3 children die from live wire electrocution, 1 survives after power returns to Samar

July 18, 2017 | 12:05 am

THREE OF four children in Calbayog City, Samar died after getting electrocuted by a live wire left hanging near a mango tree, just hours after the entire city was energized following a week-long power outage due to a 6.5-magnitude earthquake that damaged facilities. The fourth child survived and was rushed to a private hospital in Tacloban City. Authorities in Calbayog confirmed that the three fatalities were cousins, identified as Nathan, 7, and Joey, 5, both surnamed Tomenes, and Stephen Aying, 7. The one who survived was a 5-year-old boy. They were playing around 6 p.m. Sunday night along Cabanas Street when the fatal incident happened. Calbayog City Mayor Ronaldo P. Aquino said he has ordered a probe to determine if the city’s electricity distributor has been remiss. “I already ordered a thorough investigation for the incident while the city is also set to extend financial assistance to the family of the victims, and see kung nagpabaya ba (if there was negligence) on the part of the Samar Electric Cooperative,” the mayor said. — The Freeman

Marine plywood maker Santa Clara pitches product to homebuilders too

July 18, 2017 | 12:05 am

IN General Santos City, boat makers and hard ware stores have one lingo for marine plywood: Santa Clara.

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South Korea seeks rare talks with North to ease tensions

July 18, 2017 | 12:04 am

SEOUL — South Korea on Monday offered to hold rare military talks with the North, aiming to ease tensions after Pyongyang tested its first intercontinental ballistic missile (ICBM).

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German firms to expand business process operations in Philippines, DTI says

July 18, 2017 | 12:04 am

THREE German companies are expanding their information technology and business process management (IT-BPM) operations in the Philippines in order to cater to the Asia-Pacific markets, the Trade secretary said.

“We also met several companies and some mentioned plans to locate and or expand in the Philippines,” Ramon M. Lopez, secretary of the Department of Trade and Industry (DTI), told reporters in an online message.

He was referring to his recent trip to Nuremberg, during which he said German-based companies Knauf Gips KG and BMW AG had expressed plans to do more business in the Philippines.

In his update, Mr. Lopez identified the expanding entities as Fresenius Medical Care Philippines, Inc., Boehringer Ingelheim Philippines, Inc. and Merck, Inc.

“Fresenius Medical Care, which operates 21 dialysis clinics all over the country, has opened its shared service center in Alabang in 2015, servicing the accounting and finance operations of 30 countries,” Mr. Lopez said.

He said from a staff complement of 77 in 2017, Fresenius Medical Care was planning to increase the number of employees to 130 in three years. He added that “in the short term,” the company also plans to open its IT-BPM operations in the Philippines.

“In terms of its medical care operations, they see the need to further expand their operations in the country to 25 clinics by end 2017 and up to 37 by 2020,” he said.

Mr. Lopez said the choice for Manila as the Asia-Pacific IT-BPM location for Boehringer Ingelheim “was mainly because of the country’s good university system and access to talented work force.”

He described Boehringer Ingelheim as “the third-largest multinational in the country,” having been present locally for 50 years.

He said the company currently has service locations in Ingelheim, which serves the EU market, and in Buenos Aires, for the South American market.

“The Manila operations will start in October 2017, with 200 employees, initially servicing the Australia and New Zealand markets. The future plan is to have the Philippines as a global center for Boehringer Ingelheim shared services,” he said.

Merck is also planning to expand its operations in the country in the next three to four years, Mr. Lopez said, citing the move as an expansion in “services and scope, to employ 800 people by 2020.”

“Merck opened its IT-BPM operations in the Philippines in July 2016 with an initial 125 employees, offering procurement, accounting, HR and IT services for its North America and Asia-Pacific markets,” he said.

Mr. Lopez said BMW has tapped the communications center of power tools maker Robert Bosch, Inc. for inquiries from the Association of Southeast Asian Nations (ASEAN).

He previously said BMW would be sourcing more automotive electric parts from the Philippines as part of its strategy in ASEAN. He had said BMW imports €16 million worth of auto parts, specifically components and electric control units, from the Philippines annually and intends to increase that value in the coming years.

While he was still in Germany, Mr. Lopez said Knauf was planning to invest $50 million to set up a new plant in Batangas, a move that will serve as “the beginning of its local production of plasterboards for domestic and export markets.” — Victor V. Saulon

UK home prices at ‘standstill’ as buyers stretched

July 18, 2017 | 12:04 am

LONDON — UK house prices are “virtually at a standstill” as consumers contend with a squeeze on living standards, Rightmove Plc said.

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China Bank pays term loan ahead of schedule

July 18, 2017 | 12:04 am

CHINA BANKING Corp. (China Bank) has fully paid its $158-million multi-year syndicated term loan facility, a year ahead of the deal’s maturity.

In a disclosure to the local bourse on Monday, the Henry Sy-led bank announced it has paid off the loan ahead of its June 2018 deadline.

“The strong growth in foreign currency deposit has enabled us to…raise the balance earlier than expected,” China Bank Executive Vice-President and Chief Operating Officer William C. Whang was quoted saying in a statement.

The bank said it also “took advantage of favorable changes in market conditions to be able to repay the loan sooner.”

The listed lender paid the loan in two tranches, starting with $60 million last March. It paid the balance last June 29.

The syndication for the loan, which was rolled out on May 18 in Taiwan, attracted demand from financial entities based in Asia and Middle East, some of which supported the lender for the first time. It last tapped the international market in 1996 and 1997 when it successfully raised $125 million from floated rate certificates of deposit, which was returned to the capital markets last June 2015.

According to China Bank, the loan’s proceeds were injected to “better yielding assets as well as funding for corporate borrowers and project financing deals.”

Australia and New Zealand Banking Group Ltd. was the lead arranger and bookrunner. The Korea Development Bank Group — KDB Seoul Head Office and KDB Asia Ltd. Hong Kong and Mizuho Bank, Ltd. — Singapore branch were the lead arrangers.

Meanwhile, Doha Bank Q.S.C. was the lead arranger, with Mega International Commercial Bank Co., Ltd.; CTBC Bank Co., Ltd.

Singapore; The Shanghai Commercial & Savings Bank, Ltd.; Taiwan Cooperative Bank; and Taishin International Bank Co., Ltd. as arrangers.

The listed lender saw its net income reach P6.45 billion in 2016, 15% up from the consolidated and audited P5.6 billion it earned in 2015, on the back of solid performance of its core businesses.

China Bank’s shares closed unchanged at P36.60 apiece on Monday. — J.MD. Soliman

220 kilos of talakitok seized from dynamite fishers in Culion, Palawan

July 18, 2017 | 12:04 am

TWO FISHERMEN were apprehended in the waters off Dipalian Island, Culion in Palawan last Friday after an island resident reported to authorities that they were conducting dynamite fishing activities. Members of the Philippine Coast Guard (PCG) and the Municipal Agriculture Office immediately proceeded to the area and spotted the two’s unmarked fishing boat. Upon apprehension, authorities found fishing implements and 220 kilos of talakitok, the local name for a variety of species of trevallies/jacks, onboard, according to a PCG statement. The two were identified as Ronnie Venturina, 33, the boat owner, and Ricky Longkit, 25. The two, who will be facing charges for illegal fishing, claimed that the dynamited fish were left behind by another unmarked boat that sped away as the authorities approached.

When is it time to give back?

July 18, 2017 | 12:04 am

M. A. P. Insights
Pacita U. Juan

On a long day flight to New Delhi, I got to watch three documentaries with a common theme: giving back or simply giving.

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New Gilas member Standhardinger catching fancy of PBA coaches

July 18, 2017 | 12:04 am

FIL-GERMAN Christian Stanhardinger, the newest member of the Gilas Pilipinas program, is starting to gain the attention of local coaches hoping to see him in action in the PBA.

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OFW remittances recover in May

July 18, 2017 | 12:04 am

By Melissa Luz T. Lopez
Senior Reporter

REMITTANCES from overseas Filipino workers (OFWs) recovered in May, the Bangko Sentral ng Pilipinas (BSP) announced yesterday, staying on track to a full-year target and helping to fuel household spending that contributes nearly 70% to national output.

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Villar-led Vista Land prices P5-B retail bond offer

July 18, 2017 | 12:04 am

VISTA LAND and Lifescapes, Inc. has finalized the interest rates for the P5-billion fixed-rate retail bonds it plans to issue before the end of the month.

In a disclosure to the stock exchange on Monday, the Villar-led property developer announced a 5.7512% per annum interest rate for the Series A bonds that will mature in seven years or by 2024. Meanwhile, the Series B 10-year bonds due on 2027 will have an annual interest rate of 6.2255%.

The listed firm has allotted P3 billion for the principal amount of the offer, with an over-allotment option of P2 billion.

The offer represents the first tranche of the company’s P20-billion bonds filed under the shelf registration program of the Securities and Exchange Commission.

Vista Land will be offering the bonds from July 18-27, tapping China Bank Capital Corp. as the offer’s sole underwriter. The bonds will then be listed and traded at the Philippine Dealing and Exchange Corp. starting on Aug. 4.

The bonds have been assigned an “AAA” issuer rating by local debt watcher Credit Rating and Investors Services Philippines, Inc. (CRISP). This indicates a stable outlook for the company.

In assigning the rating, CRISP cited the company’s leadership in the low-cost and affordable housing market, financial performance, the strength of its management team, as well as its successful operating model.

Vista Land has housing developments in 111 cities and municipalities spread out across 44 provinces in the country, totaling to around 300,000 homes built since the company started operating in 1977.

The company has five residential business units, namely Brittany Corporation, Crown Asia Properties, Inc., Camella Homes, Inc., Communities Philippines, Inc., Vista Residences, Inc. Its unit Starmalls, Inc. operates malls located in Mandaluyong and Muntinlupa.

Vista Land looks to net a maximum of P4.93 billion with the offer, the proceeds of which will be used to finance the construction and completion of the Evia Lifestyle Center, Vistamall Malolos, as well as for general corporate purposes.

Evia Lifestyle Center is the commercial component inside Vista Land’s Evia, a 600-hectare development that spans Metro Manila and Cavite set to include three master-planned residential estates developed by Vista Land’s units.

In 2017, Vista Land allotted a capital expenditure of P35.3 billion for its expansion into 100 new cities, as well as for increasing its leasing business.

Earnings of the company showed an 11% increase in the first quarter of 2017 to P2.3 billion.

Shares in Vista Land rose by two centavos or 0.34% to close at P5.96 apiece on Monday. — Arra B. Francia

Peso sinks to fresh 10-year low vs dollar

July 18, 2017 | 12:03 am

THE PESO opened the week lower against the dollar, plunging to its weakest level in over a decade, amid market appetite for the foreign currency.

peso notes The local unit finished at P50.70 on Monday, down five centavos from its P50.65-per-dollar finish on Friday.

Yesterday’s close was also the peso’s worst finish in more than 10 years or since it closed at P50.735 per dollar last Sept. 1, 2006.

The peso opened the session at its intraday high of P50.55 per dollar. Its closing rate was its low for the day.

One trader said the peso was still in consolidation after low liquidity was seen in yesterday’s session.

“The peso opened lower this morning, practically in lined with dollar weakness on Friday’s session but overall it’s still pretty much in consolidation due to the low volume seen yesterday,” the trader said by phone on Monday.

Dollars traded stood at $255.95 million yesterday, down from the $379.45 million that changed hands on Friday.

“There was also a slight bounce in the dollar that contributed to the dollar move,” the trader said.

Meanwhile, another trader said strong appetite from buyers abroad and at home was present towards the afternoon session.

“Initially, the market traded lower due to mixed data on CPI (consumer price index) in the US last Friday which the market interpreted as negative for the dollar, but then this afternoon there was demand from local and foreign buyers and higher non-deliverable forward levels,” the trader said in a phone interview on Monday.

US consumer prices were unchanged in June and retail sales fell for a second straight month, pointing to tame inflation and soft domestic demand, the government reported on Friday.

For today, one trader said the exchange rate could settle within P50.55 to P50.80 while the other trader said the peso could trade between P50.60 to P50.80 versus the greenback.

ASIAN UNITS RISE
Most Asian currencies edged higher on increased risk appetite as investors tempered their expectations for a third interest rate hike by the Federal Reserve this year following weak US economic data for June.

The dollar index was up just 0.05% at 95.195, not far away from its 10-month trough hit on Friday.

“While odds of balance sheet reduction in September seems to have increased, chances of another hike by year end seems to have come down, because of the lower than expected inflation. This is positive for Emerging Asian (EM) currencies,” said Sim Moh Siong, foreign exchange strategist at Bank of Singapore.

“I think for now, the theme is hunt for yield in the EM markets”.

Fed funds futures imply around a 50-50 chance of another hike by December, and have less than two moves priced in for all of next year. Fed policy makers have pencilled in one more rise this year and a further four in 2018.

China’s economic data showing second-quarter gross domestic product grew at a faster pace than expected pace also lifted Asian currencies, even as analysts tip momentum to cool over the rest of the year as policy makers seek to reduce financial risks.

China’s yuan inched up after the central bank lifted its official guidance for the currency’s midpoint to an 8-1/2-month high.

RISK-ON MOOD
Trade data from Singapore was also solid, with exports growing at double the expected pace last month, and helping the local dollar edge up to its highest since October last year.

In Indonesia, data showed exports and imports contracted in June on a yearly basis for the first time in nine months, though the country still posted a trade surplus.

The Indonesian rupiah was up nearly 0.2% against the dollar on the day.

The broader risk-on mood also pushed the South Korean won up nearly half a percent. Analysts expect robust exports data for the first 20 days of July, due out on Thursday.

Thomson Reuters data showed the volatilities of most of the Asian currencies have declined recently. The 3-month volatility of the Indonesian rupiah stood at 5.17% on Monday, compared to 9% at the start of the year, while the Indian rupee’s volatility stood at 4.7%, much lower than 5.75% at the start of the year.

Analysts said the scenario is perfect for carry trades.

“Generally the high yielding ones like the Indian rupee and Indonesian rupiah will be preferred for carry trades,” said Bank of Singapore’s Sim.

“They have seen a bit of a wobble over the last few weeks. Some of that wobble may start to settle down, given the growth is resilient globally and the central banks are quite cautious in tightening going forward.” — JMDS with Reuters