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Razon’s Prime Solar eyes floating solar projects

PRIME Solar Solutions Corp., a subsidiary of Razon-led Prime Infrastructure Capital, Inc. (Prime Infra), is exploring the possibility of venturing into floating solar projects, leveraging the water assets owned by its parent company.

“We’re considering floating solar (projects); It’s a very good type of solar system,” Prime Infra President and Chief Executive Officer Guillaume Lucci said on the sidelines of the inauguration of a solar power plant in Batangas last week.

“It all comes down to economics and grid access, and so on and so forth. But we’re absolutely open to floating solar, and we strongly support it,” he added.

Mr. Lucci said that the company is evaluating the possibility of constructing additional solar power plants following the inauguration of Prime Solar’s 64-megawatt (MW) Tanauan solar power plant.

In addition to Prime Solar’s two solar power plants, one in Tanauan, Batangas, and one in Maragondon, Cavite, which have a combined capacity of 128 MW, he said that the company plans to add 10-12 MW to each of the facilities.

He also said that the additional capacities “will happen within the calendar year,” and that the company is “already working on it.”

Last week, Prime Infra announced that its two pump projects, valued at $7.6 billion (P444 billion), had been certified by the Department of Energy as “energy projects of national significance,” qualifying it for expedited permit processing.

The Pakil Pumped Storage Power Project is under Prime Infra’s wholly owned subsidiary Ahunan Power, Inc. with a project investment amounting to $5.03 billion.

It will have a storage capacity of 14,000 megawatt-hours (MWh) daily and a generating output capacity of 1,400 MW.

The Wawa Pumped Storage Project is being developed by Olympia Violago Water Power, Inc., another subsidiary of Prime Infra.

The project has an investment worth $2.57 billion and will have a storage capacity of 6,000 MWh per day and a generating unit capacity of 600 MW. — Sheldeen Joy Talavera

Protecting key provisions of the Anti-Illicit Tobacco Trade Bill

MEMBERS of the Manila Police District Sta. Ana Station 6 count the boxes of fake cigarettes with an estimated value of P250,000 seized from three suspects during an operation at San Andres Bukid in Manila on June 2, 2024. — PHILIPPINE STAR/MIGUEL DE GUZMAN

Data from different sources point out that smoking prevalence in the Philippines has declined.

The data indicates an encouraging trend of declining tobacco use. Results from the Global Adult Tobacco Survey (GATS) show that the prevalence of tobacco smoking has fallen by over a third, from 28.3% in 2009 to 18.5% in 2021. Similarly, the country’s National Income Accounts show that the share of Alcohol and Tobacco to total Household Final Consumption Expenditure (HFCE) has fallen from 3% in 2012 to just 1.4% in 2023.

This shows that tobacco excise taxes work. Because of higher cigarette prices, fewer people are smoking; and the people who do still smoke now smoke less.

Still, the figures on the volume of cigarette production and the excise taxes collected from cigarette production do not align with what government had projected based on its assumptions on the change in smoking consumption patterns and increases in prices. For two years in a row now, tobacco excise collections have fallen below the Bureau of Internal Revenue’s (BIR) targets. So, while the goal of reducing tobacco use may be on track, the revenue gains that are supposed to finance the country’s Universal Health Care (UHC) system are at risk.

The pattern of revenue decline and revenue target shortfall reveals that the major tax leakage arises from illicit trade. Reports abound regarding the proliferation of smuggling hot spots in different parts of the Philippines.

In November 2023, the BIR had initially stated that a much larger figure of around P60 billion worth of taxes were lost to the illicit tobacco trade.

Global literature suggests that about 12.3% of total cigarette consumption is illicit in low-middle income countries. Meanwhile the high-end estimates from Philippine-specific studies put the figure at a 16.1% market share for illicit cigarettes. A back-of-the-envelope calculation suggests that this is equivalent to about 431 million illicit packs, or P25.9 billion worth of forgone revenue in 2023. The high-end (and highly unlikely) estimate of P60 billion worth of forgone revenue represents a highly unlikely scenario that over 35% of all cigarettes sold were illicit.

If the illicit tobacco trade is in fact on the rise, the effects could now be felt. Based on General Appropriations Act documents, Congress has already reduced the budget for PhilHealth from P100.2 billion in 2023 to P61.5 billion in 2024 — a difference of nearly P40 billion. PhilHealth’s current budget is now even lower than in 2019 (P67.4 billion), the year the UHC Law was enacted.

Apart from the revenue losses, illicit tobacco undermines the effectiveness of health objectives. Illicit cigarettes are much cheaper than legal cigarettes and are usually sold in packaging without graphic health warnings. So not only does illicit tobacco introduce major tax leakages, but it also exposes the youth and the poor to the harms of tobacco use.

These growing concerns have provided an impetus for Ways and Means Committee Chair and Albay 2nd District Rep. Joey Salceda to file House Bill No. 10329, also known as the “Anti-Illicit Tobacco Trade Act.” Mr. Salceda’s measure is a marked improvement from previous attempts to address the illicit trade, which focused mainly on providing stiffer penalties.

While the proposed measure does provide greater penalties, it arguably does better in addressing illicit trade by focusing on enforcement.

One of the core features of the bill is the institutionalization of a Tracking and Tracing System. According to the International Standard Organization (ISO), track and trace is “a means of identifying every individual material good or lot(s) or batch in order to know where it has been and where it is in the supply chain.” Such tracking and tracing systems have already been implemented in industries such as postal services, logistics, pharmaceuticals, and online shopping platforms.

In Mr. Salceda’s bill, the track and trace system would allow real time monitoring of the entire value chain of tobacco — including production, processing, manufacturing, storage, distribution, and wholesale and retail sale of tobacco products.

Global experience on illicit tobacco trade has taught us that the essential feature of tax stamps can be improved to effectively combat illicit trade. For example, the track and trace system allows for downstream verification of cigarette packs and would help address issues such as under declaration of domestic production or production declared for export but then sold in domestic markets. Tax stamps remain a crucial component of the system, as the integration of both physical and digital security features will add a layer of verification for legitimate products.

The real-time tracking features imply that data on tobacco production-related activities will be logged as they happen, and will allow for the immediate flagging of potential red flags and indicators of illicit activity. Furthermore, the proposed tracking and tracing system is built on top of a licensing or registration system that will regulate all machines, equipment, and inputs related to tobacco manufacturing.

Further, HB 10329 as filed ensures the integrity of the track and trace system by mandating that the provider of the system should have no conflict of interest with parties subjected to the system.

Mr. Salceda takes a holistic approach to illicit trade by integrating multiple layers of stakeholder participation and collaboration. For one, the bill introduces an Inter-Agency Council and an Enforcement Group to ensure that government agencies work together. Rather than relying solely on the Bureau of Internal Revenue (BIR) or the Bureau of Customs to implement these measures, crucial agencies such as the departments of Finance, Trade and Industry, the National Tobacco Administration, the departments of Health, Information and Communications Technology, and Interior and Local Government will all make a collective effort to combat illicit trade.

Furthermore, Mr. Salceda’s proposal extends the fight against illicit trade on two more fronts: the grassroots and the international community. Through digital platforms such as mobile applications, citizens may participate in the verification and reporting activities spearheaded by the BIR. Meanwhile, the issue of smuggling is given further attention by mandating the exchange of information with international partners.

The Salceda bill manages to strengthen tax administration as part of overall tobacco control reforms.

It is also encouraging that the Chair has enjoined the active participation not only of implementing agencies, but also civil society organizations.

The Technical Working Group (TWG) meetings, deftly chaired by Representative Stella Quimbo, are already underway. The signs point to significant legislation adhering to global best practices. The challenge is to address a narrow set of controversial points regarding the interpretation of what illicit trade covers and the civic engagement in combating illicit trade.

 

AJ Montesa heads the tax policy team of Action for Economic Reforms.

BSP amends derivatives regulations

Bangko Sentral ng Pilipinas main office in Manila — BW FILE PHOTO

THE BANGKO SENTRAL ng Pilipinas (BSP) has amended its regulations on derivatives activities of banks and nonbanks, updating definitions as well as notification requirements.

BSP Circular No. 1194 Series of 2024 dated May 29 said the Monetary Board approved amendments to the derivatives regulations for banks under specific sections in the Manual of Regulations for Banks and for quasi-banks and trust corporations under the Manual of Regulations for Non-Bank Financial Institutions.

The amendments define credit derivatives as a “contract wherein one party called the protection buyer or credit risk seller transfers the credit risk of a reference asset or assets issued by a reference entity or entities. which it may or may not own, to another party called the protection seller or credit risk buyer.”

“In return, the protection buyer pays a premium or interest-related payments of the protection seller reflecting the underlying credit risk of the reference asset/s,” it added.

Meanwhile, the BSP said credit default swaps and total return swaps are considered as credit derivatives under the regulations.

The amendments also revised the definition of FX options as a “contract that gives one party the right but not the obligation to buy or sell one currency against another by a certain time for a certain price.”

Meanwhile, a non-deliverable swap refers to a “variation of an FX swap agreement wherein there is no exchange of the two currency cash flows; instead, the net difference between the contracted rate in the swap contract and the spot rate is paid by one party to the other.”

The list of derivatives that banks can transact in was also amended. As a dealer, universal and commercial banks may originate, distribute or act as a market maker for: deliverable FX forwards and FX swaps; non-deliverable FX forwards and FX swaps; currency swaps; interest rate swaps and forward rate agreements; interest rate and currency futures; or any financial derivative traded in an organized market where the bank is recognized as a dealing participant or member.

Banks must comply with the “applicable market conventions and mechanisms for transparency and disclosure” to transact in these derivatives.

The BSP also amended its rules on derivatives activities requiring notification, with banks and their trust departments being required to notify the central bank prior to engaging in select derivative instruments.

These include any variant of a stand-alone derivative which a universal or commercial bank is allowed to transact in as part of its generally authorized derivatives activities as dealer or any variant of a standalone derivative which a bank has an existing type 2 or type 3 additional derivatives authority, among others.

“The notification requirement does not apply to banks that have been granted a Type I expanded dealer authority,” it added.

Meanwhile, quasi-banks or their trust departments are also required to notify the central bank before engaging in certain derivative instruments.

“The quasi-bank or trust department shall only transact in the instruments that are the subject of its notification to the Bangko Sentral in the capacity allowed for the previously authorized product,” it added. — Luisa Maria Jacinta C. Jocson

What fairytales can teach us about modern fashion trends

CHARLIZE THERON as the wicked Queen Ravenna in 2012’s Snow White and the Huntsman.

FAIRYTALES have long woven magic with fabric. But this year’s Met Gala, the annual fundraiser for the Metropolitan Museum of Art’s Costume Institute in New York, took the connection between fantasy and fashion a step further.

Themed around the museum’s “Sleeping Beauties: Reawakening Fashion” exhibition, the dress code focused not on opulent displays of nature’s bounty but a more complex reality: the natural world and the essence of time. Inspired by J.G. Ballard’s short story, “The Garden of Time,” designers were invited to explore the intricate relationship between materials, their origins, and the fleeting nature of fashion trends.

The exhibition, which runs until September, provides an opportunity to reflect on the clash between artificial and natural materials in fashion. The reference to “sleeping beauties” suggests a useful context to consider how tangible, imperishable matter often sits alongside natural substances in fairytale worlds.

This tension played out on the Met Gala red carpet, where some attendees embodied the classic elegance of fairytale princesses and Prince Charmings, while others channeled more sinister characters.

Dress and materials play a transformative role in fairytales. Who can forget the significance of clothing (and those glass slippers) to Cinderella’s fate? An encounter with Prince Charming only becomes available to her when her torn rags are discarded in favor of a sparkling ballgown.

Scholar Maria Tatar suggests fairytales “favor the metallic”, while armor is a reminder of how materials generate associations with gender roles and social categories. In the 2012 film Snow White and the Huntsman, for example, costume designer Colleen Atwood envelops the wicked Queen Ravenna (played by Charlize Theron) in steel, gold and metalwork.

If luminous, unblemished surfaces initially attracted the prince in Cinderella, the wicked queen in this adaptation needs shimmering minerals and inorganic materials to remain desirable when threatened by the youthful Snow White.

Just like the function of armor on the battlefield, her garments seek an imperishable protection against ageing and mortality. It’s not surprising that such materials featured prominently in Met Gala responses to the theme of the passing of time.

The legacy of Atwood’s protective armor for the wicked queen was clear in John Galliano’s silver corset and skirt of mirrored segments worn by Kim Kardashian, in addition to the Stella McCartney chainmail hoodie she wore.

The seductive sheen of sparkling surfaces that worked so well for Cinderella permeated Jennifer Lopez’s Schiaparelli gown, and the decorated birdcage dress designed by Richard Quinn for actress Sarah Jessica Parker.

The costumes worn by Theron in Snow White and the Huntsman use manmade reflective surfaces to make a statement about the quest to challenge life’s fragility. When she can no longer control her ageing body, Atwood introduces more organic, perishable textures into her attire.

The natural lifecycle of living things provides a direct contrast to the solid, untarnished properties of the metallic. The seasonal deterioration of foliage and vegetation highlight changes in color and shape. The decaying process introduces aesthetically flawed surfaces and less tactile, smooth textures.

The contrast between material substances belonging to the “civilized” masculine world and the feminine spaces of the natural recall Sir Edward Burne-Jones’s painting The Briar Wood (1871–73). The artist depicts a scene from Sleeping Beauty when her potential suitors, clothed in armor, battle against the organic barrier of threatening thicket.

This connects with certain Met Gala costume ideas, presenting an alternative composition of nature to its visually appealing one.

DARK UNDERCURRENTS
The darker undercurrents of the organic were recognizable in the bronze, sinewy hawthorn branches that slithered up Sean McGirr’s Alexander McQueen dress, worn by singer Lana Del Rey.

Flesh-piercing thorny brambles adorned Jean Paul Gaultier’s design for presenter Emma Chamberlain. Connotations of strength and the refusal to be constrained were evoked in references to nature’s unnerving and hostile quality.

In fairytales, woods can be locations of anxiety that drive the storyline and characters. Such feral landscapes offer contrasting textures and surfaces that challenge the smooth shininess of manmade things.

These spaces are often the territories of outsiders. They embrace nature’s rough edges and offer an alternative identity to the glamor and glitz of the conventional.

Such style statements provide a welcome change to the designers and celebrities who played safe at the Met Gala, clad in healthy looking flowers and fauna. The elegance of Vogue editor Anna Wintour’s velvet Loewe coat, decorated in colorful tulips, was a case in point.

Observations in the press about the Met Gala have been predictably preoccupied with subjective descriptions of outfits as either flattering or ugly. But this year’s creative brief, drawn from literary sources, highlighted fashion’s capacity to move beyond restrictive classifications of attractive appeal.

Fashion has so much more to offer than merely dressing celebrities. The emphasis on materials, and the dialogue between textures and surfaces within a design, are an integral feature of all artistic practice.

 

Cath Davies is a senior lecturer Visual Culture, Cardiff Metropolitan University.

China food security law comes into force as Beijing targets absolute self-sufficiency

REUTERS

BEIJING — China’s first food security law aimed at achieving “absolute self-sufficiency” in staple grains came into effect on Saturday, reinforcing efforts by the world’s biggest agriculture importer to lower its reliance on overseas purchases.

The law provides a legal framework for existing guidance by the Communist Party for local governments and the agricultural industry to raise food production, although it did not give details on how the law will be implemented.

It includes protection of farmland from being converted to other uses, protecting germplasm resources and preventing wastage.

Passed just six months after its first reading, the rush to adopt the food security law reflects China’s intent to resolve issues that have curbed production, such as a lack of arable land and water resources, labor shortages and a lack of agriculture technology.

The law holds central and provincial governments accountable for incorporating food security into their economic and development plans, ensuring that food supply remains a top priority in the country that has a painful history of famine.

The party will lead the implementation of a national food security strategy “that puts China first” by importing moderately and using advances in science and technology to boost production, according to a provision in the law.

“It shall adhere to the principle of storing grain in the ground and using technology to improve grain production,” it said, to ensure “basic self-sufficiency in cereal grains and absolute self-sufficiency in staple grains for food use.”

It also stipulates the formation of a national grain emergency plan and a food security monitoring system. China expanded the definition of “coarse grains” to include millet and oats, in addition to sorghum, barley, buckwheat, mung beans and potatoes.

Grains refer to wheat, rice, corn, soybeans and coarse grains. Entities who violate the law may face a fine ranging from 20,000 yuan to 2 million yuan, while individual offenders may be slapped with fines between 20,000 yuan and 200,000 yuan.

The law also said China will “strengthen international food security cooperation and allow international grain trade to play its role.” It did not give details.

Analysts said the law is worded vaguely and may not have a significant impact on how China boosts food production.

“It doesn’t change the realities on the ground for local officials who were already under significant pressure to deliver on food security,” Even Pay, agriculture analyst at Beijing-based consultancy Trivium China, said.

“The food security law enshrines existing practices in law, but isn’t set to change anything. Food security was already among the top national priorities, and can’t go any higher,” she added. — Reuters

Game developers share vision for Web3 in the Philippines at YGG Pilipinas Roadtrip in Cebu

YGG Pilipinas brought together last May 18 its Web3 community in Ayala Malls Central Bloc for YGG Pilipinas Roadtrip Cebu, an initiative to invite people to learn about crypto, blockchain, non-fungible tokens (NFTs) and Web3, while playing the latest Web3 games, meeting Filipino Web3 influencers and content creators, and seeing local Web3 e-sports stars in action.

International game partners and speakers who flew in from around the globe to attend the Cebu event included Simon Davis, CEO and founder of Mighty Bear Games, developed by Mighty Action Heroes in Singapore; Jill Keshyap, executive producer, and Martha Schoppa, game product manager of the Australian-headquartered Immutable Games Studio, publisher of games like Metalcore and Guild of Guardians; and Ganesh Hande, director of product, and Ratul Sathish, community game manager of SuperChamps, powered by Joyride Games in California, United States.

Mr. Davis of Mighty Action Heroes shared why he believes Filipinos and the Philippine Web3 gaming community are the future of gaming.

“About 2021, a lot of friends of mine were talking about Web3 gaming and crypto and honestly, I did not get it. Then I saw what YGG was doing with this amazing community in the Philippines, and that changed everything. You guys might not see it yet but you guys are the future of gaming. The way that all of us approach game design and game development is changing around Web3 and it’s all thanks to the Philippines,” said Mr. Davis.

This year, Mighty Action Heroes plans to organize tournaments in the Philippines and India to delve into the game’s competitive scene. In the tournament finals, champions from the two countries will compete head to head.

The YGG Esports Team was also present at the event with YGG Esports’ Team Captain Ian Dela Cruz, also known as Disi, sharing how he started his journey into the world of trading card games (TCGs) like Magic The Gathering, Hearthstone, Yu-Gi-Oh!, and Pokémon to now playing competitively for Parallel, a sci-fi-based Web3 TCG. Parallel is currently available on PC via its website, Parallel.life, where new players get to start on Rookie Mode with a free Starter Deck.

In his opening speech, Department of Information and Communications Technology Region 7 Regional Director Frederick Dela Casa Amores underscored the positive impact potential for Web3 technologies in the Philippines.

“We are very grateful to the YGG for bringing this event here in Cebu. We are in full support of the YGG Pilipinas’ efforts in bringing Web3 and this emerging technology here in the city of Cebu, aimed at helping strengthen the local community experiences and providing opportunities to the youth and the youthful of Cebu by bringing these games closer to our shores. The YGG Pilipinas Roadtrip is not just a series of events — it is a movement. A movement that champions accessibility, transparency, and community in the digital realm,” said Mr. Amores. 

Over 600 attendees, including hundreds of students from Sisters of Mary School, participated in the event as they excitedly joined giveaways and played games during the showmatches for Web3 games Sipher Odyssey, Mighty Action Heroes, Zeeverse, Mines of Dalarnia, Everseed, Parallel, Guild of Guardians, Rumble Racing Star, Arena of Faith, Petopia, and Superchamps Bullet League.

This was coupled with a vibrant Cosplay Fiesta with ARCHcon Cebu, featuring a mix of anime, comics, and role-playing game cosplayers.

YGG Pilipinas Roadtrip’s next stops are Ayala Malls Abreeza in Davao on June 1, Ayala Malls Capitol Central in Bacolod on June 22, and Ayala Malls TriNoma in Quezon City on July 14.

Megawide targets PPP opportunities in land transport, school buildings

LISTED infrastructure conglomerate Megawide Construction Corp. remains interested in public-private partnership (PPP) projects for land transport and school buildings, its chairman said.

“It depends on the list of the National Economic and Development Authority (NEDA); they have this PPP framework, and we are just waiting,” Megawide Chairman and Chief Executive Officer Edgar B. Saavedra told reporters on the sidelines of a groundbreaking ceremony in Pasig City last week.

In 2023, President Ferdinand R. Marcos, Jr. signed a measure aimed at streamlining the framework for PPPs.

Republic Act No. 11966, or the PPP Code, amended the Build-Operate-Transfer Law to create a unified legal framework for all PPPs at both national and local levels.

Megawide is currently involved in various government infrastructure projects such as portions of the Metro Manila Subway Project and the Malolos-Clark Railway Project.

“Our Malolos project, we are already at 15%. But we cannot go full swing due to right-of-way issues in some areas. We have also started our part in the subway project. But there are some pockets where we cannot start construction also because of right of way problems,” Mr. Saavedra said.

He also said that some Japanese companies have expressed interest in partnering with Megawide’s subsidiary PH1 World Developers, Inc. for real estate projects.

“There are talks with Japanese partners who want to work with PH1 on real estate projects, but we’re still exploring,” he said.

“Some want to partner with us per project, but nothing is final,” he added.

PH1 is the real estate arm of Saavedra-led listed infrastructure conglomerate Megawide Construction Corp. Its projects include Modan Lofts Ortigas Hills condo project in Taytay, My Enso Lofts in Quezon City, The Hive Residences condo in Taytay, and The Northscapes housing development in Bulacan.

For the first quarter, Megawide had P183.4 million in consolidated net income, a reversal of the P7.4-million net loss last year. Consolidated revenue rose by 19% to P5.2 billion.

Megawide shares were last traded on May 31 at P3.12 per share. — Revin Mikhael D. Ochave

Jetour Auto Philippines, Midori Clark award 4 vehicles to lucky winners

Jetour Auto Philippines and Midori Clark Hotel and Casino gave away two Jetour Dashing Crossover units and two Jetour X70 Journey units to lucky hotel guests via a raffle. — PHOTO FROM JETOUR AUTO PHILIPPINES

JETOUR AUTO PHILIPPINES, INC. (JAPI) and Midori Clark Hotel and Casino recently turned over a Jetour Dashing crossover to the fourth and final winner of the “Mid-Autumn Festival” for guests. Under a partnership between the two companies, two Jetour X70 Journey seven-seater SUVs and two Jetour Dashing compact crossovers were raffled off to patrons and guests of Midori Clark Hotel and Casino, said to be the first luxury hotel located in the Clark Freeport Zone.

A total of P15 million worth of prizes were raffled off, with the four Jetour vehicles as grand prizes. The first two winners received their Jetour X70 Journey units, followed by the handover of the two Dashing units.

Said JAPI Managing Director Miguelito Jose, “The synergy between our two companies highlighted our common heritage and heightened our shared roles in driving our clients’ future and bringing joy and fulfillment to more Filipinos through our products and services.”

Joined Alvin Wu, president of BB International Leisure and Resort Development Corp. which owns and operates Midori Clark Hotel and Casino, “We continue to share the same vision for our companies, to drive the future for the benefit of our clients. Like Jetour, Midori and BBI are passionate about technology and innovation. We look forward to accelerating our successes together as partners, and to make our clients ever more delighted than before.”

The two companies are set to renew their partnership, and JAPI and BBI disclosed that “even more exciting and grander raffle promos” will soon be held for Midori Clark Hotel and Casino’s guests and patrons.

For more information, visit www.jetourauto.ph and www.midorihotel.com.

The best business books are not actually about business

NURAGHIES-FREEPIK

HERE is a question I once asked myself while browsing in a modest-sized bookstore, one of my favorite things to do: If I had to read all the books in the store section by section, which one would I enjoy the most — and which the least?

For me, the second question is easier: I am not a fan of self-help books and business/management books, two genres that have all too much in common. Granted, you can find some good advice in these books. But too often the exhortations are cliched or lacking in context. It is only a matter of time, I predict, before the most popular author in these genres is ChatGPT.

I thus have a modest proposal for anyone interested in business books: Read books about specific businesses or industries that you already know a lot about. That way, you will have enough contextual knowledge for the book to be meaningful. Of course, many people don’t work at a company or industry big or famous enough that there are books about it, so I have a corollary proposition: You will learn the most about management by reading books about sports and musical groups.

Most people have favorite musical artists, athletes, or sports teams. Often, they have been following these people and institutions for years. That gives them enough context to make sense of the management stories — how the teams were put together, how leaders emerged, how people dealt with setbacks and failures, and so on. All these are business-relevant topics.

I have learned a great deal about management and group dynamics, for example, by reading books about the Beatles — especially ones that cover their origins, breakup, or both. You can see the importance of a good manager (Brian Epstein, until his death), competitive pressures from other musicians and intragroup rivalries, such as the eventual ascent of Paul over John, due to Paul’s superior work ethic. Because I know a lot about the background, the stories make sense to me, and I can ferret out some general principles to apply to other business or small-group settings — such as the importance of getting new projects off the ground, which is something Paul excelled at.

My point is not that you should read about the Beatles. It’s to find for yourself what the Beatles are for me. I have also learned a great deal from reading histories of the Byrds, who were less successful than the Beatles, and the British punk group XTC, who never made much money from their music at all. Failures and lesser successes are also worth studying, but traditional business books tend to focus too much on villains and scandals rather than attempt a sympathetic understanding.

One of my favorite “business books” is a scintillating autobiography by Alex Ferguson, the famous coach of Manchester United. It was written with Michael Moritz, who used to be a journalist and later became a venture capitalist. It is one of the best books I have read on how to understand and seek out talent.

To understand the concept of team loyalty and how to build it, I have also relied on Jerry Kramer’s Green Bay Packers memoir Instant Replay. Both Manchester United and the Packers are businesses, of course. Sam Smith’s The Jordan Rules poses the question of whether a charismatic leader, in this case Michael Jordan, can push other workers too hard. I look forward to good, detailed biographies of Magnus Carlsen and Steph Curry, two of the most impressive achievers, both obsessed with continual self-improvement.

Many music and sports books are not only written for obsessed fans, but also written by obsessed fans. Traditional business books, in contrast, are frequently written to get consulting work or on to the speaker’s circuit. The incentive is not to offend anybody and to put forward some “least common denominator” insights, rather than say anything truly original that might be complicated to explain. The end result is a bookstore section that would be mind-numbing to have to read.

And which section of the bookstore would I be most keen to read through? I suppose I should speak up for my profession, but books about economics have too much repetition (how many critiques of “neoliberalism” must one plough through?) and doomsaying (which sells better than optimism). Instead, I would pick the history and biography sections. Those books typically are rich with context and detail, and vary in mood.

Business books can be found almost anywhere in a bookshop — once you know where to look. The trick is to know that the very best business books tend not to be written for reasons of … business.

BLOOMBERG OPINION

Debt yields mixed on US rates, peso

YIELDS on government securities (GS) were mixed last week amid the result of a bond auction, the rise in US Treasury rates, and the persistent weakness of the peso against the dollar.

Bond yields, which move opposite to prices, inched up by an average of 0.23 basis point (bp) week on week, based on PHP Bloomberg Valuation Service Reference Rates as of May 31 published on the Philippine Dealing System’s website.

Rates at the short end of the curve mostly went up last week, with the 182- and 364-day Treasury bills (T-bills) rising by 1.67 bps and 3.3 bps to 5.9596% and 6.0653%, respectively. Meanwhile, the 91-day T-bill fell by 5.25 bps week on week to yield 5.7356%.

At the belly, yields mostly declined as the two-, three-, and four-year Treasury bonds (T-bonds) dropped by 0.21 bp (to 6.3083%), 0.44 bp (6.3823%), and 0.18 bp (6.4501%), respectively. On the other hand, the rates of the five- and seven-year T-bonds rose by 0.17 bp (to 6.5134%) and 1.29 bps (6.6272%).

Lastly, yields at the long end of the curve inched lower, with the 20- and 25-debt papers going down by 0.52 bp (to 6.8286%) and 0.73 bp (to 6.8419%), respectively. The rate of the 10-year bond rose by 3.45 bps to 6.7516%.

On Friday, the total GS volume traded climbed to P12.51 billion from P9.62 billion on May 24.

Last week’s yield movements came amid mixed market catalysts, with sentiment initially being boosted by a strong three-year bond auction, ATRAM Trust Corp. Vice-President and Head of Fixed Income Strategies Lodevico M. Ulpo, Jr. said in an e-mail.

“Investors deemed that supply in the front end of the curve will be limited in June given the Bureau of the Treasury’s (BTr) planned borrowing, so players opted to deploy in this tenor,” he said.

The BTr on Tuesday raised P30 billion as planned via the reissued three-year bonds it auctioned off as total bids reached P71.399 billion, or more than twice the amount on offer.

The bonds, which have a remaining life of two years and seven months, were awarded at an average rate of 6.347%. Accepted yields were 6.3% to 6.375%.

The Treasury’s borrowing plan for this quarter showed it aims to raise a combined P120 billion from P30-billion weekly offerings of seven-, 10-, 15-, and 20-year T-bonds.

“Despite the initial boost in market appetite in the recent auction, the weakening peso and the highest in a month US yields reversed the sentiment,” Mr. Ulpo added.

He said the peso’s weakness translates to higher import costs on the local side, which could affect inflation expectations. Currency volatility could also affect foreign investor appetite for government debt, Mr. Ulpo said.

“A cautionary stance on both local and global markets has dampened trading demand, leading to higher bond yields [last] week,” he added.

On Thursday, a rout in US Treasuries pushed up yields, which boosted the dollar, Reuters reported.

The index tracking the US currency against its major peers climbed to 105.18 that day, the highest since May 14, and was slightly lower at 105.05 in early European trading. 

A two-day, 15-bp jump above 4.6% for long-term Treasury yields helped push the dollar higher. The rise in yields, which move inversely to prices, has been driven by a spate of stronger-than-expected data, tough words from Federal Reserve officials, and a run of poorly received bond auctions.

The dollar’s strength caused the peso to hit a near 19-month low on Thursday, closing at P58.635 per dollar, its worst finish since its P58.80 finish on Nov. 3, 2022, data from the Bankers Association of the Philippines showed.

On Friday, the dollar fell with Treasury yields as data showed a modest rise in US inflation in April, Reuters reported.

Before the market opened on Friday, the US Commerce department said the personal consumption expenditures (PCE) price index, widely seen as the Federal Reserve’s favored inflation indicator, increased 0.3% last month, in line with expectations and the March increase, while core PCE rose 0.2%, compared with 0.3% in March.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.15% to 104.61 and was showing its first monthly decline in 2024 after the data.

In Treasuries, yields fell after the signs of inflation stabilization in April, suggesting to some that the potential for the Fed to cut rates later this year remained intact.

The yield on benchmark US 10-year notes fell 5.1 bps to 4.503% from 4.554% late on Thursday while the 30-year bond yield fell 3.4 bps to 4.6511% from 4.685%.

The 2-year note yield, which typically moves in step with interest rate expectations, fell 5.2 bps to 4.8768% from 4.929% late on Thursday.

The correction caused the peso to climb by 12.5 centavos to close at P58.51 a dollar on Friday.

For this week, GS yields may move higher if the peso’s weakness against the dollar persists, Mr. Ulpo said.

“Future yield movements will also be dictated by the upcoming inflation figures, particularly the personal consumption expenditures price index in the US for April and the local consumer price index (CPI) for May,” he said.

May Philippine CPI data will be released on Wednesday, June 5.

“Developments in local and global monetary policies will likely influence yield movements. The US Federal Reserve and BSP (Bangko Sentral ng Pilipinas) will have their regular monetary policy meetings on June 12 and 27, respectively. If the Fed maintains a higher-for-longer rate stance due to persistent inflation, the expectation of yield increases may strengthen, tempering market expectations for rate cuts. This could add upward pressure to local yields, as Philippine markets are highly sensitive to US rate developments,” Mr. Ulpo added. — A.C. Abestano with Reuters

Take a twirl on Saturday Night Fever’s actual dance floor

PROPS and memorabilia from several Hollywood movies will go up for auction on June 12 to 14 in Los Angeles, with bids accepted globally (that means you too can get in on the fun). The auction, called “Hollywood Legends: Danger, Disaster and Disco,” will be held by Julien’s Auctions, in partnership with Turner Classic Movies (TCM). The catalogue is up and running at juliensauctions.com.

The auction house is quite famous for trading in celebrity memorabilia: an auction held earlier this year sold off a Jacques Azagury gown worn by the late Diana, Princess of Wales for $1.14 million. That is still dwarfed by their 2016 sale of the dress actress Marilyn Monroe wore to sing “Happy Birthday” to the assassinated US president John F. Kennedy, which sold for $4.8 million, still the most expensive dress sold at auction (infamously worn by Kim Kardashian at the 2022 Met Gala).

Up for auction this season is the illuminated dance floor used by John Travolta when he starred in 1977’s film Saturday Night Fever. “The base of the floor is constructed of a wooden frame divided between 12 separate sections. The exterior of the wooden frame is painted black. Each section contains 24 illuminating bulbs in their individual compartment. In total, the floor features 288 bulbs that illuminate in a pattern governed by a NESS CL-2400 Light Control Center. Fully assembled, the dance floor measures over 24 feet long and 16 feet wide,” said the website. Estimates currently run from $200,000 to $300,000.

There are over 70 lots in the auction from the Star Wars movies, with the highest estimate placed at $40,000 to $60,000, for an Imperial TIE Fighter Pilot helmet, used in 2016’s Rogue One: A Star Wars Story. The highest estimates in the auction are commanded by props used in more recent films in the Star Wars franchise: Daisy Ridley’s staff has an estimate price between $25,000 to $30,000, while Pedro Pascal’s helmet from The Mandalorian has an estimate between $20,000 to $30,000.

Not to worry: one can still own a piece of Star Wars history on a budget. A Lucasfilm vintage shirt is estimated between $100 to $200, while miniature set pieces from Return of the Jedi might go for as low as $600. — JLG

Michigan to start testing dairy workers for prior bird flu infections

REUTERS

MICHIGAN will soon begin testing dairy farm workers for signs of prior infection with avian flu, a county health official told Reuters.

An ongoing outbreak of avian flu in dairy cattle has affected 67 herds in 9 states since March, according to US Centers for Disease Control and Prevention (CDC) data.

Two dairy workers — one in Texas and another in Michigan — have tested positive for the virus. They both had conjunctivitis, or pink eye, and recovered.

CDC officials have been eager to test blood samples of farm workers for signs of prior infection to help understand the scope of the outbreak.

Michigan county and state officials will collaborate with the CDC on the testing effort, said Chad Shaw, health officer and environmental health director with the Ionia County Health Department.

The details of the plan for testing have not been previously reported. Ionia County has reported avian flu infections in four dairy cattle herds and four poultry flocks, according to state data.

The goal of the testing is to discern how the virus is spreading from farm to farm, including whether humans have carried the virus asymptomatically, Mr. Shaw said.

A CDC spokesman said the agency will be providing technical assistance to the state, which is coordinating the testing. — Reuters

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