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Cybercrime center clears GCash of data breach claims

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By Aubrey Rose A. Inosante

THE CYBERCRIME Investigation and Coordinating Center (CICC) on Thursday said the alleged compromised know-your-customer data files, reportedly linked to GCash, were found not to conform with the e-wallet’s naming protocols.

“These files are not part of their naming protocols,” CICC Undersecretary Alexander K. Ramos told BusinessWorld, addressing claims made by the cyber advocacy group Deep Web Konek.

“The only thing that’s theirs is GSave, which allows the user to choose a bank or a depository that is maintained by the banks,” he added.

Deep Web Konek said the breach involved over 35,000 items and 30 gigabytes of data, purportedly including payslips, employee compensation certifications, GSave account terms, and debit cards.

“Normally, the files… these are the parts of the assessment and investigation. That’s where you’ll see the origin of the file. The time and dates, when it was created, when it was last accessed, who authored it,” he said.

“But apparently, there’s none. We have nowhere to start with,” he added.

Mr. Ramos noted efforts to reach out to the group for clarifications.

“There’s really no story here but one nice thing is that (GCash) is responding. Unlike the other year, 2020, when they were here. Now, they respond quickly,” he said.

In a statement on June 27, GCash said: “Based on our initial findings, there are no indications of a data breach in our systems and this has no impact on customer funds and their accounts remain safe and secure.”

FINANCIAL SECTOR
Stakeholders in the financial sector should seek collaboration with various industries to deter rising cyberattacks and earn digital trust, according industry executives.

“It’s challenging but we need to work together. Either with the help of the telecommunications companies, [and] the regulatory body,” Union Bank of the Philippines Chief Information Officer (CIO) Dennis Omila said at KPMG’s Innovation Summit 2024 on Thursday.

He added that competition should be set aside to collaborate with other players, as users conduct transactions across different platforms.

Similarly, RCBC CIO Carlos Tengkiat emphasized a unique collaboration among all industries to develop interoperable technologies that adhere to standards.

“If you create something that is proprietary, it’s not a sustainable approach,” he said, highlighting that the sector’s technologies include legacy systems alongside new hybrid cloud systems.

Bangko Sentral ng Pilipinas (BSP) Managing Director and CIO Eugene Teves cited guidelines on information technology risk management for banks, including Circulars 1048 and 1169, which focus on customer protection.

“As we try to move to a more digital mode of banking, we also see a lot of complaints and concerns that have arisen and, in this case, the BSP takes them seriously,” Mr. Teves said.

Tim Burton’s Beetlejuice Beetlejuice to open Venice film festival

ROME — Beetlejuice Beetlejuice, directed by Tim Burton, will open this year’s Venice Film Festival, bringing with it a slew of Hollywood stars who were largely absent from the Lido red carpet in 2023 because of an actors’ strike.

The long-awaited sequel to Mr. Burton’s original 1988 comedy horror classic will be screened out of competition on Aug. 28, giving the 81st edition of the festival a high-profile, glitzy start.

The film sees Michael Keaton return to the lead role, and also stars Winona Ryder, Catherine O’Hara, Monica Bellucci, Willem Dafoe, and Jenna Ortega, who last teamed up with Mr. Burton on the hit Netflix show Wednesday.

“Venice is honored and proud to host the world premiere of a work that features a surprising swing of creative imagination and driving hallucinatory rhythm,” said festival director Alberto Barbera.

The Venice Film Festival marks the start of the awards season and regularly throws up big favorites for the Oscars.

However, its 2023 edition was overshadowed by an actors’ and writers’ strike in Hollywood that kept many big names away and forced the organizers to ditch their original choice for the prestigious opening slot Challengers starring Zendaya.

The rest of the 2024 line-up is due to be unveiled on July 23, with widespread speculation that Todd Phillips’ Joker sequel, starring Joaquin Phoenix and Lady Gaga, will feature along with the action thriller Wolfs, which brings together Brad Pitt and George Clooney.

The festival held on the lagoon city’s Lido island, will run from Aug. 28 to Sept. 7, with France’s Isabelle Huppert heading the main competition jury.

The movie is scheduled to open in Philippine theaters on Sept. 4. — Reuters

Fed easing to spur peso rebound — BMI

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THE US Federal Reserve’s expected policy easing towards the end of the year will help support the peso’s recovery against the dollar in the near term, Fitch Solutions’ unit BMI said.

“The Philippine peso has weakened by nearly 6.2% year-to-date, emerging as one of the weakest currencies in the region. Constant repricing of interest rate expectations in the US has led to much volatility in many emerging market (EM) currencies, and the peso is no exception,” it said in a report dated July 3.

“We think that the currency will reverse its losses in the fourth quarter once the US Federal Reserve begins its monetary loosening cycle in September. For now, we are holding on to our forecast for the peso to reach P56.50 per dollar by yearend, implying that it will strengthen by about 4% from the current spot rate of P58.70 a dollar. That said, our forecast hinges on the accuracy of our Fed projection,” it added.

The Development Budget Coordination Committee (DBCC) expects the peso to range from P56-P58 for this year.

On Thursday, the peso closed at P58.58 versus the dollar, rising by 14.5 centavos from the previous day’s finish.

Year to date, however, the peso is still down by P3.21 from its end-2023 close of P55.37.

The peso has been trading at the P58 range since late May as the Fed has continued to signal a “higher for longer” policy stance due to sticky inflation in the world’s largest economy, which has propped up the dollar against major and EM currencies.

The Bangko Sentral ng Pilipinas’ (BSP) comments on possibly starting its own easing cycle before the Fed have also contributed to the peso’s weakness against the greenback.

BMI said it expects the peso to undergo “additional volatility” in the short term as the timing of the Fed’s first cut remains uncertain.

“Indeed, market participants have grown increasingly pessimistic about the US loosening cycle, with markets pricing in fewer cuts by the end of 2024 compared to the 100-150 basis points (bps) expected at the start of the year,” it said.

“While it is widely expected that the Fed’s next move will be a cut, markets are uncertain about the timing and extent of policy easing. We think that this will only materialize in September, culminating in a total of 50 bps by yearend. Until then, constant fluctuations in market rate expectations will inject another layer of unpredictability into dollar strength, indirectly affecting the peso,” BMI added.

Fed officials at their last meeting acknowledged the US economy appeared to be slowing and that “price pressures were diminishing,” but still counseled a wait-and-see approach before committing to interest rate cuts, according to minutes of the June 11-12 session, Reuters reported.

The minutes, which were released on Wednesday, noted in particular a weak May reading in the consumer price index as one among “a number of developments in the product and labor markets” that supported a view that inflation was falling.

But in voting to keep the policy rate steady in the 5.25%-5.5% range where it has now been for a year, “participants noted that progress in reducing inflation had been slower this year than they had expected last December,” the minutes said, with “some participants” emphasizing the need for patience before cutting rates, and “several” citing the possible need to raise rates further if inflation resurged.

Investors broadly expect a quarter-percentage-point rate cut at the Fed’s Sept. 17-18 meeting and another one in December. The US central bank will hold its next policy meeting on July 30-31, when it is expected to leave its benchmark interest rate unchanged.

Meanwhile, the BSP’s recent dovish signals will also contribute to continued peso volatility, BMI added.

BSP Governor Eli M. Remolona, Jr. has said the Monetary Board is “on track” and “somewhat more likely than before” to slash rates at its Aug. 15 policy meeting as he expects inflation to further ease this semester with the implementation of lower tariffs on rice.

The BSP could cut rates by 25 bps in the third quarter and by another 25 bps in the fourth quarter, he added.

The Monetary Board’s Aug. 15 review is its only meeting in the third quarter. Meanwhile, its last two reviews for the year will be held in the fourth quarter and are scheduled on Oct. 17 and Dec. 19.

The last time the BSP cut borrowing costs was in November 2020, when it brought down its policy rate by 25 bps to a record low of 2% to help boost the economy at the height of the coronavirus pandemic.

“The BSP stands in contrast to its peers in Asia, which remain hawkish as regional currencies have declined this year. Even so, we do not think that this will actually happen. A preemptive move to cut ahead of the Fed will exacerbate weakness in the already battered currency. Instead, we think that the bank will only adjust monetary settings in concert with the Fed, with the first cut only materializing in October. If we are right, we could very well see the peso regain some of its footing against the greenback as market expectations reverse course,” BMI said.

“Risks to our currency forecast hinge on the timing of cuts by the BSP. If the bank were to go ahead with monetary loosening in August, this would exacerbate weakness in the peso, potentially breaching the P59 level…,” it added.

It said the peso’s movements against the dollar in the short term will also depend on the aggressiveness of the BSP’s presence in the foreign exchange market. 

Mr. Remolona has said the central bank intervenes occasionally to prevent sharp swings in the currency and keep markets orderly.

“The BSP drew the line at the P59 level in 2022, and we think that policy makers will continue to intervene to prevent the peso from depreciating past this level,” BMI said.

Meanwhile, for 2025, expectations of further monetary easing in the US will help the peso “regain ground,” BMI said.

“For 2025, we are shifting our forecast to pencil in a slight strengthening of the peso on the back of 200 bps worth of cuts by the Fed. This is a slight departure from our previous projection for it to weaken. Even so, the bigger picture is that weak fundamentals will keep a lid on any appreciatory pressures on the currency,” it added.

It forecasts the peso to settle at P55 per dollar at end-2025. The DBCC sees the currency ranging from P55-P58 next year.

Risks to their currency outlook include the Philippines’ large current account deficit and elevated inflation, it said.

“The Philippines is likely to experience higher inflation rates than the United States, exerting downward pressure on the peso. Generally, prices in EMs like the Philippines rise more quickly than in developed economies… Persistent inflation in the Philippines means that a gradual depreciation of the peso might be necessary to keep the country’s competitive edge in the international market,” BMI said. — L.M.J.C. Jocson

CLI: Davao venture brings in P2.7 billion

LISTED PROPERTY developer Cebu Landmasters, Inc. (CLI) reported fully selling out its Velmiro Heights horizontal project in Davao City, generating P2.7 billion in sales.

The 362-unit property was fully sold out within two days, CLI said in a statement to the stock exchange on Thursday.

Velmiro Heights Davao represents CLI’s second horizontal project in Davao City and the seventh residential development under the Velmiro brand, which is part of the company’s Garden Series catering to the mid- and upper mid-market segments.

The property comprises single-detached and single-attached houses on lot sizes ranging from 100 to 258 square meters, with prices ranging from P5.2 million to P11.15 million.

The property features single-detached and single-attached houses on lot sizes ranging from 100 to 258 square meters, priced from P5.2 million to P11.15 million.

CLI Chairman and Chief Executive Officer Jose R. Soberano III noted that the sales performance of Velmiro Heights Davao reflects the market’s positive reception of CLI’s projects in Davao.

“The residential projects we launched in the area have been selling out in just a few days or within weeks after market introduction,” he added.

Velmiro Heights Davao offers amenities including a guardhouse, clubhouse with function hall, swimming and kiddie pools, basketball court, fitness gym, children’s playground, natural green reserves, and al fresco dining area.

Under the Velmiro brand, CLI has developed 2,377 residential units across Visayas and Mindanao.

CLI’s portfolio in Davao includes residential, hotel, mixed-use, and township projects.

The company has completed its maiden 694-unit Mesatierra Garden Residences and finished site development for the 23-hectare Davao Global Township.

For the fourth quarter, CLI plans to commence turnover of units at Casa Mira Towers – Lyceum of the Philippines University Davao and One Paragon Place, the residential component of The Paragon Davao. Additionally, the 263-room Citadines Paragon Davao is set to open in early 2026.

CLI oversees 94 residential projects in 17 cities across Visayas and Mindanao, having delivered over 16,000 housing units to various markets in the region, including nearly 4,600 units in Davao City.

On Thursday, CLI shares fell by 0.38% or one centavo, ending at P2.60 per share. — Revin Mikhael D. Ochave

BPI aims to raise at least P5 billion from offering of sustainable bonds

BPI FACEBOOK PAGE

BANK of the Philippine Islands (BPI) is looking to raise at least P5 billion from its offer of 1.5-year peso-denominated sustainable bonds, it said on Thursday.

“The net proceeds of the offer will be used for the financing or refinancing of new or existing eligible green and/or social projects as defined under, and consistent with, BPI’s Sustainable Funding Framework,” the bank said in a disclosure to the stock exchange.

BPI will offer the bonds at a minimum investment amount of P500,000 with additional increments of P100,000.

The bank has the option to upsize the issue, it said.

The offer period will run from July 18 to Aug. 2, unless adjusted by the lender. The bonds are expected to be issued and listed with the Philippine Dealing and Exchange Corp. on Aug. 9, the bank said.

BPI Capital Corp. and Standard Chartered Bank were tapped to be the joint lead arrangers and selling agents for the offer.

The bank said it submitted an application for confirmation of the “ASEAN Sustainable” label with the Securities and Exchange Commission on June 28 and is still waiting for confirmation from the regulator.

The bonds will mark the third issuance out of BPI’s P100-billion bond program, which was approved by its board in May 2022.

The last offering under the program was in October 2023, from which BPI raised P36.66 billion from 1.5-year fixed-rate bonds, higher than the initial target of P5 billion. The notes were priced at 6.425% per annum.

BPI said it would use the issue’s proceeds for general corporate purposes, including funding source diversification.

The listed bank saw its net income grow by 25.8% year on year to P15.3 billion in the first quarter as higher revenues helped offset increased provisions and expenses.

BPI shares rose by P1.60 or 1.37% to end at P118.30 apiece on Thursday. — AMCS

Entertainment News (07/05/24)


Hitsujibungaku set for Marikina concert

ON July 6, the Japanese band Hitsujibungaku will  perform live at Eastside Events Place in Marikina City. Tickets, now running low, are available for a promo price of P2,500 only until 11 p.m. the night before the concert. Meanwhile, walk-ins can enter for P3,000. Presented by The Rest Is Noise and Gabi Na Naman Productions, the show features the Japanese rock band whose song “more than words” became a hit as part of the hit Japanese animé series Jujutsu Kaisen. Hitsujibungaku: Live in Manila starts at 7:30 p.m. on July 6 at Eastside Events Place, 18 Sumulong Highway, Marikina City.


Instituto Cervantes celebrates Orgullo 2024

THE SPANISH Cultural center Instituto Cervantes de Manila is presenting its annual celebration of diversity, equality, and LGBTQ+ (lesbian, gay, bisexual, trans, queer plus) rights. Orgullo 2024: Seas quien seas, sé is scheduled to take place on July 6, 4:30 p.m onwards, at the Pop-Up Library of Ayala Triangle Gardens, Makati City. It kicks off with the round-table discussion “¿Entiendes? Nuevos tiempos, nuevos lenguajes.” In this debate, Filipino linguist Jeff Roxas, Spain’s Beatriz Jimeno, and Chile’s Gabriel Alvarado will discuss how current Spanish is adapting to social changes in terms of gender and how inclusivity brings about problems in changing language. At 6 p.m., there will be an Open Mic Recital where participants can showcase the creativity, talent, and spirit of the LGBTQ+ community. Interested individuals can register here: https://forms.office.com/e/p9vKaGHx3B. Live music, dance performances, trivia games, and a DJ set will cap off the night. Admission is on a first-come, first-served basis.


Nicole Laurel Asensio launches new EP

TO celebrate her birth month, singer Nicole Laurel Asensio has launched Changes Over Time, a new collection of original music in tandem with producer Gabe Dandan. The four-track extended play incorporates orchestral elements and electronic rhythms. All tracks were mixed and mastered in Dolby Atmos by Waxiefied Sound Production. “It was a tireless three-day process of writing and producing on the fly, but the spontaneity is what gave these songs their unique charm and sound,” Ms. Laurel Asensio said in a statement. Changes Over Time is out now on all digital streaming music platforms.


Godzilla x Kong: The New Empire on HBO GO

WARNER Bros. Pictures and Legendary Pictures’ Godzilla x Kong: The New Empire has made its streaming debut on HBO GO. The film is an action-packed adventure that follows Kong’s journey to find his family through an undiscovered layer of Hollow Earth. It is directed by Adam Wingard and stars Rebecca Hall, Brian Tyree Henry, Dan Stevens, Kaylee Hottle, Alex Ferns, and Fala Chen.


Steve Aoki drops 9th studio album

RENOWNED producer and Grammy-nominated  artist Steve Aoki has unveiled his 9th studio album, Paragon. It builds on the expansive Hiroquest universe that Mr. Aoki has established through his music, trading cards, and newly released graphic novel. Paragon showcases contemporary global dance sounds in a collaboration with Kid Cudi, and the vibrant sounds of South Africa alongside Moonchild Sanelly, Amapiano-heavy sounds in a collaboration with Major League DJZ, Brazilian Baile Funk with Natalhão, and a blend of American hip-hop with EDM in a collaboration with Lil Jon. Accompanying the album, Mr. Aoki also released the music video for “Heavenly Hell,” alongside Grammy award-winning hitmaker NE-YO. Paragon is out now on all digital music streaming platforms.


NE-YO tour set for Manila stop in October

GRAMMY award-winning R&B hitmaker and songwriter NE-YO is bringing the Champagne and Roses Tour to Manila on Oct. 8 at the Araneta Coliseum in Quezon City. Wilbros Live presents this concert by the singer known for hits like “So Sick” and “Miss Independent.” Tickets go on sale on July 6 at 12 p.m. via TicketNet online and outlets nationwide.


Twisters comes to Philippine cinemas in July

THE WARNER Bros. Pictures disaster epic Twisters will be screening in Philippine cinemas starting July 17. Directed by Lee Isaac Chung and starring Daisy Edgar-Jones, Glen Powell, Anthony Ramos, and David Corenswet, the film is loosely based on the 1996 blockbuster Twister. Ms. Edgar-Jones stars as Kate Cooper, a former storm chaser haunted by a devastating encounter with a tornado while in college, who now studies storm patterns on screens safely in New York City. She is lured back to the open plains to test a groundbreaking new tracking system. There, she crosses paths with Tyler Owens (Mr. Powell), a social-media superstar who thrives on posting his storm-chasing adventures with his raucous crew. Twisters is out in Philippine cinemas on July 17.


Filipino artists at Bigo Voice Music Fest

GLOBAL livestreaming platform Bigo Live recently announced the winners of the first-ever Bigo Voice Music Fest competition on June 28. Three rising stars — Nikki Enriquez (Bigo id: NikkiEnriquez), Ronnel Abinal (Bigo id: White_Official28), and Lailanie Balmediano (Bigo id: primelovekisses) — won the top three prizes, respectively, receiving trophies and 200,000 Bigo Beans (the virtual currency on Bigo Live). Meanwhile, audience members voted IKANG (Bigo id: ikangmo) as the “Most Impactful Icon of the Night.” The awards night was attended by over 200 fans and broadcasters. The three artists emerged as winners after a series of online challenges on Bigo Live where over 100 Philippine-based broadcasters battled it out across three categories: Solo, Duo, and Family Livehouses.

Why Putin is in Ukraine

FLICKER AND PIXABAY

LIVING in Moscow in the 1990s, I recall watching an after-dinner skit that a Russian acquaintance would perform. Standing next to a big pink wall map of the recently departed Soviet empire, she’d tap on Russia’s new neighbor states with a stick and then bark like a slightly unhinged school teacher: “Vot! Nashi!” (Here! Ours!), “I vot! Nashi!” (And here! Ours!), thwacking each ex-republic in turn, before moving on to Alaska, California, and beyond.

She was, of course, mocking the country’s neo-fascist nationalists, who had formed a group called, you guessed it, Nashi. It seemed funny at the time, but less so in retrospect.

This was 1993, the year Harvard professor Samuel Huntington published his controversial Foreign Affairs essay, “The Clash of Civilizations?” predicting that the world wouldn’t adopt Western values, but instead divide and fight along religious and cultural lines. I’d already encountered nationalists and cosplay-Cossacks fighting with pro-Russia separatists in Georgia and Moldova, but they were on the outs with the Kremlin. Yet by 2014, President Vladimir Putin would adopt their ideas, annex Crimea and invade Ukraine.

Western leaders need to better understand Russia’s motivations in its so-called near abroad, if they’re to read Putin’s approach to ending the conflict in Ukraine correctly. We’re naturally solipsistic, assuming that everything revolves around us. And that’s before you get to the pure narcissism of former US President Donald Trump, who again in a recent podcast insisted that had he still been in the White House in February 2022, Putin would never have invaded Ukraine, because, well, he’s Trump — and Hamas wouldn’t have dared attack Israel, either. The root of the problem, he said, as do Putin and too many others, was NATO’s provocative decision to let new members join from the former Soviet bloc.

Putin clearly was angered by NATO expansion. Yet the important questions here are why, and whether Russia still would be invading its neighbors if NATO didn’t exist. The answer to the last part is of course a counterfactual, but most evidence points to yes, because this isn’t primarily about us. It’s about Russia.

In the 1990s, Nashi looked like dinosaurs, but Russia’s nationalists were right about one thing: The 1991 Soviet breakup marked only the beginning of a contested imperial collapse, not its end. The country was just embarking on a process of figuring out what it meant to be Russian, not reverting to some imagined universal, but in fact Western, norm. Russia had never before been a Westphalian nation state. The new post-Soviet borders seemed unnatural, and not just to ex-KGB agents like Putin. Very few Russians I met in the 1990s thought Ukraine was a real country, nor Belarus, or indeed Kazakhstan.

It took a while for the Kremlin to fully articulate what being a post-Soviet Russian should mean and to find a label for this ambiguity about where the country ended. Putin started defining Russia as a “state-civilization” (as opposed to a mere nation state) around 2012, but it became a fully developed doctrine in the 2023 edition of “The Foreign Policy Concept of the Russian Federation.”  That document declares “the special position of Russia as a distinctive state-civilization,” responsible for all peoples within the “Russian World.”

This idea is key to setting expectations as to the circumstances in which Putin might make peace in Ukraine and for how long. It’s also important for remembering that Russia has never been just a victim responding to threats, but has pursued its own agenda of expansion and transformation, which it sees as positive.

This is why Putin responded so aggressively in 2013 to Ukraine’s decision to sign a trade and association pact with the European Union — the deal threatened to thwart his plans for Ukraine. At the time, NATO membership wasn’t on anyone’s agenda, or even possible for Ukraine, whose constitution forbade joining any military alliance. That block was removed only in December 2014, nine months after Putin annexed Crimea and long after he sent Russian troops and tanks to fight in Eastern Ukraine.

This way of understanding Russia as a state-civilization defined against the West is now being taught to the young, who can be more susceptible to Western ideals and culture. As of Sept. 1 last year, every student entering university in Russia has had to study a new mandatory course, called Foundations of Russian Statehood.

The core proposition is that Russia, as a state-civilization, is “heir to the thousand-year historical and political experience of all previous states that existed on the territory of our country: Russian land, Russian state, Russian kingdom, Russian empire, USSR.” Embedding this version of history is a huge project. It has included the appointment of vice-rectors as latter-day university Commissars, responsible for the ideological content of coursework, and sending almost 6,000 professors to “re-training” centers.

There’s also a new incarnation of the Communist-era Young Pioneers, called Movement of the First, which was rolled out in 2022 to teach collectivism to some 5 million kids, among other values deemed as traditional to Russia, in contrast to the individualistic decadence of the West. History textbooks in lower schools also have been culled and replaced by a handful of new approved titles.

The name Ukraine, Russia’s students are now told, was never a national or ethnic designation, but indicated an area of Russia’s border territories. And like so many empires before, Russia’s official texts portray a sometimes-genocidal history of expansion as a selfless burden, carried primarily by ethnic Russians on behalf of less civilized peoples.

Civilizations aren’t static and smaller countries and ordinary people can have agency. A large contingent of Ukrainian soldiers fighting invasion by what they often call Muscovy are Russian speakers from the East. On June 25, even as the war continued, Ukraine (and Moldova) began talks with the EU not just on trade but full membership, a choice you could describe as civilizational. The process involves adopting well over 100,000 pages of laws known as the Acquis Communautaire and would leave the two states looking more like Poland and Romania, and less like Russia.

Seen from the Kremlin, this contest is indeed existential, not because it fears NATO forces will attack across its internationally recognized borders, but because even the prospect of joining Western institutions encourages Moscow’s former possessions to resist the Kremlin’s expansion plans. And if Russia is to be not just a nation state but a great-power civilization, then losing the chance to control Ukraine means losing great power potential.

The problem Putin’s worldview poses for Ukrainian sovereignty is obvious. But it’s a problem for Europe, too, because it isn’t at all clear where Russia’s civilizational project ends or how the absorption of Ukraine might add to its ambition. The “Russian World” is both large and ill-defined. So what to do? Allow Putin to impose his “state-civilization,” or stop him in Ukraine?

Russia is hardly the first empire to resist the loss of long-held colonies, so there’s nothing unique about its attempt. But few would suggest the Hapsburg, Ottoman, British or French empires had a right to hold on to, let alone restore, their imperial claims, or that the desire to do so was “provoked,” or that the world would be better off had they been able to cling on.

Understanding Putin’s outlook is key to grasping that the “neutrality” and “demilitarization” he demands of Russia’s neighbors is not his end goal. It is a prerequisite for rebuilding Russia’s state-civilization and Moscow’s status as the beating heart of a great power. Every peace proposal for Ukraine needs to keep that fact front and center. And if a once and future President Trump wants to play the role of mediator, by all means. But he should start by reading the Kremlin’s new college textbook.

BLOOMBERG OPINION

Labor pins hopes on Congress wage measures

PHILIPPINE STAR/KRIZ JOHN ROSALES

By Chloe Mari A. Hufana

LABOR GROUPS continued to push for a legislated wage hike following an order granting a P35 raise in the National Capital Region (NCR) minimum wage, arguing that a uniform national increase is needed to support workers across the country.

“A legislated wage hike is crucial because it ensures that wage adjustments cover all regions,” Federation of Free Workers President and NAGKAISA Labor Coalition Chairman Jose G. Matula told BusinessWorld via Viber.

“This (wage board) increase is grossly insufficient, amounting to less than one-fourth or 23.3% of the proposed P150 recovery wage, and it is limited solely to Metro Manila. It fails to address the inadequacy of minimum wages in regions outside the NCR, where wages are below the poverty threshold,” he added.

On Monday, the Regional Tripartite Wages and Productivity Board-NCR (RTWPB) approved a P35 wage order for workers in the capital region.

This brings non-agricultural workers’ daily minimum wage to P645 from P610. For agriculture and service establishments with 15 workers or less, minimum daily wages will now be at P608 from P573.

Workers in manufacturing establishments regularly employing fewer than 10 will also receive a minimum daily wage of P608.

The wage order will take effect on July 17, a day after the anniversary of the last wage order in the capital.

Bukluran ng Manggagawang Pilipino President Renecio S. Espiritu told BusinessWorld via Messenger chat the wage order is a “joke,” adding that his group will continue to press for a legislated wage hike.

“A national wage increase is needed because the prices of commodities in the provinces are the same, and the productivity of workers in the provinces is the same as well. Workers should be paid equally and must not be discriminated against just because they are from the provinces,” he added.

Economic think tank IBON Foundation Executive Director Jose Enrique A. Africa said a legislated wage increase would not be inflationary.

“The P35 NCR minimum wage hike isn’t even enough to make up for inflation since the recent peak real value of the minimum wage was reached in June 2016 at the close of the last Aquino administration. This would have needed a P45 hike but only P35 was given, meaning that the minimum wage has not even kept up with the last eight years of inflation,” Mr. Africa told BusinessWorld via Viber.

Employers called the wage order a “relief” and “win-win” as it strikes a balance between the interests of workers and businesses.

In February, the Senate approved a P100 across-the-board minimum wage hike for workers in the private sector.

The House of Representatives has yet to pass counterpart legislation. Bills in the House for an across-the-board hike range from P100 to P750.

The regional board reviewed petitions ranging from P597 to P750 before it made its decision on June 27.

“I see an opportunity in this granting of even a meager wage increase. It emboldens workers in their advocacy for a legislated wage hike,” Mr. Matula added. “(This also) highlights to Congress the weaknesses of the RTWPBs, providing more reason to legislate corrective measures.”

Cosco Capital to acquire Matuno River Dev’t Corp.

LUCIO L. Co-led Cosco Capital, Inc. announced on Thursday the planned acquisition of Matuno River Development Corp. (MRDC), expanding its presence in the renewable energy sector.

In a disclosure to the stock exchange, Cosco Capital said it intends to acquire 9.18 million shares of MRDC. The company did not disclose the price.

“The intended transaction offers Cosco Capital the opportunity to enter into another profitable business within the renewable energy sector,” the listed company said.

“This strategic move will enhance its sustainability profile, demonstrate a commitment to environmental responsibility, while contributing to the country’s overall economic development,” it added.

MRDC is the developer of the 8.66-megawatt Matuno River Hydroelectric Power Plant in Bambang, Nueva Vizcaya. The power plant is covered by a hydropower service contract with the Energy department.

The power plant draws energy from the Matuno River, a tributary of the Magat Dam.

“This proposed acquisition will be an addition to the emerging renewable energy portfolio of Cosco Capital, Inc., as well as to its entire operating segment, generating more income for the company,” Cosco Capital said.

Cosco Capital said the shares will be paid through issuance of checks.

It added that the proposed acquisition will be submitted to the approval of the Philippine Competition Commission, if applicable.

Cosco Capital finalized its entry into the renewable energy sector in March after acquiring a 60% stake in Catuiran Hydropower Corp. for P551.88 million.

Catuiran operates an eight-megawatt hydropower plant in Naujan, Oriental Mindoro. The plant is covered by a renewable energy service contract with the Energy department.

On Thursday, Cosco Capital shares rose by 0.22% or one centavo, closing at P4.59 apiece. — Revin Mikhael D. Ochave

PHL banks’ nonperforming loans likely past peak, Fitch says

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PHILIPPINE BANKS’ nonperforming loans (NPL) may have already peaked amid an improving operating environment and expectations of benchmark interest rate cuts in the near term, Fitch Ratings said on Thursday.

“We believe that NPLs have already peaked in the Philippines. We’re actually forecasting for the major banks, for the impaired loan ratios to fall flattish this year for some of them,” Fitch Ratings Head of South and Southeast Asia Banks Tania Gold said in a webinar.

Ms. Gold said this outlook is mainly due to the “economic environment and then ratios declining next year on the back of lower interest rates.”

Latest data from the Bangjo Sentral ng Pilipinas (BSP) showed that the banking industry’s gross NPL ratio rose to 3.57% in May from 3.45% in April. This was also its highest in 23 months or since the 3.6% ratio in June 2022.

Soured loans rose by 3.1% to P495.67 billion in May from P480.65 billion a month earlier. Year on year, it jumped by 13.7% from P436.12 billion.

“Certain segments of the loan portfolio do have higher NPL ratios, but overall, we think that they think that they’ve been trending down with strong credit growth,” Fitch Ratings Head of Asia-Pacific Banks Jonathan Cornish said.

Fitch Ratings last month revised its outlook on the Philippine banking sector to “improving” from “neutral.”

“We revised the banking sector outlook to ‘improving’ from ‘neutral’ quite recently. This is really on the back of higher-for-longer interest rates, which means margin and interest income should hold up for longer than we previously expected,” Ms. Gold said.

Fitch also sees high net interest margins (NIM) amid increased unsecured lending.

“There’s even further upside if BSP reduces the deposit reserve requirements. To put some color on this, when we put the ‘neutral’ outlook for 2024 in the banking sector late last year, we were expecting a 7-basis-point (bp) NIM contraction, we’re now expecting a 7-bp increase,” she added.

BSP Governor Eli M. Remolona, Jr. earlier said they want to reduce big banks’ reserve requirement ratio to 5% from the current 9.5%.

The government’s infrastructure thrust will also drive loan growth, Fitch said.

Latest data from the BSP showed that bank lending grew by 9.6% to P11.91 trillion as of end-April from P10.87 trillion a year ago, its fastest pace of growth in 12 months.

“We saw some high NPLs during COVID, even on the mortgage side, so we’re watching to see how these unsecured loans season. However, all our issuer default ratings in the Philippines are driven by government support rather than the standalone ratings,” Ms. Gold added. — Luisa Maria Jacinta C. Jocson

London exhibition looks at Barbie’s design evolution over 65 years

LONDON — A new exhibition looking at the evolution of Barbie opens in London this week as the famed Mattel doll celebrates her 65th birthday this year.

Barbie: The Exhibition,” running at the Design Museum from July 5 to Feb. 23, features more than 250 items from the Barbie universe, including an array of dolls showing her changing appearance, design sketches, and dream houses.

On display is a first edition of the first Barbie released in 1959 with blonde hair, angled eyes, dressed in a black-and-white swimsuit, along with later models representing different races, hair textures and shapes.

Other “firsts” include a Black Barbie and one in a wheelchair. One section dedicated to career roles includes a police officer, scientist, doctor, presidents and a voter, while another focuses on Barbie’s long-term companion Ken, who was introduced in 1961.

“I hope that whatever your reason for coming to this show …, whether you’re a Barbie fanatic or whether you’re a Barbie sceptic, you come away with an appreciation of detailed research and the rigorous design thinking that goes into the making of Barbie,” curator Danielle Thom said in an interview.

“I do hope that people come away having learned something about … how this brand has come into being and managed to dominate the toy market for such a long period of time.”

The exhibition coincides with Barbie’s 65th birthday this year and follows on the huge success of last year’s Barbie movie starring Margot Robbie, which grossed $1.4 billion at the global box office.

“Barbie’s resonance and culture has never been larger, more prominent,” Kim Culmone, senior vice-president of design for Mattel, said. — Reuters

A private equity rebound remains elusive

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ASIA-PACIFIC private equity (PE) markets plunged again in 2023 as investors fretted about slowing economic growth, high interest rates, and volatile public stock markets. Deal value fell to $149 billion, extending the dealmaking slump that began in 2022. Exits fell sharply, and fund-raising declined to its lowest level in 10 years.

Investors remained especially cautious of buying companies in Greater China, and a murky economic outlook affected the entire region. Southeast Asia deal value fell 39% compared with the previous five-year average and exit value declined 58% over 2022.  In the first quarter of 2024, Southeast Asia deal value fell to $1.4 billion, down 46% from the previous quarter.

Japan was the only market to buck the trend, with a rise in deal activity. Investors found comfort in Japan’s deep pool of target companies with performance improvement potential, its stable regulatory environment, and persistently low interest rates.

Technology was again the largest industry sector in terms of deals and exits across the region. But investors continued shifting away from riskier, more speculative assets to defensive assets, including manufacturing companies and firms linked to the energy transition. The energy and natural resources sector was the only investment area in which deal value and volume grew in 2023. Deal value rose to $22 billion, up 7% versus the prior five-year average. In Southeast Asia, several large deals boosted healthcare’s proportion of overall deal value.

For the first time since 2017, buyouts represented the largest proportion of Asia-Pacific deal value, pushing growth deals to second place. Buyouts accounted for 48% of deal value, up from the prior five-year average of 32%. Growth deals represented 41% of deal value. However, in Southeast Asia, growth capital continued to account for 70% of deal value in 2023.

Asia-Pacific median deal multiples — the ratio of enterprise value to EBITDA — fell sharply in 2023 to 10.1 from 14.8 a year earlier, according to data reported at year-end. In Southeast Asia, the median multiple dipped slightly to 11.6%.

Facing the sixth year in a row of low or negative net cash flow, limited partners (LPs) put new allocations largely on hold. Investors focused on funds with demonstrated success, exposure to preferred markets, and differentiated strategies.

By year-end, signs of market improvement began to appear, but the timing of a recovery remains unclear. Inflation rates began falling in most markets after spiking in 2022. Interest rates in most Asia-Pacific markets are forecast to decline in late 2024 or 2025. And some currencies that depreciated against the US dollar in 2022 and 2023 started to recover.

Returns were a bright spot in 2023, reconfirming that private equity is still an attractive investment class, far outperforming public markets over 5-, 10-, and 20-year horizons. And the volume of dry powder remains at a record level.

New sectors hold promise once private equity rebounds: Disruptive innovations like generative AI are creating fresh opportunities. Bain research shows most general partners (GPs) are using generative AI to mitigate risk, enhance operations, and improve the performance of portfolio companies. GPs already are scouting for generative AI assets coming to market and are assessing how generative AI can be useful during diligence on potential targets.

LPs are still optimistic about some countries within the region. Japan ranked among the top three developed markets for PE investment opportunities over the next 12 months, according to Preqin’s 2023 investor survey. India and Southeast Asia ranked best in terms of emerging market investment opportunities.

The two-year drop in dealmaking has put GPs under growing pressure to exit aging investments and return cash to LPs. The most common reason that efforts to sell portfolio companies have failed is the buyer and seller cannot agree on the valuation. To improve their odds, leaders are shifting their attention to portfolio management and exit planning. Bain research shows that developing a pre-sales strategy and a compelling equity story can help funds attract buyers and exit successfully despite difficult market conditions.

In a turbulent year for private equity, many leading funds also started to explore alternative asset classes, including infrastructure and private credit, as a key source of growth. Both of these asset classes have room to grow in the Asia-Pacific region.

In our experience, diversification is challenging. Those who get it right build needed capabilities and invest close to their core business.

 

Usman Akhtar is a senior partner and head of Southeast Asia Private Equity practice at Bain & Company based in Singapore. Sebastien Lamy is a senior partner and head of Asia-Pacific Private Equity practice based in Singapore, and Lachlan McMurdo is a partner based in Melbourne.