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Nike sues New Balance, Skechers for patent infringement over sneaker technology

WU YI-UNSPLASH

Footwear giant Nike filed federal lawsuits on Monday against rivals New Balance and Skechers, accusing them of infringing patents related to Nike’s technology for making upper portions of sneakers.

The lawsuits said that several New Balance athletic shoes and Skechers sneakers misuse Nike’s patented “Flyknit” technology for running, soccer and basketball shoes.

Nike has previously sued Adidas, Puma and Lululemon for infringing Flyknit patents. Adidas and Puma have settled their lawsuits, while Nike’s case against Lululemon is still ongoing.

New Balance said in a statement that it “fully respects competitors’ intellectual property rights, but Nike does not own the exclusive right to design and produce footwear by traditional manufacturing methods that have been used in the industry for decades.”

Representatives for Nike and Skechers did not immediately respond to requests for comment on the Monday lawsuits.

Beaverton, Oregon-based Nike’s website said that its Flyknit technology “uses high-strength fibers to create lightweight uppers with targeted areas of support, stretch and breathability.” The lawsuits said the patented technology allows it to make high-performance uppers with reduced materials and waste.

Nike’s complaint against Boston-based New Balance, filed in Massachusetts federal court, said shoes from New Balance’s Fresh Foam, FuelCell and other lines violate Nike’s patent rights. Nike sued Manhattan Beach, California-based Skechers in Los Angeles, claiming that shoes, including Skechers’ Ultra Flex and Glide Step brands, infringed on its patents.

Nike asked the courts for an unspecified amount of money damages and court orders permanently blocking New Balance and Skechers from infringing the patents. – Reuters

Ukraine’s Zelenskiy dismisses talk of wartime election as irresponsible

UKRAINE’s President Volodymyr Zelensky speaks during a joint news conference with US President Joseph R. Biden (not pictured) in the East Room of the White House in Washington D.C., Dec. 21, 2022. — REUTERS

 – Ukrainian President Volodymyr Zelenskiy dismissed as irresponsible any notion of holding an election in wartime as talks have heated up recently whether Kyiv should be voting when under Russia’s assault.

Calling for unity to avoid pointless political discussion, Mr. Zelenskiy’s comments appeared to rule out any suggestion Ukraine should hold a vote to demonstrate its democratic credentials remain in good order.

While the martial law declared in the country at the start of Russia’s full-scale invasion in February 2022 prohibits authorities from holding elections, there has been increased debate at home and abroad about a potential poll in March 2024.

In his nightly video address, Mr. Zelenskiy said it was critical to concentrate on the military challenges facing Ukraine as it tries to push out Russian forces occupying nearly one-fifth of its land more than 20 months after launching their invasion.

“We all understand that now, in wartime, when there are many challenges, it is utterly irresponsible to engage in topics related to an election in such a frivolous manner,” he said.

“We need to recognize that this is a time for defense, a time for battle, upon which the fate of the state and its people depend… I believe that elections are not appropriate at this time.”

In peacetime, Ukraine would had held parliamentary elections in October and the first round of presidential vote in early spring 2024.

US Republican Senator Lindsey Graham and some other Western officials have urged Kyiv to stage an election to show it can hold free and fair vote while at war.

Ukrainian Foreign Minister Dmytro Kuleba said at the weekend the president was weighing the pros and cons of a wartime poll.

Mr. Zelenskiy himself had previously said he would be prepared to hold the vote if Ukraine secured the assistance it needed – and if election were deemed necessary.

 

WESTERN IMPATIENCE

While Mr. Zelenskiy’s ratings soared after the start of the Russian invasion, there have growing signs of impatience with the Ukrainian leader among some of Kyiv’s western allies.

There is also the appearance of a rift in the country’s leadership after the Ukraine’s top commander signaled the war had come to a static stage, an interpretation which Mr. Zelenskiy vehemently denied over the weekend.

On Monday, Mr. Zelenskiy said that if it proved necessary to end divisive talk, there were state structures “capable of making those decisions and providing all the necessary answers to society.”

He also said it was vital the state’s institutions were fully behind the war effort “and not on paving stones or street repairs”.

The country, he said, had to concentrate “far more on defense…particularly at the regional level,” and called for efforts to ensure there was no recurrence of a Russian strike at the weekend on a Ukrainian brigade in which military officials said 19 soldiers were killed.

Mr. Zelenskiy had earlier said the attack in southern Zaporizhzhia region was “a tragedy that could have been avoided”. Ukrainian media reported the soldiers were killed during an awards ceremony on Friday, although full circumstances remained unclear. – Reuters

Sutherland acknowledged as among the Circle of Excellence Awardees for Best in Service Excellence at the Asia CEO Awards 2023

Sutherland, an experience-led digital transformation company, was named among the Circle of Excellence Awardees for Best in Service Excellence in the annual Asia CEO Awards held last Oct. 24 at Marriot Hotel, Pasay.

Established in 1986, Sutherland is a global provider of business process and technology management services offering an integrated portfolio of analytics-driven back office and customer-facing solutions that support the entire customer life cycle. The company culture represents a genuine commitment on behalf of the brand to provide service excellence to clients and clients’ customers, crossing every level of the organization.

The Asia CEO Awards is the largest business awards event in Asia Pacific and the judging panel includes some of the most recognized and accomplished figures from within the Asia Pacific business community.

Winners of the award were chosen based on service level improvements and advancements made by the organization to enable business expansion; the financial impact of such improvements; pioneering achievements; customer satisfactions; as well as other recognitions garnered by the initiative.

“Our heritage has made us who we are: a future-ready organization. For 35 years, we’ve been caring for our customers’ customers. As an early pioneer in robotic automation, we’ve grown our core offering through steady organic investment and by acquiring key capabilities. Today, we make those experiences relevant, instantaneous, predictive and frictionless. Decades of developing best-in-class processes for some of the world’s most experience-native companies has enabled us make digital human in ways that transform customer and employee relationships at scale.”

“We thank the Asia CEO Awards for the recognition of our efforts, and likewise commit to upholding the standards of excellence we have shown thus far.”

 


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Philippines October annual inflation at 4.9%, less than forecast

A VENDOR sells eggs in Marikina public market, May 30, 2022. — PHILIPPINE STAR/ WALTER BOLLOZOS

MANILA – Philippine annual inflation came in at 4.9% in October versus the previous month’s 6.1%, the statistics agency said on Tuesday, reflecting slower increases in food prices.

Economists in a Reuters poll had forecast annual inflation of 5.6% in October, within the central bank’s 5.1% to 5.9% projection for the month.

October inflation brought the year-to-date average inflation to 6.4%, still outside the central bank’s 2%-4% target for the year.

The slower inflation in October could ease pressure on the central bank to increase interest rates further after it delivered an off-cycle hike of 25 basis points on Oct. 26, on worries that inflation could spiral out of hand.

Philippines Finance Secretary Benjamin Diokno, a member of the central bank’s policymaking Monetary Board said on Monday he would vote to keep the benchmark interest rate steady at 6.5%. — Reuters

Maharlika fund’s rules finalized, says Marcos

A Philippines peso note is seen in this picture illustration on June 2, 2017. — REUTERS

THE PHILIPPINE government has finalized the implementing rules and regulations (IRR) for its first-ever sovereign wealth fund, less than a month after it was suspended to supposedly improve the fund’s organizational structure.

“The IRR of the Maharlika Investment Fund (MIF) has been finalized. Upon approval, we’ll swiftly establish the corporate structure, getting the MIF up and running,” President Ferdinand R. Marcos, Jr. said in a Palace statement on Monday.

The Palace did not provide other details on the changes to the IRR.

In an order dated Oct. 12, Mr. Marcos ordered the suspension of the IRR of the law that created the MIF. The letter was addressed to the Bureau of the Treasury as well as the heads of the Land Bank of the Philippines (LANDBANK) and the Development Bank of the Philippines (DBP).

The suspension came after the LANDBANK and DBP had already remitted P50 billion and P25 billion, respectively, for the initial funding of the sovereign wealth fund as required under the law.

Executive Secretary Lucas P. Bersamin had said Mr. Marcos had wanted to carefully study the IRR “to ensure that the purpose of the fund will be realized for the country’s development with safeguards in place for transparency and accountability.”

Concerns over the financial stability of the two state banks swirled after they sought regulatory relief from the Bangko Sentral ng Pilipinas’ capitalization requirements after remitting their contributions.

“We would like to see provisions which broaden transparency and accountability in managing the fund, while allowing fund managers the agility and flexibility to maximize fund return,” public investment analyst Terry L. Ridon said in a Facebook Messenger chat.

Mr. Ridon said Malacañang should have included “a little bit more details” on the exact changes in the IRR and avoid letting the public second-guess the developing plans regarding the fund “considering that it’s a flagship economic program.”

“It is critical for us to see who gets to sit in the inaugural MIF board because that would spell this administration’s commitment to effective stewardship of our resources and MIF’s promised contribution to national development,” Emy Ruth Gianan, who teaches economics at the Polytechnic University of the Philippines, said via Messenger.

She said it is notable that the MIF “remains active in the public eye.”

Economists earlier told BusinessWorld that the suspension may be aimed at allowing the President to have greater say on the choice of the Maharlika Investment Corp.’s top executives.

They also flagged the original IRR’s lack of guidance on how foreign or local private investors can participate or invest in the fund.

Despite the suspension of the rules, Mr. Marcos last month vowed the MIF will be operational before the end of the year.

“We are still committed to having it operational before the end of the year,” he said in his departure speech before leaving Manila for a meeting between Southeast Asian and Gulf leaders in Saudi Arabia in October.

Finance Secretary Benjamin E. Diokno had pitched the investment opportunities in the MIF during a meeting with top Saudi business leaders in October.

“To achieve this, Maharlika aims to attract capital from both domestic and global equity investors, including large funds here in the Middle East seeking to diversify its portfolio in fast-growing emerging markets like the Philippines,” Mr. Diokno was quoted as saying in a statement last month.

Investments in the MIF would be used to ramp up the implementation of the country’s high-impact infrastructure flagship projects estimated to be worth around $153 billion.

“The fund also presents exciting opportunities for green and blue investments, ESG (environmental, social, and corporate governance) linked fixed-income instruments, and cutting-edge technologies with the advent of artificial intelligence and cloud computing,” he said. — Kyle Aristophere T. Atienza

Interest rates already at ‘highest level’ — Diokno

A BUSINESSWORLD poll of 18 economists and analysts last week yielded a median GDP growth estimate of 4.9% for the third quarter. Third-quarter GDP data will be released on Thursday (Nov. 9). — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Luisa Maria Jacinta C. Jocson and Keisha B. Ta-asan, Reporters

THE MONETARY BOARD will likely pause at its Nov. 16 meeting as policy rates have “reached the highest level,” Finance Secretary Benjamin E. Diokno said.

Analysts also noted that there is less pressure now for the Bangko Sentral ng Pilipinas (BSP) to hike at the next meeting after the US Federal Reserve kept interest rates steady last week, although domestic inflation remains a key concern.

“I think we have reached the highest level… given the decline in inflation, there’s no justification for higher interest rates,” Mr. Diokno told reporters on the sidelines of an event on Monday. “I think it will be a hold next week, that’s why (Governor Eli M. Remolona, Jr.) decided on an off-cycle hike.”

The BSP is scheduled to have its second-to-the-last rate-setting meeting on Nov. 16. Last month, the Monetary Board raised borrowing costs by 25 basis points (bps) in an off-cycle move, bringing the benchmark interest rate to a 16-year high of 6.5%.

Mr. Diokno said that the current policy rate is already the “maximum.”

“Our prospects next year are good, hopefully the (Israel-Hamas) war will not worsen, although the impact of this is just remote. And oil prices are falling, and the peso is strengthening so the impact of that is good,” he added.

Mr. Diokno and National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan earlier cautioned against further monetary tightening due to its long-term impact on economic growth.

However, the Finance chief noted that third-quarter economic growth “definitely will be better than the second quarter” because of ramped-up infrastructure expenditures and slower inflation.

The Philippines’ gross domestic product (GDP) grew by a weaker-than-expected 4.3% in the second quarter, partly due to the 7.1% contraction in government spending.

A BusinessWorld poll of 18 economists and analysts last week yielded a median GDP growth estimate of 4.9% for the third quarter. Third-quarter GDP data will be released on Thursday (Nov. 9).

Mr. Diokno said the lower end of the government’s 6-7% GDP growth target is also still doable.

“We have to grow by 6.6% for the second half so let’s see. But even a 5.9% growth, that’s good enough, we’re still the fastest growing in this part of the world,” he added.

FED PAUSE
Meanwhile, Makoto Tsuchiya, an economist at Oxford Economics, said the Fed’s policy decision may allow the BSP to pause rather than hike on Nov. 16.   

“(The Fed pause) lessens the need for the BSP to pay attention to the interest differential and the exchange rate weakness,” Mr. Tsuchiya said in an e-mail.   

“But at the same time, I think the BSP is more concerned about domestic inflation rather than the currency movement at this particular point in time, although it is true that weaker currency could eventually lead to higher domestic prices through imported inflation,” he added.

The US central bank kept borrowing costs unchanged at 5.25-5.5% for the second straight meeting last week. This was after it hiked policy rates by 525 basis points (bps) from March 2022 to July 2023.   

In a Viber message, Security Bank Corp. Chief Economist Robert Dan J. Roces said the Fed pause, a likely last rate hike from the BSP, and remittance inflows during the holiday season may support the peso in the coming months.   

BPI Lead Economist Emilio S. Neri, Jr. said the BSP will consider not just the Fed decision, but October inflation and third-quarter GDP growth to “check if monetary settings need a follow through adjustment immediately or can be held steady until their meeting.”

A BusinessWorld poll of 13 analysts conducted this week yielded a median estimate of 5.7% for October inflation, well within the 5.1-5.9% forecast of the BSP. If realized, October inflation would be slower than 6.1% in September and 7.7% in the same month last year. The local statistics agency will release the inflation data today (Nov. 7).   

“We may be in a different boat than those of the US, and the BSP has left the door open for another 25-bp hike in November,” Mr. Roces said.   

However, slower core inflation in October and weaker-than-expected GDP data for the third quarter could prompt the BSP to pause.

Mr. Remolona earlier said there is a good chance that the Monetary Board would keep the key policy rate at 6.5% at its next meeting.

“We currently expect the US Fed to start cutting the policy rate in the third quarter. We think the BSP can cut the rate earlier in the second quarter, if domestic inflation declines as we expect in the latest baseline,” Mr. Tsuchiya said.   

“However, we think the risk is tilted towards a longer pause, especially given recent price volatility and higher-for-longer stance from the US.

The BSP sees average inflation at 5.8% for 2023, before easing to 3.5% in 2024 and 3.4% in 2025. However, officials said the BSP would revise its inflation forecasts on Nov. 16.

PHL Sukuk bond offer may exceed $1-B target

FREEPIK

THE PHILIPPINES’ maiden Sukuk bond offering is still pushing through within the fourth quarter and could possibly exceed its $1-billion target offer size, Finance Secretary Benjamin E. Diokno said.

“It will still push through. We are finalizing the papers, it will still be in end-November,” he told reporters in mixed English and Filipino on the sidelines of an event on Monday.

Earlier, the Department of Finance (DoF) said it was targeting to raise around $1 billion from the Islamic bonds, which will have a minimum denomination of at least $200,000.

Asked if demand will likely exceed the target size of $1 billion, Mr. Diokno said: “I think so. There’s a lot of petrodollars.”

Mr. Diokno said that the government will proceed with the offering despite fears of a regional spillover from the Israel-Hamas war in Gaza.

At least six banks will be tapped as the underwriters for the issuance.

Former National Treasurer Rosalia V. de Leon earlier said that the government was studying the potential structure of the bonds, which could either be “hybrid Wakala, Ijarah or Murabaha.”

This is expected to be the government’s last global bond issuance for the year.

Last month, the Philippine government raised $1.26 billion from the first retail dollar bond sale under the Marcos administration. This was much higher than the minimum issue size of $200 million but below the $1.6 billion raised during the Philippines’ maiden retail dollar bond auction in 2021.

The dollar-denominated five-and-a-half-year bonds fetched a coupon rate of 5.75% and were awarded at rates ranging from 5% to 5.75%, bringing the average to 5.509%.

This year, the government plans to borrow P2.207 trillion, consisting of P1.654 trillion from domestic and P553.5 billion from foreign sources.

The Treasury earlier planned to raise $5 billion (around P283 billion) from global bonds this year. In January, the Philippines raised $3 billion from its first US dollar bond issuance for the year. — Luisa Maria Jacinta C. Jocson

Japan, Korea, and India offer to fund Philippine railway projects

PHILIPPINE STAR/KRIZ JOHN ROSALES

THE PHILIPPINE government is considering official development assistance (ODA) from Japan, South Korea, and India to fund three major railway projects after it dropped China as funding source. 

“There are three projects to be funded by China — Bicol’s South Long-Haul, Mindanao Railway, and Subic-Clark Railway. Maybe this year the contract will be fully terminated. If it will not be funded by China, it will be funded by another ODA,” Transportation Secretary Jaime J. Bautista told reporters on the sidelines of a forum organized by the Economic Journalists Association of the Philippines on Monday.

Last month, Mr. Bautista said that the Philippines is withdrawing its request for ODA from China for three railway projects, citing “lack of progress” on financing.

“[We are] working with other countries. We are exploring this, but we cannot give details yet. The alternative funding may come from ODA — South Korea, Japan, and India,” he said.

Aside from ODA, the Philippines may also seek funding from the World Bank, Asian Development Bank (ADB) and the Japan International Cooperation Agency, Mr. Bautista said.

Finance Secretary Benjamin E. Diokno said funding for phase 1 of the Mindanao railway project could be finalized by the first quarter of 2024.

“It could be official development assistance, (like from) Japan. India has also shown interest… We are looking now. It could be a combination of Japan and the ADB,” Mr. Diokno told reporters at a separate event.

The Finance chief said the government will still pursue the Mindanao Railway project since feasibility studies have already been completed.

Phase 1 of the Mindanao railway project, estimated to cost P83 billion, would stretch from Tagum in Davao del Norte to Digos City in Davao del Sur. It is expected to accommodate 122,000 passengers per day and cut travel time between Tagum and Digos from three hours to one.

Asked if the Mindanao railway can be financed through the Maharlika Investment Fund (MIF), Mr. Diokno said this was a possibility, but it would not be fully financed by the sovereign wealth fund.

Aside from the Mindanao railway, the government has also pulled its request for ODA from China to fund the P50-billion Subic-Clark railway and the Philippine National Railway’s P142-billion South Long Haul railway.

“The negotiations have been slow. It’s not moving, so we have to explore other sources,” Mr. Diokno said.

President Ferdinand R. Marcos, Jr. last year ordered Transport officials to renegotiate loan deals with China that began during the Duterte administration in 2018. However, these loan agreements were “withdrawn” after China did not act on the funding request.

Despite the delays in funding, Mr. Bautista said they still expect to complete these railway projects by the end of 2028.

“We need to get the funding first; funding is one of the challenges because we already have the design. Due to the delays, we may need to get approval for the change of cost because maybe it will be higher, we’ll study that. We are working on it,” he said. — Ashley Erika O. Jose and Luisa Maria Jacinta C. Jocson

Blue Room, Leonor Will Never Die bag most Gawad Urian nominations

BLUE ROOM

WITH 10 nominations each, Ma-an L. Asuncion-Dagñalan’s Blue Room and Martika Ramirez Escobar’s Leonor Will Never Die lead this year’s pack of film nominees for the 46th Gawad Urian.

The Manunuri ng Pelikulang Pilipino released the list of nominations for the film awards last week.

The nomination of Blue Room, a story of a group of teenagers in a rock band being nabbed for drug possession, include Best Film, Best Director for Ms. Asuncion-Dagñalan, and Best Supporting Actor for both JK Labajo and Soliman Cruz.

Leonor Will Never Die, the tale of a retired filmmaker who falls into a coma and is sucked into one of her action films, was nominated for Best Film, Best Director for Ms. Ramirez Escobar, Best Actress for Sheila Francisco, and Best Supporting Actor for Rocky Salumbides.

The other nominees for Best Film are Anna Isabelle Matutina’s 12 Weeks, about a 40-year-old woman who discovers that she is pregnant after breaking up with her boyfriend; and Lav Diaz’s Kapag Wala Nang Mga Alon, which chronicles the inner turmoil of a cop and a photographer in relation to the drug war.

Ms. Matutina and Mr. Diaz also received nominations for Best Director. The other nominees in the category are Carlo Obispo for his drama The Baseball Player, about a Moro child soldier who aspires to become a baseball player; and Mikhail Red for his horror film Deleter, about an online content moderator who deletes a suicide video made by her co-worker.

This year’s Gawad Urian will be giving its lifetime achievement award — the Natatanging Gawad Urian — to actor and musical scorer Jaime Francisco Garcia Fabregas.

The Gawad Urian nominees and winners are chosen by the members of the Manunuri ng Pelikulang Pilipino led by its president, Gary Devilles, together with members Grace Javier Alfonso, Laurence Marvin Castillo, Butch Francisco, Shirley Lua, Mike Rapatan, Anne Frances Sangil, Katrina Ross Tan, Nicanor Tiongson, Roland Tolentino, and Tito Genova Valiente.

The 46th Gawad Urian awarding ceremony will be held on Nov. 29 at the University of the Philippines Film Institute. — Brontë H. Lacsamana


THE nominees for the 46th Gawad Urian Awards are:

BEST FILM: Blue Room, Leonor Will Never Die, 12 Weeks, Kapag Wala Nang Mga Alon

BEST DIRECTOR: Ma-an L. Asuncion-Dagñalan, Blue Room; Lav Diaz, Kapag Wala Nang Mga Alon; Martika Ramirez Escobar, Leonor Will Never Die; Anna Isabelle Matutina, 12 Weeks; Carlo Obispo, The Baseball Player; Mikhail Red, Deleter

BEST ACTOR: Tommy Alejandrino, The Baseball Player; John Lloyd Cruz, Kapag Wala Nang Mga Alon; Baron Geisler, Doll House; Andrew Ramsey, Ginhawa; Noel Trinidad, Family Matters

BEST ACTRESS: Max Eigenmann, 12 Weeks; Chai Fonacier, Nocebo; Shiela Francisco, Leonor Will Never Die; Nadine Lustre, Deleter

BEST SUPPORTING ACTOR: Soliman Cruz, Blue Room; Dido dela Paz, Ginhawa; JK Labajo, Blue Room; Ronnie Lazaro, Kapag Wala Nang Mga Alon; Rocky Salumbides, Leonor Will Never Die

BEST SUPPORTING ACTRESS: Shamaine Centenera, Kapag Wala Nang Mga Alon; Claudia Enriquez, 12 Weeks; Bing Pimentel, 12 Weeks; Nikki Valdez, Family Matters

BEST SCREENPLAY: Lav Diaz, Kapag Wala Nang Mga Alon; Martika Ramirez Escobar, Leonor Will Never Die; Jason Gray and Chie Hayakawa, Plan 75; Siege Ledesma and Ma-an L. Asuncion-Dagñalan, Blue Room; Anna Isabelle Matutina, 12 Weeks; Garret Shanley, Nocebo

BEST CINEMATOGRAPHY: Neil Daza, Blue Room; Ian Alexander Guevara, Deleter; Jakuub Kijowski and Radek Ladczuk, Nocebo; Larry Manda, Kapag Wala Nang Mga Alon; Carlos Mauricio, Leonor Will Never Die; Hideho Urata, Plan 75

BEST EDITING: Lawrence Ang, Leonor Will Never Die; Tony Cranstoun, Nocebo; Vanessa de Leon, Blue Room; Zig Dulay, The Baseball Player; Goncalo Ferreira, Kapag Wala Nang Mga Alon; Nikolas Red, Deleter

BEST PRODUCTION DESIGN: Lav Diaz, Kapag Wala Nang Mga Alon; Marxie Maolen Fadul, Blue Room; Eero Yves Francisco, Leonor Will Never Die; Benjamin Padero, Nocebo

BEST MUSIC: Mikey Amistoso and Jazz Nicolas, Blue Room; Alyana Cabral, Pan de Coco, Joseph Salcedo, Leonor Will Never Die; Jose Buencamino, Nocebo

BEST SOUND: Kristian Eidnes Andersen, Nocebo; Armand de Guzman, Deleter; Corrine de San Jose, Leonor Will Never Die; Jannina Mikaela Minglanilla and Michael Keanu Cruz, Blue Room; Alex Tomboc, The Baseball Player; Wildsound Studios, Ginhawa; Wildsound Studios, Nanahimik ang Gabi

Meralco’s third-quarter income up 59% to P10.6B

MANILA ELECTRIC CO. (Meralco) registered a third-quarter reported net income of P10.55 billion, a 58.9% increase from the P6.64 billion a year ago, the listed power distributor said on Monday.

The company’s consolidated core net income for the July-to-September period rose by 66% to P10.82 billion from the P6.52 billion posted in the previous year.

For the nine months to September, Meralco’s reported net income reached P28.4 billion, up by 44% from P19.76 billion in the same period last year.

Consolidated core net income likewise rose by 53% to P30 billion from P19.61 billion a year ago.

Betty C. Siy-Yap, Meralco’s senior vice-president and chief finance officer, said in a briefing that the “power generation continues to provide significant contribution.”

The positive results largely came from the P13.4-billion income contribution of PacificLight Power Pte. Ltd Singapore and the P2.9-billion income shared by San Buenaventura Power Ltd. Co.’s coal plant.

Moreover, the P1.3-billion income contribution of Global Business Power Corp. thermal plants and the P72-million profit from MGen Renewable Energy, Inc. — the renewable energy arm of Meralco PowerGen Corp. — also contributed to the increase.

On the consolidated revenues for the January-to-September period, Ms. Yap said that the figure reached P335.2 billion, 6% higher than the P314.9 billion last year “due to higher volumes distributed and higher pass-through charges.”

Ronnie L. Aperocho, executive vice-president and chief operating officer of Meralco, said in a briefing that energy sales went up by 4% to 38,164 gigawatt-hours (GWh) as of September from 36,553 GWh in the same nine-month period last year.

“We observed the sustained upward trajectory in the volume of energy sold throughout the nine-period across all customer segments,” Mr. Aperocho said.

“While we expect this to continue for the rest of the year, we also remain mindful of the upward trend in power rates with the anticipated increase in Malampaya gas prices and the continuing supply reduction of this gas field,” he added.

Meanwhile, Meralco said that the total costs and expenses during the period rose by 3% to P307.52 billion versus P297.30 billion previously.

Purchased power cost went up by 5% to P248.8 billion from P237.8 billion, which Meralco attributed to the depreciation of peso and higher costs of replacement power for the capacities terminated by the operators of Ilijan and Sual power plants.

“Given the robust performance of practically all of our businesses, it is likely that Meralco will deliver another year of record earnings consistent with its long arc of earnings growth these past 14 years,” said Meralco Chairman Manuel V. Pangilinan.

“Beyond our traditional role of providing power and services to our customers at affordable rates, Meralco takes to heart our overarching mission of improving people’s welfare, in coordination with, and with the support of government,” he added.

At the local bourse on Monday, shares in the company lost P3 or 0.85% to end at P352 apiece.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by 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

Turkish group buys bid papers for NAIA upgrade

PHILIPPINE STAR/MIGUEL DE GUZMAN

A TURKISH airport operator has joined seven other entities that have bought bidding documents for a project that will upgrade the Ninoy Aquino International Airport (NAIA), the Transportation chief said.

“There are eight possible bidders. Last week, there was one company from Turkey [that] bought the bidding documents. We are now in the process of [arranging] one-on-one meetings with them. We are responding to their questions, to their queries,” Transportation Secretary Jaime J. Bautista said in a forum facilitated by the Economic Journalists Association of the Philippines on Monday.

The Department of Transportation (DoTr) identified the Turkish airport operator “Limak Group” as the latest potential bidder for the rehabilitation of the country’s main international gateway.

“In the aviation sector, on top of the list of projects is the public-private partnership (PPP) for the rehabilitation, operation, optimization and maintenance of [NAIA],” Mr. Bautista said.

The DoTr earlier said it had conducted one-on-one meetings with four prospective bidders and was in the process of arranging similar discussions with the other entities.

“We are expecting that they will be able to meet our deadline to submit their proposal by Dec. 27. As far as the bidding is concerned, all of them will submit the best and final offer by December and after that, we will evaluate the bidding and award by the first quarter of 2024,” Mr. Bautista said.

According to its website, Turkey-based Limak Group is engaged in infrastructure, aviation services and energy businesses.

Established in 1976, it said that among the projects it is currently undertaking are the Istanbul New Airport Project, the 1915 Canakkale Bridge and the Malkara-Canakkale Motorway in Turkey, Kuwait International Airport, and Volgograd International Airport in Russia.

According to the DoTr, the other potential bidders eyeing NAIA’s rehabilitation are Incheon International Airport Corp., San Miguel Holdings Corp., Manila International Airport Consortium, Cengiz Insaat Sanayi ve Ticaret A.S., GMR Airports International, Spark 888 Management, and Asia Airport Consortium.

NAIA’s rehabilitation aims to decongest the airport by helping improve its annual passenger capacity to 62 million from the current 35 million.

The winning bidder for the airport upgrade is required to pay an upfront amount of about P30 billion and an annual payment of P2 billion, plus a share of revenue, the draft concession agreement said.

According to the NAIA-PPP concession agreement, the contract term for the project is 15 years, extendable by another 10 years. The project will be a rehabilitate-operate-expand-transfer arrangement, as provided for under the Build-Operate-and-Transfer Law.

The DoTr has set the deadline for bid submission on Dec. 27. It has said that it expects to announce the winning bidder by the first quarter of 2024.

In August, the government invited bidders for the P170.6-billion public-private partnership to modernize and operate the main gateway airport. — Ashley Erika O. Jose

Shadow man

ELY CRUZ passed just a few weeks ago, an event that was little noted by newspapers, or even by the studios he worked for. A tragedy, because he was a master cinematographer who worked for filmmakers as diverse as Mike de Leon, Peque Gallaga, Gil Portes, Chito Roño, and Tikoy Aguiluz.

Cruz was a believer in onscreen realism, in camera movement that served the narrative and isn’t just for show. He was also a believer in shadows — in veils that added depth to a shot, preserved the mystery of a character’s inner life, lured the viewer from his seat into the film frame.

Cruz was born on Feb. 18, 1948, in Taguig, Rizal. He majored in commerce for two years at Arellano University then got a job as visual artist at Channel 13, working his way up to news cameraman, shot and directed the series Vigilantes, and (in 1975) was chief cameraman for the Metro Manila Commission’s Metro Magazine.

Cruz’s first film assignment was as camera operator in Mike de Leon’s short Monologo (Monologue, 1975) and later, with Rody Lacap, as cinematographer in De Leon’s first feature Itim (Rites of May, 1976) — presumably where Cruz learned to play with shadows as the film was a gothic drama, about a wheelchair-bound paralytic living in an old Spanish colonial mansion, and the young woman who haunted him. The wheelchair motivated the film’s gliding shots as the camera followed the paraplegic; the harsh incandescent lights from above gave the characters a lonely brooding look.

Cruz would parley his gift for darkness into a career working on (among others) noir and horror. In the OG Shake Rattle and Roll (1984) he helped Ishmael Bernal craft a sexy deadpan witty short about — I kid you not — a killer fridge. The scene where Janice de Belen, on a hot summer night, cools herself standing before the appliance’s opened door — you both cringed and stood at attention, watching the fridge breathe deep of her sweaty nubile body. In Eskapo (Escape, 1995), Cruz’s camera managed to capture the uncertainty of the first few days of Ferdinand Marcos’ Martial Law — the late-night raids, the improvised incarceration (Serge Osmeña is locked in a dentist’s waiting room while Geny Lopez takes a nap on an X-ray table), the terror of waiting for an unknown fate.

Tikoy Aguiluz’s Tatarin (Summer Solstice, 2001) showcases the contradictory impulses that drive Cruz’s imagery: documentary-like footage of 1920s-style dried noodle production, the basis for the Moreta family fortune, versus relentless percussive dancing (as if disco were repurposed for a fertility ritual) underneath a gigantic balete tree — background realism against which is launched a celebration of pagan sensuality, the film is a spirited reenactment of that oldest of battles, the war between sexes.

Perhaps Cruz’s purest expression of realism can be found in Gil Portes’ ‘Merika which finds Mila (a quietly astonishing performance by Nora Aunor) in bed trying to rise but unable to — it’s winter morning in Jersey City and the windows are bright with sun but it’s a bleak light, a cold light, a light that can barely warm fingers, much less melt the surrounding ice. In the film’s opening minutes Cruz evokes America in the eyes of Filipino immigrants: a strange, unfriendly country far from the familiar voices of family and friends, a land of the free where you spend most of your time fending for yourself. Made for a pittance with a production barely able to afford the cost of location shooting, Portes and Cruz (and, of course, Aunor) fashion a fine film about the great migration; if Ozu were ever persuaded to leave Japan you might imagine him coming up with something like this — I can think of no higher praise.

Then of course there’s the film for which Cruz will be best remembered, Peque Gallaga’s erotic masterpiece Scorpio Nights. Legend has it that the sex scenes — between a lonely young housewife (Ana Marie Gutierrez) and the obsessed college student (Daniel Fernando) observing her through a hole in the apartment ceiling — were shot and choreographed like action sequences, and I believe it. Gallaga and Cruz take their cue from Lino Brocka’s Insiang and shoot the housewife mostly through mosquito netting, a gauzily tinted lens through which one watches this obsession-inducing object of desire. The film is a triumph of style over substance — Gallaga took a notion from art director Rommel Bernardino and with Cruz’s help fashions a grubby lower-middle-class neighborhood complete with communal showers and a never-ending karaoke chorus accompanied by guitar. It’s not crafted to mean anything and isn’t meant to be anything and still without trying it’s a potent metaphor for life under Marcos: where the best game of all to play involves tiptoeing past the fascist patriarchy’s guard and literally fucking in the face of death. 

Cruz is described by writer-director Frank Rivera as “a good man” who “shared his craft with his co-workers. He was particularly kind to me because he was my first cameraman when I started directing… we clicked immediately. He will be missed.”

Cruz’s daughter Mariel, also a cinematographer, had this to say: “As a father, he would always make sure to make up for lost time… ramdam namin na he’s proud of us (we felt he was proud of us)… dahil lagi niya ako isinasama sa shoot when I grew older, sa kanya ako na inspire to be a filmmaker (because he always brought me along to shoots, when I grew older he inspired me to be a filmmaker).

“As part of a team naman, his staff and crew are always all praises for him. Madami siyang natulungan na crew (he helped many crew members) to be better at their craft and to move on to better positions. Marami siyang crew noon na DOPs na ngayon (many of his crew members have risen to become directors of photography today). Until now, they still consider him as their mentor.

“Obviously he is one of the greatest in Philippine cinema, pero never niyang ginamit iyan para maging mayabang (he never used his status to brag).”