIZED CRIME COMMISSION

By Justine Irish D. Tabile, Reporter

BUSINESS GROUPS expressed support on Wednesday for the position laid down by the Department of Finance (DoF), which had proposed to ban Philippine Offshore Gaming Operators (POGOs).

In a statement, the business groups, led by the Makati Business Club (MBC) said the contribution of POGO investments was equivalent to 0.2% of gross domestic product in 2023, calling it minimal compared with the social costs attributed to the industry.

“The crimes related to POGO investments can hinder growth, affect investor perception, and potentially affect our bilateral and multilateral relations,” they said.

“Recent Senate hearings and statements by NEDA have illustrated that POGOs have been linked to negative externalities, particularly involvement in crimes such as human trafficking, kidnapping, and money laundering, among others,” they added.

Citing a report from the Philippine National Police, the groups said that 55% of the 31 cases of kidnapping recorded in 2022 were POGO-related.

Finance Secretary Ralph G. Recto has sent a letter recommending a POGO ban to President Ferdinand R. Marcos, Jr.

National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said the Cabinet has yet to discuss the ban.

On Tuesday, the DoF said it is willing to forego taxes from POGOs, which it expects to be offset by investments encouraged by the improvement in business climate if crimes associated with the industry recede.

The DoF estimated that the reputational risk from POGOs costs the government P55.36 billion in forgone investments.

The Philippine Amusement and Gaming Corp. has said its estimate of foregone revenue if POGOs are shut down is P20 billion a year.

The Senate is investigating crimes linked to POGOs, which are mostly Chinese gambling firms that operate online casinos. The chamber is currently weighing a bill banning the industry.

Senate Bill No. 1281 would repeal all laws, executive orders, and other rules that allow online gambling.

The signatories to the statement are the MBC, the Management Association of the Philippines, Alyansa Agrikultura, the Financial Executives Institute of the Philippines, the Foundation for Economic Freedom, the Institute of Corporate Directors, the Justice Reform Initiative, and the UP School of Economics Alumni Association.

Cruise visa waiver seen as means of unlocking China visitor market

DOT BICOL OFFICE

THE Cruise Visa Waiver program is viewed as pathway to tapping Chinese visitors, who are turning to other destinations in the region that are visa-free for them, an industry official said.

Ben Line Agencies Director and Vice-President for Marine Agency Services Terence L. Uytingban, said that China was a big market even before the pandemic.

“The Chinese are a visa-required nationality (in the Philippines) … they cannot join the cruises without a visa waiver or without holding a visa (for the ports of call),” Mr. Uytingban said.

“So, it really is a problem because visa-required nationalities such as Chinese and Indians have to apply in advance,” he added.

He said that China is one of the biggest markets for the Philippines, especially for short cruises, due to China’s proximity.

He added that world cruises often do not permit certain nationalities to embark due to visa restrictions, which has caused the Philippines to lose out on potential visitors.

On Tuesday, the Department of Tourism (DoT) announced the launch of the Cruise Visa Waiver program, which is expected to increase the number of cruise ship arrivals, contributing to the DoT’s goal of boosting foreign tourist arrivals and enhancing the overall tourism experience aligned with the National Cruise Tourism Development Strategy and Action Plan, the DoT said.

Immigration Commissioner Norman G. Tansingco said the program is meant to facilitate the entry of visa-required nationals on cruises.

The waiver is single-entry and valid for up to 14 days. It is not convertible to other types of visa.

Mr. Uytingban said that the new policy removes the uncertainty for affected nationals considering cruises.

“It gives assurance to the cruise lines and to the cruise passengers that there really is an accommodation policy in the Philippines that allows cruise passengers to embark on the vessels and enjoy the Philippines,” he said.

“I think it will be a big step forward because other countries already have it, so we are slightly lagging. This puts us makes us on par with other countries that already have similar arrangements,” he added.

This year, the Philippines is projected to receive 117 port calls carrying over 118,000 cruise passengers, up from the 123 port calls and over 101,000 passengers in 2023.  — Justine Irish D. Tabile

NGCP declares yellow alert over Luzon grid

WHATWOLF-FREEPIK

THE National Grid Corp. of the Philippines (NGCP) declared a yellow alert over the Luzon grid, the first such declaration in over a month, citing the tripping of a natural gas-fired power plant.

In a statement on Wednesday, the grid operator said the yellow alert was in force between 3 p.m. and 9 p.m. on Wednesday after the tripping of the San Gabriel gas-fired power plant in Batangas, which has a capacity of 417.4 megawatts (MW).

Available capacity was 13,198 MW while peak demand was estimated at 12,028 MW.

The alert was lifted at 4 p.m. after demand proved lower than expected.

A yellow alert is issued when the supply available to the grid falls below a designated safety threshold. If the supply-demand balance deteriorates further, a red alert is declared.

A total of 1,652.7 MW was unavailable to the grid, including the output of 15 power plants on forced outage and six running below their rated capacity.

The Luzon grid was last placed on yellow alert on June 5 while red alert on June 2. To date, the grid was under red and yellow alerts for 11 and 32 days, respectively. 

Manila Electric Co. (Meralco) said it has advised the participants of its Interruptible Load Program to be on standby “in case the situation escalates to red alert.”

“We urge the public to implement energy conservation and efficiency practices to help manage overall demand. We will give updates as soon as needed,” Meralco Spokesperson and Head of Corporate Communications Joe R. Zaldarriaga said in a statement.

In a statement, the Department of Energy (DoE) said it is closely coordinating with the NGCP and the generation companies to manage demand.

The DoE “is also urging electricity consumers to exercise judicious use of their electricity during this period to help manage the overall demand.”

Energy Undersecretary Rowena Cristina L. Guevara has said that the department expects the power situation to improve with the addition of new capacity. — Sheldeen Joy Talavera

Chicken prices expected to fall in August

REUTERS

POULTRY raisers said that chicken prices may drop by late August after they hit a “record” P250 per kilogram in Metro Manila markets.

“The increased chicken prices are only temporary because raising chickens is fast… (it is possible) there will be a continuous drop in late August,” United Broiler Raisers Association President Jose Feliciano told reporters this week.

According to Department of Agriculture price monitors, whole chicken in National Capital Region markets sold for between P190 and P250 per kilogram as of July 15.

“P250 per kilo is a record… Other sellers are trying to take advantage of the supply situation,” Mr. Feliciano added.

Last month, whole chicken prices in Metro Manila markets sold for between P160 and P220 per kilogram.

Separately, Agriculture Undersecretary Deogracias Victor B. Savellano said that the increase may be attributed to a rise in production costs.

He cited “The cost of production (mainly) imports of feed additives,” as well as diseases hitting the poultry flock.

As of July 12, two municipalities in Pampanga had ongoing cases of highly pathogenic H5N1 avian influenza or bird flu, according to the Bureau of Animal industry.

“Our concern is that the people should be able to buy affordable food,” Mr. Savellano said.

Mr. Savellano also described the high price of chicken as temporary. — Adrian H. Halili