RCBC looks to redeem $300-M Tier 1 notes

April 3, 2025 | 12:03 am

RIZAL COMMERCIAL Banking Corp. (RCBC) is looking to buy back $300 million in securities qualifying as Tier 1.

The bank’s board of directors on Monday approved the redemption of the five-year non-cumulative subordinated additional Tier 1 capital securities, which are callable starting Aug. 27, RCBC said in a disclosure to the stock exchange on Wednesday.

“The redemption of the capital securities remains subject to Bangko Sentral ng Pilipinas (BSP) approval and the terms and conditions of the capital securities,” it said.

RCBC in August 2020 raised $300 million from the Tier 1 notes, which carry a rate of 6.5%.

The proceeds were used to support and finance medium-term to long-term asset growth and other general corporate purposes, and to comply with and maintain sufficient buffers above the minimum capital thresholds required by the central bank.

RCBC’s attributable net income declined by 22.08% year on year to P9.52 billion in 2024 due to foreign exchange losses and the absence of one-off gains from the sale of assets a year earlier.

The listed bank’s shares rose by 30 centavos or 1.11% to close at P27.30 apiece on Wednesday. — Aaron Michael C. Sy

Alsons Dev eyes P2-billion sales from Davao residential project

April 3, 2025 | 12:03 am

DAVAO-BASED property developer Alsons Development and Investment Corp. (Alsons Dev) said it has invested P800 million in the development of its latest residential project, Mahogany South.

The first phase, which will cover 13 hectares (ha) within a 33-ha property, is expected to generate around P2 billion in net sales, Alsons Dev Vice-President and General Manager Eric D. de la Costa said in an e-mail.

Situated along Tugbok District in Davao City, Mahogany South is Alsons Dev’s third project under its mid-cost housing brand, Nutura.

The development will feature a total of 594 housing units with Modern Asian-inspired architecture, Alsons Dev said.

The first batch of units will be turned over by the fourth quarter of 2027, while the entire project is expected to be fully completed by Dec. 31, 2032, said Jolla Angelica A. Soriaga, assistant vice-president for business development & operations at Alsons Dev.

The Bungalow model, its first housing option, is a single-attached home with a floor area of 40.28 square meters (sq.m.) on a 100-sq.m. lot. It includes two bedrooms, two bathrooms, and a provision for a carport.

The Loft model has a larger floor area of 64.85 sq.m. and includes a loft and storage on a 100-sq.m. lot.

Investors can also design and build their own homes on the available open lots inside the village, the developer added.

The project is “designed to bring nature closer to home” with tree-lined streets and a 2-hectare park, which includes a dedicated space for pets.

The gated community offers round-the-clock security to ensure residents’ safety and peace of mind.

Its Community Center features a cabana, a children’s playground, a multipurpose court, and swimming pools for both kids and adults.

“Mahogany South is expected to attract strong demand due to its secure, nature-integrated living environment and high-quality homes,” Ms. Soriaga said.

“Strategically located with easy access to schools, healthcare facilities, commercial hubs, and recreational spaces, it offers a residential setting that seamlessly blends convenience with tranquility.” — Beatriz Marie D. Cruz

If AI doesn’t kill your company, it will make it stronger, study shows

April 3, 2025 | 12:03 am

AI-artificial intelligence — Artificial Intelligence words are seen in this illustration taken March 31, 2023. — REUTERS/DADO RUVIC/ILLUSTRATION/FILE PHOTO

FRANKFURT — If a company can survive the upheaval caused by the adoption of artificial intelligence (AI), AI will help it thrive in the longer run, a study presented at a European Central Bank (ECB) conference has found.

Its authors, who used data from the US Census Bureau and surveys covering the period between 2017 and 2021, found early adopters of AI in the manufacturing sector saw their productivity drop as they replaced human workers with robots.

Their findings go against prevailing narrative suggesting that AI makes work more productive and “augments” jobs in many cases rather than automating them away.

“In the short term, we see a lot of pain,” Kristina McElheran, one of the authors of the paper, told the conference.

She explained the drop in productivity as a side-effect of AI interfering with manufacturers’ established practices, such as keeping low inventories.

Over time, however, these firms began outperforming on all counts — sales growth, productivity and employment — provided that they managed to make it through the upheaval.

“Surviving this seems like part of the problem,” Ms. McElheran, a researcher at the University of Toronto, said.

She said this rebound did not generally happen at older companies, which also tend to be larger, and “struggle to get this done.”

Ms. McElheran and colleagues worked on a sample of 30,000 firms among which AI adoption rose from 7.5% to 9.1% over the course of the study period.

Introducing the conference earlier, ECB President Christine Lagarde had said between 23% and 29% of workers in Europe were highly exposed to AI but this need not herald a “job apocalypse” because new roles were likely to be created while old ones are destroyed. — Reuters

Ghibli effect: ChatGPT usage hits record after rollout of viral feature

April 3, 2025 | 12:02 am

THE FRENZY to create Ghibli-style AI art using ChatGPT’s image-generation tool led to a record surge in users for OpenAI’s chatbot last week, straining its servers and temporarily limiting the feature’s usage.

The viral trend saw users from across the globe flood social media with images based on the hand-drawn style of the famed Japanese animation outfit, Studio Ghibli, founded by renowned director Hayao Miyazaki and known for movies such as Spirited Away and My Neighbor Totoro.

Average weekly active users breached the 150 million mark for the first time this year, according to data from market research firm Similarweb.

“We added one million users in the last hour,” OpenAI Chief Executive Officer Sam Altman said in an X post on Monday, comparing it with the addition of one million users in five days following ChatGPT’s red-hot launch more than two years ago.

Active users, in-app subscription revenue and app downloads reached an all-time high last week, according to SensorTower data, after the AI company launched updates to its GPT-4o model, enabling advanced image generation capabilities.

Global app downloads and weekly active users on the ChatGPT app grew 11% and 5%, respectively, from the prior week, while in-app purchase revenue increased 6%, the market intelligence firm said.

However, the chatbot has been hit with a series of glitches and low-scale outages over the past week as it deals with a spike in traffic due to the popularity of its image-generating tool.

“We are getting things under control, but you should expect new releases from OpenAI to be delayed, stuff to break, and for service to sometimes be slow as we deal with capacity challenges,” the OpenAI co-founder said on Tuesday.

LEGAL UNCERTAINTY
The extensive use of the AI tool for the Ghibli effect has also led to questions about potential copyright violations.

“The legal landscape of AI-generated images mimicking Studio Ghibli’s distinctive style is an uncertain terrain. Copyright law has generally protected only specific expressions rather than artistic styles themselves,” said Evan Brown, partner at law firm Neal & McDevitt.

OpenAI did not immediately respond to a request for comment on the data used to train its AI models and the legality surrounding its latest feature.

Studio Ghibli co-founder Mr. Miyazaki’s comments from 2016 on AI-generated images resurfaced after the trend blew up last week.

“I am utterly disgusted,” Mr. Miyazaki had said after being shown an early render of an AI-generated.

“I would never wish to incorporate this technology into my work at all.” — Reuters

National Government fiscal performance

April 3, 2025 | 12:02 am

THE NATIONAL GOVERNMENT’S (NG) budget deficit ballooned to P171.4 billion in February despite double-digit revenue growth, the Bureau of the Treasury (BTr) reported on Wednesday. Read the full story.

The number of top-ranked restaurants in France is inching up

April 3, 2025 | 12:02 am

lecoquillage — A new three-star restaurant is seafood specialist Le Coquillage in Saint-Meloir-des-Ondes in Brittany, headed by chef Hugo Roellinger, a former merchant marine officer, who gets inspirations from local seafood and ingredients from the garden, as well as his idyllic setting. — MAISONS-DE-BRICOURT.COM

AS FRANCE gears up for the busy tourist season, The Michelin Guide has unveiled its 2025 restaurant rankings.

The number of three-star dining rooms — the zenith of gastronomy for Michelin — inched up to 31; last year it was 30. Two years ago, 29 restaurants held the top ranking.

One of the newly minted three stars is the eponymous Christopher Coutanceau in La Rochelle, which lost the top distinction two years ago and this year recaptured it.

“We didn’t change anything,’’ he said in an interview when asked how the establishment won back its third star, noting that it has retained signature dishes like sardine from head to tail and pithivier of scallops. “I’m a fighter like all chefs. It’s a really tough profession.’’

The other new three-star spot is another seafood specialist Le Coquillage in Saint-Meloir-des-Ondes in Brittany, headed by chef Hugo Roellinger, a former merchant marine officer, who gets inspirations from local seafood and ingredients from the garden, as well as his idyllic setting. (The dining room overlooks the water.) In contrast to Coutanceau, he said his restaurant doesn’t have a signature dish.
“My cuisine is like a music album, I like to play with different tempos,’’ he said. “One dish might emerge from what’s come before and what will come afterwards. It comes in waves.’’

The list was announced on March 31 at a live event in Metz, a city on the Moselle River in eastern France that’s famous for the kind of dishes that Michelin doesn’t tend to recognize, like quiche Lorraine and suckling pig, and desserts and brandies made with Mirabelle plums.

France is the home of the Michelin; the guide got its start here in 1900, and it’s also the place where the first stars were awarded, in 1926. Yet the company has also stirred controversy in its home country this year after unveiling in January a partnership with Bravo’s Top Chef series during which its inspectors will award a star.

The ceremony comes as the French economy has slowed and political uncertainty has increased, putting more pressure on the tourism industry to generate revenue and jobs. The country’s reputation for fine dining has long pulled in visitors. After a record number of tourists in 2024 when France hosted the summer Olympics, the first quarter of this year has started well, according to the finance ministry.

“You are doing good for the world, that is what’s important,’’ Gwendal Poullennec, international director of The Michelin Guide, said at the introduction of the event, raising the more somber theme of war raging in Europe.

This year there are nine new two-star restaurants. Among them are a pair of places in Bordeaux: Maison Nouvelle and L’Observatoire du Gabriel, and another pair in Paris, Blanc and Sushi Yoshinaga.

Michelin also revealed 57 new one-star restaurants in the country. One of them is Agape in Paris’ 17^th arrondissement near the Arc de Triomphe.

Outside the French capital, new one stars included Freia in Nantes, Monique in Calvisson, and Ombellule in Lyon.

Ahead of this year’s announcement, The Michelin Guide announced bad news for some restaurants. The guide downgraded 82-year-old Georges Blanc’s establishment in Vonnas, Ain, from three stars to two. He had held the highest distinction since 1981 after his grandmother earned a first star in 1929, making the restaurant the world’s longest holder of Michelin stars.

“It was a surprise but we’re living with it,” Blanc said in a recorded message “There were likely one or two inspections and maybe they didn’t go as they should have… Maybe we’re too classic.”

The three-star takedown has happened before, including famously, in 2023, when star chef Guy Savoy dropped to two stars at his Paris restaurant.

Altogether, 23 restaurants in France were downgraded this year including 21 that lost their one-star status.

Among the special awards given out were for a category called “Passion Desserts,” designating notable work by pastry chefs. Among the 10 winners was Jorice Sardain at the Parisian restaurant Fana where he makes his version of the French classic Paris-Brest.

The Young Chef prize went to 30-year-old Valentina Giacobbe of Ginko in the northern city of Lille, which also obtained its first star.

This is the fourth year in a row Michelin has held its award ceremony outside Paris; in previous years, chefs celebrated at events in Tours, Strasbourg, and Cognac. — Bloomberg

China energy and infra innovations

April 3, 2025 | 12:02 am

BEIJING — The other day I rode on the world’s fastest train, and I was amazed by its speed and comfort. My hosts brought me to Hebei province by car, across many big mountains and hills, to see a big pumped hydro project, then coming back we took the train from Chengde to Beijing.

On that trip I saw many things. Nine road tunnels one way alone, the longest nearly three kilometers-long, and coming back we entered a five kilometers-long tunnel. Smooth, wide, and well-paved toll roads and provincial roads. Few flat agricultural lands that competed with industrial, commercial, and residential land, so there were many greenhouse farms to optimize land use. And from the toll roads I saw decent rural farmers houses, no barung-barung-style houses and no hand tractors, only medium-size to big tractors.

Hydro power is China’s second largest source of electricity. Last year, 1,426 terawatt-hours (TWh) were generated by hydro. In 2023, China’s power generation was twice that of the US and 18 times that of Germany. As Germany added more wind and solar power to its mix, their overall power generation declined from 633 TWh in 2010 to 514 TWh in 2023 (see Table 1).

When it comes to battery energy storage systems (BESS) in 2023, Germany had 1.7 gigawatts (GW), US had 15.8 GW, and China had 27.1 GW, which further rose to 34.7 GW in 2024.

The Fengning pumped hydro power project in Hebei province — producing 3,600 MW of electricity and owned by the State Grid Corp. of China — is the largest pumped hydro in the world and was finished only in August 2024. It involves two huge lakes and dams — I was aghast at their size and power — and 12 turbines. We went down 500 meters below the surface to see the control area.

We should pursue more investments in hydro power projects, impounded water and/or pumped storage in the Philippines because we have many floods every year. A large volume of water from our rivers just drains directly into the sea instead of being impounded and stored for electricity, drinking water, and irrigation purposes.

Finance Secretary Ralph G. Recto, in his keynote speech before over 300 global investors at the Philippine Stock Exchange’s (PSE) “InvestPH 2025” forum on March 19, said that the Philippines is “the right place and the right time to invest.” He emphasized the country’s fast growth in the last three years, and the forecast growth this year and the next.

Big investments in non-intermittent energy projects like hydro, gas, and coal would be needed precisely because of the expected high-power demand from such high economic growth projections. We should not disappoint the investors who come here with frequent yellow-red alerts in our power supply.

Big investments in large train projects like high-speed rail (HSR) are also needed. Many Asian countries are able to sustain their industrialized status partly because they have long HSR systems, led by China whose trains travel up to 350 kilometers per hour (kph, see Table 2).

China has become an industrialized and innovative country, a first world economy pretending to be third world. It is our neighbor, it is the largest source of our imports especially of the needed trucks, buses, gadgets, and appliances, among others. In 2024, our total trade (exports plus imports) with all countries was $200.6 billion, of which $42.2 billion was with China, more than the share of Japan and the US combined which is $40.7 billion.

We should trade more, learn more, cooperate more with China. In energy development especially, both in power generation and transmission. We should aspire for more tangible wealth, material prosperity, and modernity for our people.

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.

minimalgovernment@gmail.com

Manulife Chinabank Life appoints new president

April 3, 2025 | 12:02 am

MANULIFE Chinabank Life Assurance Corp. (MCBL) has appointed Amy T. Gochuico as its new president and chief executive officer (CEO) effective April 1.

Ms. Gochuico has over 30 years of leadership experience across various Asian markets and organizations and specialized in bancassurance for two decades, MCBL said in a statement.

Prior to being tapped to head MCBL, she was the chief bancassurance officer of Manulife Indonesia since 2021.

She succeeds Neil Bowyer, who was president and CEO of the life insurer since 2022.

“We’re excited to welcome Amy back to the Philippines as part of Manulife’s executive committee. During her time at Manulife Indonesia, she ensured sustainable and consistent growth for the company’s bancassurance business to meet its long-term commitments,” The Manufacturers Life Insurance Co. (Phils.), Inc. (Manulife Philippines) President and CEO Rahul Hora said.

“As MCBL President and CEO, she will lead overall partnership management, deliver growth, develop our distribution team and bench strength, manage key business risks, and ensure quality outcomes that can help Manulife become the number one choice for our customers,” Mr. Hora said.

MCBL was incorporated in 2007 as a joint venture between Manulife Philippines and listed China Banking Corp. (Chinabank). The two companies last month renewed their bancassurance partnership for another 15 years.

MCBL booked a premium income of P10.35 billion in 2024, latest data from the Insurance Commission showed. Its net income stood at P1.39 billion last year.

Meanwhile, Manulife Philippines’ premium income stood at P15.83 billion last year, while its net income was at P2.78 billion. — A.M.C. Sy

Flexible terms key to boosting RFO condo demand, says Colliers

April 3, 2025 | 12:02 am

Buidings-skyline — PHILIPPINE STAR/MIGUEL DE GUZMAN

CONDOMINIUM developers in Metro Manila should highlight their extended and flexible payment terms to boost demand for ready-for-occupancy (RFO) units, according to property consultancy firm Colliers Philippines.

According to Colliers’ Manila Survey Flash Report, which included a survey of about 300 property stakeholders nationwide, 69% of respondents would likely buy a condo in Metro Manila if offered extended and flexible payment terms.

“Developers should continue highlighting their attractive and flexible terms to further stimulate demand in the residential market, which has also seen a more pronounced shift to suburbia (or the development of projects outside Metro Manila),” Colliers said in the report.

As of the end of 2024, the Metro Manila condo market had a total of 74,400 unsold units, with about 26,300 classified as RFO projects. Colliers earlier said it may take over eight years to sell out the existing inventory.

Other promotions that would encourage buyers to purchase a condo include no spot downpayment (12%), early move-ins (8%), free furniture or appliances (7%), and no reservation fees (4%), Colliers said.

To attract buyers, several developers offered up to 30% discounts on the total contract prices for spot cash payment, compared to 10% before the pandemic. Some have offered 5% to no downpayment and extended their payment terms for as long as 48 months.

According to the survey, Pasig City (24%) is still the most preferred location for condo investments outside the more established business hubs like the Makati central business district (CBD), Fort Bonifacio, and Ortigas Center.

Likewise, Makati Fringe (22%), Quezon City (19%), Alabang (19%), Bay Area (13%), and Manila (3%) were also preferred submarkets for investors.

However, only 24% of those surveyed said their next residential development would be a condo unit in any major CBD.

In contrast, nearly 70% prefer to invest in a house-and-lot or lot-only unit, eyeing regional locations like Cavite, Laguna, Batangas, Pampanga, Bulacan, and Tarlac.

Colliers conducted both onsite and offline surveys with about 300 end-users, property equity analysts, and investors nationwide. The survey was conducted during the first week of February.

‘STABLE’ LUXURY SEGMENT
Meanwhile, the capital region’s luxury and upscale segment remains stable, accounting for 41% of Metro Manila’s condominium launches in 2024, Colliers said.

In particular, the Manila Bay Area is expected to be a premier lifestyle destination amid rising demand from expat Filipinos and investors across the Asia Pacific, according to UK-based real estate consultancy firm Knight Frank.

“Luxury residential properties in and around Manila Bay have enjoyed a surge in popularity, resulting in significant appreciation in valuations driven by high pre-selling prices,” Christine Li, head of research, Asia Pacific at Knight Frank, said in its latest “The Wealth Report.”

The Bay Area, which includes the cities of Manila, Parañaque, and Pasay, is home to many casinos, hotels, and retail establishments.

The price of Metro Manila’s luxury residences increased by 17.9% in 2024, ranking second in Knight Frank’s latest Prime International Residential Index (PIRI). The PIRI monitors the movement of luxury residential prices across 100 city and second home markets.

According to the property consultant, Metro Manila’s luxury property prices are rising as the country’s economy continues to expand.

“Local wealth creation has spurred the rapid expansion of investable luxury residential developments, particularly in the city’s core business districts, attracting foreign investors from within Asia-Pacific,” Ms. Li said. — Beatriz Marie D. Cruz

15 Richest Filipinos in Forbes’ 2025 World’s Billionaires List

April 3, 2025 | 12:01 am

TYCOON and former Senate President Manuel B. Villar, Jr. is the richest Filipino, according to Forbes’ latest World’s Billionaires List. Read the full story.

Qualcomm considers buying UK semiconductor firm Alphawave

April 3, 2025 | 12:01 am

US CHIPMAKER Qualcomm is considering making an offer to acquire Alphawave IP Group, it said on Tuesday, sending shares of the British semiconductor company surging more than 52%.

Alphawave designs and licenses semiconductor technology for data centers, networking, and storage.

Its “SerDes” (serializer/deserializer) technology determines how fast information can be processed by chips — crucial for AI development — and serves as the foundation for Broadcom and Marvell Technology’s multibillion-dollar bespoke chip businesses.

Alphawave’s shares soared by more than half to a high of 142.9 pence, valuing it at 708.2 million pounds ($913.1 million), according to LSEG data. As of Monday’s close, the stock had slumped more than 70% from its all-time peak in August 2021.

Qualcomm did not respond to a Reuters request for further details of a potential deal, while Alphawave did not comment.

Under UK takeover rules, the US company now has until April 29 to make a firm offer or walk away.

Qualcomm’s expression of interest came after Reuters exclusively reported earlier in the day that SoftBank-owned chip tech provider Arm had recently sought to buy Alphawave before deciding against a takeover.

Arm was looking to secure crucial technology for building its own artificial-intelligence processors, Reuters reported, citing three sources familiar with the matter. Arm and Alphawave both declined to comment.

Media reports last year said Qualcomm had also discussed a potential deal to buy some or all of US rival Intel. — Reuters

Catholic shrine in Lourdes covers artwork by priest accused of abuse

April 3, 2025 | 12:01 am

The-facade-of-the-Rosary-Basilica-in-Lourdes — The facade of the Rosary Basilica in Lourdes — FLICKR/LAWRENCE OP

VATICAN CITY — The sanctuary of Lourdes, one of the world’s most popular Catholic pilgrimage sites, began on Monday to cover up a series of mosaics made by a prominent priest with ties to the Vatican who has been accused of sexual abuse.

The artwork is by Rev. Marko Rupnik, an internationally known artist, who has been accused by about 25 people, mostly former Catholic nuns, of various types of abuse.

Mr. Rupnik, who was expelled from the Catholic Jesuit order in 2023 but remains a priest, is not known to have commented publicly on the accusations. The Vatican in 2023 reopened an investigation into his conduct, which is ongoing.

Mosaics by Mr. Rupnik adorn the facade of the Rosary Basilica in Lourdes, near the France-Spain border, where some five million Catholics and other faithful visit each year to experience spring water that is said to have healing properties.

Workers placed large coverings over many of the images on Monday, Lourdes Bishop Jean-Marc Micas said in a statement.

“A new symbolic step needed to be taken to facilitate entry into the basilica for all the people who today cannot cross its threshold,” said the bishop, in an apparent reference to clergy abuse victims.

Mr. Micas had previously declined to cover the images but ordered in July 2024 that they no longer be illuminated at night.

Laura Sgro, a lawyer representing five of Mr. Rupnik’s alleged victims, welcomed the covering of the images.

“Every believer, and not just every victim of abuse, must have an open heart when praying, and this cannot happen if they have to kneel before a work of art that was likely the place where abuse was experienced,” Ms. Sgro said in a statement.

Mr. Rupnik’s artwork is thought to adorn some 200 churches and chapels around the world, and is also known to adorn at least one chapel at the Vatican.

Vatican officials have largely declined to comment on the allegations, citing the ongoing investigation into Mr. Rupnik.

Cardinal Victor Fernandez, the Catholic Church’s chief doctrine official, told reporters earlier this month that he was starting to contact lawyers who could serve as judges in a likely Church trial against Mr. Rupnik.

Last week, the Jesuit order began reaching out to some of Mr. Rupnik’s alleged victims to start a process of offering reparations on a case-by-case basis.

Ms. Sgro called the letters a “clear, strong and concrete gesture” and “an important step forward.” — Reuters