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PDIC to auction off land

THE Philippine Deposit Insurance Corp. (PDIC) will be auctioning off parcels of land from around Luzon cumulatively worth P105.6 million, with the proceeds to be used to settle claims to pay uninsured deposits.

The state-run insurer said that they will be hold a public bidding for 201 residential and commercial lots on Monday. The properties are located in Bataan, Benguet, Bulacan, La Union, Nueva Ecija, Pampanga, Pangasinan, Tarlac, and Zambales.

The list also includes two generator sets and two cars owned by rural banks previously ordered closed by the Bangko Sentral ng Pilipinas (BSP), which were eventually taken by the PDIC for liquidation.

Under the PDIC charter, the state insurer steps in as receiver of problem banks and acquires the lender’s assets in order to pay outstanding liabilities to depositors. All bank deposits are insured up to P500,000 per account, according to the law.

The most expensive property that will be placed on the auction block is a 180-square-meter commercial lot and building in Dagupan City priced P8.749 million.

Given the location of the properties, the PDIC decided to use the BSP’s branch in San Fernando City, Pampanga to receive offers from prospective buyers. Sealed bids will be accepted between 9 a.m. to 2 p.m. and must include their proposed price for a property as well as a deposit worth at least 10% of their submitted bid.

“Prospective buyers are advised to physically inspect the properties they are interested to buy, examine and verify the titles and other evidence of ownership, and determine any unpaid taxes, fees, charges and/or expenses before submitting their bids,” PDIC said in a statement, noting that the properties will be sold on an “as-is, where-is” basis.

Winning bidders must settle the full amounts by Sept. 13, or else the award will be cancelled.

The PDIC also staged a public bidding for eight condominium units with parking slots worth P69.5 million yesterday.

“The disposal of these assets increases the chances of recovery of uninsured depositors and creditors of their trapped funds,” the state insurer added, noting that the proceeds of these auctions will be used to settle the amounts due for uninsured depositors as well as creditors of a closed bank.

The central bank has shut down six rural and thrift banks so far this year after they were found to be incapable of remaining in business. Last year, 22 lenders were ordered closed by the regulator. — Melissa Luz T. Lopez

Still trying to get home 30 years later

WRITTEN and directed by John Hughes, the celebrated comedy Planes, Trains and Automobiles makes an on-time arrival for its 30th anniversary on Blu-ray Combo Pack with a Digital HD copy and on DVD on Oct. 10, from Paramount Home Media Distribution.

Starring comedy greats Steve Martin and John Candy, the hilarious classic follows a businessman (Martin) who is struggling to get home for Thanksgiving, but burdened by one travel mishap after another, as well as the company of an annoying traveling salesman (Candy). Filled with funny situations and a generous helping of warmth, the film also features appearances by Michael McKean, Edie McClurg and Kevin Bacon.

The Planes, Trains and Automobiles Blu-ray features an in-depth retrospective on John Hughes’ career that includes interviews with those who worked with him and explores his indelible impact as a writer and filmmaker. Additional features include “Getting There is Half the Fun: The Story of Planes, Trains And Automobiles,” “John Hughes For Adults,” a tribute to John Candy, and a deleted scene. — Front Row Features

After Pyongyang missile, Britain and Japan agree closer security ties

TOKYO — Britain and Japan said on Thursday they would cooperate in countering the threat posed by North Korea, two days after it fired a missile over northern Japan, and will pledge closer ties in defense, cyber security and counter-terrorism.

Prime Minister Theresa May, looking to strengthen relations with one of her closest allies ahead of Brexit, is visiting Japan as it responds to an increasing military threat posed by North Korea.

“North Korea’s reckless action is a threat” to Japan, Prime Minister Shinzo Abe told his National Security Council alongside Ms. May. “Japan and Britain will cooperate to counter this.”

Ms. May added: “Against a backdrop of a more uncertain world, I want you all to know that Japan can count on the United Kingdom as a dependable and like-minded partner.”

Ms. May toured Japan’s flagship Izumo helicopter carrier for a military briefing with Minister of Defense Itsunori Onodera before attending the national security meeting.

Ms. May and Mr. Abe will agree on a joint declaration on security cooperation, including plans for British soldiers to take part in military exercises on Japanese soil and for collaboration to address the threat of cyber and militant attacks when Japan hosts the Olympics in 2020.

North Korea is expected to feature heavily in the talks after it launched a ballistic missile on Tuesday that passed over Japanese territory, prompting international condemnation.

The two leaders are expected to discuss the possibility of further sanctions on North Korea, Ms. May’s office said. Ms. May called on China to put more pressure on North Korea after she arrived in Japan on Wednesday.

The Global Times, a publication of the official People’s Daily of China’s ruling Communist Party, criticized Ms. May’s comment.

“Beijing does not need London to teach it how to deal with North Korea,” the newspaper said. — Reuters

BDO to issue dollar notes

BDO UNIBANK, Inc. (BDO) will issue $700 million in debt for its second drawdown under its dollar-denominated medium term note program, with the transaction attracting strong investor interest.

In a disclosure, the country’s largest bank in asset terms said it will issue $700 million in fixed rate senior notes under its $2-billion medium term note (MTN) program.

The debt notes carry coupon rate of 2.95% and will mature in five and a half years. The notes were also met with strong appetite among investors, with offers reaching more than $2 billion.

“The transaction was overwhelmingly oversubscribed, with orders reaching $2.2 billion,” the listed lender said in a statement.

The fixed rate senior notes will be settled on Sept. 6.

“With a wide distribution across Asia Pacific and Europe, this transaction represents the largest single issuance by a Philippine bank to date,” BDO said.

In October 2016, the bank successfully sold $300 million bonds in the first drawdown of its MTN program that fetched a coupon rate of 2.63%.

Minus this second tranche, BDO still has room to issue around $1 billion more in notes under the facility.

According to the listed lender, capital to be raised from the issuance will be used for its liability management initiatives.

“The senior note issue is part of the bank’s liability management initiatives to tap longer-term funding sources to support BDO’s lending operations and general corporate purposes,” the bank said.

On Wednesday, global debt watcher Moody’s Investors Service assigned a “Baa2” rating with a “stable” outlook to the drawdown on the back of the lender’s stable funding profile.

BDO’s MTN was announced in 2012, with the bank seeking to raise funds for corporate loans, especially those taking on infrastructure projects under the government’s infrastructure program.

The bank’s net profit was little changed in the first six months of the year at P13.3 billion.

BDO shares closed at P127.10 apiece yesterday, down 90 centavos or 0.70%. — JMDS

Train and be active like a Spartan

By Michael Angelo S. Murillo
Reporter

SHARING the same philosophy of encouraging Filipinos to be more active and live a healthy lifestyle, Fitness First Philippines has partnered with Spartan Race Philippines to come up with a program that will test not only one’s physical fitness but the mental aspect of it as well.

Called the “Spartan SGX class,” the program is a 45-minute group class that people can try to get stronger, fitter, and faster.

The launch of the new training program, Fitness First said, is in conjunction with the first-ever Reebok Spartan Race in the country on Sept. 16.

As Spartan’s official fitness partner, Fitness First exclusively offers this group workout across all its branches for its members. Registered racers also get to experience the Spartan SGX class through a one-day free trial by simply showing their race confirmation e-mail at the club reception.

Partnering with Spartan Philippines is part of Fitness First’s effort to showcase its diversity and how its top-end facilities support different fitness journeys.

In the Spartan SGX class, to be handled by highly trained coaches, members will undergo training anchored on seven key areas, namely stamina, power, athleticism, regeneration, tenacity, attitude, and nutrition.

The routines that will be done in each class essentially mimic the types of movements that a Spartan racer does during races, which are exercises that make the body move the way it is meant to and keep the mind active, too.

Each workout will make participants crawl climb, hang, jump, lift, lunge, push, pull, run, sprint, and squat throughout the 45-minute class.

“We’re highly excited to be part of the Spartan Race as its fitness partner. Through the Spartan SGX classes, we get to help the racers and our members to be at their best and finish strong. It also showcases how much fitness training has evolved in our clubs, too. This is a part of our commitment to our members, to constantly innovate to help them go further in their fitness journey,” said Mark Ellis, Fitness First’s country manager, during the media launch for the Spartan SGX class last week at Fitness First Premium in Greenhills in San Juan City.

For Michael Reyes of Spartan Race Philippines, whose group will stage the Reebok Spartan Race in September, the launch of Fitness First’s latest program is a good complement to what they are doing as well as for fitness in general.

“Spartan is more than a race, it is a lifestyle. With the Spartan SGX program at Fitness First, you can be a Spartan every day. We are incredibly excited to be working with Fitness First in developing this program. Our quest is to rip people off the couch and promote optimized fitness and health. With Spartan SGX, no challenge is too big and their potential is limitless,” said Mr. Reyes at the launch.

Classes will be available on different days and various times each week and are free for all members. Coaching sessions on race preparation and nutrition will also be conducted.

Fitness First is also organizing outdoor community Spartan SGX Workouts which are open to the public on Sept. 2 at Westgate, Alabang, and Sept. 9 at the Quezon City Memorial Circle. More Spartan SGX Community Workouts will be announced soon.

To find out more about the Spartan SGX and other Fitness First programs, log on to www.fitnessfirst.com.ph. Learn more about the Spartan Race by logging to www.spartanrace.ph.

Entertainment (09/01/17)

GoT behind-the-scenes series

FOLLOWING the end of Season 7 of Game of Thrones, fans can look forward to a new seven-episode post-season, behind-the-scenes series called The Game Revealed. The series features exclusive interviews with cast and crew that provide new info and insights on how some of the biggest moments from the latest season of the HBO series came together. The first episode is currently available on HBO Asia’s Facebook page while subsequent episodes will stream on HBO GO every Wednesday from Sept. 6 onwards. The 14-minute first episode contains previously unseen footage revealing the camera tricks behind Arya’s face-changing transformation into Walder Frey, the breathtaking Spanish landscapes that served as the backdrop for Daenerys’ home of Dragonstone, and exclusive interviews with episode one director Jeremy Podeswa, prosthetics designer Barrie Gower and cast members, including Emilia Clarke and Maisie Williams, and guest star Ed Sheeran.

Reality shows in September

HISTORY’s lineup for this month includes new seasons, episodes, and specials from its hit reality shows. Celebrity Car Wars is back with a new star-studded cast – including Phoemela Baranda, Gaby dela Merced and Michele Bumgarner – and crazier challenges. The show premieres on Sept. 4, at 9:55 p.m. Season 4 premiere of Alone premieres on Sept. 14, 10:55 p.m., as seven pairs of family-related contestants must find their way to each other using the limited gear they’re given. Ride N’ Seek with Jamie Dempsey and Photo Face-Off have Philippine-set episodes this month. Dempsey rides over 1,500 kilometers exploring the country’s different province, and surfs alongside the finest female surfer in the Philippines, Nildie Rietenbach, on Sept. 4 at 9:25 p.m. Meanwhile, Photo Face-Off airs its latest episode featuring high fashion shots at the walled city of Intramuros, on Sept. 7, 9 p.m. A new season of Mountain Men starts Sept. 14, at 10:55 p.m. HISTORY is airing two specials to mark the anniversary of 9/11. Two-part special Forever War: Age of Terror airs on Sept. 8, at 9:55 p.m., and delves into the massive effects of 9/11, how it’s changed the rules of warfare and gave rise to lone-wolf terrorists. Airing on Sept. 10 at 5:05 p.m., is Remembering 9/11, a documentary on the attack featuring interviews with key figures including George W. Bush, Dick Cheney, and Michael Bloomberg, plus recently released documents and never-before heard stories from photographers and first responders.

Hot Asian dramas on GEM

THIS September, GEM presents the Japanese drama My Lover’s Secret and Chinese period drama Le Sacrifice, and the comedy special Pretty Proofreader Deluxe. My Lover’s Secret follows a law student with a dark family secret who falls in love with a fellow law student. As the couple plans their marriage, a stranger threatens to reveal everything. The show premieres Sept. 7, and will air every Wednesday and Thursday at 9 p.m. In Le Sacrifice, an “unlucky girl” suddenly finds two brothers competing for her attention and love. The show premieres Sept. 18, and will air Mondays to Fridays at 8 p.m. Pretty Proofreader Deluxe follows Etsuko Kono who has begun working at her dream job in the editing department. Just as everything, including her love life, has become fulfilling, she is transferred out of the department and a young and cute editor is assigned to work with her writer-boyfriend. The show premieres Sept. 20 and airs Wednesdays at 8 p.m. GEM is available on SkyCable Channel 116 in Metro Manila and on Channel 222 in Cebu, Davao, Bacolod, Iloilo, and Baguio.

Unexpected places on FYI

FYI will take viewers on a series of inspiring discoveries this September. The new series Hidden Restaurants with Michel Roux, Jr. will air Sundays, 8 p.m., starting Sept. 24. It features off the beaten track restaurants – in a treehouse, a sculpture, a suburban garden shed and more. In new episodes of Income Property, host and entrepreneur Scott McGillivray is out to help struggling homeowners make money by renovating a rental suite in their homes. The show airs every Tuesday at 8:55 p.m., starting Sept. 5. In Zombie House Flipping Season 2, a team of renovators attempt to save a seemingly torn down “zombie house” and its vintage bathrooms. The show will air every Wednesday at 8:55 p.m., starting Sept. 6. New episodes of Seven Year Switch Australia Season 2 will air Saturdays at 9:50 p.m., starting Sept. 2. Four couples at a relationship crossroads after seven years of marriage agree to take part in a radical experiment to switch partners and be matched with an experimental spouse for two weeks. FYI is available on SkyCable Ch 79; Cable Link Ch. 44; Dream Satellite Ch 21.

Fiona the baby hippo, or how animals go viral

WASHINGTON – First, Bao Bao and Bei Bei the pandas made a splash at the National Zoo in Washington. Then, April the Giraffe wowed fans at a game park in New York.

HTTP://CINCINNATIZOO.ORG/

Now, meet Fiona the baby hippo, the pride and joy of Cincinnati.

Across America, zoos and animal parks are looking for the next internet sensation – a strategy that tugs at the country’s heartstrings and generates tons of clicks, but one that can also backfire.

Fiona was born prematurely in January, weighing just 29 pounds (13 kilograms).

But starting last Tuesday, she stars of her own series, The Fiona Show, on Facebook’s Watch, the social network’s new platform for original video content.

For the premiere, the Cincinnati Zoo and Botanical Garden – which already has been sharing every little detail of Fiona’s life on social media – unveiled a never-before-seen video of the hippo’s birth.

America has fallen in love with the adorable but somewhat clumsy mammal, whose first steps have felt in some ways like a soap opera, with a regular rhythm of ups and downs. She has her own hashtag: #TeamFiona.

In one video released by the zoo, fans can see Fiona being bottle-fed by a caretaker shortly after birth, nestled into the woman’s chest.

Then, with the world watching, Fiona found her taste for playtime, diving into the pool to reconcile with her mama, who had initially rejected her at birth.

At seven months, she now weighs a more standard 450 pounds (200 kilograms).

“We didn’t plan on her becoming a celebrity. It just happened,” Cincinnati Zoo communications director Michelle Curley told AFP.

“We were transparent and communicated her health challenges from the day she was born. People started to root for her and fell in love with the little hippo.”

ZOO ATTENDANCE UP
The idea of turning Fiona into a reality star was not really the zoo’s idea, Mr. Curley said.

“Facebook approached us about doing a show about Fiona on their new Watch platform,” said Mr. Curley, admitting that she herself is “crazy” about the hippo.

Curley admits that the “Fiona factor” has boosted the zoo’s bottom line.

“Attendance has been great this summer, and some of that can be attributed to the Fiona factor. We have not, however, spent one dollar on ads inviting people to come see Fiona,” she noted.

For Ivy Collier, a board member for the nonprofit Animals and Society Institute, turning zoo animals into stars is an “economical” marketing tool.

In recent years in the United States, zoo births – from pandas to eagles – have been followed by hundreds of thousands of people online, thanks to live webcams focused on the animal enclosures.

Mr. Collier said she hopes that zoo watching and education will “translate into a deeper interest of animal protection and welfare.”

“It’s awfully hard to learn about cute, fuzzy polar bear cubs and then watch them be abused,” she said.

But for Lisa Moore, a sociologist and professor at the State University of New York – Purchase College, such a strategy is “greenwashing” – pretending that it’s pro-environmental and pro-animal when it’s really about money.

“It’s completely artificial. And that’s the paradox: it’s supposed to get us closer to animals but it actually disconnects us. And eventually we won’t have to leave home anymore and will just watch webcams,” Ms. Moore said.

TROUBLING OR ENTERTAINING?
According to Ms. Moore, such a strategy could have repercussions down the line.

“Soon, we will put cameras on animals,” she said with disdain.

Elizabeth Grauerholz, a sociologist at the University of Central Florida, agreed.

“I find it troubling on a few levels. These are income-generating endeavors that attract advertisers and sell products to benefit the (for profit) facilities,” she said.

Elizabeth Hogan, a program manager at the New York-based World Animal Protection, said turning animals into internet sensations is not all bad.

But she did warn of the misconceptions that could occur.

“Videos of captive animals without context may create unrealistic perceptions of wildlife behaviors and needs,” Ms. Hogan told AFP.

“Videos that are more purely ‘entertaining’ may also create unrealistic perceptions of wild animal interaction with people; in truth, the general public should never interact directly with wild animals.”

While the strategy has divided animal experts, it’s not exactly new, nor is it the product of the digital age.

In the 1960s and 1970s, Guy the Gorilla became the star of the London Zoo and British television.

Decades later, Fiona has fans in 70 countries. – AFP

Federer’s health

Roger Federer yesterday won for the 79th time at the United States Open, but it didn’t come easy. The back spasms he suffered during a loss in the final at Montreal early this month prevented him from appearing in any other tune-up tournament, and the rust showed. He needed five sets, and three match points, to overcome relatively inexperienced Frances Tiafoe, all of 19 and hitherto unable to move past the second round of any major championship. As he acknowledged in the aftermath, “I didn’t have the preparation I was hoping to get.”

Still, Federer has reason to wax optimistic moving forward. After having failed to compete at Flushing Meadows last year due to knee and back issues, he finds himself in the familiar position of crowd favorite. More importantly, he’s riding on the strength of two Grand Slam titles this season, no mean feat at 36 and coming off a prolonged absence from the sport. And with injuries forcing the younger and supposedly better Andy Murray and Novac Djokovic to sit out the US Open, he looks poised to claim a third major trophy in a calendar year for the first time since 2007.

First things first, though, and Federer knows he has to hit the ground running in his next match if he wants to build momentum heading into the pivotal second week. The good news: He’s slated to go up against World Number 101 Mikhail Youzhny, has never beaten him in 16 meetings all told. Needless to say, it’s important for him to spend the least amount of time possible on the court; for all his experience, his fitness is essential for him to last a fortnight’s worth of burned rubber on the Pro DecoTurf, not to mention be at his best for his anticipated encounter with longtime nemesis Rafa Nadal in the semifinal round.

In the meantime, Federer can rest easy in the thought that he dodged a bullet. “In these best-of-five matches, you have a lot of lives sometimes,” he noted. “In the fifth, it’s a coin toss, and it went my way tonight.” And, if nothing else, he pointed out, the test showed that he’s in the pink of health. “To get through a five setter, you have to be okay somehow. So I believe this is going to give me great confidence in my body and also my game.”

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.

Closing can be easy!

Getting the edge in professional selling
Terence A. Hockenhull

I THINK it would be fair to say that more people are involved in sales than almost any other profession. Consider for a moment that from the most lowly store clerk to wheeler-dealers selling high value limousines, planes, luxury yachts, or country estates, you don’t have to look far to find someone making a living from sales. Yet with the exception of sales training courses delivered to companies and individuals (usually a couple of days at best), preparing people for a career in sales is woefully lacking. Sure, there are those who attend college and collect marketing degrees, but this does not prepare an individual to sell effectively.

Most people who end up in sales do so more by accident than design. With no disrespect to professional sales people, I have yet to hear of anyone who has a burning ambition to be a salesman. Having said this, the lucrative remuneration packages that are promised for many sales positions make it an attractive career choice. And the existing culture would tend to indicate that you need no special skills to be effective and make a lot of money! All well and good until the inexperienced, neophyte salesman faces real customers. With no background or training, it can be a daunting task to determine what needs to be done to be effective and close sales.

Some salespeople carefully prepare a sales script before meeting their clients. Whereas this approach may give the salesperson a degree of confidence, sales scripts rarely produce tangible results. They are “one-sided” and unfortunately do not engage the customer in conversation; rather they leave him to listen to a sales pitch. Sending salespeople out to meet customers is a waste of time unless problems and needs are uncovered. And this has to be done by asking questions and engaging the customer in the sales call.

A typical sale will pass through four distinct phases. Opening the call is important and may help salespeople invest time and effort to establish rapport, exchange credentials and set a friendly tone for the sales meeting. Consider however, that whereas opening the call may make the process of selling easier, it will never close any business. The next stage of the sales is the most crucial. Asking questions to elicit information from the customer is critical. “Probing” or “investigating,” it is this phase where the salesperson identifies situations where his products and services will help the client solve specific problems and address stated needs.

A common mistake of inexperienced salesmen is to assume that clients already have needs. Instead of probing, they use their prepared sales script to tell the client why he should buy. This is a bit of a pointless exercise. Unless a client has clearly stated needs for the type of products that the salesperson is selling, the canned pitch will not work. And of course, the only way of finding out if the client has needs is to ask questions!

Once the salesperson is quite clear about his client’s problems and needs, he can begin to think about proposing an appropriate solution. This is another area where inexperienced salespeople make mistakes in selling. They put in the necessary work to determine customers’ needs and then offer products that they want to sell rather than products the customer wants to buy.

The third phase of the sale, demonstrating ability, must concentrate the sales pitch on features of the product or service that will address the stated needs of the client, not the needs that the salesperson thinks the customer should have!

Let me give an example here. Joe, our ever friendly photocopier salesman, sits with his customer and spends time asking what his customer needs. The customer explains that most of the office copying is done on the large unit but occasionally it breaks down or is in use by other departments and a small back-up unit would be helpful. The customer goes on to use words like “desktop unit,” “small-footprint,” “easy-to-operate,” and good service and support. Yet Joe proceeds to present an expensive replacement for the large photocopier!

Closing is the final phase of a sale and if (and only if) the rest of the sales process has been done correctly, it should be a relatively easy part of the sale. If problems and needs have been uncovered and explored and an appropriate, cost effective solution has been offered, chances are that the customer is ready to make a commitment to buy. Unfortunately, too many salespeople try to shortcut the process offering solutions before uncovering needs. Little wonder that the client (who can’t see any real value or application for the proffered product) resists making final commitment to buy!

The best advice I can give is not to talk about products and services until the client has told you he needs them. This is common sense! Opening a sales call with a long list of features and benefits will rarely be met with anything other than objections. The process of selling is simple. Ask questions, listen to answers and proffer appropriate solutions! This will always deliver better results than a canned sales pitch!

Terence A. Hockenhull is a long term resident of the Philippines. He is an accomplished sales consultant and currently holds an executive sales position with an Italian geotechnical company. hockenhull@gmail.com.

Rejecting employee requests without being hated

What are the best management strategies of disapproving the workers’ requests without creating bitterness? It appears that there are many people, majority of whom are the so-called millennials who are too onion-skinned that it has become difficult for me to handle similar situations. Please give me your advice. — Blue Seal.

There’s a story about a woman, who while doing her weekend shopping in an affluent mall, sprayed on an expensive perfume from a counter’s tester bottle. She went on with her window-shopping, exulting in the pleasant fragrance. At home, as she was preparing the usual Saturday hamburger dinner, her husband said he had to run an emergency errand and asked his wife if she would like to ride along in the car.

When she grabbed her jacket, she noticed that the elegant scent of the perfume still clung to her sleeves. She slid into the front seat of the car next to their nine-year old son. He sniffed and exclaimed:

“Wow! You smell good, Mom!”

She replied: “Yes, I know! That’s the perfume I sprayed on my wrists while I was shopping early today.”

“No, it isn’t,” the boy replied. “That’s a hamburger scent!”

Sometimes, just like the boy in our story, management can be guilty of selective perception. We see it from different perspectives, depending much on our interests. The woman takes it from her pleasant experience with the perfume, while the little boy tells it from a hamburger dinner. This means our actions are based on past experience, subjectivity, and much on the workers’ personality, among other issues.

If management is careless, rejection could be misinterpreted as one without basis, resulting in some form of employee bitterness that may be difficult to resolve in the long term.

But that should not be the case. The overall circumstances, the nature of employee requests and management reasons for rejecting can be varied and wide. Although saying “no” may be difficult, it is the manner and pattern of delivering it to the person that is important. Now, let’s look at the general rules for managing employee requests:

One, remain positive in every step of the way. Instead of a blunt “no,” emphasize that there are more important things for the employee to consider. For example, in a situation where an employee attempts to fatten his take home pay by rendering unnecessary overtime work, you only have to say: “I’m sorry, but the company prefers you to enjoy your family after office hours or on weekends.”

Two, ask questions that would give you the right answers. Be clear about your questions to force the employee to give honest answers. When pressed for the approval of an overtime work, ask the following questions: “What are your challenges that make it difficult for you to complete your assigned tasks during office hours? How can I help you out of that situation? Please help me understand the situation.”

Three, maintain your composure even if the employee appears persistent. Hold your ground. Compensate by being an active and sincere listener. Look at the employee straight into his eyes. Drop whatever you’re doing to give the employee an undivided attention. Then, continue to probe for the basic issues, the circumstances and correlate them with the body language of the person.

Four, ask for more time to make a decision, if necessary. Don’t be rushed into making an instant judgment. If you need more time, be clear about it. And give a reasonable day or time when you wish to go back to the employee. You don’t have to explain your reason for the time you need, but more often than not, you’ll be justified by saying you’re in the middle of an important project that you can’t postpone.

Five, make a counter-offer by giving a conditional “no.” Say something like: “You can take a vacation, if Project XYZ is already complete according to customer specifications.” Be specific about the conditions so as not to create another problem. Let the employee know exactly what to do to be able to secure management approval.

Now, let’s try these approaches on how to manage a difficult employee request, say a promotion or salary increase. How would you attempt to do it? Check this out. Stay positive by starting with a welcoming statement like: “I’m equally interested in your career growth in this organization. And I believe that we are being fair with everyone here. If this is incorrect, then please help me understand your situation.”

Then, proceed to ask the following questions: “Why do you think you deserve a promotion or a pay hike? Is there a provision in our company policy that was not done in your favor? Have you also considered the value of non-salary benefits that you’re receiving from us? How do we compare with the industry pay and perk standards? You’re doing good in your job, and I think there’s more room for you to make it consistently better. Don’t you agree? How would you prepare to accept more challenging assignments? Or, are you willing to consider a transfer to another location that may be too far from your home, if only to give you the chance to prove your worth?”

This list of questions is not complete. You can improvise on them. Remember, there are many times that questions are more important than answers. Whatever happens, it’s important to do it without giving the appearance of being unreasonable to people.

ELBONOMICS: A reasonable rejection is much better than giving an unreasonable expectation.

elbonomics@gmail.com

Why gold is less of a haven these days

By Mohamed A. El-Erian

HAVING waited patiently for the “any-minute-now” moment, gold investors are taking comfort from the recent rise in price in response to geopolitical tensions. Yet the responsiveness of gold, as well as the overall price, appears weaker than would have been expected from historically based models — and for understandable reasons. The precious metal’s status as a haven has been eroded by the influence of unconventional monetary policy and the growth of markets for cryptocurrencies.

Why gold is less of a haven these days

Gold prices rose almost 1% on Tuesday morning as part of the risk aversion triggered by yet another brazen North Korean missile launch over Japan, together with uncertainty as to how the US may respond. But trading below $1,330, the overall response of gold prices to the last few months of heightened geopolitical risks has been relatively muted, particularly as the 10-year Treasury bond, another traditional haven, saw its yield trade down to below 2.10% that same morning.

Two immediate reasons come to mind, one related to several assets and the other more specifically to gold.

First, and as I have discussed in several Bloomberg View articles, the prolonged pursuit of unconventional measures by central banks has helped meaningfully decouple asset prices from underlying fundamentals.

In such circumstances, historically based models will tend to overestimate the reaction of asset prices to heightened geopolitical tensions — including the fall in risk assets such as equities, or the rise in gold.

Second, a portion of the traditional buyer interest in gold has been diverted to the growing markets for cryptocurrencies, which are also benefiting from a general increase in demand. As such, the returns to investors there have been significantly greater, sucking in even more funds.

Why gold is less of a haven these days
AFP

The message for investors in both gold and multi-asset class portfolios is clear.

While continuing to play a role in diversified market exposures, gold is less of a risk mitigator and asset-class diversifier, for now.

Luckily for investors, the need has also been less pronounced, given that ample market liquidity has boosted returns, repressed volatility, and distorted correlations in their favor. But this is not to say that gold’s traditional role will not be re-established down the road.

After all, central banks are in the later stages of reliance on unconventional monetary measures and, given this year’s spectacular price appreciation, cryptocurrencies are more vulnerable to unsettling air pockets.

BLOOMBERG

Romblon’s attractions

LONG-KNOWN as the “Marble Capital of the Philippines,” the island-province of Romblon is now one of the country’s emerging tourist destinations.

The island province is one of the best-kept secrets of Region IV-B or Mimaropa region, comprised of Mindoro (Oriental and Occidental), Marinduque, Romblon and Palawan.

These attractions will come to the fore when it hosts the annual Mimaropa Festival in November.

The province is home to pristine seawater, unspoiled beaches, wild rivers, and waterfalls.

Just as attractive as the popular sights at nearby Palawan are the crystal-clear seawaters and white-sand beaches in Tablas, Bon-Bon, Nonok-Nonok, and Cobrador; the waterfalls in Trangkalan, Dagubdob, and Busay, and the Cresta del Gallo Island’s stunning sandbar and the Cantingas River in Sibuyan.

These sites are ideal for swimming, snorkeling, kayaking, and other water activities like scuba diving and macro-diving photography, as the province’s more than 30 dive sites boast of diverse marine life including sharks, rays, tunas, and snappers surrounded by immense coral walls and gardens.

For mountaineers, the 2,058-meter high Mount Guiting-Guiting poses an enjoyable challenge.

There are also centuries-old churches, Spanish forts, and well-preserved ancestral homes.

Romblon’s old plaza has retained its historical character, featuring the marble statues of Dr. Jose Rizal, a large roaring lion, and a grotto with the life-size image of Our Lady of Lourdes. Many heritage edifices are intact, like the Cathedral of San Jose with its antique tableau altar, stained-glass windows, and its vintage convent.

Romblon’s old municipal hall, built during the Spanish colonial period, remains perched on a hill overlooking the ruins of Fuerza de San Andres and Fuerza de Santiago, both declared as National Cultural Treasures.

Visitors will be met with authentic Filipino cuisine and exotic fruits served with the genuine hospitality of Rombloñanons.

“Rombloñanos are not only exceptionally skilled in crafting marbles. They are indeed one of the friendliest people in the world,” said Romblon Governor Eduardo Firmalo, an obstetrician of the St. Luke’s Medical Center in Quezon City.

Rombloñanons’ hospitality is shown in the preparation of their dishes for visitors, including sarsa (tiny shrimps wrapped in dried coconut leaves), liswi (colorful edible shells), and gamus (raw unripe langka or jackfruit thinly sliced), along with mainstays tinola with malunggay leaves (chicken stew with morringa leaves), nilaga and sinigang (beef soup and sour soup), adobo (pork and/or chicken stewed in vinegar), and inihaw na pusit, isda, and baboy (barbecued squid, fish and pork).

All those dishes and locally grown fruits like banana, pineapple, and avocado are served with Rombloñanons’ infectious smiles.

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