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EEI board clears creation of new subsidiary 

EEI Corp. said its board of directors has approved the establishment of a new subsidiary and the subscription to shares worth P500 million.

In a stock exchange disclosure, EEI said the wholly owned subsidiary is designated to acquire and hold interest in various potential businesses. 

“The company to be registered with the Securities and Exchange Commission (SEC) will be a holding company intended to acquire and hold interests in various potential business,” EEI said in its regulatory filing.

EEI will subscribe to a total of 500 million shares priced at P1 apiece, amounting to a total of P500 million, representing 100% of the company’s outstanding shares.

It said the closing of the share subscription is still pending approval from the Securities and Exchange Commission.

In the company’s previous disclosure, it mentioned that it had received the certificate of incorporation from the SEC for EEI Ventures, Inc.

Established in 1931, EEI has business interests in construction services and the distribution of industrial and machinery systems.

EEI is primarily engaged in the construction of power-generating facilities, oil refineries, chemical production plants, rails, ports, expressways, and high-rise towers.

Its subsidiaries include EEI Ltd., EEI Construction and Marine, Inc., and  EEI Power Corp. 

In 2023, the company reported an attributable net income of P149.67 million, lower by 28.5% from P209.21 million in a year earlier, due to higher expenses for the period, according to its financial statement 

Last year, the company’s revenues went up to P18.75 billion, 28% higher from the P14.65 billion in 2022.

The company’s combined expenses for 2023 climbed 13.6% to P16.21 billion from P14.27 billion in 2022.

At the local bourse on Monday, shares in the company shed 22 centavos or 4.19% to end at P5.03 apiece. — Ashley Erika O. Jose

20  years later, we are still talking about The Day After Tomorrow

10 books, movies, and TV shows that incorporate climate change

By Olivia Rudgard

MENTION climate change fiction, and someone will inevitably bring up The Day After Tomorrow. In the blockbuster released 20 years ago this month, disruption to the North Atlantic Current plunges the United States and United Kingdom (UK) into an icy winter. Tornadoes destroy Los Angeles, a wave slams into New York City, and helicopters freeze in mid-air.

The legacy of The Day After Tomorrow is complicated. Scientists are split between crediting the movie with fostering mass awareness of climate change, and criticizing it for misinforming and frightening its audience. As a teenager, I remember watching it with confusion and terror. How likely was any of this to happen? And isn’t climate change meant to make the world hotter?

Apart from the liberties it takes with climate science, the film and others like it might even be harmful for public perception of climate change, says Pietari Kaapa, a professor of media and communications at Warwick University in the UK. “People might talk about the spectacular effects or some aspects of the storylines,” he says. “But it doesn’t necessarily mean that there’s actually any real change happening as a result.” Apocalyptic tales can also flatten a threat, Mr. Kaapa notes, removing it enough from reality to make it effectively useless as a tool for public awareness.

But while the climate-disaster genre is something of a staple, research suggests the climate change stories we tell are also changing over time. Good Energy, a nonprofit consultancy that researches and shapes climate change narratives in film and TV, recently put out a report that showed an overall uptick in climate change in popular films: The theme was present in nearly a quarter of films released in 2021-22, compared to 10% in 2013-14. (Good Energy is funded by Bloomberg Philanthropies, the philanthropic organization of Michael Bloomberg, the founder and majority owner of Bloomberg LP, which owns Bloomberg News.)

Authored by Matthew Schneider-Mayerson, an associate professor at Colby College, the Good Energy report also captures a shift in the types of climate change stories we see in films — from climate-as-antagonist in epic superhero tales to inclusion in a wider range of narratives. Climate themes have popped up in TV shows as diverse as Borgen, True Detective, Insecure, and Madam Secretary. In Oscar winner Parasite, climate change is never explicitly mentioned but quietly underpins the plot, as a poor family is flooded out of their home and their wealthy counterparts barely notice. Knives Out: Glass Onion, a lighthearted Netflix murder mystery, satirizes false climate solutions. In the Ari Aster horror Midsommar, a character observes that “it’s the hottest and brightest summer on record.”

So why does climate change in fiction matter? Partly, it’s about portraying the real world accurately. Films set in the present or near future that ignore global warming “should be considered what they are: fantasy,” says Mr. Schneider-Mayerson’s report.

But it’s also about the power storytelling has to help people come to terms with a changing world. “The more that we see it included or highlighted in all of the narratives that we’re exposed to, the more likely we are to really prioritize it, to think about it as a public issue that demands attention and demands immediate action,” Mr. Schneider-Mayerson says. More realistic and human storylines make it easier for the viewer to relate to the challenges ahead.

The most recent crop of climate stories heed this advice, focusing on ordinary people and their regular lives as they struggle to make the best out of what they have. In literature, Kim Stanley Robinson’s The Ministry for the Future and Megan Hunter’s The End We Start From focus on what might happen in the boardrooms, climate conferences, and living rooms of the very near future.

It’s easy to imagine yourself as Ms. Hunter’s unnamed protagonist, forced to flee her London home and fend for herself and her baby in a flooded, unstable Britain. Or to see yourself in Mr. Robinson’s stoic heroine, Mary Murphy, grimly watching as the world is overtaken by climate calamity while trying to usher in systems and policies that might stem the tide. Both books also end on a hopeful note, merging a vision of tragedies ahead with roadmaps to better things.

The Last City, a climate fiction podcast from Wondery, is set in a futuristic, tech-forward refuge from a climate-ravaged US. Characters all have their own personal AI and appear to live healthy, peaceful lives, but their community is hiding a dark secret. Lead writer Carmiel Banasky describes her story, set in 2072, as a “protopia” — neither utopia or dystopia, but a third way in which life improves in “incremental and realistic ways.”

The Last City is a thriller and a mystery, but Ms. Banasky, who usually writes family comedy-drama, says she also wanted to show how families, friendships, and romantic relationships develop in a world dealing with climate change. One emblematic tension exists between main character Demetria and her mother, a former activist whom Ms. Banasky conceived of as a “Greta [Thunberg] all grown up.” As a youngster, Demetria was “pushed onto the stage to speak about climate when she just wanted to play,” says Ms. Banasky, a dilemma many modern activists face with their own children.

These intergenerational relationships are also a key part of my favorite piece of climate fiction: the 2017 comedy mockumentary Carnage, made by the British comedian Simon Amstell. Climate change has a bit part in the story, which is set in the UK in 2067, when eating meat and dairy has become taboo and an older generation must face their past transgressions. The story is keenly focused on how people can come to terms with the guilt of having lived in a way now deemed wrong. It’s also set in a world that looks familiar. We can easily put ourselves in the shoes of those people, looking back and wondering what they might have done differently. — Bloomberg

 

10 books, movies, and tv shows with climate themes

Extrapolations (2023). With sweeping, global scope and a star-studded cast, Apple TV’s Extrapolations follows eight stories over 33 years, looking at climate from every angle — including religion, tech, nature, and family life.

3 Body Problem (2024). Based on the books by Liu Cixin, in this Netflix series, ecological destruction pushes one major character to a momentous decision. The central question it poses — how to deal with intelligent and potentially hostile aliens coming to colonize earth 400 years from now — makes for a powerful climate allegory.

The Ministry for the Future, by Kim Stanley Robinson (2020). A climate policy nerd’s bible, The Ministry for the Future offers a chorus of global voices describing suffering and salvation as a near-future world muddles its way through climate catastrophe.

The End We Start From (2023). This movie, based on Megan Hunter’s moving novel, is a quiet antidote to bombastic, big-budget disaster films. How might one new mother and her baby survive through a catastrophic flood? The answer is unexpectedly beautiful.

Flight Behavior, by Barbara Kingsolver (2012). Many of Ms. Kingsolver’s books have environmental themes, but here it’s right at the center of the story. A poor Appalachian housewife discovers that a valley near her house is full of Monarch butterflies displaced by climate change — opening the door to a new life but also complex questions about how best to live it.

Parasite (2019). Bong Joon Ho’s Oscar-winning movie is about class, wealth and inequality, but it’s also (subtly) about climate change. A poor family’s basement home is destroyed when a rainstorm leads sewers to overflow, while a rich family simply suffers a ruined holiday.

The Commons (2019). This Australian drama, starring Joanne Froggatt of Downton Abbey fame, follows a woman’s struggle to have a baby in a world affected by climate-related disease and disaster.

How to Blow Up a Pipeline (2022). An against-the-clock thriller that follows a highly organized band of activists as they attempt to sabotage an oil pipeline. Loosely based on Andreas Malm’s nonfiction book, it brings to life his radical ideas about the case for property destruction in response to the climate crisis.

Annihilation, by Jeff VanderMeer (2014). This creepy, atmospheric sci-fi horror novel, adapted into a movie in 2018, is about a mysterious fungal force causing bizarre mutations in the natural world. It covers themes including humanity’s frailty and disconnection from nature.

Fortitude (2015). An unsettling slow-burn horror series, Fortitude is set in an Arctic community in which nothing bad ever happens — until environmental collapse brings gruesome results. — Bloomberg

Wilcon Depot profit drops 23.1% to P740M

@WILCONDEPOT.PH

LISTED home improvement and finishing construction supply retailer Wilcon Depot, Inc. recorded a 23.1% decline in its first quarter net income to P740 million from P962 million last year due to lower net sales.

The company’s first-quarter net sales fell by 2.5% to P8.31 billion from P8.53 billion in 2023 due to weaker sales, attributed to the long Easter holiday season falling in March this year compared to April last year, Wilcon Depot said in a stock exchange disclosure on Monday.

The net sales of the company’s depots reached P7.97 billion, down 4% year-on-year, with same-store sales declining by 7.9%. They accounted for 95.9% of the total net sales during the quarter.

The Do-It-Wilcon (DIW) format stores, comprising 2.8% of total net sales, saw a 37.2% total sales growth to P232 million for the quarter, with same-store sales declining by 10.9%.

“For both formats, Metro Manila stores recorded the highest decline as these stores also registered the highest same store sales growth in the first quarter of 2023,” Wilcon Depot said.

Project sales increased by 108.1% to P105 million, accounting for the remaining 1.3% of total net sales.

“Our earnings for the first quarter may have declined 23% year-on-year, but it’s still higher than any quarter’s earnings prior to 2022,” Wilcon Depot President Lorraine Belo-Cincochan said.

“This quarter’s performance was driven primarily by the considerable year-on-year drop in March sales because of the Easter holidays falling in March this year and exacerbated by the fact that March last year was our highest grossing month. Our April year-on-year sales growth reversed the decline in March and we are hoping that our improving average daily sales will be sustained from here on,” she added.

Wilcon Depot’s gross profit dropped by 1.3% to P3.32 billion. Operating expenses including lease-related interest expense surged by 6.9% to P2.47 billion due to expansion-related expenses such as depreciation and trucking.

In the first quarter, Wilcon Depot opened one depot in Mindanao as well as two DIW format stores, with one in Mindanao and one in Luzon.

“We are still on track to reach our 100-store target by the end of the year,” Ms. Belo-Cincochan said.

“We are looking forward to better results in the future as we work towards improving our performance to reach or even beat our 2022 results,” she added

Wilcon Depot shares climbed by 1.2% or 20 centavos to P16.90 each on Monday. — Revin Mikhael D. Ochave

BINI prepares for first major concert

BINI performs their smash hit ‘Pantropiko’ on Samsung Philippines’ livestream on Facebook. — FACEBOOK.COM/SAMSUNGPH

WITH a three-day solo concert coming up in June, P-pop girl group BINI has been busy practicing in private and performing publicly on smaller stages in the lead-up to the major gig.

On May 2, BINI members Mikha (a.k.a. Mikhaela Janna Lim), Aiah (Maraiah Queen Arceta), Colet (Nicolette Vergara), Maloi (Mary Loi Yves Ricalde), Gwen (Gweneth Apuli), Stacey (Stacey Aubrey Sevilleja), Jhoanna (Jhoanna Christine Robles), and Sheena (Sheena Mae Catacutan) talked of their summer plans in a Facebook livestream — most of which are preparations for the concert, with vacation and travel on the side.

The stream was hosted by Samsung Philippines, the latest brand that they now endorse. The BINI members, clad in pastel blues and purples, opened the livestream by singing and dancing to their smash hit “Pantropiko.” Then, they settled in, to give away prizes to viewers and tell all about their recent endeavors.

“Summer plans namin ay concert kasi iyun ang naka-schedule (Our summer plans are concerts because that’s what’s scheduled). We already have a month-long schedule planned for us,” said Aiah.

Before that, though, she traveled a bit to Vietnam and to Hong Kong. Meanwhile, Gwen opted to vacation at a beach resort with her family.

Jhoanna, despite being an only child, was said to be notorious for bringing home two barangays’ worth of pasalubong for her extended family in Laguna. Aiah, ever the conscientious traveler, was revealed as the one most likely to overpack her luggage.

The members also discussed how their first solo concert, BINIverse — set to run on June 28, 29, and 30 at the New Frontier Theater in Quezon City — was sold out.

It was initially meant to be a one-day gig, but in less than two hours, all tickets for that day were snapped up by the public, according to the group’s leader Jhoanna. This led to many Blooms (the name for BINI fans) crying online about how they weren’t able to secure tickets.

BINI then decided to add two more performances to accommodate their fans.

“Tinanong ng management kung kaya namin at nag-meeting muna kaming girls at nagkasundo na mag-day two and three para sa Blooms namin (Management asked us if we could do it and, after we girls had a meeting, we agreed to add a second and third day for our Blooms),” said Jhoanna.

Last week was a particularly hot one for the girls, both onsite and online. Their April 30 appearance at the Bangus Festival in Dagupan, Pangasinan, was cut short after an unconfirmed number of audience members fainted amid a heat index that soared to 48°C.

It was around this time that Star Music announced BINI’s achievement of four million monthly Spotify listeners, a mere three years after their debut in 2021 with the single “Born to Win.”

In March, BINI really took off after releasing their extended play Talaarawan, which included the viral tracks “Pantropiko” and “Salamin, Salamin.”

Asked why they continue to do mall shows and festivals despite the heat, their undeniable success, and the major concert coming up, Stacey said, “Gusto namin ikutin ang Pilipinas — Luzon, Visayas, at Mindanao — para di magtampo ang mga Blooms. Gusto namin ma-treat sila nang maayos.” (“We want to travel the Philippines — Luzon, Visayas, and Mindanao — so that our Blooms won’t sulk. We want to treat them right.”) — Brontë H. Lacsamana

More retailers seen to occupy transit-oriented spaces

FREEPIK

COLLIERS Philippines said it expects an increase in retailers occupying transit-oriented retail spaces due to the rise in public transport infrastructure projects.

“A lot of retailers (will) occupy mall spaces within the transit-oriented retail spaces,” Colliers Philippines Associate Director Joey Roi H. Bondoc said during a press briefing last week.

“You have all these infrastructure projects that will be completed between 2024 to 2029,” he added.

Mr. Bondoc cited One Ayala, launched in 2022, which is directly linked to the Manila Metro Rail Transit System (MRT)-3.

Similarly, the Araneta City Terminal is situated near residential and office towers as well as the MRT-3, Light-Rail Transit 2, and the Araneta City Bus Terminal.

The viability of transit-oriented development provides a lot of optimism for developers as infrastructure projects ensure high consumer traffic and spending from commuters, he said.

Under the revamped Build Better More program, Mr. Bondoc noted that it is fitting for retailers to lease out brick-and-mortar spaces within the infrastructure projects expected to be completed between 2024 and 2029.

“Looking at Ninoy Aquino International Airport (NAIA), which will be expanded, modernized, capacity of 32 million, New Manila International Airport in Bulacan, 35 million, MRT 7, MRT 3, capacities of 350,000, 800,000 for the North-South Commuter Railway,” he said.

Among these is the 36-kilometer Metro Manila Subway which is seen to provide 520,000 capacity that spans from Quezon City to NAIA in Pasay.

Colliers also reported developers renovating their retail spaces, such as Uniqlo in SM Mall of Asia, Timezone in Trinoma, Shangri-La Plaza Mall in Puma, Bayo in Glorietta and more.

Additionally, food and beverage (F&B) and fast fashion retailers continue to lead retail space uptake as they occupy a significant portion of the available physical retail space in the market.

About 43% of upcoming retailers in the first quarter are attributed to F&B, followed by 35% for fashion, beauty, and health, with technology accounting for 6%.

Mr. Bondoc said that Ayala Land has earmarked P13 billion for the redevelopment of its malls, with most projects expected to be completed by 2026, including Glorietta, Ayala Center Cebu, Trinoma, and Greenbelt 2.

Colliers forecasts the vacancy rate to decline to 17% by the end of 2024, driven by the annual completion of retail space totaling 162,300 square meters over the three years from 2024 to 2026.

Selected upcoming projects between 2024 and 2027 include Bridgetowne Opus Mall in Quezon City, the expansion of SM Mall of Asia in the Bay Area, and Ayala Mall Arca South.

Makati has Greenbelt 1 and 2 redevelopments.

Meanwhile, the vacancy rate rose to 15.5% for the first quarter of 2024, which is the industry average for the Metro Manila sector. This is higher than the 14.4% recorded quarter on quarter, attributed to new mall openings.

INCOMING STOCK TO INCH UP VACANCY LEVEL
In a similar trend, incoming office stock will marginally increase the vacancy level to 19.6% by 2024 from 19.3% last year.

“We expect vacancy to remain below 20%, marginally increasing to 19.6% by the end of the year, since we are still expecting over half a million of the office space will be expunged from the line this year,” Kevin Jara said.

Colliers reported a 19% vacancy rate for the first quarter of 2024 or about 2.7 million square meters (sq.m.) of vacant spaces.

Mr. Jara said vacancy remains flat and inched from 19.3% in the last quarter.

“We’re expecting 553,000 sq.m. to be completed this year and that number will taper to 300,000 sq.m. to 400,000 sq.m. annually until 2027 as we still see the developers rationalizing their office pipeline,” he said.

Colliers expects the office stock to reach 365,000 sq.m. in 2025, 463,000 sq.m. in 2026, and 405,000 sq.m. in 2027.

About 63% of new buildings in the next four years will be Grade A.

Quezon City’s stock is seen to last with 67,000 sq.m. in 2027. Bay Area, Quezon City, and Makati Fringe are expected to contribute half of the new supply this year.

The vacated spaces also rose 37% to 161,000 sq.m. in the first quarter of 2023.

In terms of net take-up, the consultancy firm is expecting it to reach 366,000 sq.m. by the end year of 2024.

Year on year, Mr. Jara said the office space transaction rose 88% to 240,000 sq.m. in the first quarter of 2024 from 128,000 sq.m. in the first quarter of 2023.

However, this is 27% lower than the previous 331,000 transactions in the fourth quarter of 2023.

Traditional firms led the most office deals in the first quarter with 107,000 sq.m. and accounted for a 44% share in the overall transactions, according to Mr. Jara.

This was followed by business process outsourcing companies at 75,000 sq.m. (31%), Philippine Offshore Gaming Operators (POGO) at 54,000 sq.m. (23%), and shared services at 4,000 sq.m. (2%).

 “We’ve also monitored some POGO transactions, mostly concentrated in the Bay Area at 54,000 and largely concentrated in just very few deals,” he said.

Bay Area logged the most transaction activity in Metro Manila with 99,100 sq.m. About 35,000 sq.m. of these are from government offices.

In addition, Fort Bonifacio came second at 30,000 sq.m. and Quezon City at 25,000 sq.m. — Aubrey Rose A. Inosante

Universal Music Group artists returning to TikTok after new licensing pact

UNIVERSAL Music Group (UMG) and TikTok said last week that they had reached a new licensing agreement that will restore the label’s songs and artists to the social media platform as well as give musicians more protections from artificial intelligence (AI).

TikTok began removing Universal’s content from its app after their licensing deal expired in January and the two sides failed to reach agreement on royalties, AI, and online safety for TikTok’s users.

Describing their new pact as a multi-dimensional deal, the companies said they were working “expeditiously” to return music by the label’s artists to TikTok, and also said they would team up to realize new monetization opportunities from TikTok’s growing e-commerce capabilities.

They will “work together on campaigns supporting UMG’s artists across genres and territories globally,” the two firms said in a joint statement.

The short video app is a valuable marketing and promotional tool for the music industry. TikTok is where 16- to 19-year-olds in the United States most commonly discover music, ahead of YouTube and music streaming services such as Spotify, according to Midia Research.

“Roughly a quarter of US consumers say they listen to songs they have heard on TikTok,” said Tatiana Cirisano, Midia’s senior music industry analyst.

However, Universal Music claimed its artists and songwriters are paid just a fraction of what it receives from other major social media platforms.

The music label says TikTok accounts for 1% of its annual revenue or about $110 million in 2023. YouTube, by contrast, paid the music industry $1.8 billion from user-generated content in the 12 months ending in June 2022, according to Midia.

In a move that may well have eroded its bargaining power, Taylor Swift, one of Universal Music’s biggest acts, allowed a selection of her songs to return to TikTok as she promoted her latest album, The Tortured Poets Department.

Ms. Swift owns the copyrights to her recordings through her 2018 deal with Universal and can control where her songs are available, according to the Financial Times.

As licensing negotiations resumed in recent weeks, AI remained a major point of contention. Universal has claimed TikTok is “flooded” with AI-generated recordings, including songs that users create with the help of TikTok’s AI songwriting tools.

In Thursday’s deal, TikTok and Universal said that they would work together to ensure AI development across the music industry will protect human artistry and the economics that flow to those artists and songwriters.

“TikTok is also committed to working with UMG to remove unauthorized AI-generated music from the platform, as well as (developing) tools to improve artist and songwriter attribution,” the statement said.

Concerns about AI have grown in the creative community. In April, a non-profit group called the Artist Rights Alliance published an open letter urging the responsible use of the technology. The group of more than 200 musicians and songwriters called on technology companies and digital music services to pledge not to deploy AI in a way that would “undermine or replace the human artistry of songwriters and artists or deny us fair compensation for our work.”

The deal comes amid questions over TikTok’s long-term future in the United States. President Joseph R. Biden signed legislation last week that gives TikTok’s Chinese owner, ByteDance, 270 days to sell its US assets. TikTok has vowed to file suit to challenge the legislation, which it calls a ban.

More than 170 million Americans use its video service, according to TikTok. Globally, it has more than 1.5 billion monthly active users, according to research firm Statista. — Reuters

Gov’t fully awards Treasury bills as yields drop on Fed cut hopes

BW FILE PHOTO

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Monday as yields went down as softer-than-expected US jobs data boosted US Federal Reserve rate-cut bets.

The Bureau of the Treasury (BTr) raised P15 billion as planned from the T-bills it offered on Monday as total bids reached P52.947 billion, or over thrice the amount on the auction block.

Broken down, the BTr borrowed P5 billion as programmed from the 91-day T-bills as tenders for the tenor reached P19.037 billion. The three-month paper was quoted at an average rate of 5.78%, 8.9 basis points (bps) lower than the 5.869% seen last week. Accepted rates ranged from 5.77% to 5.79%.

The government likewise made a full P5-billion award of the 182-day securities, with bids reaching P16.31 billion. The average rate for the six-month T-bill stood at 5.93%, down by 5.8 bps from the 5.988% fetched last week, with accepted rates at 5.893% to 5.954%.

Lastly, the Treasury raised P5 billion as planned via the 364-day debt papers as demand for the tenor totaled P17.6 billion. The average rate of the one-year debt dropped by 2.5 bps to 6.056% from the 6.081% quoted last week. Accepted yields were from 6% to 6.065%.

At the secondary market before the auction, the 91-, 182-, and 364-day T-bills were quoted at 5.8577%, 5.9309%, and 6.0642%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data provided by the BTr.

“The awarded T-bill rates today went lower after the US economy posted fewer new non-farm jobs in April 2024 relative to market expectations,” a trader said in an e-mail on Monday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that the softer US jobs data could support more rate cuts from the Fed this year.

US job growth slowed more than expected in April and the increase in annual wages fell below 4% for the first time in nearly three years, but it is probably too early to expect that the Federal Reserve will start cutting interest rates before September as the labor market remains fairly tight, Reuters reported.

The Labor department’s closely watched employment report on Friday also showed the unemployment rate rising to 3.9% from 3.8% in March amid increasing labor supply. Nonetheless, the jobless rate remained below 4% for the 27th straight month. Data last week showed job openings declining in March.

Signs of labor market cooling raised optimism that the US central bank could after all engineer a “soft landing” for the economy and doused chatter of stagflation, which had been fanned by news of a sharp moderation in economic growth and a surge in inflation in the first quarter. Financial markets boosted the odds of a September rate cut and saw the Fed reducing borrowing costs twice this year instead of only once before the data.

Nonfarm payrolls increased by 175,000 jobs last month, the fewest in six months, the Labor department’s Bureau of Labor Statistics said. Revisions showed 22,000 fewer jobs created in February and March than previously reported. Economists polled by Reuters had forecast payrolls advancing by 243,000. Estimates ranged from 150,000 to 280,000. April’s employment gains were below the 242,000 monthly average for the past year.

Markets are now pricing in 45 bps of cuts this year, with a rate cut in November fully priced in.

The Fed last week kept its target rate unchanged at the 5.25%-5.5% range for a sixth straight meeting, as expected, but signaled it was still leaning towards eventual rate cuts, even if they may take longer to come than initially expected.

The US central bank raised borrowing costs by a cumulative 525 bps from March 2022 to July 2023.

On Tuesday, the BTr will offer P30 billion in reissued 10-year Treasury bonds (T-bonds) with a remaining life of nine years and eight months.

The Treasury wants to raise P210 billion from the domestic market this month, or P60 billion from T-bills and P150 billion via T-bonds.

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. — Aaron Michael C. Sy with Reuters

Strengthening women entrepreneurs

BROOKE LARK-UNSPLASH

In a column entitled “The journey of MSMEs: Are we there yet?,” I discussed the challenges that MSMEs — Micro, Small and Medium Enterprises — face in their entrepreneurial journey and proposed recommendations for policy makers. This follow-up will focus on Women-owned/led MSMEs (WMSMEs).

On Dec. 29, 2022, the MSME Development Council (MSMEDC), chaired by the Department of Trade and Industry (DTI), adopted the following definition of WMSMEs:

Women-owned businesses are businesses where at least 51% of the company is owned by a woman or women.

Women-led businesses are businesses where at least 20% is owned by a woman or women; AND at least one woman acts as Chief Executive Officer (CEO), or Chief Operating Officer (COO), or President or Vice-President; AND at least 30% of the Board of Directors is composed of women.

This is a significant milestone for WMSMEs, as the absence of a formal definition and lack of sex-disaggregated data, which can enable women to access financial products and services, grants and other benefits available, may hinder the growth of women’s entrepreneurship. The absence of disaggregated data impedes the formulation of evidenced-based and responsive policy measures, programs, projects, and activities of the public and private sectors which can support access to finance, markets, networks, technology, and digitalization.

While national level disaggregated data is currently unavailable, in its 2019 List of Establishments, the Philippine Statistics Authority (PSA) recorded over 1 million business enterprises operating in the country with 99.5% being MSMEs. The same year, the DTI recorded a total of 630,688 business name registrations of which 55.8% were women-owned/led. Further, DTI data from 2019 revealed that 64% of the MSMEs assisted by its Negosyo Centers were women owned or led. The National Association of Training Centers for Cooperatives (NATCCO) noted that 64% of the 5.8M individual members of coops are women.

POLICY TOOLKIT ON STRENGTHENING WOMEN’S ENTREPRENEURSHIP
The United Nations’ Economic and Social Commission for Asia and the Pacific (ESCAP), under the Catalyzing Women’s Entrepreneurship (CWE) Program, in partnership with the ASEAN Coordinating Committee on Micro, Small and Medium Enterprises (ACCMSME), initiated the “Policy Toolkit on Strengthening Women Entrepreneurship in National MSME Policies and Action Plans.” The project aims to advocate for women entrepreneur-centric policies and initiatives in the ASEAN region and strengthen the entrepreneurial ecosystems that foster women’s entrepreneurship.

The Toolkit helps policymakers evaluate and enhance women’s entrepreneurship in national MSME policies, providing guidance through its framework and methodology. It may assist regulatory bodies, financial institutions, and business associations in understanding the policies required to advance women’s entrepreneurship.

TOOLKIT PILOT IN THE PHILIPPINES
Within the ASEAN, the Philippines was chosen as the pilot country for the implementation of the Toolkit. The process began with an orientation workshop on Feb. 1, followed by two intensive workshops where participants conducted a self-assessment. The Philippine Women’s Economic Network (PhilWEN) is the only private sector member of the Steering Committee, which includes government agencies involved in MSME development. The assessment using the Toolkit revealed challenges faced by Filipina entrepreneurs, including limited access to credit and skills, difficulty in navigating the digital economy, compliance issues with program requirements, and the added responsibilities of childcare and household duties while running a business.

What then must the government do to address these challenges? The workshops noted some recommendations worthy of consideration:

Policymakers need to implement and enforce existing laws and policies which have been designed to support WMSMEs and design new policies which will enhance their capacity to contribute significantly to the economy;

Intentional and deliberate support for women entrepreneurship should be provided, possibly through a National Strategy for Women Entrepreneurship;

Data on MSMEs should be segregated by gender, age, industry, and location, with government agencies aligning their definitions and data collection systems;

Measurable KPIs and targets should be established, and efficient monitoring and evaluation systems should be implemented;

Government should intensify information and awareness programs for WMSMEs and facilitate access to available programs and services; and,

Collaboration among government agencies and private sector involvement should be strengthened, by institutionalizing the Policy Toolkit Steering Committee into the WMSME Development Committee with senior level GAD Focal Points and private sector representatives.

WHY A GENDER LENS IN MSME DEVELOPMENT?
With women-owned and led businesses comprising at least 50% of MSMEs, and a Philippine population of almost 50% females, there is no question that women’s entrepreneurship should be supported and given the attention that it deserves.

Women can be financially empowered and independent if they are able to start, grow, and sustain their businesses. Filipino women entrepreneurs are committed to fostering inclusivity and diversity within the business ecosystem which can enhance overall productivity and innovation. Women entrepreneurs are resilient and, with adequate support, can navigate economic uncertainties and volatilities, like the global pandemic. When women entrepreneurs succeed, they are more likely to reinvest in their families for education, nutrition, health and well-being, and support communities by providing services and employment opportunities.

Studies show that $5 trillion is missing from Global GDP because of the gender gap in entrepreneurship, and that global GDP could rise by up to 6% if women and men participated equally in entrepreneurship. However, without proactive action, it will take at least a century before the world can achieve economic equality among men and women.

We cannot leave WMSMEs behind as the ripple effects of their success can contribute directly to the country’s economy and the local communities. The power of women entrepreneurs and their contributions to prosperity cannot be ignored. Shall we wait another century or take action now?

 

Ma. Aurora “Boots” D. Geotina-Garcia is a member of the Management Association of the Philippines’ Diversity, Equity & Inclusion Committee. She is founding chair and president of PhilWEN, and the President of Mageo Consulting, Inc. a company providing corporate finance advisory consulting services.

map@map.org.ph

magg@mageo.net

Roxas and Company, Inc. sets 2024 Annual Meeting of Stockholders on May 29

 

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Megawide obtains ‘PRS Aa’ rating for planned P5-B bond issuance

MEGAWIDE Construction Corp. said it has obtained a “PRS Aa” issue credit rating with a stable outlook from the Philippine Rating Services Corp. (PhilRatings) for its planned P5-billion bond issuance.

The “PRS Aa” rating indicates obligations of high quality and low credit risk, with the obligor demonstrating very strong capacity to meet its financial commitments, the company said in a statement on Monday.

The company’s proposed bond issuance consists of a P4-billion base offer with an oversubscription offer of up to P1 billion.

Megawide will use the proceeds from the base offer to refinance the company’s existing debt obligations and for general corporate purposes. The oversubscription allotment will be reserved for business development opportunities.

The company said that a stable outlook indicates that the assigned rating is likely to be maintained or to remain unchanged in the next 12 months.

PhilRatings also kept the “PRS Aa” rating on Megawide’s P4-billion outstanding rated bonds.

The ratings considered Megawide’s experience in the construction industry along with vertically integrated operations that complement the government’s infrastructure projects; and the company’s expansion projects in recent years.

In 2023, Megawide recorded a P269-million consolidated net income, a reversal of the P1.87-billion consolidated net loss in 2022, led by the growth of its construction business. The company’s consolidated revenue increased by 26% to P18.6 billion.

Megawide is a listed construction company engaged in various infrastructure projects such as the Malolos-Clark Railway and the Metro Manila Subway.

The company is also involved in property development through its subsidiary PH1 World Developers, Inc.

On Monday, Megawide shares were unchanged at P3 apiece. — Revin Mikhael D. Ochave

Fall Guy deepens box-office malaise with another soft debut

THE FALL Guy had so much going for it — Ryan Gosling and Emily Blunt, two of Hollywood’s hottest stars, no real competition, and a multimillion-dollar promotional campaign.

Yet the $125-million production from Comcast Corp.’s Universal Pictures brought in just $28.5 million in its domestic box-office debut this weekend — the latest evidence that film fans are refusing to return to their pre-pandemic, moviegoing ways.

Despite a few must-see pictures in recent years, such as 2023’s Barbie and Oppenheimer, or 2022’s Avatar: The Way of Water, ticket sales have stubbornly remained a third below pre-pandemic levels, imperiling the crucial summer box office season that begins the first weekend in May.

It’s possible no film tops $1 billion this summer, which would be the first year that’s happened in almost two decades, excluding 2020, when cinemas were closed to comply with pandemic-related restrictions.

“This summer’s box office appears likely to suffer both from a smaller overall film slate and a relative lack of top-tier franchise pictures,” Doug Creutz, an analyst at Cowen, said in a research note. Sales are running down 22% year over year, “and we expect summer box office to perform at that level or worse.”

In an earlier time, a film with the cast and caliber of The Fall Guy would almost certainly have done better. The picture earned critical praise, bringing together elements of an action movie and romantic comedy. Mr. Gosling, co-star of Barbie, and Ms. Blunt, recently in Oppenheimer, made numerous promotional appearances, including one together on NBC’s Saturday Night Live that went viral on TikTok and Instagram.

The biggest challenge for studios and theaters today may be getting film fans off their couches to see original fare from directors who aren’t marquee names. Streaming soared in popularity during the pandemic and taught consumers to expect a steady diet of new movies and TV shows to watch at home — for less than a weekend trip to the cinema.

The standard streaming plan at Netflix, Inc., which recently said its worldwide subscriber base hit 270 million, costs $15.50 a month, about what a single movie ticket costs in many markets.

To distinguish the theater experience from what consumers see at home, theater owners are increasingly introducing larger-screen formats such as those sold by Imax Corp., which were a significant driver of ticket sales to Dune: Part Two and Oppenheimer. The latter title has grossed close to $1 billion globally.

Movies don’t typically need to reach $1 billion in ticket sales to be considered a success. Many earn multiples of their production costs and turn a profit without ever nearing that mark.

But the dearth of big hit pictures is a reminder that the industry remains in a hole. In 2019, studios produced nine films that grossed over $1 billion, a record year in which Walt Disney Co. alone supplied seven. In 2018, there were five.

Last year, Hollywood delivered two films that topped $1 billion. If the industry fails to produce a billion-dollar film this year, it will be the first time — excluding pandemic years — since 2008. Of this year’s summer releases, only Inside Out 2 and Deadpool & Wolverine are expected to produce the domestic box office achieved by Oppenheimer in 2023, according to Mr. Creutz’s estimates.

One reason is overall output — which has been hurt by sweeping budget cuts in Hollywood and lingering effects of strikes that shut down movie and TV production for months last year. Some films scheduled for release this year will come out in 2025 instead.

Adam Aron, chief executive officer of AMC Entertainment Holdings, Inc., the world’s largest cinema chain, said in April that major studios are producing an average of 64 films a year, compared with about 84 prior to the health crisis.

As a result, box-office sales in the US and Canada are expected to fall to $8 billion in 2024, down from $9 billion last year.

That’s hurting theater operators: Shares of AMC are down 46% this year. Marcus Corp., a cinema and hotel group, is down 18%. Metropolitan Theaters, a 100-year-old business, filed for bankruptcy in February.

Still, studios rely on more than just the box office for profit, including sales of consumer products tied to the films and online movie rentals. They also use movies to attract subscribers to streaming services and can license their pictures to competitors.

And some films in 2024 have performed strongly, including Dune: Part Two, which delivered more than $700 million in ticket sales, as well as Godzilla x Kong: The New Empire and Kung Fu Panda 4, which each grossed over $500 million. None of those would have made the top 10 in 2019 in terms of worldwide receipts, however.

Some theaters chains are coping better than others. Last week, Cinemark Holdings, Inc. reported sharply higher first-quarter profit, along with sales that nearly matched year ago levels. Its shares are up 26% this year.

Sean Gamble, the company’s president and chief financial officer, predicts a solid recovery in 2025, when films including Captain America, Mission: Impossible, Jurassic Park and another Avatar are due for release, as well as a Michael Jackson biopic and a Superman reboot.

“Next year’s lineup is already coming together in a big way with a wide array of spectacle films,” he said on a call with investors. — Bloomberg

Investor group buys majority stake in PHL nonlife insurer

A GROUP led by Southeast Asian financial services investor Triple P Capital has completed its acquisition of an 85% stake in nonlife insurance company MAA General Assurance Phils. Inc. (MAAGAP).

The group of investors includes the International Finance Corp. (IFC), the German development finance institution DEG or Deutsche Investitions- und Entwicklungsgesellschaft MBH, Belgian Investment Company for Developing Countries SA (BIO), and OP Finnfund Global Impact Fund I KY, Triple P Capital said in a statement on Monday.

IFC said in its own statement that it is investing up to $10 million.

MAAGAP was previously wholly owned by Malaysian investment holding company MAA Group Bhd. The sale of the 85% stake, reported to be valued at $49.3 million, was announced in November 2023 also included an option to buy out MAA Group’s remaining 15% share.

“Following the acquisition, the investor group will work together with MAAGAP to strengthen its presence in the country by focusing more on the underpenetrated segments — micro, small, and medium enterprises and retail — by offering targeted personal accident, motor, health, and fire and property insurance products,” IFC said.

“A robust insurance market is critical to strengthening the Philippines’ resilience. With climate change triggering more natural disasters that pose an increasing threat, insurance protection is key to providing a safety net and stability, especially for the most vulnerable. Access to affordable insurance services allow small businesses and the poorest to bounce back financially and rebuild their lives after an unexpected loss, fostering resilient and inclusive growth,” IFC Country Manager for the Philippines Jean-Marc Arbogast added.

The investors will also collaborate with MAAGAP’s management to implement global best practices in corporate governance, environmental and social responsibility, risk management, and compliance, Triple P Capital said.

The consortium will support the company’s digitalization and inclusive product development efforts, it added.

“MAAGAP’s prudent management, strong reputation, and solid distribution position create a powerful combination,” said David Steel, founding partner at Triple P Capital. “We are thrilled to collaborate with MAAGAP’s exceptional leadership team, whom we have known and respected for many years. Together, we aim to provide quality insurance products, extend coverage to more Filipinos and Filipino businesses, and build resilience against accidents, climate change, and other disasters.”

“This collaboration presents a unique opportunity for us to learn from the investors their international best practices in governance, environmental and social responsibility, risk management, and more. Together, we aim to elevate our standards, expand our reach, and contribute to the resilience of the Filipino community. This alliance reflects our shared commitment to growth, innovation, and delivering top-notch services to our clients and stakeholders,” MAAGAP President and Chief Executive Officer Martin L. Dela Rosa said.

DEG Senior Investment Manager Pritesh Modi added that the acquisition will help address the insurance protection gap in the Philippines, and boost job creation and economic growth.

Insurance penetration, or premium volume as a share of gross domestic product or the contribution of the sector to the economy, went down to 1.6% in 2023 from 1.73% in 2022, data from the Insurance Commission showed.

“MAAGAP with its microinsurance business line is well positioned to advance our mission to increase resilience also among the vulnerable people,” Finnfund Investment Manager Ulla-Maija Rantapuska added.

BIO Senior Investment Officer Olivier Toussaint said MAAGAP’s market positioning and vision are in line with BIO’s goal of supporting small businesses.

“We are thrilled to partner with MAAGAP’s management team and our co-investors in accompanying the company’s next growth phase while strengthening its approach to ESG (environmental, social, and governance) and impact,” he added.

Romulo Mabanta Buenaventura Sayoc & de los Angeles provided legal counsel for the transaction, PwC provided financial and tax due diligence, and Milliman provided actuarial support to Triple P Philippines.

Meanwhile, SyCip Salazar Hernandez & Gatmaitan, and Deol & Gill provided legal counsel to MAA International. — A.M.C. Sy

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