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IMF cuts Philippine growth outlook

A MAN sells Philippine flags to motorists along EDSA in Quezon City, June 10, 2024. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Luisa Maria Jacinta C. Jocson, Reporter

THE INTERNATIONAL Monetary Fund (IMF) trimmed the Philippines’ growth outlook for this year, after a slower-than-expected first-quarter expansion.

The IMF now sees Philippine gross domestic product (GDP) expanding by 6% this year, lower than its 6.2% forecast in its World Economic Outlook (WEO) in April.

Its revised forecast is still within the government’s 6-7% target this year.

“Growth is expected to rebound to 6% in 2024 and 6.2% in 2025, on the back of stronger consumption demand, higher public and private investment and a recovery in exports,” IMF Mission Chief Elif Arbatli Saxegaard said at a press briefing on Monday.

She said the growth forecast was lowered after weaker-than-expected GDP data.

“The 2023 (GDP growth) was revised down slightly from 5.6% to 5.5%… We got new data on the first quarter, which was slightly lower than what we had expected. So, it’s reflecting a small downward adjustment, reflecting the outturn since the April WEO,” she said.

The economy grew by 5.7% in the first quarter from 6.4% a year ago and 5.5% in the fourth quarter.

Despite the lower forecast, Ms. Saxegaard said the Philippine economy “continues to perform well despite external challenges and policy tightening.”

She said growth would be driven by the government’s initiatives to improve ease of doing business and attract foreign direct investments, which could “raise the economy’s long-term growth potential.”

However, she said downside risks to the outlook include geoeconomic fragmentation, elevated interest rates and climate-related shocks.

The IMF retained its 6.2% GDP growth forecast for 2025, which will be mainly driven by easing inflation and a pickup in household consumption and investments.

LOWER INFLATION
Meanwhile, the IMF said it sees Philippine inflation settling at 3.4% this year, lower than its earlier forecast of 3.6%.

This is also below the Bangko Sentral ng Pilipinas’ (BSP) full-year inflation expectation of 3.5%.

“That reflects our view that in the second half, food price inflation will come down faster due to the recently announced lower import tariffs on rice,” Ms. Saxegaard said.

Last week, the National Economic and Development Authority Board approved a reduction in rice import tariffs to 15% from 35%. This is part of a medium-term plan to lower tariffs on agricultural and industrial products until 2028.

The tariff cut could bring down the retail price of rice by P6 to P7 per kilo as early as July, according to the Agriculture department.

“While higher prices of food have recently led to an uptick, inflation is projected to decline towards the target of 3% in the second half of the year,” Ms. Saxegaard said.

However, IMF said that risks to the inflation outlook remain on the upside due to geopolitical tensions and commodity price volatilities.

‘SUFFICIENTLY RESTRICTIVE’
Ms. Saxegaard said the BSP should maintain a “sufficiently restrictive” policy stance to tame inflation.

Once inflation settles firmly within the 2-4% target, this would be the appropriate time for the central bank to begin easing, she added.

“That opens up space for the BSP to slightly loosen or gradually reduce its policy rates (and) would still maintain its policy stance restrictive enough to anchor inflation expectations,” she said.

“We would expect, even if the BSP reduced its policy rate over the medium term, real interest rates would continue to remain sufficiently tight to impact inflation,” she added.

Ms. Saxegaard said the IMF expects the central bank to ease monetary policy in “the near and over the medium term.”

The BSP can possibly start its easing cycle in August, Governor Eli M. Remolona, Jr. earlier said.

The Monetary Board kept its benchmark rate steady at a 17-year high of 6.5% for a fifth straight meeting in May.

From May 2022 to October 2023, the central bank raised borrowing costs by 450 basis points.

The IMF is preparing for its Article IV Consultation, which is set at end-September.

Under the IMF’s Articles of Agreement, the Fund holds annual bilateral discussions with its members. Representatives from the IMF will visit the country to assess economic and financial developments and hold meetings with government and central bank officials.

FDI inflows up 23% in March

Foreign direct investment (FDI) net inflows rose for a third straight month in March 2024. — REUTERS

By Luisa Maria Jacinta C. Jocson, Reporter

THE PHILIPPINES’ foreign direct investment (FDI) net inflows jumped by 23% year on year to $686 million in March, bringing the first-quarter inflows to nearly $3 billion, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.

Net inflows plunged by 49.8% in March from $1.366 billion in February, based on the data.

The FDI net inflows in March were the lowest in five months or since the $670 million recorded in October 2023.

Net Foreign Direct Investment“The (annual) expansion in FDI net inflows was driven mainly by nonresidents’ net investments in debt instruments,” the central bank said.

BSP data showed nonresidents’ net investments in debt instruments rose by 19% to $465 million in March from $391 million a year earlier.

Net investments in equity capital other than reinvestment of earnings climbed by 67.1% to $157 million from $94 million a year ago

Equity capital placements surged by 50.3% year on year to $173 million, while withdrawals slid by 23.9% to $16 million.

Meanwhile, reinvestment of earnings stood at $64 million, down by 11.3% from $72 million the year before.

Investments in equity and investment fund shares increased by 32.9% to $221 million in March from $166 million a year ago.

Investments in equity capital placements were mainly from Japan (64%), Singapore (16%) and the United States (10%). These were invested mostly in the manufacturing (66%), financial and insurance (14%), and real estate (11%) industries.

FIRST-QUARTER SURGE
Meanwhile, FDI net inflows jumped by 42.1% to $2.969 billion in January to March from $2.09 billion a year ago.

“FDI increased during the quarter on the back of the country’s strong growth prospects and moderating inflation,” the BSP said.

Foreign investments in debt instruments rose by 14.2% to $1.83 billion in the first quarter from $1.603 billion a year ago.

Investments in equity and investment fund shares more than doubled (133.8%) to $1.139 billion as of end-March from $487 million a year earlier.

Net foreign investments in equity capital skyrocketed (248.5%) to $910 million in the first quarter from $261 million a year ago.

First-quarter placements nearly tripled to $1.129 billion, while withdrawals almost doubled to $219 million.

In the first three months, reinvestment of earnings inched up by 1.4% year on year to $229 million from $226 million.

The Netherlands accounted for the bulk or 68% of the total FDI inflows in the first quarter, followed by at 21%.

The funds were mostly invested in financial and insurance (71%), manufacturing (16%), and the real estate (5%) sectors.

“Risk-off themes arising from slower global economic growth and geopolitical risks contributed to lower (month-on-month) FDIs,” Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said in a Viber message.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said high borrowing costs could have also contributed to the five-month low FDI inflows in March.

The Monetary Board has kept the benchmark rate steady at a 17-year high of 6.5% since October 2023.

“The latest year-on-year improvement in the FDI data, still among pre-pandemic highs, may have to do with improved economic and financial market performance in recent months, such as the headline inflation trending recently towards the central bank targets that could support Fed rate cuts and local policy rate cuts later in 2024,” Mr. Ricafort added.

BSP Governor Eli M. Remolona, Jr. has signaled the possibility of a rate cut as early as August, possibly by 25 basis points.

Resilient economic growth would also “encourage more FDIs to come into the country amid favorable demographics and lower long-term interest rates that help boost investments globally,” Mr. Ricafort said.

The economy grew by 5.7% in the first quarter from 5.5% in the previous quarter. The government is targeting 6-7% growth this year.

“For the coming months, possible cuts in the local policy rates later in 2024 and in 2025, especially if inflation remains well anchored within the inflation target of the central bank, could also lead to a further pickup in FDIs eventually,” Mr. Ricafort added.

The BSP expects to end the year with $9 billion in FDI net inflows. 

Balisacan defends decision to cut tariffs on imported rice

A WORKER unloads a sack of rice from a truck in Manila, May 30, 2024. — PHILIPPINE STAR/RYAN BALDEMOR

NATIONAL ECONOMIC and Development Authority (NEDA) Secretary Arsenio M. Balisacan on Monday defended the government’s decision to slash tariffs on rice until 2028, saying this would reduce the impact of elevated global rice prices on Filipino consumers.

“If you reduce the tariff… that will dampen the effects of world rice price increases on our local markets,” he told reporters.

The NEDA Board, chaired by President Ferdinand R. Marcos, Jr., last week approved the new Comprehensive Tariff Program which reduced tariffs on certain agricultural and industrial imports until 2028. Tariffs on rice imports were cut to 15% from 35%.

Mr. Balisacan, who is facing calls to resign from some agriculture groups, said in a separate statement that the NEDA Board as a collegial body made the decision, “recognizing its strategic importance in ensuring access and affordability to essential commodities — while balancing the interests of consumers, local producers and the economy.”

“The goal of the NEDA Board in reducing the tariff rate of rice is to ensure that Filipinos have access to nutritious and affordable food, particularly rice, while managing inflation and sustaining our economic growth momentum,” he said, noting that rice contributed about two percentage points to inflation in the past three months.

Inflation quickened to 3.9% in May, the fourth straight month of faster inflation. However, rice inflation eased for the second consecutive month to 23% in May from 23.9% a month earlier.

“Reducing rice tariffs is expected to bring down rice prices for consumers while supporting domestic production through tariff cover and increased budgetary support to improve agricultural productivity, especially as global rice prices remain elevated,” Mr. Balisacan added.

Global rice prices have soared since last year due to India’s ongoing ban on exports of non-basmati rice.

The Philippines, the world’s top importer of rice, has been affected by the spike in global rice prices. It imports rice mainly from Vietnam and Thailand.

However, Mr. Balisacan said the outlook for a decline in global rice prices is still uncertain, citing the impact of the El Niño dry spell and the looming La Niña weather pattern on agricultural production.

“If the forecasters, the futures market are correct, then we should see the tapering of this price increases soon, by around September. So, by then, you will feel the domestic prices stabilize,” he said in mixed English and Filipino.

Thai rice prices have increased by 6% to $628 per metric ton (MT) as of end-May from $592 per MT as of end-April, according to the World Bank Commodities Price Data. Meanwhile, Vietnamese rice prices dipped to $568 per MT as of end-May from $571.5 per MT in April.

With the tariff cuts, the NEDA chief hopes that rice inflation would ease near the level of inflation.

However, Mr. Balisacan said it is “hard to say” if it can be achieved this year “because it depends so much on what the world market…will be like in the next six months.”

“As of now, the best data that I saw until December of 2024 is that it comes down [from] the level today a bit. But then, it will stabilize there. It will not come down to the level of 2023. So, that is the challenge,” he added.

The Department of Agriculture (DA) last week said it expects the rice import tariffs to bring down average retail prices by P6-7 per kilo by July or August.

The DA’s latest price watch showed that the price of imported regular milled and well milled rice stood at P49.92 a kilo and P52.98 a kilo, respectively.

The NEDA chief reiterated that raising productivity in the domestic agriculture sector remains the government’s top priority.

“If we have started addressing these issues of the agricultural sector many years ago, then we should have not been in this situation now.”

On calls for his resignation, Mr. Balisacan said he serves at the pleasure of the President.

“If the President finds a better person to run NEDA, I’ll be happy to accept that,” he said. — BMDC

PHL eyes ODA from France to fund projects

A French national flag is seen at the Palais Brongniart in Paris, France, March 25, 2024. — REUTERS

THE PHILIPPINES and France have signed a government-to-government agreement to secure funding for the former’s priority projects, the Finance department said.

In a statement on Monday, the agency said the agreement would allow the Philippine government to obtain concessional official development assistance (ODA) and blended financing from France.

This would be used to “deliver pioneering projects that help reduce poverty and pave the way for inclusive growth for all Filipinos.”

The Agreement on Financial and Development Cooperation (AFDC) was signed by Finance Secretary Ralph G. Recto and France’s Ambassador to the Philippines Marie Fontanel on June 7.

“With the broad range of development areas covered, this agreement will certainly serve as a key poverty-fighting force that will help us establish a solid foundation for a thriving, inclusive future for Filipinos,” Mr. Recto said.

“With the agreement now in place, we anticipate strengthened cooperation with France across high-impact sectors crucial to our country’s development,” he added.

The agreement will support projects in key sectors such as agriculture, agro-industry, mining, water sanitation, infrastructure, transportation and renewable energy.

“We are very enthusiastic about the numerous pioneering  and exciting projects that will be developed through this agreement, especially those that have never been done before in the Philippines,” Mr. Recto added.

Finance Undersecretary Maria Luwalhati C. Dorotan-Tiuseco said in a Viber message that the department has finalized the framework and sectors to be prioritized.

She said the pipeline of projects is “subject to further discussions.”

Ms. Fontanel said the French government is “eager to enhance the level of its partnership with the Philippines, particularly in defense, security, energy, food, maritime, and climate change.”

The Marcos administration has 185 infrastructure flagship projects worth P9.14 trillion in the pipeline. These are major infrastructure projects that have been prioritized by the government for implementation. These projects cover various sectors such as transportation, energy, water resources and social infrastructure. — Luisa Maria Jacinta C. Jocson

Iti Mapukpukaw, Third World Romance win big at 2024 Gawad Urian

A STILL from this year’s Urian Best Picture, Iti Mapukpukaw.

CARL JOSEPH E. Papa’s animated film Iti Mapukpukaw emerged victorious at the 47th Gawad Urian awards ceremony held on June 8, winning Best Picture, Best Animation, and Best Sound.

Mr. Papa said while accepting the award that the win is “bittersweet” because it talks about “abuse and trauma.”

“Para ito sa lahat ng binawian ng pagkakataon na magsalita ng kanilang katotohanan (This is for all those who never got the opportunity to speak their truths),” he said in his speech.

Meanwhile, Dwein R. Baltazar’s realist love story Third World Romance bagged the most awards, namely Best Director, Best Production Design, Best Music, and Best Actress for Charlie Dizon.

“Hiling ko po na magkuwento pa po tayo ng para sa masa at tungkol sa kanila. At sana po magkaroon din po sila ng way talaga na mapanood ang mga pelikulang ginagawa natin (My wish is for us to continue making stories for and about the masses. Hopefully there will be a way for them to watch the movies that we make),” said Ms. Baltazar in her acceptance speech.

She added that lowering the prices of movie tickets will help bring these stories back to the people.

Jun Robles Lana’s psychological thriller About Us But Not About Us won Best Screenplay and Best Actor for Romnick Sarmenta while Sheron Dayoc’s dark coming-of-age film The Gospel of the Beast won Best Editing and Best Supporting Actor for Ronnie Lazaro.

The Gawad Urian, one of the most prestigious film awards in the country, is considered the local counterpart to the New York Film Critics’ Circle.

The 47th Gawad Urian Awards were held on June 8 at De La Salle University’s Henry Sy, Sr. Hall in Manila. The annual film awards are given by the Manunuri ng Pelikulang Pilipino, a group of film critics. — Brontë H. Lacsamana

 

This year’s winners are:

Best Picture — Iti Mapukpukaw

Best Director — Dwein R. Baltazar (Third World Romance)

Best Actress — Charlie Dizon (Third World Romance)

Best Actor — Romnick Sarmenta (About Us but Not About Us)

Best Supporting Actress — Dolly de Leon (Ang Duyan ng Magiting)

Best Supporting Actor — Ronnie Lazaro (The Gospel of the Beast)

Best Screenplay — Jun Robles Lana (About Us But Not About Us)

Best Cinematography — Carlo C. Mendoza, (Gomburza)

Best Documentary — Baon sa Biyahe by James Magnaye

Best Short Film — Hito by Stephen Lopez

Best Editing — Lawrence Ang (The Gospel of the Beast)

Best Production Design — Eoro Yves Francisco (Third World Romance)

Best Music — Vincent de Jesus (Third World Romance)

Best Sound — Lamberto Casas, Jr. and Alex Tomboc (Iti Mapukpukaw)

Best Animation — Iti Mapukpukaw by Carl Joseph E. Papa

Natatatanging Gawad Urian — Ms. Hilda Koronel

Google Philippines names local LGBTQIA+ YouTubers with safe spaces

FOUR Google Pride leaders give their presentation to the audience.

CONTENT creators, thanks to the amount of influence they have over their fans, make great diverse representation. But beyond the clout and the endorsements, four Filipino YouTubers are now at the forefront of providing safe spaces for their respective lesbian, gay, bisexual, trans, queer, intersex, asexual plus (LGBTQIA+) communities.

Roanne Carreon is one of these ambassadors, as one-half of the YouTube power couple Roanne and Tina and co-founder of Queer Safe Spaces. Being chosen to share her and her partner’s journey of self-discovery has been an honor, she said at the annual Google Pride Conversations on June 4 at the Google Headquarters in Bonifacio Global City, Taguig.

For her, coming out was a gradual process that happens every day.

“My mental health was affected, especially when I couldn’t say anything about my sexuality, and I just wanted to disappear. After that, when my family found out about my girlfriend Tina [Boado], I took the opportunity to come out. I told them that I’m bisexual,” she said.

She added that while they share their lifestyle as a couple on YouTube, “we always show both the good side and the ugly side,” and encourages everyone to normalize the differences between each queer person or couple.

Their Facebook support group of over 17,000 members, Queer Safe Spaces, was recently formalized into a non-profit organization. Some of their initiatives include partnering with mental health organizations and helping train establishments to be LGBTQIA+ safe spaces.

Nonbinary model and content creator Joshua Cruz said at the forum that, as YouTubers, being role models for their viewers is an important role.

“There’s no pressure on you to come out when you’re still looking for what resonates with you. Maybe other queer content creators [help you realize] ‘oh I’m like him,’ but it doesn’t mean that you want to come out. If you’re not sure of your identity, you can just say to yourself, ‘okay, so I’m like him’,” he said.

In agreement with Mr. Cruz at the panel was Jan Angelo Ong, a gay skincare content creator and beauty expert who emphasized how online communities “can encourage young viewers to dream.” He said at the forum that his journey all started when he joined an existing online skincare community and watched someone else’s videos in the bathroom 10 years ago.

“I would indulge on skincare bought from saving my monthly allowance and I’d pretend that I’m vlogging. This all would not be possible had I not been part of a community that allowed me to dream. Me being a content creator now also allows for other people like me to dream,” Mr. Ong explained.

The key to a good YouTube community is vulnerability, said Yani Villarosa, a bisexual content creator and podcaster at Gabi ng Bading.

“As a queer woman, I can be confused. I can be messy. This is my experience. And when viewers find stories they resonate with, they feel it’s okay or normal to go through it. They find they’re not alone in their struggles,” she said.

Echoing Ms. Carreon’s statement on coming out as “a gradual process,” the panel concluded with a message of hope. “It’s not like you come out and suddenly have it all figured out. You’re still building that equation for your truth, your authenticity,” said Ms. Villarosa.

To watch YouTube videos that offer moral support, access to communities, and representation from LGBTQIA+ peers, check out this year’s four Google Pride leaders: @roanneandtina, @JoshuaCruzzz, @Ongiel, and @yanihatesuwu. — Brontë H. Lacsamana

Local airlines seen to achieve higher growth this year

PHILSTAR

By Ashley Erika O. Jose, Reporter

LOCAL airlines are expected to achieve higher growth this year, according to a report by the International Air Transport Association (IATA) projecting sustained earnings for global airlines.

“Airlines continue to shore up their profitability. The expected aggregate net profit of $30.5 billion in 2024 is a great achievement considering the recent deep pandemic losses,” IATA Director General William M. Walsh said in an IATA report dated June 3.

Global airlines are destined for growth this year managing to adapt the turbulence brought by the pandemic, said IATA, a trade association of the world’s airlines.

This comes after IATA revised its profit forecast for 2024. This new projection will depend on the expected record-high revenues for global airlines and the record-high number of global travelers.

In December, IATA reported that it only expected global airlines to post net profits of $25.7 billion.

In its revised projection, IATA said airlines are now expected to hit net profits of $30.5 billion, while total revenues may reach $996 billion this year, driven by the expected surge in the number of global travelers to 4.96 billion.

Air cargo volumes are expected to hit 62 million tons this year, IATA said, adding that passenger revenues are projected to hit $744 billion, 15.2% higher than $646 billion in 2023.

Local airlines continue to see surging demand for passenger and cargo services, First Grade Finance, Inc. Managing Director Astro C. del Castillo said in a Viber message.

“The government’s focus on boosting tourism and the global ‘revenge travel’ trend will further benefit the industry. Additionally, the increasing volume of global and domestic trade will be a positive factor,” he said.

According to preliminary data from the Philippines Statistics Authority, domestic trade in goods in the first quarter grew by 46.7% year on year to P389.42 billion. 

By volume, domestic trade increased by 19.7% to 7.73 million tons in the first quarter, up from 6.45 million tons in the same period a year ago.

“Airline companies are on track for sustained growth and increased profitability in the second quarter of 2024 and beyond. The industry is showing a remarkable recovery, and the future looks promising despite lingering challenges,”  Seedbox Securities, Inc. equity trader Jayniel Carl S. Manuel said in an e-mail.

For the first quarter, PAL Holdings, Inc., the listed operator of Philippine Airlines, saw its attributable net income decline to P3.6 billion from P4.65 billion, attributed to increased expenses during the period.

For the January to March period, the company’s expenses grew to P39.07 billion, marking a 12.7% increase from P34.68 billion in the previous year.

PAL’s higher expenses were fueled by its flying costs at P21.15 billion, accounting for the majority of its expenses at 54.1% share of its total spending for the period.

For the first quarter, the company recorded a combined revenue of P45.8 billion, which is 8.5% higher than the P42.21-billion top line logged in the corresponding period last year.

“With the expected increase in passenger volumes… and strategic cost management, airline companies are well-positioned to sustain their growth and boost profitability in the upcoming quarters. The industry’s resilience and ability to navigate through economic and geopolitical challenges underscore a positive outlook for 2024 and beyond,” Mr. Manuel said.

According to IATA, Asia-Pacific is expected to account for half of the RPK (revenue passenger kilometers) growth in 2024, driven by recovering domestic markets in China, Japan, and Australia. RPK measures the volume of passengers carried by multiplying the number of revenue-paying passengers by the distance traveled in kilometers.

Philippine Airlines has said that it is planning to relaunch routes to Japan this year to accommodate the increasing demand while also expanding its network. 

“Without a doubt, aviation is vital to the ambitions and prosperity of individuals and economies. Strengthening airline profitability and growing financial resilience is important. Profitability enables investments in products to meet the needs of our customers and in the sustainability solutions we will need to achieve net zero carbon emissions by 2050,” IATA said.

Philippine Airlines has allocated $450 million, or more than P25 billion, for this year’s capital expenditures to expand its fleet and meet increasing market demand. 

In April, the company said it expects a single-digit growth for 2024 boosted by its capacity expansion. 

PAL is scheduled to operate nonstop Manila-Seattle flights three times a week by October. Seattle will be PAL’s sixth destination in the US and its eighth in North America, the airline said.

Meanwhile, Cebu Air, Inc., the operator of Cebu Pacific, posted a P2.24 billion attributable net income, more than double the P1.08 billion last year.

For the first three months, its revenues surged to P25.3 billion, marking an 21.2% increase from P20.88 billion previously.

Fuel price volatility are still going to be the major headwinds for the industry, IATA said, citing that fuel is expected to average $113.8 per barrel representing a total fuel cost of $291 billion or 31% of all operating costs.

“Airline prospects have historically been closely linked to global economic trends. Nonetheless, the sector has been largely resilient in the face of inflation, high interest rates,” IATA said.

“We generally see a sustained profit recovery for airline companies in the second quarter and first half,  underpinned by rising passenger volume and average fares,” China Bank Securities Corp. Research Associate Neil Andrew L. Maderaje said in an e-mail. 

Mr. Maderaje said the increasing adoption of visa-free entry and electronic visa policies across the region will be an added catalyst supporting international travel demand.

“We also see further improvements in operating capacity as maintenance backlogs continue to ease, and airlines expand their fleets.  With respect to costs, stabilizing jet fuel prices should also help support margins,” he added.

Netflix tests biggest TV app redesign in 10 years

LOS ANGELES — Netflix started rolling out the first major revamp of its television app in a decade on Thursday, testing changes designed to help viewers more quickly decide what they want to watch.

The video streaming pioneer wants to increase the time that viewers spend on the app to help retain customers and draw subscribers to its new, lower cost plans with advertising.

Company research showed users were performing what Netflix executive Pat Flemming called “eye gymnastics,” or looking around to various parts of the Netflix home screen, when trying to find a title that interested them.

Viewers’ eyes were darting around from “the row name to today’s top picks, to the box art, to the video, back to the synopsis,” Flemming, senior director of member product, told Reuters in an interview. “We really wanted to make that simpler, more intuitive, everything easier to navigate.”

Revisions to the home page included enlarging title cards, reorganizing information and highlighting easy-to-read tidbits such as a show or movie “spent eight weeks in the top 10.”

A subset of Netflix’s nearly 270 million users around the globe will see the new format starting Thursday. The company will take feedback, and possibly make changes, before unveiling it more widely.

Netflix has been emphasizing engagement time as a key metric, telling investors it is the “best proxy for customer satisfaction.” The company will stop regular reporting of subscriber numbers next year to shift Wall Street’s focus.

Among other changes to the TV app, the menu button was moved from the left to the top of the screen. A new “My Netflix” tab was added, with shows or movies a user has started watching, or ones saved to check out later.

Netflix will continue to offer personalized suggestions to each user. It is not making any changes to its recommendation algorithm as part of the redesign, Pat Flemming said. — Reuters

Treasury bill rates drop across all tenors

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Monday at lower rates across the board on strong demand and after softer-than-expected May inflation bolstered views of early rate cuts by the Bangko Sentral ng Pilipinas (BSP).

The Bureau of the Treasury (BTr) raised P15 billion as planned from the T-bills it offered on Monday as total bids reached P42.385 billion or almost thrice the amount on the auction block.

Broken down, the BTr borrowed P5 billion as programmed from the 92-day T-bills as tenders for the tenor reached P17.36 billion. The three-month paper was quoted at an average rate of 5.667%, 3.1 basis points (bps) lower than the 5.698% seen last week. Accepted rates ranged from 5.65% to 5.69%.

The government likewise made a full P5-billion award of the 183-day securities, with bids reaching P12.56 billion. The average rate for the six-month T-bill stood at 5.908%, inching up by 0.8 bp from the 5.904% fetched last week, with accepted rates at 5.898% to 5.925%.

Lastly, the Treasury raised the planned P5 billion via the 365-day debt papers as demand for the tenor totaled P12.465 billion. The average rate of the one-year debt went down by 0.7 bp to 6.039% from the 6.046% quoted last week. Accepted yields were from 6.015% to 6.065%.

Maturity dates were adjusted across all tenors due to the June 12 holiday for Independence Day.

The government made a full award of its T-bill offer as the tenor fetched average yields that were “all lower than the prevailing secondary market rates,” the BTr said in a statement.

At the secondary market before the auction, the 91-, 182-, and 364-day T-bills were quoted at 5.7038%, 6.0003%, and 6.0814%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data provided by the Treasury.

“The lower offered T-bill rates today reflected increased anticipation of earlier BSP rate cuts following the softer-than-expected Philippine inflation report in May 2024,” a trader said in an e-mail.

Headline inflation quickened for a fourth straight month to 3.9% in May from 3.8% in April, the Philippine Statistics Authority reported last week.

Still, this was slower than the 6.1% print in the same month a year ago. The May consumer price index (CPI) was also within the BSP’s 3.7-4.5% forecast for the month and was a tad lower than the 4% median estimate in a BusinessWorld poll of 16 analysts.

For the first five months, the CPI averaged 3.5%, within the BSP’s target range for the year.

The central bank expects inflation to average 3.5% this year.

BSP Governor Eli M. Remolona, Jr. last week reiterated that the Monetary Board could start cutting rates before the US Federal Reserve despite a weaker peso recently.

Mr. Remolona earlier said the BSP could start its easing cycle with a 25-bp rate cut as early as the Monetary Board’s Aug. 15 meeting and slash rates once or twice in the second semester.

The Monetary Board last month kept its key rate steady at a 17-year high of 6.5%. The central bank raised borrowing costs by 450 bps from May 2022 to October 2023 to bring down inflation.

T-bill rates went down across the board amid easing global crude oil prices recently, which could help keep inflation within the BSP’s target, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort added in a Viber message.

On Tuesday, the government will offer P30 billion in reissued 10-year Treasury bonds (T-bonds) with a remaining life of nine years and seven months.

The BTr wants to raise P180 billion from the domestic market this month, or P60 billion via T-bills and P120 billion through T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.48 trillion or 5.6% of gross domestic product for this year. — A.M.C. Sy with Reuters

Filinvest Hospitality banking on new offerings to sustain growth

GOTIANUN-LED Filinvest Hospitality Corp. (FHC) is banking on its new hotel and food and beverage (F&B) offerings to support the company’s growth plans.

The expected launch of the Grafik Pine House Baguio in the first quarter of 2025 will be the first property under the company’s new hotel line called Grafik Hotel Collection, FHC said in a statement to the stock exchange on Monday. 

Grafik Pine House Baguio is located within Camp John Hay in Baguio City. It sits on a 5,700 square-meter property and will have over 200 rooms, various dining outlets, a spa, and meeting areas.

The building’s structural phase has been completed and is now scheduled to have a topping off ceremony this month.

FHC is the hospitality arm of the Gotianun family’s listed holding company Filinvest Development Corp. (FDC).

“After a strong 2023, we’re confident in full tourism recovery in 2024, showcasing the lasting appeal of the Philippines. As the Filinvest Group sets its sights on faster growth and making a positive impact on Philippine tourism and nation-building, our hospitality business aims to be a significant contributor to its overall plan,” FHC’s First Senior Vice-President Francis Nathaniel C. Gotianun.

FHC is also conducting renovations at its Crimson Mactan hotel in Cebu. Among the new offerings is the Azure Beach Club, a modern beachfront space that allows for sophisticated escapism while listening to music and enjoying cocktail concoctions.

The hotel also opened a Japanese restaurant, Aka, that offers omakase, kaiseki, and à la carte menu.

FHC is also banking on its Quest Hotel brand, with branches in Cebu, Clark, and Tagaytay. It offers facilities and personalized service to cater the needs of business groups.

The company’s Timberland Highlands Resort in San Mateo, Rizal also opened a new bike park in the first quarter, catering to mountain bike enthusiasts and those seeking to experience nature within the city.

FHC’s hospitality portfolio covers seven hotels ranging from high-end five-star properties under the Crimson brand to Quest hotels and Timberland which serve the mid-priced leisure markets.

On the F&B segment, FHC is also growing its cafe restaurant brand, Baker J, which currently has five branches in Alabang, Clark, Tagaytay, Taguig, and Rizal.

Baker J offers Parisien-baked pastries and coffee accompanied with a diverse range of plated dishes. 

For 2023, FHC recorded a 48% jump in its revenue to P2.9 billion led by better occupancy rates, higher average room rates, and increased contributions from its F&B outlets. 

FDC stocks were unchanged at P5.42 per share on Monday. — Revin Mikhael D. Ochave

Entertainment News (06/11/24)

Star Wars: The Acolyte now on Disney+

THE latest Star Wars spinoff series, The Acolyte, set in the twilight days of the High Republic era, is now on Disney+. With the Jedi at the height of their power, the story follows a former Padawan (Amandla Stenberg) who reunites with her Jedi Master (Lee Jungjae) to unravel a series of mysterious crimes. The murder mystery also stars Filipino-Canadian actor Manny Jacinto. Star Wars: The Acolyte releases new episodes every Wednesday until its finale on July 17.

Docu on Filipino ballet dancers screens this weekend

A WILL to Dream, an award-winning documentary which spotlights the socio-economic inequities and political trials of aspiring Filipino ballet dancers, will be screened on June 15. Documented over four years, the movie showcases the real-life story of former ballet professional Luther Perez, who gave up his career abroad to teach dance to vulnerable children and youth in the urban poor districts of Quezon City. It captures the empowerment of the underprivileged community through ballet, spearheaded by Mr. Perez’s close friend, Ballet Philippines Founder Eddie Elejar, and his late partner, the prolific choreographer Tony Fabella. Written and directed by Canada-based filmmaker and ethnographer Patrick Alcedo, the documentary will screen at De La Salle-College of Saint Benilde (DLS-CSB) on June 15, at 1 p.m. Tickets are available at P300.

Int’l Dragon Boat Races to commence in HK

THE annual Hong Kong International Dragon Boat Races (IDBR), set against the backdrop of Victoria Harbour, will feature more than 170 teams from around the world this year. One is the Philippine Dragon Boat Federation (PDBF) Elite, which bagged silver and bronze medals in last year’s event. Egged on by drummers and the screaming crowds, the energy of the onlookers make up much of the character of the two-day event. IDBR takes place at Victoria Harbour, Hong Kong, on June 15 and 16.

Korean reality show to debut on Disney+

WELL-KNOWN Korean celebrities will be kissing their fame goodbye as they step away from the spotlight in My Name Is Gabriel, a new reality show on Disney+. The show will have the celebrities live someone else’s life — assigned to them by an AI algorithm — for 72 hours, as far afield as Chiang Mai in Thailand, Chongqing in China, Guadalajara in Mexico, and Dublin in Ireland. The celebrities are Park Bogum, Ji Changwook, Park Myungsoo, Yeom Hyeran, and Gabee. My Name is Gabriel is available starting June 21, exclusively on Disney+.

Neocolours live concert at CenterPlay

THE ninth band to take the spotlight at City of Dreams Manila’s CenterPlay Concert Series is the iconic 1980’s OPM band Neocolours. The six-member group is set to perform on June 27 at 9 p.m. A pop-rock band formed in mid-1980s, Neocolours made a mark in the local music industry with their hit songs “Tuloy Pa Rin,” “Say You’ll Never Go,” “Kasalanan Ko Ba,” and “Hold On.” The upcoming concert will also showcase the Soulmates band and other DJs who are set to perform alternately until 1:30 a.m. Guests can reserve a seat or a table with consumables starting at P2,500, comprising of bar snacks, burgers, fries, and beverages. VIP couch seats for a party of eight are also available for P20,000 and VIP Small Tables for a group of four at P10,000.

Meghan Trainor releases 6th album

GRAMMY Award-winning hitmaker Meghan Trainor has released her 6th full-length album, Timeless. The 16-track pop record includes three iconic songs — “Been Like This” with T-Pain, “To The Moon,” and “I Wanna Thank Me” featuring Niecy Nash. Timeless is out now on all digital music streaming platforms.

Puregold CinePanalo to fund 7 full-length films

SUPERMARKET chain Puregold is investing even more resources in its advocacy campaign, the Puregold CinePanalo Film Festival. For its second year, it will offer P3 million feature-length production grants to seven directors, and P150,000 short film production grants to 25 student directors. All submitted entries must be uplifting stories centered on the theme “Mga Kwentong Panalo ng Buhay.” Applications are now open, with a deadline of July 15 for the full-length directors and Aug. 15 for the student directors. Applications can be completed at https://forms.gle/wNUUQ62okYcyW5r37.

Alex Bruce relives romance in reggae-inspired bop

FILIPINO recording artist Alex Bruce has returned with a song describing laid-back summer afternoons and beach vibes. “SUMFLING” channels Ms. Bruce’s youthful memories with the use of laid-back R&B beats and a reggae-infused production. “It sounds chill but danceable at the same time. It was a refreshing change that challenged me as an artist,” the 17-year-old hip-hop artist said in a statement. Its release comes with a music video directed by David Olson. “SUMFLING” is out now on all digital music streaming platforms.

Healthcare cost woes dampen Filipinos’ financial confidence

MANIACVECTOR-FREEPIK

FILIPINO CONSUMERS’ financial confidence is being dragged down by concerns over rising healthcare costs, a study by Manulife Financial Corp. showed.

Manulife’s Asia Care Survey 2024 showed concerns about elevated inflation and, in particular, high healthcare-related expenses, has caused Filipinos to have low financial confidence, The Manufacturers Life Insurance Co. (Phils.), Inc. (Manulife Philippines) said in a statement on Monday.

The survey was conducted online in January and February and covered a total of 8,400 individuals aged 25 to 60 years old in eight markets: the Philippines (1,050), mainland China (1,052), Hong Kong (1,052), Indonesia (1,063), Japan (1,000), Malaysia (1,038), Singapore (1,038) and Vietnam (1,107).

“The survey reveals a lot of anxiety around economic volatility, healthcare-related expenses and uncertainty, which dampens the optimism of many Filipinos in achieving high-quality well-being in the future,” Manulife Philippines President and Chief Executive Officer Rahul Hora said.

“But there are ways to address these concerns so they are future-proofed. Significant of these is the value of financial advice and guidance that can help them assess and bring their goals closer to fruition, mitigate risks, and find the right products that provide stronger health and life protection, as well as investment and retirement solutions,” he added.

The survey showed consumers’ financial confidence via Manulife’s MyFuture Readiness Index, which measures on a scale of 1 to 100 how individuals view their desired versus expected physical, mental and financial well-being over a 10-year period.

The study showed Filipinos’ desired physical, mental and financial readiness to be at 91 out of 100, which Manulife said was above the regional average. However, their expected overall readiness level stood at just 79 of 100.

“According to the Filipinos surveyed, the top five challenges impacting confidence in their future well-being are: rising healthcare costs (82%), inflation/rising costs of living (81%), economic slowdown/recession (78%), increasing interest rates (78%) and health trending down (73%),” Manulife Philippines said.

High healthcare costs was the top concern of Filipinos as 44.7% of health expenses in the Philippines are out-of-pocket, it noted, with the total reaching $9 billion in 2022 and expected to reach $13 billion by 2028.

Meanwhile, over the past year, Filipinos surveyed showed their perceived healthcare cost inflation was at 32%, the highest in the region and above the regional average of 23%. This was also around thrice the actual rate, the insurer said.

“Most respondents (61%) are concerned about the rises in cost of prescriptions, while 59% of them are worried about hospitalization, and 45% about preventive healthcare. Curiously, elderly care (16%) is much lower,” Manulife Philippines said.

Meanwhile, heart disease topped the list of potential illnesses Filipinos worry about as the leading cause of death at 46%, followed by diabetes (42%), stroke (34%) and cancer (31%).

“With the broader concerns about their physical well-being and rising medical costs, 78% of the respondents agree that increasing insurance coverage and benefits for inflation is a crucial part of planning for my future financial well-being,” Manulife Philippines said. “The findings show a sizeable segment adopting a strategy of using less expensive healthcare (41%) services and medicines (53%), well above the regional average of 31% and 29% respectively. According to the survey, this would typically mean using government health services and generic drugs, rather than going private. Alongside that, about three quarters are exercising more or improving their diet.”

Some 76% of Filipinos surveyed also felt health benefits and coverage from their employers are not enough, with 78% saying they need to top up the retirement and pension benefits they receive from their employers and 58% looking to delay retirement to support their families.

Filipino respondents said having a passive income after retirement (43%) is their top financial goal to be prepared for the future, Manulife Philippines said. This was followed by having sufficient savings for a rainy day (39%), financial freedom in retirement (32%), and having enough savings for healthcare needs (31%).

“We encourage more Filipinos to consider ways to increase their health protection. At the same time, insurers have an important role in helping them do that, including changing perceptions on health costs and focusing on specific individual needs. There’s a need also for greater financial literacy,” Mr. Hora said.

“Doing that will enable everyone to focus on ways to effectively address the challenges on health protection and long-term savings that exist,” he added. — A.M.C. Sy

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