Bloomberry settles 10-year dispute with GGAM

March 20, 2024 | 12:06 am

RAZON-LED Bloomberry Resorts Corp. said it has settled its decade-long dispute with casino management company Global Gaming Asset Management LLC (GGAM).

In a regulatory filing on Tuesday, Bloomberry said its subsidiaries Sureste Properties, Inc. (SPI) and Bloomberry Resorts and Hotels, Inc. (BRHI) have reached an agreement for a “universal settlement” covering all the pending cases between the parties.

The settlement requires SPI to purchase the 921,184,056 shares in Bloomberry held by GGAM for $300 million.

“At the conversion rate of P56 to $1, this agreed purchase price will amount to P18.32 per share. This purchase will be made through a special block sale through the Philippine Stock Exchange (PSE),” Bloomberry said.

“The settlement is contingent on the lifting of the writ of preliminary injunction and attachment on the GGAM shares in Bloomberry issued by the Regional Trial Court of Makati, as well as the Philippine Depository & Trust Corp. lifting of all suspensions and restrictions on transactions in the shares, and PSE approval of the special block sale,” it added.

Bloomberry said the settlement “will put an end to the dispute of SPI and BRHI with GGAM, which has dragged on for ten years.”

GGAM is the former partner of Bloomberry in managing Solaire Resort Entertainment City in Parañaque.

In 2013, Bloomberry terminated its management deal with GGAM, citing the latter’s supposed material breach of contract.

A Singapore arbitration court in 2019 directed Bloomberry to pay $296 million to GGAM, which was contested by the Razon-led company.

Aside from Solaire Resort Entertainment City, Bloomberry owns and operates Solaire Resort North in Quezon City and Jeju Sun Hotel & Casino in South Korea.

In 2023, Bloomberry recorded an 85% growth in net income to P9.5 billion. Its consolidated net revenue rose by 24% to P48.4 billion.

Bloomberry shares fell by 8.7% or P1 to P10.50 apiece on Tuesday. — Revin Mikhael D. Ochave

Dr. Chan Chung Yip, Mount Elizabeth Hospital’s Hepatobiliary and Pancreatic Surgeon, talks about the various insults that can damage the liver

March 20, 2024 | 12:05 am

The liver plays a vital role in maintaining a person’s overall health. However, if not properly taken care of, the liver can face potential risks. Learn more from Mount Elizabeth Hospital’s Dr. Chan Chung Yip the various insults that can damage the liver and the necessary treatment.

For inquiries, please contact Mount Elizabeth Hospital’s patient assistance centre located at G/F-B, Marco Polo Hotel, Meralco Avenue and Sapphire Street, Ortigas Center, Pasig City 1600, e-mail manila.ph@parkwaypantai.com or call 0917-526-7576. Follow them at facebook.com/MountElizabethHospitalsSGPhilippinesOffice.

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Vista Land signs P2-B loan deal with Sumitomo Mitsui Banking Corp.

March 20, 2024 | 12:05 am

VILLAR-LED Vista Land & Lifescapes, Inc. has signed a P2-billion loan deal with the Manila branch of Sumitomo Mitsui Banking Corp. to finance the property developer’s capital expenditures.

The loan will also be used for refinancing and general corporate purposes, Vista Land said in a statement on Tuesday.

The company did not provide further details on the loan agreement.

In January, Vista Land’s subsidiary VLL International, Inc. approved the establishment of a $2-billion medium-term note program as part of its fundraising initiatives.

VLL International tapped DBS Bank Ltd. and HSBC as dealers for the offer, sale, and issuance of the notes.

The notes are guaranteed by Vista Land and its subsidiaries consisting of Brittany Corp., Crown Asia Properties, Inc., Camella Homes, Inc., Communities Philippines, Inc., Vistamalls, Inc., and Vista Residences, Inc.

On Tuesday, Vista Land shares closed unchanged at P1.59 apiece. — Revin Mikhael D. Ochave

Workforce development in the Philippines

March 20, 2024 | 12:05 am

Factory-workers — @LIFESTYLEMEMORY-FREEPIK

(Part 1)

A recent report issued by the Philippine Business for Education (PBEd) in conjunction with the US Agency for International Development (USAID) shed a great deal of light on the challenge of developing a workforce that can readily respond to the dynamic shifts in the labor market, not only in the Philippines but also in the countries which are highly dependent on overseas Filipino workers such as Japan, Canada, South Korea, and a good number of European countries that are suffering from a serious ageing crisis because of very low fertility rates. Despite the hype about our transitioning to the so-called Industrial Revolution 4.0 (artificial intelligence, the internet of things, robotization, data analytics, etc.) the data show that the Philippines has still to complete not only the Green Revolution that is a pre-requisite to an industrial revolution in any large country with abundant agricultural resources (as England was during the late 19^th century when the First Industrial Revolution occurred).

The Philippines is still very much in Industrial Revolution 1.0 which was the age of mechanization. It has hardly emerged from Industrial Revolution (IR) 2.0, the age of electrification and the chemical revolution. Vast areas of the archipelago still have to be endowed with an ample electricity supply and the country has the highest electricity costs, next only to Japan, in the Indo-Pacific region. It is most advanced in IR 3.0 — the electronic age, at least as regards the widespread consumption of electronic products and services, not necessarily in their production.

In 2022, it was found that the majority of Filipinos were employed in occupations involving basic and lower analytical skills. The Labor Force Survey of October 2023 reported that most Filipino workers remain in elementary occupations (27.1%) or are service and sales workers (24%), with most employed in the wholesale and retail trade, agricultural and forestry sector, and construction sector, among others. The survey also reported an unemployment rate of 4.7%, equivalent to about 2.09 million Filipinos who cannot find jobs.

Without neglecting the task of improving the quality of our institutes of higher learning, the bulk of our efforts to upskill and reskill our human resources must be focused on those who are in elementary occupations and in the service and sales sectors. This would imply greater resources invested in Technical Education and Skills Development Authority (TESDA)-type technical schools and in industry-academe skills training programs that need not lead to academic degrees. We still need a large supply of master gardeners, plumbers, electricians, masons, carpenters, hospitality workers, electro-mechanical workers — mostly in elementary occupations. The only difference now is that we must upskill and retool these workers in IT and digitalization.

As the USAID-PBEd report indicated, from a global perspective, the productivity of our workforce lags other countries in our region. Our 2023 World Talent Ranking of 60^th out of 64 countries is a downgrade from the 2022 ranking of 54^th out of 63 countries. Our talent competitiveness is 13^th out of 14 countries in the Asia-Pacific region, better only than Mongolia. This lagging talent competitiveness reflects our inadequate investment in developing our workforce, the decreasing quality of our talent pool’s skills, and the declining capacity to attract foreign and retain local talents.

To compound the problem of the low productivity of the large majority of our workforce who are still very much in demand in the sectors related to IR 1.0 and IR 2.0, some of the industries in these pre-IR 4.0 sectors are seeing rapidly changing technologies which require even more upskilling and reskilling, especially in Information Technology in order to remain competitive in the job market. The World Economic Forum (WEF) Future of Jobs Report 2023 highlights the accelerating transformations brought about by technological transitions, the shift to green energy, and the changing worker and consumer expectations. This transformation, however, is coupled with a lack of access and opportunities to quality and relevant training and employment pathways. The changing job market keeps those individuals not in education, employment or training (NEET) and those without advanced degrees or recognized certifications from landing high-paying jobs and better employment opportunities.

In line with the announcement of President Ferdinand Marcos, Jr. in his last State of the Nation Address that there is need to tweak the K to 10 and K to 12 programs to orient more of the Filipino youth towards the skills needed by an economy that is still trying to complete IR 1.0 and IR 2.0 (the green revolution, mechanization and electrification), there must be an emphasis on giving greater access to quality Technical and Vocational Education and Training (TVET). While there is still a widespread mentality, even among poor households, that a college diploma is a sure pathway to employment, recent data show that more young people are following the TESDA route, especially as private initiatives like those of the Don Bosco schools, the MFI Polytechnic Institute, the Dualtech Institute, and the Center for Industrial Technology and Enterprise (CITE) are demonstrating that technical skills can fetch even higher incomes than knowledge-based professions. TVET is slowly being embraced by students and professionals who wish to have their skills upgraded to pursue new career opportunities or advance towards better employment. This shift is evidenced by a study of the Philippine Institute for Development Studies (PIDS) that shows that the majority of TVET graduates are college degree holders, and 50.1% of TVET graduates take TVET courses for upskilling or reskilling.

In addition to the challenge of developing inclusive training opportunities, socio-economic factors such as lack of funds, lack of information, and household responsibilities were found to have hindered people from pursuing TVET programs. Since TVET attracts relatively disadvantaged learners belonging to low-income families, the lack of access to skills development programs is exacerbated by their lack of access to information on these opportunities.

While TVET is gaining momentum, more work on communications is needed to promote TVET to attract investments and be perceived as a viable first option. This strategy will involve cooperation among government agencies (such as the Department of Labor and Employment and the Department of Trade and Industry), industries (such as construction, agribusiness and hospitality), and techvoc institutions (a role model is Dualtech). The collaboration should involve participation in designing training curriculums, training standards, and assessment tools that are aligned with the needs and expectations of the workplace. Employers have greater confidence in hiring graduates if they have been actively involved in the whole training program. Constant feedback from the potential employers about the actual skills needed in the market will go a long way in increasing the employment rate of those who have been trained.

The Philippine Congress must be complimented by coming out with laws which make it easier for the TVET to collaborate with industry. Examples of these recently enacted laws are the Trabaho Para sa Bayan (Republic Act No. 11962), the Tulong Trabaho Act (Republic Act No. 11230), and the First Time Jobseekers Assistance Act (Republic Act No. 11261). These laws have facilitated the training to employment transition of trainees and have helped meet demands for the appropriate skills.

(To be continued.)

Bernardo M. Villegas has a Ph.D. in Economics from Harvard, is professor emeritus at the University of Asia and the Pacific, and a visiting professor at the IESE Business School in Barcelona, Spain. He was a member of the 1986 Constitutional Commission.

bernardo.villegas@uap.asia

Galeria Paloma holds online benefit auction

March 20, 2024 | 12:05 am

Proceeds to fund scholarships for underprivileged women

FOR many young, disadvantaged women, higher education is but a pipe dream. Galeria Paloma is holding an auction for the benefit of such women, in partnership with the scholarship grant program U-Go.

Titled The Gallery of Giving, the auction includes works of art, objets d’art, and jewelry by notable artists and designers. The onsite exhibition and viewing of lots is ongoing at the ArtistSpace, Ayala Museum Annex, Makati Ave. corner De La Rosa St., Makati City, until March 26.

There are works of art by sculptor Julie Lluch, painter Onib Olmedo, National Artist for Music Ryan Cayabyab, Soler Santos, Bjorn Calleja, CCP Thirteen Artists Awardee Ernest Concepcion, Carina Santos, Isabel Echevarria, Lina Llaguno-Ciani, Aba Dalena, Martin and Barbie Honasan, Basti Artadi, Sarah de Veyra-Buyco, Hamill Buyco, and Carlos, and many others.

One section features works by digital artists Luis Buenaventura, Skye Nicolas, AJ Dimarucot, and Isaiah Cacnio. Jewelry by designer JJ Jiao is also being auctioned, with each piece showcasing filigree patterns and intricate details.

The online auction itself runs until April 10. Resulting funds will be channeled through U-Go, which has helped 120 women within the almost-two-year period it has operated in the Philippines.

ART FOR EDUCATION
In a press conference on March 6 in Makati, Galeria Paloma highlighted how the artworks, already valuable on their own, represent a greater ideal when paired with the cause.

Julie Lluch’s sculpture Georgia Lily will be among the pieces on the auction block. The feminist work builds on iconic artist Georgia O’Keefe’s abstract flower paintings. Ms. Lluch’s signature sculptural style embodies both fragility and strength, a suitable piece to showcase for International Women’s Month.

The Widow by expressionist Onib Olmedo is equally interesting. Previously exhibited at the artist’s retrospective in Ayala Museum, it was lauded for its poignant and haunting portrayal of longing. Mr. Olmedo’s watercolor works Portrait and Flowers are paired together for the auction.

Among the notable digital art offerings is Skye Nicolas’ Don’t You Worry About the Situation [WM-17], a pixel painting that remixes an image into its essential structure. It is paired with an original Sony WM-F17 Walkman with a mixtape compiled by Mr. Nicolas.

Ken Samudio and Seph Bagasao, two designers collaborating on an environmentally ethical piece, are also featured in the auction. Their handmade chair Plenteous, put together from vintage beads and other recycled materials, is in the spotlight.

“As a gallery run by three women directors, whose mother was once a gallery director herself but found her calling as a steadfast educator, U-Go was a cause that we knew we could champion from the start,” said Kimberly Rocha-Delgado, one of the co-directors of Galeria Paloma.

U-GO IN THE PHILIPPINES
Proceeds from the auction will support women from disadvantaged backgrounds in their efforts to pursue higher education through U-Go. The global program is being implemented in the Philippines by Ayala Foundation.

“Access to education could be a meaningful equalizer for Filipinos. I’m excited by the possibilities of what quality education can bring, not just for women in the country, not just for their families and communities, but also in bringing the most empowered economy forward,” said U-Go board director Mariana Zobel at the press conference.

From the initial batch of 410 students that were awarded U-Go scholarships, the goal is to more than double that to 1,000 scholars in the next few years, she added.

On a personal note, Ms. Zobel said that the auction and the fact that its proceeds are going to underprivileged women meant a lot to her.

“I’m someone who has benefited from an education without cost, so for me it’s especially meaningful to pay that forward and give other women the same freedom that I felt as I explored my own education opportunities,” she said.

The auction is ongoing online via galeriapaloma.com/auction until April 10. Interested bidders are encouraged to visit the exhibition at ArtistSpace until March 26. For queries, e-mail contact@galeriapaloma.com. — Brontë H. Lacsamana

OceanaGold reports 22.35% rise in gold production at Didipio mine

March 20, 2024 | 12:04 am

OCEANAGOLD Corp. saw a 22.35% increase in gold production at its Didipio Gold-Copper Mine in Nueva Vizcaya last year, the Australian-Canadian mining company said on Tuesday.

Year on year, the mine produced 138,500 ounces (oz) of gold, up from 113,200 oz in the previous year, it said in a statement.

“We are glad to have exceeded the top end of our 2023 production guidance ranging from 125,000 to 135,000 oz of gold and 12,000 to 14,000 metric tons of copper,” Didipio Mine President and External Affairs and Social Performance General Manager Joan Adaci-Cattiling said.

However, its copper production slipped 1.38% to 14,200 metric tons (MT) last year from 14,400 MT in 2022.

The increase in gold production was attributed to the mining of higher-grade breccia stopes in the fourth quarter of 2023, facilitated by the completion of the crown pillar strengthening project.

This strengthened the bottom of the mine’s ground surface directly above the underground mine, enabling safer underground mining activities.

Meanwhile, the average gold price per ounce increased by 9% to $1,974 in 2023 from $1,811 in 2022.

In contrast, copper prices per pound inched higher to $3.87 in 2023.

Didipio also raised the amount of production taxes paid to the government to $26.3 million or P1.46 billion in 2023, and an additional government share of $20.3 million or P1.1 billion per the Financial or Technical Assistance Agreement, the company said. — Aubrey Rose A. Inosante

Spaces for cooperation

March 20, 2024 | 12:04 am

Space technology has more practical uses than many would imagine.

It’s easy to see space technology as something quite literally out of this world when there are plenty of urgent concerns and issues we must attend to here on the Earth’s surface.

But while it is true that there are numerous problems that demand our urgent attention, the Philippines must safeguard its sovereignty, monitor environmental changes, ensure economic security, and respond effectively to natural disasters and other threats. The solution to some of these problems could lie in advancements in space technology.

For a country like the Philippines, a rising middle power, it should not be far-fetched to imagine that we can leverage on space technology as a real and powerful tool to help address the myriad of issues that we face.

Space Science, Technology and Applications (SSTA) provide for evidence-based decision-making, something that is always desirable as we navigate the complex world and the traditional and nontraditional threats with which we now live. With the increasing involvement of various actors in space activities, indeed there is a multi-polar aspect to space exploration.

We are not alone, and we need not be as there is an increasing involvement of various actors in space activities.

The protection of our maritime domain is the first thing that comes to mind. The Indo-Pacific region, for instance, emerges as a dynamic and fiercely competitive geopolitical arena, characterized not only by its vast maritime expanses but also by the intricate realm of outer space politics. Maritime domain awareness, facilitated by space-based assets, is a cornerstone of the Philippine security strategy, enabling the monitoring of territorial waters and combating aggression to ensure maritime security.

Satellite technology in this instance is a critical tool in monitoring the movements of other forces and other countries in our maritime space, far from where anybody could visually keep track of those movements. Through this, we are made aware of any threats and encroachments perpetuated by other nations with vested interests in what has been established as ours. This will, in turn, allow us to plan our moves and strategize on how best we can ward off such infringements.

The Philippines recognizes the immense potential of space-based Earth observation systems in enhancing maritime awareness. These space systems provide insights into the dynamics of the maritime domain and resource protection for a wide range of stakeholders, including the military, environmental groups, and government ministries responsible for transportation, commerce, maritime affairs, environmental protection, and disaster preparedness.

Collaborative efforts among various agencies focus on studying the marine environment and impact of human activity in the West Philippine Sea using satellite imagery. Techniques developed by the Philippine Space Agency, for instance, enable us to analyze images to detect ship presence around Pag-asa island and surrounding cays, while mapping monthly chlorophyll levels and ship presence near Hughes Reef reveals fluctuating patterns.

The time to harness these advancements is now, as they offer unprecedented potential to address maritime challenges and safeguard marine resources for future generations.

OTHER APPLICATIONS
Outside of marine security, there are other applications of space technology of which people may not immediately be aware. Food security and sustainable resource management, for instance, could make a big difference in our nation’s economic and political life. Satellite imagery and precision agriculture could be tapped to enhance agricultural productivity and ensure long-term sustainability.

For example, the Philippine Space Agency (PhilSA) and the Department of Environment and Natural Resources signed a MoA to create a geospatial database of the country’s natural resources and monitor the National Greening Program (NGP) using spaceborne data. This joint initiative, funded by the Department of Environment and Natural Resources, aims to strengthen science-based policymaking. PhilSA employs satellite technology, including remote sensing and artificial intelligence, to support NGP Progress Monitoring and the National Resource Accounting Program (NRAP). This collaboration showcases how advanced space technologies enhance environmental conservation efforts.

PhilSA employs satellite remote sensing, machine learning, artificial intelligence, and geographic information systems. This supports the NGP Progress Monitoring by generating vegetation trend maps and detecting forest disturbance. Additionally, PhilSA develops methodologies for mangrove mapping and air quality mapping under NRAP. This collaboration highlights the role of advanced space technologies in enhancing environmental conservation efforts.

The PhilSA also utilizes satellite imagery to produce fishing ground maps nationwide, collaborating with the Department of Agriculture, Bureau of Fisheries and Aquatic Resources, and National Fisheries Research and Development Institute. These maps aid in identifying current and potential fishing zones, providing valuable data for fisheries management.

Stakeholders receive guidance on optimal fishing locations, timing, and regulations. These insights are shared with the Task Force on Zero Hunger, led by the Cabinet Secretary, to support livelihood and food security initiatives, according to PhilSA.

Space-based communication technologies play a crucial role in bridging digital divides and fostering connectivity across the Philippine archipelago, facilitating access to education, healthcare, and economic opportunities for all Filipinos.

Such commitment to capacity-building and workforce development cultivates a skilled and resilient workforce equipped with the expertise to leverage space technologies for economic growth and societal benefit.

We at Stratbase are happy to provide a platform for discussions on space technology in the Philippines through a forum held yesterday. In partnership with the Embassy of Canada in the Philippines and in collaboration with the Philippine Space Agency, we hosted a day-long hybrid event on “Navigating the Frontiers of Global Space Collaboration and Promoting Space Science and Technology Applications Across Industries.”

The prospects are promising. This is just the start of the conversation, and we look forward to actualizing these plans and initiatives, maximizing the benefits of space technology, with the help of our friends from other countries and different sectors, for the common good.

Victor Andres “Dindo” C. Manhit is the president of the Stratbase ADR Institute.

Relive the songs of Parokya ni Edgar onstage

March 20, 2024 | 12:04 am

Parokya-Miranda — PAROKYA NI EDGAR’S Chito Miranda talks at a press conference about how the new jukebox musical, Buruguduystunstugudunstuy, came to be.

GOOD news for fans of the iconic Filipino rock band Parokya ni Edgar — they only have to wait a month until Buruguduystunstugudunstuy: Ang Parokya ni Edgar Musical hits the stage.

The jukebox musical from Newport World Resorts’ production arm Full House Theater Company (FHTC) will have performances at the Newport Performing Arts Theater from April 26 to June 8.

The show features an epic world built around the colorful discography of Parokya ni Edgar, which is best known for its novelty songs and satirical covers. The musical itself takes its tongue twister name from the band’s 1997 album, Buruguduystunstugudunstuy.

Known as a pillar of original Pilipino music (OPM), Parokya ni Edgar has captured the country’s ears since 1993 with songs like “Halaga,” “Bagsakan,” “Don’t Touch My Birdie,” “Harana,” “This Guy’s In Love With You Pare,” and “Mister Suave.”

Chito Miranda, singer-songwriter and frontman of the band told the media after a March 15 preview that he never thought their songs would sound that beautiful in the hands of musical artists.

“We don’t trust ourselves when it comes to our material, but being a fan of Ang Huling El Bimbo The Musical, this was presented to me, and since I trust the team so much, I said, ‘game!’,” Mr. Miranda said.

“We never view our songs as anything outstanding or professional, pero iyung ganitong treatment nakakakilabot (but this treatment gave me goosebumps),” he added.

Ang Huling El Bimbo The Musical was FHTC’s hit production based on the songs of another iconic Filipino band, Eraserheads. However, the company said that Buruguduystunstugudunstuy has a totally different character.

For one, the four leads are all women who go on a journey of self-discovery — a take people may not expect from an all-male rock band’s music.

Mr. Miranda clarified that, as a songwriter, the goal is always to “have a conversation with everyone.”

“It’s not a conscious effort to make it universal, but whenever we write songs it’s trying to start a conversation with anyone who’s willing to listen,” he said.

All the characters’ names are derived from tracks in the band’s discography. Felicity Kyle Napuli plays Aiza, Marynor Madamesila plays Jen, Tex Ordoñez-De Leon plays Norma, and Natasha Cabrera plays Girlie. Supporting cast members include Pepe Herrera as Mr. Suave, Noel Comia as Tikmol, Nicco Manalo as Mang Jose, and Jasper Jimenez as Tito Ralph.

“The show is meant to be an acid trip. It has to be a wild, wild, wild ride. Many characters will cross from current times, the future, the past, and non-existing times,” said director Dexter Santos at the press conference. He described it as a “Parokya-verse,” a multiverse of references from the band’s music.

“It’s really fast-paced, highly visual with many videos, and a lot of production numbers [based on] 47 songs, some in full and some excerpts,” he added.

The production’s creative team includes playwright Rody Vera, musical director Ejay Yatco, choreographer Stephen Viñas, scenic designer Lawyn Cruz, costume designer Raven Ong, and video designers GA Fallarme and Joyce Garcia.

Menchu Lauchengco-Yulo and Michael Williams, co-artistic directors of FHTC, told the press that Mr. Miranda was “very involved” and accepting of the ideas that they conceptualized from the start.

Theatergoers will have to prepare for “a rollercoaster ride of emotions.” While Buruguduystunstugudunstuy won’t be as heavy as Ang Huling El Bimbo, it aims to be just as powerful.

“It will be naughty. It has a wide range of comedy. It can be dark most of the time and some of the time, but also there’s love and there’s kilig,” Mr. Santos said. “It’s all because Parokya ni Edgar has a really wide array of songs.”

There will be 3 p.m. matinees on April 27 and 28, May 4, 5, 11, and 12, and June 8. Evening performances will be at 8 p.m. on April 26 and 27, and May 3,4, 10, 11, and 17.

Tickets, ranging in price from P1,105 to P5,525, are available at all TicketWorld and SM Tickets outlets, HelixPay, and the Newport World Resorts Box Office. — Brontë H. Lacsamana

Gov’t makes full award of reissued 20-year bonds

March 20, 2024 | 12:04 am

THE GOVERNMENT made a full award of the reissued Treasury bonds (T-bonds) it offered on Tuesday as rates dropped on expectations that the Bangko Sentral ng Pilipinas (BSP) will begin its easing cycle this year.

The Bureau of the Treasury (BTr) raised P30 billion as planned via the reissued 20-year bonds it offered on Tuesday as total bids reached P60.946 billion, or more than twice the amount on the auction block.

The bonds, which have a remaining life of 19 years and 11 months, were awarded at an average rate of 6.189%, with accepted yields ranging from 6.17% to 6.25%.

The average rate of the reissued bonds went down by 2 basis points (bps) from the 6.209% quoted for the papers when they were first offered on Feb. 27 and 6.1 bps below the 6.25% coupon for the issue.

This was also 2.7 bps lower than the 6.216% seen for the same bond series and 13.1 bps below the 6.32% quoted for the 20-year tenor at the secondary market on Tuesday before the auction, based on PHP Bloomberg Valuation Service Reference Rates data provided by the Treasury.

This brought the total outstanding volume for the series to P60 billion, the BTr said in a statement.

“The lower awarded rates today reflected lingering market expectations of BSP rate cuts this year,” a trader said in an e-mail on Tuesday.

A second bond trader said in an e-mail that the average rate of the reissued paper was at the lower end of market expectations amid the large amount of non-competitive bids.

BSP Governor Eli M. Remolona, Jr. earlier said the central bank could consider cutting rates by the second half of the year if inflation is firmly within its 2-4% annual target band.

The Monetary Board raised its policy rate by 450 bps to a near 17-year high of 6.5% from May 2022 to October 2023 to help bring down elevated inflation. It has since kept its policy settings steady.

Headline inflation accelerated for the first time in five months in February to 3.4% from 2.8% in January, but was slower than the 8.6% print in the same month a year ago.

For the first two months of 2024, headline inflation averaged 3.1%, lower than the BSP’s 3.6% full-year baseline forecast but within its 2-4% target.

The BTr is looking to raise P180 billion from the domestic market this month, or P60 billion from Treasury 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 5.1% of gross domestic product this year. — Aaron Michael C. Sy

Global art sales dropped 4% last year, UBS Market Report finds

March 20, 2024 | 12:03 am

IN THE face of high borrowing rates, geopolitical instability, and volatile economic conditions, the global art market still managed to notch an estimated $65 billion in sales in 2023, according to a joint report from Art Basel and UBS Group AG. That’s the good news.

Less encouraging is the fact that sales, which include those via auctions and art galleries alike, are down 4% in value from 2022. And that’s not factoring in inflation, which could mean the real value of the market’s contraction is more severe.

“I was actually slightly pleasantly surprised that it didn’t decline more,” says the report’s author Clare McAndrew, speaking in reference to the nominal 4% decline. “Talking to people in the last quarter of last year especially, it was pretty tough.”

Ms. McAndrew, the founder of the research and consulting firm Arts Economics, says the 2023 art market was in many respects the opposite of the year prior: “In 2022, it was definitely the high end doing much better and everything else kind of slowing,” she says, in reference to works priced in the millions of dollars. “And then we saw that kind of turn on its head a little bit last year, with the high end really kind of thinning out, but there still was activity going on at that kind of lower price level.”

GLOBAL DECLINES
The US maintained its dominant art world position, representing 42% of sales by value (which includes both primary and secondary markets), according to the report. And despite a series of high-profile auction flops —including the Long Museum’s disappointing sale at Sotheby’s in Hong Kong — China managed to surpass the United Kingdom (UK) as the second-biggest market, with its share rising to 19%; the UK sank to third place, with 17%. France came in a distant fourth, with 7% of sales by value, totaling $4.6 billion in sales.

Success is more than market share, though: In terms of total dollar amount, the US market declined by 10%, totaling $27.2 billion, according to the report. Sales in the UK fell nearly as much by share of value, some 8%. Only China, which Ms. McAndrew says benefited from a backlog of sales due to COVID-related lockdowns, saw a 9% growth in value in 2023, to $12.2 billion. But once that inventory belatedly hit the market in the spring, the Chinese market began to sink quickly, too.

“In the second half of the year, the auction segment was much flatter,” Ms. McAndrew says. Without that early spring spike, she continues, “it would have been a much, much worse year in China, and a much worse year globally as well.”

BELEAGUERED TROPHY MARKET
The 1,600 dealers surveyed who self-reported results — results that, therefore, should be taken with a grain of salt — told the researchers that their aggregate sales fell by about 3% year-over-year, to $36.1 billion. The pain was particularly pointed to dealers who had more than $10 million in turnover; they reported a 7% decline in average sales. Meanwhile smaller operations, that is dealers with a turnover of less than $500,000, saw sales rise by 12% on average.

The slowdown of higher-priced sales could have serious ramifications for the overall gallery ecosystem, says Noah Horowitz, chief executive officer of Art Basel. “We’re seeing a sense of costs outpacing pricing in terms of what galleries are able to turn around and sell,” he says, citing transport, shipping, travel and entertainment as factors that contribute to rising overhead. “Doing business has gotten more challenging, and prices aren’t quite keeping pace with the increasing cost of business.”

Global auction figures also suffered from a pullback at the highest end. Total public auction sales fell by 7%, to $25.1 billion, according to the report, and sales over $10 million were a major factor in that decline; the number of lots sold in that tier fell by 25% from the previous year, while total values decreased by a staggering 40%.

“I think people did hold back from selling at auction if they could,” Ms. McAndrew says.

LOOKING AHEAD
And yet transactions did occur, and the art market is still chugging along — the volume of sales actually increased by 4% year-over-year, according to the report. Much of what happens with that trend could hinge on the market’s robust (and largely unquantifiable) ecosystem, Ms. McAndrew suggests: “There’s a nice mix in the art market of the experience and the product. It’s got a dual nature, in that it’s buying something, but it’s the whole process that goes with buying it.” She cites the thrill of bidding at auction or the fun of traveling to an art fair in a warmer climate.

“It mixes experiences with products in a very positive way. I think that’s what’s going to save it,” she says.

Not every dealer is so optimistic. Only about a third of the report’s respondents expected an improvement in sales in 2024, and they have an even grimmer view of their peers: Just 23% predicted that their competitors would see a rise in sales. — Bloomberg

MCI BPO expands in Philippines

March 20, 2024 | 12:03 am

MCI BUSINESS Process Outsourcing (BPO), a subsidiary of American conglomerate MCI, announced on Monday its acquisition of EastWest BPO & Technologies as part of its expansion strategy in the Philippines.

“The acquisition of EastWest BPO & Technologies is a key step for MCI in expanding our offshore customer experience BPO contact center solutions,” MCI Chief Executive Officer Anthony Marlowe said in an e-mailed statement.

Mr. Marlowe said that after two decades as an onshore tech-enabled call center BPO service provider, the company shifted its focus to meet its clients’ demand for technology and high-quality nearshore or offshore cost arbitrage.

According to MCI, this acquisition merges its leadership and EastWest BPO’s resources “to deliver a seamless expansion of services.”

The company added that EastWest’s established infrastructure in the country granted it a cost-effective expansion as it came ready with access to an experienced workforce.

EastWest BPO has 300 employees and operates in four local and international offices. It is located near the Clark Freeport Zone in San Fernando, Pampanga.

MCI BPO is a subsidiary of MCI that offers services in contact center BPO, customer experience solutions, and more. Its services span seven countries internationally. — Aubrey Rose A. Inosante

Trump’s empty pockets make him an overseas mark

March 20, 2024 | 12:03 am

DONALD TRUMP, the self-described multibillionaire and “king of debt,” said he doesn’t have enough cash on hand to appeal a $454 million civil fraud judgment against him. Embarrassing, of course. But his empty pockets also raise the possibility that his collection of urban real estate, golf courses, and snake oil may be headed for a brutal financial squeeze.

Trump’s predicament is also the latest reminder that his financial challenges make him a national security threat — something that has been a reality ever since he was elected president in 2016. He’s always been willing to sell his name to the highest bidder. There’s no reason to believe that Trump, whose businesses collected millions of dollars from foreign governments and officials while he was president, won’t have a for-sale sign out now that he’s struggling with the suffocating weight of court judgments.

Trump is being criminally prosecuted for allegedly misappropriating classified documents and stashing them at Mar-a-Lago, his home in Palm Beach, Florida. Without a trial and public disclosure of more evidence, Trump’s motivations for taking the documents are unknown, but it’s reasonable to wonder whether he pondered trying to sell them. Monetizing the White House has been something of a family affair, after all. His son-in-law, Jared Kushner, has been busy trading financially on his proximity to the former president, for example.

All of this was troubling enough during and after Trump’s first stay in the Oval Office. He wasn’t under the kind of financial pressure he’s contending with now, however, and it makes all of his current financial maneuvers even more questionable — and certainly much more threatening. He’s not just another wheeler-dealer caught out over his skis.

Did Trump flip-flop on his support for banning the social media platform TikTok from the US because Jeff Yass, a huge donor, has a large investment in the Chinese company that owns it? I don’t know. Did Trump meet with Elon Musk, the wealthy entrepreneur whose automotive, communication and space exploration assets have relied on close business and financial relationships with the federal government, because he needed to raise money quickly in the wake of the civil fraud judgment? I don’t know.

Still, these are good questions to get answers to and should make voters wonder about whose interests Trump will serve should he be reelected in November.

Meanwhile, the clock is ticking. New York State Attorney General Letitia James, who successfully prosecuted Trump for lying about the value of his assets to banks and other parties, can seize his assets on March 25 to satisfy the $454 million judgment against him. Trump is appealing the ruling but still must place funds in escrow until the courts reach a final decision. That means he may have to put up at least $500 million to satisfy both the judgment and accrued interest while he appeals.

In a court filing on Monday, Trump’s lawyers said that the judgment would require him to have cash reserves of $1 billion and that he doesn’t have the money. Trump testified during a deposition last year that he had “substantially in excess of 400 million in cash,” a sum that was “going up very substantially every month.” That was either untrue or Trump, who has a long history of lying, wants to avoid using his own money or somehow burned through that magical pile of cash over the last year.

Trump recently posted a $91.6-million bond to postpone payment of a verdict in his defamation loss to the writer E. Jean Carroll. He’s also appealing that verdict. The bond was underwritten by a subsidiary of a large insurer, Chubb Ltd. No details were made public about what Trump posted as collateral. In court filings, Trump has flagged New York real estate he owns, including 40 Wall Street, Trump Tower, Trump National Golf Club Hudson Valley, and Trump Park Avenue, as properties he could tap to settle the Carroll verdict. Chubb, presumably, was satisfied that it could seize such assets should it need to.

But bond underwriters balked at sponsoring Trump for the $454 million fraud verdict. Trump’s court filing on Monday said that the developer had approached 30 companies to secure a bond but that he came up empty-handed. He asked that the amount he is required to be lowered or eliminated. Otherwise, he allowed, he would have to engage in a “fire sale” of some of his properties to satisfy the payment.

Trump, who has routinely inflated the value of what he owns, has a net worth of about $3.1 billion, according to Bloomberg News. Most of this is tied up in illiquid real estate holdings, particularly urban properties already stressed by the post-COVID flight of occupants away from downtown neighborhoods. He has also always been fond of borrowing heavily against his assets, so it’s never entirely clear how much debt he’s carrying at any given time.

This would be a perilous state of financial affairs for anyone contending with just one large court judgment. But Trump is facing four other prosecutions. Potential lenders or buyers are well aware of Trump’s travails, meaning that he is unlikely to get favorable terms or top dollar when he approaches them with his hand out.

The complexity of the Trump Organization will also get in the way. A skein of about 415 shell companies and other operating entities exist under the Trump Organization’s corporate umbrella, though only about 70 actually generate revenue. Trump’s name is also on buildings that others own.

So the going is likely to get rough for Trump as this plays out, and he’s likely to become more financially desperate with each passing day. That’s going to make him easy prey for interested lenders — and an easy mark for overseas interests eager to influence US policy.

BLOOMBERG OPINION

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