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‘Temperature shock’ poses persistent inflation risk

A dry field is seen in Bulalacao in Oriental Mindoro, which has been placed under a state of calamity due to the severe damage caused by the El Niño weather phenomenon. — PHILIPPINE STAR/EDD GUMBAN

By Luisa Maria Jacinta C. Jocson, Reporter

RISING TEMPERATURES and climate shocks such as the El Niño weather event could fan inflationary pressures and reduce economic output growth over the next few years, according to a study by economists at the Bangko Sentral ng Pilipinas (BSP).

In a discussion paper titled “Macroeconomic effects of temperature shocks in the Philippines: Evidence from impulse responses by local projections,” BSP economists said the inflationary effect of temperature shocks was “significantly” persistent up to the fourth year after a shock.

“A 1-degree Celsius increase in annual mean temperature leads to persistent inflationary pressures up to four years, with a cumulative increase of 0.77 percentage point (ppt) in headline inflation after the initial shock,” they said.

The paper, authored by BSP Monetary Policy Research Group economists Jean Christine A. Armas, Ranelle Jasmin L. Asi, Dyan Rose L. Mandap, and Gabrielle Roanne L. Moral, also showed that the effect of temperature shocks could increase headline inflation by 0.46 ppt in the short term and up to 0.81 ppt in the long term.

The study also showed that El Niño Southern Oscillation (ENSO) events also stoke inflation.

“Short-term inflationary effects of temperature shocks on headline, food, and non-food are deeper in magnitude at 0.49 ppt, 0.69 ppt, and 0.49 ppt, respectively, when we incorporated dummy variables for episodes of ENSO events,” the BSP economists said.

The Philippines is currently in the midst of an El Niño weather event, which has caused dry spells that disrupted agricultural output and fueled food inflation. El Niño is expected to persist through the second quarter.

Headline inflation accelerated for the first time in five months to 3.4% in February as prices of food continued to rise. Rice inflation, which accounts for almost half of the headline print, surged to 23.7% in February — the fastest since the 24.6% in February 2009.

The BSP earlier said that inflation could temporarily accelerate above the 2-4% target range in the second quarter due to the “adverse impact of El Niño weather conditions on agricultural production and positive base effects.” The BSP expects inflation to average 3.6% this year.

In the study, BSP economists noted that temperature shocks more heavily impact the prices of food over non-food.

“Disaggregating the components of consumer prices, the results show that the inflationary impact of temperature shocks on food prices is deeper in magnitude and long-lasting in period at 0.79 ppt vis-a-vis the effect on non-food prices, which is rather small at 0.31 ppt and transitory up to 2 years only,” they said.

The BSP study also showed that inflationary effects from temperature shocks are more prevalent in Luzon.

“In the case of Luzon, where most of the regions are predominantly agricultural and have various industries including food processing and machinery production, temperature shocks affect the level of output in key production sectors, resulting in deeper magnitude of the inflationary effect,” they said.

Temperature shocks can also reduce economic growth.

“We find that, on the average, the short-run marginal impact of a 1-degree Celsius increase in the country’s annual mean temperature reduces aggregate output growth by 0.37 ppt,” the BSP economists said.

“The decline in output growth is larger at 0.47 ppt when we control for episodes of ENSO events vis-à-vis the 0.3 ppt drop in output growth after controlling for the occurrence of floods and storms.”

The study also showed that manufacturing and services sectors are “negatively affected” by an increase in mean temperature.

“However, we find that temperature shocks do not significantly affect labor productivity in heat-exposed industries such as construction, transportation, and manufacturing,” it added.

The study said that central banks will play a crucial role in managing the impact of climate change on price stability.

“On the one hand, the inflationary effects of temperature shocks in the short run are best addressed by the timely implementation of non-monetary policy interventions since monetary policy adjustment typically works with a lag,” they said.

“On the other hand, if inflation remains persistent and evidence of second-round effects materialized, the central bank will respond and adjust its policy interest rates accordingly.”

DBCC may revisit growth targets — Balisacan 

The skyline of Parañaque City is seen during sunset, March 7, 2024. — RUSSELL PALMA, THE PHILIPPINE STAR

THE DEVELOPMENT Budget Coordination Committee (DBCC) has a “good case” for revisiting its growth targets for this year amid a weaker global economic outlook, National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said on Tuesday. 

“When we were preparing our assumptions, forecast and growth programs in the last quarter of last year, we were working on the assumption that the global economy would recover from its downturn in 2023. Now, IMF (International Monetary Fund) and many other organizations are saying that it’s likely to continue to slow down further,” he told a media briefing in Pasig City.

Last December, the DBCC narrowed its gross domestic product (GDP) growth target to 6.5-7.5% from 6.5-8% previously. The Philippine economy grew by 5.6% in 2023, falling short of the DBCC’s 6-7% goal for the year and slower than the 7.6% expansion in 2022.

But since the start of 2024, Mr. Balisacan said the global economy has not been growing as much as earlier expected. According to the IMF, global growth is projected at 3.1% this year, but risks remain.

“In other words, it’s less robust. It’s more anemic the global growth than was initially expected,” he said.

The NEDA chief said the Philippine economy is also facing challenges from the El Niño weather phenomenon, inflation and high interest rates.

The El Niño phenomenon has been affecting agricultural production, with the weather bureau expecting it to last until the second quarter of the year.

Last month, the Philippine central bank kept the key rate at 6.5% — the highest in nearly 17 years — for a third straight meeting. The Bangko Sentral ng Pilipinas (BSP) has raised policy rates by 450 basis points (bps) from May 2022 to October 2023 to tame inflation.

For the first two months of 2024, headline inflation averaged 3.1%. The BSP expects inflation to average 3.6% this year.

Mr. Balisacan said there is a “good case” for revisiting the macroeconomic assumptions and targets, but they would still have to wait for the release of the first-quarter GDP data on May 9.

“But even if we set it from the range of 6.5-7.5%, to say 6-7%, that’s still to us, a good range. I think for this year, I’m okay with the 6-7% [target], it’s very much achievable,” he said.

Last month, Finance Secretary Ralph G. Recto said the government might have to adjust its fiscal targets for the year to be “more realistic.”

Most multilateral institutions’ Philippine growth forecasts do not meet the lower end of the DBCC’s target range for 2024, including the World Bank (5.8%), the International Monetary Fund (6%) and the Asian Development Bank (6.2%). — B.M.D. Cruz

CCP brings Metropolitan Opera to the big screen

DER ROSENKAVALIER - BRONTE LACSAMANA

FOR the 9th time, productions by the Metropolitan Opera in New York City will be screened at Ayala Malls’ Greenbelt 3 in Makati City, giving Filipinos access to a powerful art form from the West.

Seven operas were chosen for this edition of the Cultural Center of the Philippines’ (CCP) “The Met Live in HD” program.

Richard Strauss’ Der Rosenkavalier opened the season on March 5. First premiered in 1911, Strauss’ most popular opera follows a wise woman of the world involved with a much younger lover. She is later forced to accept the laws of time and give him up to a pretty young heiress.

“These are splendid operas that we don’t often get to see, so it is our hope that people will make it a habit to come here every first Tuesday of the month to enjoy an opera on the big screen,” CCP artistic director Dennis Marasigan said at the opening event.

This production of Der Rosenkavalier is set apart by the director Robert Carsen’s choice to transport the story from the mid-18th century to 1911, while staying true to the image of an idealized Vienna.

Soprano Lise Davidsen as the aging Marschallin was the stand-out, portraying the mature yet quietly tortured energy of a mid-life crisis in a luminous, operatic manner.

The tragic yet comical tale also came to life thanks to mezzo-soprano Samantha Hankey as the boyish lover Count Octavian, soprano Erin Morley as the beautiful young heiress Sophie, bass Günther Groissböck as the boorish Baron Ochs, and, of course, Strauss’ glorious score with Maestro Simone Young at the reins.

While Der Rosenkavalier is in German, and many other operas in Italian, the “Met Live in HD” screenings are provided with subtitles.

This show lasted four hours, but there were three 15-minute intermissions. During the intermissions, behind-the-scenes tidbits filmed by the Metropolitan Opera were shown, from singers rehearsing and production designers setting up, to the animal wranglers preparing the dogs that would go on stage for a brief scene.

“Met Live exists because opera is a fascinating, educational experience. We want it to be more accessible to Filipino audiences,” Mr. Marasigan said.

The upcoming productions to be screened this season are: Giuseppe Verdi’s Nabucco on April 2; Georges Bizet’s Carmen on May 7; Anthony Davis’ X: The Life and All Times of Malcolm X on June 4; Giuseppe Verdi’s La Forza del Destino on July 2; and Jake Heggie’s Dead Man Walking on Aug. 13.

All screenings are scheduled at 5:30 p.m. at Ayala Malls’ Greenbelt 3 Cinema 1 in Makati City. Regular tickets are priced at P450 while students get a discounted price of P100.

Tickets are available at Greenbelt ticket booths and via sureseats.com. — Brontë H. Lacsamana

Fil-Aussie artist wins award

FILIPINA-Australian artist Marikit Santiago speaks during the announcement of the 2024 La Prairie Art Award, at the Art Gallery of New South Wales, in Sydney, on March 12.

She won for two works, A Seat at the Table (Magulang) and A Seat at the Table (Kapatid). The award — a partnership between the Swiss luxury skincare house La Prairie and the Art Gallery of New South Wales — includes an international art residency, the acquisition of the artworks by the gallery, and attendance at the Art Basel art fair in Switzerland as a guest of La Prairie.

The Sydney-based artist is a three-time Archibald Prize finalist (2016, 2021, 2023). She won the 2020 Sir John Sulman Prize at the Art Gallery for a portrait of her three children. — Reuters

The Filipino woman comes alive in Limang Daan

Ballet Review
Limang Daan
Ballet Philippines

By Brontë H. Lacsamana, Reporter

THE CLOSING production of Ballet Philippines’ (BP) 54th performance season was held on International Women’s Day, and there was no better way to mark the occasion than with Limang Daan. It’s an ambitious ballet — full-length, completely original, and spanning 500 years of Filipino women’s history.

It is “a gritting tribute to the indomitable spirit of the Filipina, the women in this country, in honor of their journey, their triumphs and adversities, their joys and their struggles,” said BP president Kathleen Lior-Liechtenstein in a speech during the March 8 gala at the Theatre at Solaire.

“Limang Daan is our way of celebrating our long-gone as well as our modern-day heroines who made the Philippines the most gender-equal country in Asia and the 16th in the world,” Ms. Lior-Liechtenstein said.

She also thanked the audience for continuing to support BP in this world premiere, right before it turns 55 years old in April.

Loosely inspired by a short dance film that BP produced with Salcedo Auctions in 2022, Limang Daan marks the triumphant milestone. The two-minute source material showcases stunning art and culture representing the Philippines’ colonial history, and this full ballet builds on that.

It follows several women and their individual struggles over the course of 500 years, drawing parallels between their oppression and their attempts to fight back.

There was a modern-day Filipina nurse in a foreign country, working tirelessly while facing sexual advances from a male doctor. There was an Igorot woman, an unwilling participant in the 1904 St. Louis’ World’s Fair which inhumanely put people on display at their “human zoo.”

Then there was a babaylan (shaman), represented by a masculine body in feminine robes, a figure of faith and non-conformity. One of the most moving numbers in the entire production was hers, as she tried to endure being stamped out by the Spaniards bringing Christianity to the Philippines.

A stroke of genius was how colonization was depicted through the priests brainwashing the locals by using a golden mirror. They thrust the mirrors in front of the native Filipinos’ faces to show them how barbaric they are, causing all of them, even the babaylan, to visibly recoil from their own reflections.

Three Cordillera women, full of joy and energy, come after that harrowing scene. They appeared to be from within the last 50 years as the outsiders they deal with are also Filipino, gesturing to the land as theirs to mine, to which the women express outrage and drive them away.

Finally, there was the typical Maria Clara figure, at first shown in a romance with Ibarra despite the disapproval of the controlling Padre Damaso. Later there was a nun, reminiscent of her character nearing the end of her life, being repressed in a convent ruled by a cruel Mother Superior.

The ballet begins with all these characters in boxes, and it ends with them all leaving these boxes and interacting, expressing their thoughts and feelings with each other through dance.

A first-time librettist, filmmaker Moira Lang was able to pick out specific female perspectives to effectively paint vivid brushstrokes of colonial history.

The original score by Erwin Romulo and Malek Lopez was transportive as it incorporated traditional instruments, orchestral music, and electronic sound to signify the changes in time and place.

JC Buendia’s costume design was stunning, allowing the graceful, powerful dancers full mobility. Most importantly, the designs evoke the right looks and silhouettes from the time periods they were meant to represent.

The choreography by BP’s artistic director Mikhail “Misha” Martynyuk left the audience in awe. Limang Daan explores many feelings — anger, faith, despair, strength — and he choreographed all of that to be evident to the naked eye, even as we jumped back and forth from one story to another.

While these women’s struggles came across as disjointed vignettes, the way the dancers were writhing in pain yet trying to resist outside forces in their respective situations highlighted a visceral underlying thread — one of colonial history.

All the audience had to do was listen to the raw emotions spoken through dance.

JFC allots P20-23B for capex, targets to open 700-750 stores

REUTERS

JOLLIBEE FOODS Corp. (JFC) is allocating P20-23 billion for its capital expenditure (capex) budget for 2024 as it plans to open 700 to 750 new stores, the listed fast food giant announced on Tuesday.

“Funding for the 2024 capex will come from JFC’s internally generated funds, issuance of preferred shares, and bank loans,” the company said in a regulatory filing.

The budget covers expenses for “new stores and renovations, construction of a new commissary in Cebu, maintenance of existing commissaries, main office improvements, and investments in technology,” it added.

The company opened 658 stores and expanded its store network by 6.3% annually to 6,885 by the end of 2023, JFC also said.

For 2023, the company saw 16% increase in its attributable net income to P8.77 billion due to stronger revenues.

The higher net income came as the company’s revenue grew by 15.2% to a record high of P244.11 billion last year, JFC Chief Executive Officer Ernesto Tanmantiong said.

“Overall system-wide sales for 2023 grew by 16.3% to P345.3 billion, driven by a 10.6% growth in same store sales and 5.4% from new stores,” he said.

“Our full year 2023 results reflect the strength of our execution and resiliency of our brands,” he added.

He said the company’s Philippine business saw a 17.6% growth in system-wide sales, while its international business rose by 14.4%. 

The company’s transaction volume increased by 8.2%, while the average check surged by 5.2%. Operating profit rose by 45% to P14.4 billion.

“Notably, our Jollibee brand, which has over 1,600 stores globally and accounts for 49% of JFC’s system-wide sales, grew by 18.5% in 2023,” Mr. Tanmantiong said.

JFC projected that its system-wide sales growth could range from 10% to 14% this year, while same-store sales growth could reach 5% to 7%, and the store network could expand by 7% to 8%. Operating profit is forecasted to grow by 10% to 15%.

To achieve the company’s targets, Mr. Tanmantiong said that JFC will focus on the global expansion of its Jollibee brand as well as the growth of its coffee and tea business.

Some of JFC’s coffee and tea brands include The Coffee Bean & Tea Leaf (CBTL), Highlands Coffee, and Common Man Coffee Roasters.

JFC will also concentrate on expanding into multiple lower-tier cities across China and maintaining strong growth and market leadership in the Philippines, Mr. Tanmantiong said.

“We will ramp up franchising to support our global expansion. We will also accelerate our digital transformation and bring capabilities on-par with global quick service restaurant leaders to increase operational efficiency and further improve customer experience and revenue management,” he added.

Of JFC’s 3,546 international stores, 567 are in China, 389 in North America, 337 in Europe, the Middle East, and Africa, 779 under Highlands Coffee mainly in Vietnam, 1,164 under CBTL, and 310 under Milksha.

The company has 3,339 stores in the Philippines.

JFC’s largest brands by store outlets worldwide are Jollibee at 1,660, CBTL at 1,164, Highlands Coffee at 779, Chowking at 613, and Mang Inasal at 573.

On Tuesday, JFC shares improved by 0.77% or P2 to P262 apiece. — Revin Mikhael D. Ochave

Arts & Culture (03/13/24)

Fundacion Sansó holds exhibit of donated works

THE LATEST exhibit at Fundacion Sansó is “Magnanimous Reciprocity,” which showcases donations of painter Juvenal Sansó’s work, memorabilia, and other pieces from various important collectors. “Through donating artworks to the museum, collectors (Joaquin) Teotico, (Mohammed) Ronaghi, Raffy Simpao, Eliot and Cherry Maguan, and Annatha Lilo Gutierrez join the museum in becoming active stewards of Mr. Sansó’s artistic legacy,” said Ricky Francisco, its gallery director. “Magnanimous Reciprocity” runs until March 30 at Fundacion Sansó, 32 V. Cruz St., San Juan, open 10 a.m. to 3 p.m. except for Sundays and holidays.

Six the Musical slated to arrive in Manila in October

THE HIT musical from West End, Broadway, and beyond, Six the Musical, is making its way to Manila this October at the Theatre at Solaire. It will have a limited season in Manila, running from Oct. 1 to 20. Six the Musical tells the story of the six wives of King Henry VIII, who step out of the shadow of their infamous husband and reclaim their own narratives. Written by Toby Marlow and Lucy Moss, the modern-pop musical brings Catherine of Aragon, Anne Boleyn, Jane Seymour, Anna of Cleves, Katherine Howard, and Catherine Parr to life, portraying them as fierce and influential pop stars. Tickets go on pre-sale from April 15 to 17 and on sale on April 19 via TicketWorld, with a waitlist for exclusive first access available at www.gmg-productions.com only until April 12.

Benilde mounts Women’s Month exhibit

IN commemoration of International Women’s Month, students and young professionals have put up a multi-site exhibition to empower women across artistic and creative practices. “The Women Around Us” features original works by artists from the De La Salle-College of Saint Benilde (DLS-CSB) in different media: printmaker Helena Sharon Malinis, digital painter Ysshi Carla Caburnay, photographer Mikayla Shaine Alonzo, mixed media artist Chleia Zyrille Samson, and prose writer Angeline Ashlee Marquez, among others. “The Women Around Us” is on view at the Main Lobby of DLS-CSB’s Atrium and the 8F Gallery and 9F Gallery of its Design + Arts Campus until March 26.

CCP façade lights up for Women’s Month

THE CULTURAL Center of the Philippines (CCP) is lighting up the CCP Main Building, the Bamboo Pavilion, and the CCP Blackbox Theater in purple to celebrate Women’s Month this March. Designed by Camille Balistoy and Jericho Pagana and executed by the CCP’s Production Design and Technical Services Division, the façade lighting is a gesture recognizing Filipino women’s accomplishments and contributions to nation-building. It runs until March 31.

Instituto Cervantes holds Nebrija exhibition

THE EXHIBITION “Nebrija en Filipinas” at the Instituto Cervantes in Intramuros this March seeks to celebrate Antonio de Nebrija’s work in defining the first grammars of the Philippine vernacular languages. This event is organized in collaboration with the Embassy of Spain, Fundación Antonio Nebrija from Madrid, Biblioteca Nacional de España, and the University of Sto. Tomas. Nebrija’s contributions have spawned endeavors directly influenced by his teachings, marking Tagalog as a language that possessed a grammar long before many European languages. The exhibit, found in Instituto Cervantes’ office on Real Street in Intramuros, is free and open to the public until June 12.

The M offers a sneak peek of REP’s Betrayal

A PREVIEW of Repertory Philippines’ current production of Harold Pinter’s Betrayal, with Filipino-British actor James Bradwell reading lines as Robert, will be held at the Metropolitan Museum of Manila on March 14, 3 p.m. The event includes a 20-minute discussion with Bambina Olivares, The M’s communications and special projects consultant. Mr. Bradwell stars as Robert in the Philippine run of Betrayal at Carlos P. Romulo Auditorium in RCBC Plaza until March 17. Directed by Victor Lirio, the play explores contemporary notions of Philippine diaspora and heritage through the complicated love story of Emma, Robert, and Jerry. Those interested can register for the preview through https://tinyurl.com/ekw9n7uj

Lec Cruz curates group shows at MO_Space

AT the MO_Space gallery, Lec Cruz has curated two shows that will run this March. The Main Gallery will house “Synchronized Syncopation,” featuring the works of Andre Baldovino, Benjie Cabangis, Zean Cabangis, Clarence Chun, August Lyle Espino, Gene Paul Martin, Jonathan Olazo, Bernardo Pacquing, Carina Santos, and Nestor Vinluan. The show aims to represent the world of abstraction and non-representational art, contextualizing its evolution to form a narrative and a mini-survey of Philippine abstraction. Gallery 2 will have “When E Minor Adds 9,” featuring the works of Lec Cruz, Victoria Fabella, Is Jumalon, and Victoria Montinola. This show focuses on works that try to extend recognizable figuration by fragmenting images and recontextualizing their entirety. The two exhibits will be open for public viewing at MO_Space, Bonifacio High Street, BGC, from March 16 until April 21.

WOW soiree to have Manila talks

THE next World of Women (WOW) soiree in Manila will be held on March 20. With themes of inspiring inclusion and investing in women, the “talk show” event aims to represent a diversity of organizations and experiences through its speakers. “It will be a stimulating evening for women at all stages of their careers, from all sectors, considering their development to their next level of responsibility,” WOW said in a statement. The all-women global development program and community was established in 2020 by founder Isa Buencamino as a response to the issue of under-representation of women in leadership positions in all sectors worldwide. For more details, including the venue, visit WOW’s social media pages.

ACEN net income down 43% to P7.4 billion

AYALA-LED ACEN Corp. on Tuesday said it saw a 43% decrease in its 2023 net income to P7.4 billion from P13.1 billion the previous year.

The listed energy company’s net income “includes P8.6 billion in accounting adjustments from various events in that period,” it said in a statement.

Statutory revenues grew by 4% to P36.5 billion, while attributable earnings before interest, taxes, depreciation, and amortization rose by 31% to P18.8 billion in 2023.

“Taking out the impact of all noncash items, ACEN’s profitability increased 150% year over year, driven by a nearly three-fold increase in core operating earnings,” the company said. 

Operating income climbed by 81% to P8.1 billion, while core operating earnings tripled to P4.9 billion with ” the continued ramp-up of new renewables capacity and generation output.”

The company recorded P4.5 billion in gains last year, which was offset by a P2-billion impairment from the partial sale of Salak & Darajat geothermal power assets in the third quarter due to the impact of costs overruns and project delays.

”All together, this resulted in a consolidated net income after tax for ACEN of P7.4 billion in 2023,” the company said.

For the fourth quarter alone, operating income rose by 38% to P1.9 billion, and the company also recovered P1 billion in its core operating earnings from a loss in 2022.

The company’s renewable energy generation from Philippine operations climbed by 34% to 1,137 gigawatt-hours (GWh) driven by stronger wind resources at its wind farms.

This was also attributed to the start of commissioning for the 160-megawatt (MW) Pagudpud wind farm, the first and second phases of the SanMar solar farm totaling 385 MW, and the 44-MW second phase of the Arayat-Mexico solar farm.

Outside the Philippines, the company delivered 3,328 GWh in attributable generation, up 31% a year ago.

This covers the ongoing partial commissioning for the 420-MW Masaya solar farm in India and near-full capacity and operational completion for the 521 MW New England solar project.

“We look forward to 2024 with full commercial operations of newly commissioned plants, a continually growing pipeline, and in turn, continued progress toward our aspiration to achieve 20 GW in attributable renewables capacity by 2030,” ACEN President and Chief Executive Officer Eric T. Francia said.

In a separate statement, ACEN said that its subsidiary ACEN Australia forged a power purchase agreement with London-based SmartestEnergy to offtake renewable electricity generated from State 1 of its New England solar project in New South Wales.

The eight-year deal provides SmartestEnergy with an offtake of 25% of the output of the 400-MW Stage 1 project.

To date, ACEN has around 4,700 MW of attributable capacity spread across the Philippines, Vietnam, Indonesia, India, and Australia.

At the local bourse on Tuesday, shares in the company went down by P0.15 or 3.7% to close at P3.90 each. — Sheldeen Joy Talavera

SM Prime eyeing up to P100-B bond program

THE SY family’s SM Prime Holdings, Inc. is planning a P100-billion bond program as part of its fundraising initiatives.

In a stock exchange disclosure on Tuesday, the listed property developer said it submitted a registration statement to the Securities and Exchange Commission  for a proposed shelf registration of debt securities worth P100 billion.

The proposed first tranche of the bond offer is up to P20 billion with an oversubscription option of up to P5 billion, consisting of three-year series V bonds due in 2027, five-year series W bonds due in 2029, and seven-year series X bonds due in 2031.

In a separate regulatory filing, SM Prime said the first tranche of the bond offer has received a PRS Aaa rating from the Philippine Rating Services Corp. (PhilRatings).

PhilRatings also kept the PRS Aaa rating given to SM Prime’s outstanding bonds worth P135.43 billion.

SM Prime said that PhilRatings also gave a “stable outlook” for the proposed and outstanding bonds.

The PRS Aaa rating is the highest rating given by PhilRatings. Those given the rating are “of the highest quality with minimal credit risk” while the issuing company has an “extremely strong” capacity to meet its financial commitment on the obligations.

Last year, SM Prime saw a 33% increase in its net income to P40 billion. Its consolidated revenue surged by 21% to P128.1 billion from P105.8 billion in 2022, while operating income climbed by 24% to P61.3 billion.

SM Prime has earmarked P100 billion for its capital expenditure budget this year. It is the property arm of SM Investments Corp. and is engaged in the development and management of malls, residences, offices, hotels, and convention centers.

On Tuesday, SM Prime shares closed unchanged at P31.60 apiece. — Revin Mikhael D. Ochave

Police bust art forgery ring in Spain selling fake Banksy works

THE COMPANY Pest Control, the only body that certifies Banksy’s oeuvre, found that both the artworks and certificates being sold from Spain were false. — PEST CONTROL OFFICE

MADRID — Police in Spain have dismantled an art forgery ring suspected of selling artworks falsely attributed to British street artist Banksy, with some pieces fetching prices of €1,500 ($1,640) or higher.

The Catalonia regional police force Mossos d’Esquadra said on Thursday it had raided a workshop inside an apartment in the city of Zaragoza, where the forgers created the fake works before distributing them through auction rooms, antique shops, or online platforms.

Investigators have seized nine works and recorded at least 25 sales to victims in Spain, Germany, Switzerland, the United States, and Scotland, the Mossos added in a statement. Four people are under investigation, charged with fraud and crimes against intellectual property.

According to the police, a couple of young followers of Banksy’s street art with economic problems” created Banksy-style works with stencils and ink stamps from the Zaragoza workshop, which they at first sold at prices no higher than €80.

But a distributor “with knowledge of the functioning of the graphic work market,” in collaboration with an “interested distribution entity,” made fake certificates attributing the works to the secretive Banksy, whose identity has never been revealed.

The artworks were presented as being part of Banksy’s Dismaland project, a 2015 theme park-style installation in the British town of Weston-super-Mare.

But the company Pest Control, the only body that certifies Banksy’s oeuvre, found that both the artworks and certificates were false.

“The investigation remains open and further victims and new arrests are not ruled out,” the Mossos added. — Reuters

Keppel Philippines board OK’s unit’s land sale in Batangas for P1.5B

KEPPELLAND.COM.PH

THE BOARD of Keppel Philippines Holdings, Inc. has approved the sale of land owned by its subsidiary in Bauan, Batangas amounting to P1.5 billion, the listed company announced on Tuesday.

The board authorized the sale of a 24.9-hectare land owned by its unit, Goodsoil Marine Realty, Inc., to LS Shipping Management Corp., Keppel Philippines said in a stock exchange disclosure.

The land is located in Barangays San Miguel and San Roque. Keppel Philippines has a 51% stake in Goodsoil Marine Realty.

“The sale will improve the financial conditions of the issuer (Keppel Philippines) and Goodsoil Marine Realty,” Keppel Philippines said.

“The sale comes after a strategic review of investments and the opportunity to sell the land at valuation,” it added.

Keppel Philippines has business interests in investment holdings and real estate, while Goodsoil Marine Realty is engaged in the construction and repair of all types and classes of vessels together with the related services and operations of a shipyard.

On Tuesday, Keppel Philippines “A” shares fell by 29.73% or P2.20 to P5.20 apiece while Keppel Philippines “B” shares were last traded on March 7 at P7.46 per share. — Revin Mikhael D. Ochave

Billionaire shipping clan gives ‘exceptional’ donation to Louvre

THE MUSÉE DU LOUVRE announces the CMA CGM Group’s exceptional support for the creation of a new department — PRESSE.LOUVRE.FR

FRANCE’S billionaire Saade family has made a major donation to the Louvre museum through its shipping line, a further step by the clan to raise its business and philanthropic profile.

The “pivotal” backing will allow the country’s biggest art repository to move ahead with a plan for a new department dedicated to Byzantine and Christian art of the Orient, according to a statement released on Tuesday. Neither the company the family controls, container line CMA CGM SA, nor the museum would specify the size of the donation, saying only that it is “exceptional” enough to support creating a new department.

The project is for a collection of 20,000 objects that the Louvre already owns or is in the process of acquiring to be displayed on a rotating basis in a series of rooms starting in 2027, according to a museum spokesperson.

The donation reflects the family’s deep Mediterranean roots, said Tanya Saade Zeenny, daughter of the company’s late founder, Jacques. Her father immigrated to France from war-torn Lebanon and started the line in 1978 in Marseille with one leased vessel.

Her brother, Rodolphe Saade, has led closely held CMA CGM through an aggressive expansion plan in recent years, raising the group’s public profile. As chief executive officer, he’s regularly been part of the business delegations accompanying President Emmanuel Macron on foreign trips or when heads of state visit France.

On the cultural front, the company has sponsored work in France such as the restoration of the Apollo basin in the gardens of the Versailles Palace and the renovation of the Musee National de la Marine.

The Saade family is worth about $22 billion, according to the Bloomberg Billionaires Index. — Bloomberg

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