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Peso to remain weak as BSP appears less likely to defend

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THE PESO may remain weak against the dollar as the Bangko Sentral ng Pilipinas (BSP) is not expected to “strongly” defend the currency amid its recent dovish policy signals, Bank of America (BofA) Global Research said.

“(The Philippine peso) remains on the weaker side, taking cues from the BSP’s dovish turn in the last policy meeting and lack of concern on the FX (foreign exchange) moves,” it said in a report.

BofA Global Research said the “bearish positioning could slow further weakness” but the BSP appears less likely to defend the peso from falling to P59 against the US dollar.

“Geopolitical concerns need to be watched as another trigger for further weakness,” it added.

The peso closed at P58.86 against the dollar on Wednesday, weakening by nine centavos from its P58.77 finish on Tuesday. This was its weakest finish in over 20 months or since its P58.87-per-dollar close on Oct. 24, 2022.

The BSP earlier said that the peso’s recent performance is “temporary” given the expected delay in the US Federal Reserve’s policy easing.

BSP Governor Eli M. Remolona, Jr. had also said that it is a case of a “strong dollar” and not a weak peso due to the tensions in the Middle East.

To keep markets orderly and control speculation, the BSP said that it has intervened in the foreign exchange market in “modest” amounts.

“(Philippine peso’s) weakness may reflect concerns on a weak growth outlook which has also led to a dovish turn in BSP’s policy guidance,” BofA said.

“The governor’s comments about the possibility of a cut in the August meeting may have changed market expectations on the policy priorities between supporting the domestic economy vs. preserving FX stability,” it added.

Mr. Remolona earlier signaled the possibility of starting the easing cycle by August, for a total of 25-50 bps worth of cuts for the entire year.

“Lower rates in the Philippines have raised the chances of even narrower interest-rate buffer against (US dollar) rates, which may impact the hedging behavior of corporates,” BofA said, adding pressure could go up if the US dollar strength picks up or US yields rise again.

Meanwhile, BofA said that elevated inflation remains the top risk facing the Philippines.

“Food price shock and higher commodity prices in general remain the key risk for the Philippines, leading to a widening of the twin deficits,” it said.

Inflation could possibly breach the 2-4% target band until July, according to the central bank. The BSP expects inflation to average 3.5% for the full-year 2024.

“Geopolitical risks due to border clashes with China could impact investment flows,” BofA added. — Luisa Maria Jacinta C. Jocson

NexGen caps IPO price at P1.68 per share

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RENEWABLE ENERGY company NexGen Energy Corp. has priced its initial public offering (IPO) at P1.68 per share, matching its upper-end forecast.

The company announced the IPO price on June 25, as per a notice on the Philippine Stock Exchange (PSE) website.

It expects its shares to be officially listed on July 16.

NexGen Energy’s IPO comprises a primary offer of 300 million common shares and an overallotment option of up to 45 million secondary common shares. 

The offer period is set from July 1 to 8, based on its latest prospectus dated June 24.

If the schedule holds, NexGen Energy is expected to become the third company to go public this year. It will join OceanaGold (Philippines), Inc., which listed on May 13, and Citicore Renewable Energy Corp., led by Saavedra, which listed on June 7.

On Monday, the PSE approved NexGen Energy’s application for the initial listing of up to 1.49 billion common shares, inclusive of shares designated for its IPO, under the small, medium, and emerging board.

The company anticipates generating approximately P478.4 million in net proceeds, which will fund its renewable energy projects in Zambales, Cavite, and other regions.

NexGen Energy appointed Chinabank Capital Corp. as the sole issue manager and sole bookrunner, while Investment & Capital Corp. of the Philippines serves as joint lead underwriter for the offer.

Sought for comment, Globalinks Securities and Stocks, Inc. Trader Mark V. Santarina said in a Viber message: “This IPO is relatively small compared to previous ones, making it challenging to predict if it will trade below the IPO price.”

“Traditional energy sources are notoriously expensive, and NexGen Energy offers a promising solution for the Philippines’ transition to clean energy,” he added.

Mr. Santarina said the current market conditions are “a concern” for IPOs.

“With low trading volume and the overall market trend, it doesn’t seem like an ideal time for an IPO, especially since other candidates have deferred their listings,” he said.

NexGen Energy is a subsidiary of Power Energy, which is a holding company that has assets in hydropower, solar, wind, geothermal, as well as bulk water and distribution facilities.

Established in 2017, the company is eyeing to develop 1,683 megawatts (MW) of ground-mounted and floating solar plants, and onshore and offshore wind projects in the next five years.

It currently manages three solar plants through its subsidiary SPARC — Solar Powered Agri-Rural Communities Corp., with an aggregate capacity of 13.859 MW peak. — Revin Mikhael D. Ochave

MPTC proposes P40-billion expressway for Naic, Cavite

PHILIPPINE STAR/ MICHAEL VARCAS

PANGILINAN-LED Metro Pacific Tollways Corp. (MPTC) said it hopes to construct a P40-billion expressway in Naic, Cavite.

We are in discussions with the provincial government of Cavite about a possible Naic connection to CALAX (Cavite-Laguna Expressway) in General Trias,” MPTC unit MPT South President and General Manager Raul L. Ignacio told reporters recently.

The proposal would be a public-private partnership (PPP) and would depend on the completion of the Bataan-Cavite bridge, Mr. Ignacio said.

“The route of the proposal will pass through Naic, Cavite, connecting General Trias through CALAX,” he added.

CALAX is a four-lane, 45-kilometer toll road connecting the westbound Manila-Cavite Toll Expressway (CAVITEX) and the eastbound Mamplasan rotunda to the South Luzon Expressway.

To date, only the 14.24-kilometer segment of the toll road is operational, data from its website showed.

“We were informed that (the Bataan-Cavite bridge) will push through, so (our proposal) should be executed,” Mr. Ignacio said.

He said the project cost will also depend on the number of interchanges to be constructed.

The Bataan-Cavite Interlink Bridge is a 32.15-kilometer marine bridge connecting Central Luzon to CALABARZON, or Cavite, Laguna, Batangas, Rizal, and Quezon. The Asian Development Bank is co-financing the project.

The bridge is expected to reduce travel time from Mariveles, Bataan, to Naic, Cavite, from five hours to 1.5 hours. It is expected to be completed by 2029.

For now, MPTC is in talks with the Cavite local government as mandated by the new PPP Law, Mr. Ignacio said.

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

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

“We have submitted our intention to Cavite; we have to consult with them first on the rerouting and how to proceed,” Mr. Ignacio said.

MPTC is the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc. — Ashley Erika O. Jose

Metro Pacific Water, French firm to build desalination plant in Iloilo

METROPAC Water Investments Corp. (Metro Pacific Water) on Wednesday said it is working with France-based water and waste management solutions provider Suez for the construction of a desalination plant in Iloilo City.

The companies recently signed an agreement to build a desalination plant that can produce 66.5 million liters per day of water, Metro Pacific Water said in a statement.

“This partnership with Suez marks a significant step forward in our commitment to providing a sustainable and reliable water supply for the people of Metro Iloilo,” Metro Pacific Water President and Chief Executive Officer Christopher Andrew B. Pangilinan said.

“The new desalination plant will ensure we can meet the rapidly growing demand of this dynamic metropolitan area for years to come,” he added.

According to the company, Metro Iloilo is experiencing “a period of rapid economic and population growth,” which is placing “strain” on existing water resources.

A new desalination plant would be a critical project “to ensure a reliable and sustainable water supply for the region in the immediate and medium term,” Metro Pacific Water said.

“We are proud to partner with Metro Pacific Water on this important project. Our expertise in desalination technology will contribute to a secure and sustainable water source for Iloilo,” said Farchad Kaviani, Suez’ managing director for Southeast Asia.

Metro Pacific Water, a wholly owned subsidiary of Metro Pacific Investments Corp. (MPIC), operates water and wastewater concessions across the Philippines and in Vietnam.

Its subsidiary in Iloilo, Metro Pacific Iloilo Water, a joint venture with Metro Iloilo Water District, serves Iloilo City and the Municipalities of Pavia, Leganes, Sta. Barbara, Cabatuan, Oton, San Miguel, and Maasin.

MPIC is one of three key Philippine units of First Pacific, the others being Philex Mining Corp. and PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. Sheldeen Joy Talavera

MWSS penalizes Maynilad with P3.92-M rebates for poor water quality in Imus

Image by Rudy and Peter Skitterians from Pixabay

MAYNILAD Water Services, Inc. will issue rebates totaling P3.92 million to some customers in Imus City, Cavite, as a penalty from the Metropolitan Waterworks and Sewerage System Regulatory Office (MWSS RO) for poor water quality.

The MWSS RO announced during an information drive on Wednesday that each of the 3,494 affected water connections will receive a rebate of P1,122.37, which will be reflected in their monthly bills starting July.

The rebate program will be implemented across nine barangays in Imus City that were affected by the water quality issue.

The regulator imposed the penalty due to water color and residual chlorine identified at the Anabu Modular Treatment Plant and its supply zone in Imus City.

The MWSS RO previously announced that it had imposed a financial penalty of over P2 million on Maynilad in the form of rebates to affected customers due to high levels of bacteria detected at a sampling point in Caloocan City last November.

Each of the 3,841 affected water connections will get a rebate of P530.69.

Maynilad earlier said in a statement that the incidents were “promptly addressed and resolved.”

“Maynilad is committed to providing the highest quality water and will continue to take proactive measures to ensure the reliability and safety of our services,” the water concessionaire has said.

The company said it will continue to work closely with MWSS RO and Department of Health in monitoring the quality of the water supply distributed to its customers.

Maynilad serves the cities of Manila, except San Andres and Sta. Ana. It also operates in Quezon City, Makati, Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, and Malabon. It also supplies the cities of Cavite, Bacoor, and Imus, and the towns of Kawit, Noveleta, and Rosario, all in Cavite province.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Globe, Lynk team up to boost communication in remote areas

STOCK PHOTO | Image by Pongsawat Pasom from Unsplash

GLOBE Telecom, Inc. announced on Tuesday a partnership with Lynk to assess the potential of satellite-direct-to-phone communication services in remote areas of the Philippines.

“The recent signing of the new agreement signifies a crucial step towards enhancing connectivity and communication access within the country, particularly in unserved and underserved areas,” the telecommunications company said in a statement.

Lynk is an international company that develops satellite-to-mobile-phone constellation technology to enhance mobile phone service coverage.

The partnership aims to bring and enhance connectivity in the country, especially in remote and underserved areas, Globe said, adding that the collaboration covers a one-year period or until June 2025.

“We are looking for a solution to bring life-enabling connectivity to as many Filipinos as possible. Through this satellite-direct-to-phone service, we hope to provide access wherever our customers are, connecting the unconnected through disruptive technology,” Globe Director and Head of Network Strategy and Technology Enablement Gerhard Tan said.

The company said pilot areas for the program are Zambales, Pangasinan, Siargao, and Leyte.

Globe also said the program will take advantage of Lynk’s low-Earth-orbit (LEO) satellite constellation to deliver short-message service, IP-messaging apps, and emergency alerts in target regions without traditional network coverage.

“These regions include far-flung locations with existing Globe enterprise clients and government installations, as well as tourist destinations with limited or unreliable cellular coverage,” Globe said.

Last year, the two parties conducted a field trial of the low-Earth-orbit satellite, making the telco company the first one to do so.

In 2022, the two companies signed an agreement for Globe to be able to use the LEO satellite as a mobile base station for standard unmodified phones.

At the local bourse on Tuesday, shares in the company closed P42 or 2.09 higher to end at P2,050 each. — Ashley Erika O. Jose

T-bond rates climb on hawkish BSP bets

BW FILE PHOTO

THE GOVERNMENT made a full award of the reissued Treasury bonds (T-bonds) it offered on Wednesday at a higher average yield than secondary market levels as investors expect both the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve to keep benchmark interest rates elevated.

The Bureau of the Treasury (BTr) raised P30 billion as planned via the reissued 20-year bonds it auctioned off on Wednesday as total bids reached P51.097 billion.

The bonds, which have a remaining life of 19 years and 11 months, were awarded at an average rate of 6.86%. Accepted yields ranged from 6.8% to 6.9%.

The average rate of the 20-year bonds rose by 6.3 basis points (bps) from the 6.797% fetched for the series’ last award on May 21, but 1.5 bps lower than the 6.875% coupon for the issue.

This was also 2.9 bps higher than 6.831% quoted for the 20-year bond and 5.3 bps above the 6.807% seen for the same bond series at the secondary market before Wednesday’s auction, based on PHP Bloomberg Valuation Service Reference Rates data provided by the BTr.

Wednesday’s award brought the total outstanding volume for the series to P52.7 billion, the Treasury said in a statement.

“The higher rates were expected because of the hawkish sentiment on the BSP and the Fed. For [Thursday’s] rate decision, the BSP is expected stand pat because of sticky inflation and peso’s vulnerability,” a trader said by phone.

T-bond rates rose due to the Fed’s “higher for longer” stance and ahead of the BSP meeting on Thursday as the market awaits new policy signals from local monetary officials, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort likewise said in a Viber message.

The BSP is widely expected to maintain its policy stance for a sixth straight meeting on Thursday amid lingering risks to the inflation outlook and a weak peso, analysts said.

All 15 analysts in a BusinessWorld poll last week expect the Monetary Board to keep its policy rate at a 17-year high of 6.5% at its meeting this week.

BSP Governor Eli M. Remolona, Jr. has said the central bank could begin easing its policy stance as early as August and may slash rates by 25-50 bps in the second semester, adding they do not need to wait for the Fed to kick off its own rate cut cycle.

The US central bank this month left its target rate unchanged at the 5.25%-5.5% range for a seventh straight meeting, with Fed officials pricing in just one rate cut this year as late as December.

Fed policy makers continue to signal they are in no rush, with Fed Governors Lisa Cook and particularly Michelle Bowman stressing that decisions will depend on data, Reuters reported.

Ms. Bowman on Tuesday said that holding the policy rate steady “for some time” will likely be enough to bring inflation under control. She also reiterated her willingness to raise borrowing costs if needed.

Ms. Cook, for her part, said it would be appropriate to cut interest rates “at some point” given significant progress on inflation and a gradual cooling of the labor market. She remained vague, however, about the timing of the easing.

Wednesday’s T-bond auction was the last offering for June. The BTr raised P110.228 out of the P120-billion program for T-bonds as it made partial awards at two of its four auctions.

Including Treasury bills, the BTr raised P170.228 billion out of its P180-billion domestic borrowing program for the month.

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

The best new rosé wines aren’t from France

2021 Textura Pretexto Rosé — NY.VERVEWINE.COM

By Elin McCoy

CHILLED pink wine on a hot summer night is still the Instagram symbol of summer — and winemakers in every region on the planet are launching new ones to fill your glass.

Yes, France’s Provence — and its yacht-and-beach luxury lifestyle — have long been at the center of rosé’s glamorous image, championed this spring in The Book of Rosé: The Provencal Vineyard that Revolutionized Rosé (Rizzoli; $75).

Not so fast. Only 126 of the 437 rosés listed by giant online retailer Wine.com hail from Provence.

The rest come from other parts of France and from countries around the globe. In Chile and New Zealand and Eastern Europe, for example, pink winemaking has grown more than 50% over the past decade or so. That’s according to the 2023 Rosé Wines Tracking Report, a collaboration between the Provence Wine Council and France AgriMer that covers 45 countries.

I’ve recently tasted more than 150 pink wines — even a rosé sake. Among them were fascinating new bottlings from New Mexico and Japan, Barolo country in Italy, Lebanon, islands in Greece, and tiny wineries in Oregon and California. (Wine.com’s 56 Golden State examples don’t include the many rosés made in minuscule quantities by top Napa producers and now offered in winery tasting rooms and available for direct purchase.)

Today’s wide range of hues, grape varieties, and winemaking techniques mean bigger choices in style than ever.

The new pricing sweet spot roughly hovers from $20 to $35, which shows that most pink wines aim to be more than vin piscine, those swimming pool quaffers served in large glasses with lots of ice. There’s a surge in pink sparkling wines, $50-and-up luxury Napa rosés and serious oak-aged examples — which are not always so appealing.

By the way, don’t shun the premium rosés showing up in dark glass bottles instead of clear glass that shows off the lusciously pink color. The reason is “light strike.” Rosé is particularly susceptible to damage from exposure to sunlight; it can cause the wine to end up smelling like wet dog or old cabbage.

I know that general wine consumption has been shrinking, particularly for red wines. The fate of rosé doesn’t need rose colored glasses: Production is growing and more than one in every 10 bottles consumed globally now is pink, with the popularity of premium, high-quality bottles unabating, especially members of Gen X and Gen Z. CGA’s 2023 Wine Insights Reports revealed that 21% of British consumers were drinking rosé more often than a year earlier. In May, the Santa Margherita wine brand unveiled a survey of 2,000 Americans nationwide, undertaken by Talker Research, that found rosé the favorite wine for celebrations.

Still, a caution: A lot of new, boring rosés are out there. My 14 picks below are not. — Bloomberg


 

Summer 2024 Rosé Wine Buying Guide

2021 Textura Pretexto Rosé ($19)

Founded in the Dão region of Portugal in 2018, this family wine project enlisted famed winemaker Luis Seabra to oversee its range of reds and whites. Now, it’s added this fresh, juicy rosé made from red jaen grapes (called mencia in Spain). It’s elegant, mineral, and complex.

2023 Vara New Mexican Rosé ($19)

At this pioneering winery, the first rosé from New Mexico-grown grapes blends 70% cabernet sauvignon with 30% refosco. It shows that a juicy, savory pink wine can emerge even from a harsh desert climate.

2021 Fiol Prosecco Rosé Extra Dry ($18)

I sampled this just-launched, sophisticated, light coral-pink wine last week. It’s smoother and more subtle than most rosé proseccos, with berry and floral aromas and a soft, salty-fruit taste. Perfect pool drinking at only 11% alcohol.

2021 Mallea Vineyards Rosé of Grenache ($20)

Check out the label on this lively rosé with cherry-ish flavors from a new, small Santa Barbara, California, collaboration between viticulturalist Erik Mallea and winemaker Justin Willet; they aim to produce Rhône varietals from organic grapes. The label art echoes the messages Basque shepherds in the American West carved into tree bark in the 19th and 20th centuries.

NV Missing Thorn by Aaron Pott Sparkling Rosé Alcohol-Removed Wine ($24)

Super pleasurable to sniff and sip! A new line of nonalcoholic wines created by veteran Napa winemaker Aaron Pott has debuted. The sparkling rosé boasts rose petal, citrus, and brioche aromas that remind me of older vintages of Champagne. The taste is succulent and citrusy, with a long finish.

2022 Ousyra Fokiano Rosé Cyclades ($24)

This charming, organic Greek rosé is made at a boutique winery on Syros, one of the Aegean Islands. The name of the winery means happiness. Richly fruity, it’s made from rare indigenous fokiano grapes grown on the island of Naxos.

2023 The Language of Yes Les Fruits Rouge Pink Wine of the Central Coast ($28)

Ever inventive California winemaker Randall Grahm began a partnership with Gallo with the 2020 vintage, but this 2023 is only the second vintage of his pale pink, easy to drink cinsaut- and grenache-based rosé. Think of it as a spicy California version of Provence pinks, with aroma notes of dried herbs.

2022 Maugeri Contrada Volpare Etna Rosato ($30)

Sicily’s trendy Mount Etna region is noted for reds, but this new, exciting winery project focuses on rosé and whites. The striking, coppery colored rosato from a single vineyard is light and vivid and also shows wonderfully complex flavors of salty minerals, fresh herbs, and ethereal fruit. Pair with grilled salmon.

2023 Ridge Lytton Estate Rosé ($35)

This isn’t new. But until very recently, practically no one (including me) knew that this winery, famous for its stunning Monte Bello cabernet, made a rosé. The blend of grenache, zinfandel, Mataro, cinsaut, and counoise from Ridge’s estate in Sonoma is rose petal-scented, subtle and crisp, with deep flavors of mint and strawberries.

2021 Grape Republic Rosa Frizzante ($40)

A pét-nat for adventurous drinkers who are also tracking the newest new thing: Grape Republic, founded in 2017, has become a big name in Japan’s natural wine scene. This is the second vintage of its ripe, round, lightly sparkling blend of hybrid red and white grapes, and it’s just arrived in the US.

2022 J.H. Wheeler Rosé ($48)

Delicate, yet layered describes the third vintage of this fruity-chalky pink wine made from 40-year-old Napa Valley cabernet franc vines. The label, reborn several years ago, makes mostly expensive ($225 and up per bottle) single-vineyard cabernets. It has added a rosé that now sells out first. Only 167 cases made.

2023 Realm Precious Twin Rosé ($63)

I raved about this Napa cult winery’s first rosé, La Fe, created in the 2020 vintage when wildfires and smoke ensured they couldn’t make any pricey cabernet. This new savory orangey-pink cuvée is a different blend — merlot with 10% charbono — and it’s rich, complex, and succulent.

2022 Gut Oggau Cecilia Rosé ($72)

This is the second vintage of a new, idiosyncratic, no-sulfur rosé from a cult biodynamic Austrian producer. It’s a delicious field blend of red and white grapes from a single plot, with two-thirds pressed directly and one-third macerated for a short time to pick up color from the skins.

2019 Château Gassier Elevae ($125)

I can’t resist including this single French pick, a new, impressive, bold, oak-aged rosé from Provence’s Saint-Victoire area. The blend of five grapes, all organically grown, shows floral and pomegranate aromas and spicy oak flavors. Think of this as a rosé for red wine drinkers. The winery says it’s perfect with wagyu beef chop aged in Himalayan salt. Sounds good to me.

Failure doesn’t breed success — except when it does

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A NEW SCIENTIFIC PAPER on failure may have succeeded in offering the most depressing opening line in the history of scientific papers: “Is there anything failure does not ruin? It destroys reputations, careers, and families; economic prospects, political prospects, and social ones.”

That’s perhaps a useful corrective to all the graduation speakers, motivational gurus, and TED-talk-giving experts who glibly recount how they persisted, failure after failure, on the way to success. It’s easy to forget that many more people fail at least as many times and never achieve their goal. There are many more frustrated authors than best-selling ones, failed entrepreneurs than self-made billionaires, and actor-baristas than bona fide movie stars.

But the situation may not be quite as depressing as the new paper suggests. There are some sub-categories of failure that do seem to spawn success, and there are ways of responding to failure that can improve your prospects.

The important finding in the paper, published in the Journal of Experimental Psychology: General, is that people tend to overestimate how easy it is for others to overcome failures — like failing a test or overcoming addiction.

“Our goal was to better understand resilience and what gets into people’s way,” said lead author Lauren Eskreis-Winkler of Northwestern University’s Kellogg School of Management.

Her results indicate that we overestimate how much people learn from failure. For example, one experiment used a language-learning game in which people got feedback when they chose the wrong answer. Those who paid attention to the feedback improved. But fewer did so than participants expected.

Resilient people are those who are willing to look failure in the eye, she said. But such people are rare, she said, because looking squarely at our failures makes us feel bad about ourselves.

People also tended to overestimate the role of willpower in overcoming failure. There’s a long history of attributing addiction to a failure of will, for example. Scientists have more recently come to see addiction as a disease. To recover, people need more than determination — they need medical help. Eskreis-Winkler said that by debunking myths about the ease of success after failure, the researchers were able to convince study subjects to support programs to help people avoid relapse.

But perhaps not all failures are the same. Another scholar at Kellogg, Dashun Wang, found that in some cases, certain kinds of failures do propel people to success.

Falling short can help, in the long run, when a competition is fierce and those who are near-miss losers are indistinguishable in skills and qualifications from the close winners. In a paper published in 2019 in Nature Communications, Wang looked specifically at data on more than 700,000 scientists applying for grant money from the National Institutes of Health (NIH). He got data from the NIH on whose proposals were close to the cutoff: the by-a-whisker winners and losers.

And Wang found that in subsequent years, the scientists who nearly missed were more successful than those who squeaked out a victory. One explanation might be that the near misses were more motivated to work harder and address their weaknesses, while the winners were more complacent. Perhaps, he said, there’s an ideal dosage of failure. (Moreover, everyone gets feedback on their grant proposals, whether they’re accepted or rejected.)

And of course, once you’ve failed, your chances of success are zero if you don’t try again. So, an important consideration is whether it’s worth your time and effort to study harder for that bar exam or whether you’re more likely to find success in some other career path.

Eskreis-Winkler emphasized that people fail repeatedly because they don’t accept feedback — they don’t look failure in the face.

You’re more likely to get good feedback from people you already work with than people who want to hire you. These days, employers think it’s okay to ghost candidates who put hours into applications or interviews. Unsolicited manuscripts rarely get a response. Failed auditions might get only vague comments about a “lack of fit” or “going in a different direction.”

The problem is that the gatekeepers who make these decisions don’t benefit from putting in the extra effort to tell failed applicants what they didn’t like. For useful career feedback, what you need are collaborators or employers who are invested in your success.

So failure can lead to success, but only under the right circumstances. Life is more complicated than motivational speakers make it sound, but if we come back to the question posed at the opening of the new paper, “is there anything failure does not ruin” — the answer is probably yes.

BLOOMBERG OPINION

IP E-Game plans P300-M investment for REIT venture

LISTED company IP E-Game Ventures, Inc. said it plans to invest P300 million as the minimum capital for setting up its real estate investment trust (REIT) company.

“IP E-Game will fund its investment into the REIT company through a combination of equity and convertible debt and other instruments,”  IP E-Game said in a disclosure to the stock exchange on Wednesday.

“The company plans to enter into convertible debt instruments with investors that will finance the incorporation of the REIT,” it added.

The incorporation of the REIT company will be completed by the end of the third quarter, the listed company said.

The planned entry into the REIT business is expected to “expand the company’s activities into real estate-related investments.”

“These activities will also potentially increase the amount of convertible debt and equity investments of the company in the foreseeable future,” IP E-Game said.

 “This transaction envisions to provide the company with recurring revenues and profits. Upon realization, this will translate to an improved financial performance for the company and aims to improve shareholder value,” it added.

On June 20, IP E-Game’s board approved the company’s plan to engage in the REIT business with the creation of a company.

On May 3, 2017, the Philippine Stock Exchange suspended trading of IP E-Game shares due to failure to comply with reportorial requirements.

The company’s shares were last traded on May 2, 2017, closing at P0.0094 apiece. — Revin Mikhael D. Ochave

Yields on term deposits end mixed

BW FILE PHOTO

YIELDS on the Bangko Sentral ng Pilipinas’ (BSP) term deposits were mixed on Wednesday as the market looked ahead to the Monetary Board’s policy decision on Thursday.

The central bank’s term deposit facility (TDF) attracted bids amounting to P207.107 billion on Wednesday, above the P200 billion on the auction block but lower than the P212.412 billion seen a week ago for a P180-billion offer.

Broken down, tenders for the seven-day papers reached P116.409 billion on Wednesday, higher than the P90 billion auctioned off by the central bank. This was also more than the P112.799 billion in bids for the P90-billion offer seen the previous week.

Banks asked for yields ranging from 6.275% to 6.5275%, a wider and lower band compared to the 6.5% to 6.535% recorded a week ago. This caused the average rate of the one-week deposits to go down by 0.99 basis point (bp) to 6.5145% from 6.5244% previously.

Meanwhile, bids for the 14-day term deposits amounted to P90.698 billion on Wednesday, lower than the P110-billion offering and the P99.613 billion in tenders for the P90 billion placed on the auction block last week.

Accepted rates for the tenor were at 6.55% to 6.595%, slightly wider than the 6.55% to 6.59% margin recorded a week ago. With this, the average rate for the two-week deposits inched up by 0.15 bp to 6.5709% from the 6.5694% logged in the prior auction.

The BSP has not auctioned off 28-day term deposits for more than three years to give way to its weekly offerings of securities with the same tenor.

The term deposits and the 28-day BSP bills are used by the central bank to mop up excess liquidity in the financial system and to better guide market rates.

TDF yields were mixed on Wednesday ahead of the BSP’s policy meeting on Thursday, where it is widely expected to maintain its current stance, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

All 15 analysts surveyed in a BusinessWorld poll last week expect the Monetary Board to keep its target reverse repurchase rate at a 17-year high of 6.5% for a sixth straight meeting this week.

The BSP raised borrowing costs by a cumulative 450 bps from May 2022 to October 2023 to help bring down elevated inflation.

“Higher-for-longer signals from most US Federal Reserve officials recently indicate that more evidence is needed… before cutting Fed rates,” Mr. Ricafort added.

The US central bank this month left its target rate unchanged at the 5.25%-5.5% range for a seventh straight meeting.

Fed officials are now pricing in just one rate cut this year, compared with expectations of three cuts previously. They also signaled that policy easing could be pushed back to as late as December.

For his part, BSP Governor Eli M. Remolona, Jr. earlier said the central bank does not need to wait for the Fed before it starts policy easing, adding the Monetary Board could begin cutting rates as early as August. — Luisa Maria Jacinta C. Jocson

A seafood company is trying to save our seas

COLD STORAGE, a frozen seafood company, is diving into the sustainability game because once, many years ago, they ran out of scallops.

During the launch of their campaign called GenSea: Dive into Sustainability on June 20 at Manila House in Taguig, Cold Storage also announced their partnership with the organization Save Philippine Seas (SPS). Marco Qua, current president of Cold Storage (taking over from his father, founder Mariano Qua), told BusinessWorld a story about bringing his father to dinner at a restaurant they supplied — just to find out that it had run out of scallops (which should have come from Cold Storage). Asking around their own office, the younger Mr. Qua found out that there were no scallops to be found.

“We have to do this, or else, in the next 10, 20 years; that’s going to get worse,” he said. “It’s more important to do it for the next generation. Seeing my nephews and nieces, I want them to be able to enjoy whatever seafood I enjoy.”

“Today, with Save Philippine Seas, we take our biggest leap yet towards sustainability,” he said in a speech. “GenSea is more than just an event; it is a movement dedicated to advocating for sustainable fishing practices and responsible sourcing. Our collaboration with SPS underscores our unwavering dedication to minimizing our ecological footprint and preserving marine ecosystems for generations to come.”

“As part of this campaign, I am happy to announce Cold Storage Seafood’s first donation to Save Philippine Seas. This contribution is just the beginning of our various projects and activities designed to raise funds and support the vital work of SPS for ocean conservation and the protection of our marine wildlife and biodiversity. We also aim to engage with F&B professionals and influential individuals to amplify our reach and impact to make lasting change for good,” he said.

SUSTAINABILITY: SOURCING
The GenSea campaigned kicked off with a forum moderated by award-winning author and chef, Angelo Comsti, and he was joined by a panel of restaurateurs: Nicco Santos and Quenee Vilar of Restaurant Aurora, Stephan Duhesme of Metiz/Automat, Patrick Go of Your Local, and Rhea and Jayjay SyCip of The Fatted Calf*.

Ms. Sycip painted a larger picture on the difficulties of procuring food — she spoke about a sourcing trip she took to Mountain Province, to a town three hours away from Baguio.

“The conditions that we saw (were) heartbreaking. We found out that for every P100 that we are paying for vegetables or fruits, only P10 goes to the farmers. The P10 that goes to them, it’s still distributed to farmhands, the seedlings; and that’s talking about Class A fruits and vegetables,” she said. Produce of a lower rank get just P5 for every P100. “That’s not sustainable. There will come a point that they will just stop planting,” she said.

“For us, it’s really looking at the entire circle. It doesn’t start actually with us creating, thinking of a dish, and making sure it’s good. It’s also going back, how it actually start(s): down to how much a seed would cost for these farmers. We have to be fair as chefs, in terms of paying what is due to them.”

SUSTAINABILITY: PROFITABLE
Ms. Villar, meanwhile, discussed how sustainability can help a business make profit. “[On the] operational side, it’s actually cheaper.”

She talked about making stocks and broths, the backbone of many dishes. Instead of buying new ingredients to make stock, they reuse fishbones, or vegetable peels. “You cut down on the price, or your costs,” she pointed out.

“You have to show them the numbers,” she said, referring to promoting sustainability among restaurateurs. “We wouldn’t really be convinced if you don’t show them the data,” she said.

Meanwhile, Ms. Sycip’s husband, Jayjay, discussed how customers can participate in sustainable dining (beyond picking the right restaurant, that is).

“I guess it’s more of eating smarter. Knowing where your food comes from, knowing the source of the restaurant… I think it’s a big factor. By helping the proper channels… sustainability, it’s an umbrella. It encompasses a lot of sectors. It’s not just the food industry. You have to be intentional.”

*BusinessWorld wrote a story about The Fatted Calf, and their own ways of sourcing: https://tinyurl.com/bdcrc4r

PROMOTING SUSTAINABLE SEAFOOD
Meanwhile, Morris Qua, Marco Qua’s brother and Vice-President at Cold Storage, talked about their discussions with the Department of Agriculture – Bureau of Fisheries and Aquatic Resources.

“We want to promote sustainable seafood, (with) the establishment of Marine Protected Areas (MPAs). MPAs are crucial in promoting sustainable seafood, because it allows the fish stocks and seafood to also recover — not just be exploited and be used,” he said. “The moment that that recovers, that means we’re going to have more fishing stock and more supply. That’s going to be very helpful not just to the fisheries sector, not just to the restaurant owners, but to the entire public. Ensuring that our oceans are healthy: that is the key component.”

The Qua brothers have gone on to launch a line devoted to local fish and are experimenting with using biodegradable material for their packaging (Cold Storage imports frozen seafood, to be packaged in plastic). “Even if it costs a little bit more — honestly, it’s like investing in our future.” — Joseph L. Garcia

*BusinessWorld wrote a story about The Fatted Calf, and their own ways of sourcing: https://www.bworldonline.com/arts-and-leisure/2023/06/01/525987/the-taste-of-fate/