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Taylor Swift caps dominant year with record-breaking Grammy win

WINNERS ALL: (L-R) Phoebe Bridgers, Lucy Dacus, and Julien Baker of boygenius, pose with their trophies for Best Alternative Music Album, the Best Rock Song, and Best Rock Performance, along with Taylor Swift who won Album of the Year and Best Pop Vocal Album, and Ms. Swift’s long-time collaborator Jack Antonoff, who won for Producer of the Year, Non-Classical, backstage during the 66th Annual Grammy Awards in Los Angeles on Feb. 4. —REUTERS/DAVID SWANSON

TAYLOR SWIFT captured the Grammy Award for album of the year on Sunday, capping off one of the most successful years in pop culture history by becoming the first singer to win the music industry’s top prize four times. Ms. Swift’s album Midnights took home the honor, adding to her previous wins for Fearless, 1989, and Folklore.

Ms. Swift had previously been tied with Frank Sinatra, Paul Simon, and Stevie Wonder for the most wins in the category. Album of the year was one of two prizes for Ms. Swift on the night, who used her acceptance speech for best pop vocal album to announce a new album due out in April. Titled The Tortured Poets Department, she finished the album while also mounting the best-selling tour in music history.

“I would love to tell you this is the best moment of my life, but I feel this joy when I finish a song,” Ms. Swift said after winning the prize. “For me, the award is the work.” Jack Antonoff, Ms. Swift’s long-time collaborator, won for producer of the year, non-classical and credited Ms. Swift for much of his success.

Ms. Swift set the record during a big night for women at the Grammys. Female acts swept all four of the top prizes and accounted for seven of the eight nominees for album of the year. Billie Eilish claimed song of the year for “What Was I Made For?,” her track from the soundtrack of the movie Barbie and Miley Cyrus won record of the year for her song “Flowers.” (Song of the year awards songwriters while record of the year goes to producers and performers.)

Women also won categories typically dominated by men. The rock trio Boygenius won three awards while Karol G, a rising star from Medellín, Colombia, became the first woman to win best música urbana album.

The Recording Academy has been criticized in the past for its failure to recognize female artists. In 2018, only one woman won a solo award, and, when asked about the lack of diversity, the Recording Academy’s president at the time, Neil Portnow, put the onus on women rather than institutional and societal bias.

He told reporters “women who have the creativity in their hearts and souls, who want to be musicians, who want to be engineers, producers, and want to be part of the industry on the executive level” need to “step up.”

The comment sparked outrage and prompted the hashtag #GrammysSoMale to trend. Artists, including P!nk and Katy Perry spoke out, and, a year later, Mr. Portnow stepped down. The Recording Academy has added many new members in response to criticism about not rewarding women or people of color.

“We want y’all to get it right,” Jay-Z said while accepting the inaugural Dr. Dre global impact award. The rapper and mogul pointed out that his wife Beyoncé has won the most Grammys of any artist, yet has never won album of the year.

While women swept the top four awards, only one of them was a woman of color. Victoria Monét, who has written songs for Ariana Grande and Chris Brown, claimed the prize for best new artist about 15 years after she started her career. SZA, an R&B singer who earned the most nominations of any artist with nine, won two prizes.

Comedian Trevor Noah hosted the show, which aired live on the CBS broadcast network. The Grammys’ viewership has slipped in recent years, but it still commands one of the largest audiences of any awards show on TV in the US.

Mr. Noah wasted little time dipping into the week’s biggest controversy, an ongoing dispute between ByteDance Ltd. and Universal Music Group, the world’s biggest record label, which pulled its artists’ songs from TikTok this week after licensing negotiations between the two entities fell apart.

“Shame on you for ripping off all of these artists,” Mr. Noah said to applause and surrounded by some of the industry’s biggest names, many of whom had their music taken down. Artists have been split on the issue. Mr. Antonoff said artists “can’t get used to getting paid less” but also should have known about UMG’s plans.

While Ms. Swift was the star of the show, the Grammys also offered a stage to big stars of the previous century. Tracy Chapman, whose song Fast Car climbed the charts thanks to a cover by Luke Combs, performed alongside the country star. Joni Mitchell performed and also won for an album recorded live nearly two years ago at Newport Folk Festival. That was her first full-length concert since 2000, and occurred after an aneurysm in 2015 that required her to re-learn how to play the guitar. — Bloomberg

Grammys 2024: Winners at televised ceremony

LOS ANGELES — The Grammy Awards, the highest honors in the music industry, were handed out at a ceremony on Sunday (Monday in Manila), broadcast on CBS and hosted by Trevor Noah.

Following is a list of the winners in the categories at the televised ceremony:

Album Of The Year: Midnights, Taylor Swift

Record Of The Year: “Flowers,” Miley Cyrus

Song Of The Year: “What Was I Made For?,” Billie Eilish (from the motion picture Barbie); Billie Eilish O’Connell & Finneas O’Connell, songwriters

Best New Artist: Victoria Monet

Best Pop Vocal Album: Midnights, Taylor Swift

Best Pop Solo Performance: “Flowers,” Miley Cyrus

Best Musica Urbana Album: Manana Sera Bonito, Karol G

Best Country Album: Bell Bottom Country, Lainey Wilson

Best R&B Song: “Snooze,” by SZA; Kenny B. Edmonds, Blair Ferguson, Khris Riddick-Tynes, Solana Rowe & Leon Thomas, songwriters

The Dr. Dre Global Impact Award: Jay-Z — Reuters

Megaworld targets to open 31-storey Pasig hotel by 2029

ONE PASEO is the first office development within the 12.3-hectare Arcovia City in Pasig City. — COMPANY HANDOUT

TAN-led Megaworld Corp. announced on Monday that it is now building the 31-storey ArcoVia Hotel in Pasig City, scheduled for opening by 2029.

In a regulatory filing, the listed property developer said that ArcoVia Hotel, located in the ArcoVia City township along C5-Road, will have 339 hotel suites.

The hotel’s room types and sizes will range from twin suites (up to 29 square meters [sq.m.]), queen suites (up to 27.5 sq.m.), junior suites (34 sq.m.), executive suites (up to 54 sq.m.), and presidential suites (108 sq.m.), the company said.

Megaworld Hotels & Resorts Managing Director Cleofe C. Albiso said that the ArcoVia Hotel will be the 21st property in its portfolio and the company’s tallest hotel development to date.

“This hotel really suits the world-class vibe of ArcoVia City, and will even delight future guests with an unimpeded view of the iconic Arco de Emperador,” she said.

ArcoVia Hotel will be situated across the Acro de Emperador and in front of the two-tower ArcoVia Palazzo and the 45-storey 18 Avenue de Triomphe condominium developments.

The hotel will feature a swimming pool, kiddie pool, pool deck with lounge and seating areas, outdoor lounge and landscaped areas, kids club, wellness spa, wet and dry sauna, fitness center, and executive lounge, the company said.

It will also feature a business center with workstations, a ballroom, two function rooms, a meeting room, and an outdoor events area.

ArcoVia Hotel will also have four food and beverage outlets, gift shop, several retail establishments, bike racks, and electric vehicle charging stations.

According to Megaworld, ArcoVia City is a 12.3-hectare township that features residential condominiums, retail hub, office towers, and a lush landscape.

Out of the 20 hotel properties launched by Megaworld, 12 are operational with around 5,000 hotel room keys. These include Richmonde Hotel Ortigas, Eastwood Richmonde Hotel, Richmonde Hotel Iloilo, Savoy Hotel Newport, Savoy Hotel Boracay, Savoy Hotel Mactan Newtown, and Belmont Hotel Manila.

Also included are Belmont Hotel Boracay, Belmont Hotel Mactan, Kingsford Hotel Manila, Twin Lakes Hotel in Laurel, Batangas near Tagaytay, and Hotel Lucky Chinatown in Binondo, Manila.

Shares of Megaworld rose by three centavos or 1.52% to P2 apiece on Monday. — Revin Mikhael D. Ochave

T-bills fetch mostly higher rates on fading hopes of early Fed cut

BW FILE PHOTO

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Monday at mostly higher yields amid expectations of a delayed rate cut from the US Federal Reserve.

The Bureau of the Treasury (BTr) raised P15 billion as planned via its offering of T-bills on Monday as total bids reached P47.415 billion, or more than thrice the amount on the auction block.

Broken down, the Treasury made a full P5-billion award of the 91-day T-bills as tenders for the tenor reached P12.985 billion. The three-month paper was quoted at an average rate of 5.461%, 6.3 basis points (bps) higher than the 5.398% seen last week. Accepted rates ranged from 5.425% to 5.495%.

The government also raised P5 billion as planned from the 182-day securities as bids stood at P13.94 billion. The average rate for the six-month T-bill stood at 5.861%, up by 5.1 bps from the 5.766% fetched last week, with accepted rates at 5.84% to 5.873%.

Lastly, the BTr borrowed the programmed P5 billion via the 364-day debt papers as demand for the tenor totaled P20.58 billion. The average rate of the one-year T-bill inched down by 0.1 bp to 6.075% from the 6.076% quoted last week. Accepted yields were from 6.05% to 6.098%.

At the secondary market on Monday before the auction, the 91-, 182-, and 364-day T-bills were quoted at 5.4422%, 5.8126%, and 6.044%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data provided by the BTr.

“The awarded rates reflected the stronger-than-expected US employment reports for January, which bolstered views of further delay in Federal Reserve policy rate cuts,” a trader said in an e-mail.

Signals from Fed Chair Jerome H. Powell that a rate cut in March is unlikely also caused T-bill rates to go up, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The US Federal Reserve can be “prudent” in deciding when to cut its benchmark interest rate, with a strong economy allowing central bankers time to build confidence inflation will continue falling, Fed Chair Jerome H. Powell told the CBS news show 60 Minutes in an interview that aired Sunday night, Reuters reported.

“The prudent thing to do is… to just give it some time and see that the data confirm that inflation is moving down to 2% in a sustainable way,” Mr. Powell said. “We want to approach that question carefully,” with the economy’s current strength keeping the risk of recession reduced as policy makers wait for the final bits of data that will convince them to proceed with rate cuts.

The interview took place on Thursday, before a blowout January jobs report on Friday showed firms added 353,000 new positions, with continued strong wage growth and 3.7% unemployment that has barely budged in two years.

Traders are pricing in less than a 20% chance that the Fed could begin easing rates in March, as compared to a nearly 50% chance a week ago, according to the CME FedWatch tool. The odds for a cut in May have also lengthened.

Fed funds futures now show roughly 120 bps worth of easing priced in for the Fed this year, down from about 150 bps at the end of last year.

The Fed left interest rates unchanged last week, but Mr. Powell told reporters that rates had peaked. Since March 2022, the central bank has raised its policy rate by 525 basis points to the current 5.25% to 5.5% range.

On Tuesday, the BTr will offer P30 billion in reissued five-year Treasury bonds (T-bonds) with a remaining life of four years and 11 months.

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

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at 5.1% of gross domestic product this year or P1.39 trillion. — A.M.C. Sy with Reuters

Firefly, GomBurZa are the big winners at 2024 MIFF awards

MIFF SPOKESPERSON NOEL FERRER

THE 1st MANILA International Film Festival (MIFF) in Los Angeles, California, which aimed to promote Filipino films made in the Philippines on the US and international film stage, saw Zig Dulay’s fantasy film Firefly emerge as the night’s big winner.

The MIFF showed the same line-up of films as the 2023 Metro Manila Film Festival (MMFF) did last December.

Having been named Best Picture during the MMFF, Firefly again bagged the Best Picture award at the MIFF.

Meanwhile, Pepe Diokno’s historical drama GomBurZa was named Second Best Picture.

The awarding ceremony was held at the TCL Chinese Theatre in Los Angeles, California on Feb. 3.

Firefly’s other three awards that night were Best Screenplay for Angeli Atienza, Best Supporting Actress for Alessandra de Rossi, and Best Director for Zig Dulay.

The film follows Tonton (played by Euwenn Mikaell), who searches for the mythical island of fireflies that his mother Elay (played by Ms. De Rossi) told him about in her bedtime stories.

GomBurZa’s two other awards were Best Cinematography for Carlo Mendoza and the Audience Choice award. The film garnered acclaim for telling the tale of martyred Filipino Catholic priests Mariano Gomez, José Burgos, and Jacinto Zamora.

Coming home with two awards is family drama Rewind — which is also the first Filipino film to have earned over P900 million at the box office. Its actors, Dingdong Dantes and Pepe Herrera, won Best Actor and Best Supporting Actor, respectively, at the MIFF.

Tied with Mr. Dantes as Best Actor was Piolo Pascual, who played three different lead characters in the horror film Mallari, while Vilma Santos bagged the Best Actress award for her role in the romance When I Met You in Tokyo.

The 2024 MIFF jury included director Marie Jamora; Birns & Sawyer chief executive officer Mari Acevedo; director of photography Leah Anova; TV, film, and Broadway actor Reggie Lee; arts school director David Maquiling; and television and film actress Sumalee Montano — Brontë H. Lacsamana

And the winner is…

HERE is the full list of winners at the 2024 Manila International Film Festival awards night which was held on Feb. 3.

Best Picture: Firefly

2nd Best Picture: GomBurZa

Special Jury Prize: Becky and Badette

Audience Choice Award: GomBurZa

Best Director: Zig Dulay, Firefly

Best Actor: Dingdong Dantes, Rewind; Piolo Pascual, Mallari

Best Actress: Vilma Santos, When I Met You In Tokyo

Best Supporting Actress: Alessandra de Rossi, Firefly

Best Supporting Actor: Pepe Herrera, Rewind

Best Cinematographer: Carlo Mendoza, GomBurZa

Best Screenplay: Angeli Atienza, Firefly

Trailblazer Awards: Mark Dacascos, Romando Artes, and Rochelle Ona

Lifetime Achievement Award: Ms. Hilda Koronel

Celebrating the vital role of customs in global trade

Photo from www.wcoomd.org

Exactly 14 days before they celebrate their anniversary on Feb. 6 every year, the Bureau of Customs (BoC), along with other customs agencies communities around the world, come together and celebrate the first council session of the organization that unites them all.

In 1948, 17 European countries set up a Customs Union Study Group to examine the possibility of creating a customs union in the continent, and to develop a tariff common to participating countries. During their first meeting, the study group decided on three conventions that their countries would abide by: one on a common tariff nomenclature, another on customs valuation, and lastly the creation of an international body charged with providing advice on the application of the two agreements and continuing the efforts to secure uniformity and harmony among all members.

Four years later, the study group formally established the Customs Co-operation Council (CCC), now known as the World Customs Organization (WCO). On Jan. 26, 1953 in Brussels, Belgium, the council’s first session came up with the Brussels definition of value, which was widely used for customs valuation until the 1970s. The date is now known annually as International Customs Day.

Based on data from the organization, 185 customs administrations that are members of the WCO collectively process 98% of global trade. The independent intergovernmental body has made it their mission to enhance the effectiveness and efficiency of customs administrations all over the world.

This year, WCO celebrated International Customs Day with the theme “Customs Engaging Traditional and New Partners with Purpose,” with Secretary General Ian Saunders at the helm. In his first message during the celebration, the secretary general highlighted the challenges that the customs community faced over the past decade.

“The theme for 2024 is a strategic call to action, urging us to broaden our perspectives, think creatively, and embrace innovative approaches. This is essential for Customs administrations to maintain their role in facilitating global trade and ensuring security in a rapidly evolving environment” Mr. Saunders said.

The BoC also celebrated International Customs Day locally. Aligned with WCO’s engagement and partnership theme, the bureau reflected on activities they did the previous year that established strong connections with stakeholders, agencies, and customs counterparts.

According to the bureau’s website, the BoC signed a Mutual Recognition Arrangement for their Authorized Economic Operator (AEO) Programs to establish a transparent trading environment with ASEAN countries this year.

The members of the bureau, meanwhile, joined and hosted numerous events, discussions, and assemblies, as well as participated in training sessions to capacitate its personnel in the implementation of the ASEAN Customs Declaration Document.

Additionally, district collectors from all over the country also shared messages emphasizing global collaboration as they celebrated International Customs Day in their areas.

“Together, let us weave a tapestry of progress and partnership, blending the values of our customs heritage with the aspirations of a modern, interconnected world,” Port of Subic District Collector Ciriaco DG. Ugay said in a post shared by BoC’s official Facebook page.

Meanwhile, Atty. Francis T. Tolibas, district collector of the Port of Tacloban, pledged his commitment to the continuous implementation of the BoC’s mandates.

“On this International Customs Day, the Port of Tacloban pledges to further enhance its efficiency and continue to implement the mandates of the Bureau of Customs through proactive actions.”

This year, the BoC aims to publish an operations manual on the AEO programs along with initiatives that seek to increase the participation of stakeholders to support the WCO’s key calls to action. — Jomarc Angelo M. Corpuz

Converge sees sustained video streaming quality for customers this year

LISTED internet service provider Converge ICT Solutions, Inc. on Monday said customers can expect sustained video streaming quality this year.

“Our customers can look forward to the same high-quality, lossless, and seamless video experience they’ve come to expect from Converge,” Dennis Anthony H. Uy, Converge chief executive officer (ceo), said in a statement.

Converge, which has two million subscribers, recorded an average speed of 3.25 megabits per second (Mbps) for 2023, the company said, citing an internet service provider test conducted by streaming service platform Netflix.

Global network testing firm Ookla has declared Converge as the fastest internet service provider in the country, recording a download speed of 457.56 Mbps for the second half of 2023.

The company, according to Ookla, has also recorded a speed score of 123.18 for the second half.

Converge operates a fiber footprint of about 682,000 kilometers. It has deployed 7.9 million fiber ports, covering 77.85% of the country’s population.

Earlier, the company announced that it is on track to complete and activate its subsea cable by 2024, a project designed to increase bandwidth in the region and support the adoption of 5G in the Philippines.

For the nine months ending September 2023, the company recorded an attributable net income of P6.37 billion, 4.3% higher than the P6.11 billion profit registered in the same period last year, driven by higher revenues.

The company’s combined revenues for the January to September period climbed by 7.2% to P26.25 billion from P24.48 billion previously.

At the stock exchange on Monday, shares in the company gained five centavos or 0.53% to end at P9.53 apiece. — Ashley Erika O. Jose

BPI sees stronger lending growth this year

BPI FACEBOOK PAGE

BANK of the Philippine Islands (BPI) is expecting its lending business to be stronger this year amid a robust economy and on expectations that the Bangko Sentral ng Pilipinas (BSP) will begin cutting rates this year.

“Overall, we are expecting this year to be stronger from a perspective of loan growth. The main driver of that, I think, is customer optimism. Generally, in our conversations with customers, they’re feeling that 2024 will be a better year from an overall GDP (gross domestic product) growth perspective, and that’s also our expectation,” BPI Chief Finance Officer and Chief Sustainability Officer Eric Roberto M. Luchangco said to reporters on Monday.

“We’re not the only ones who have a relatively optimistic view of the year. We’re optimistic that both consumers and corporate will start to come back to the market, and that will drive our growth,” he said.

BPI’s loans stood at P1.9 trillion as of end-2023, higher by 10.5% year on year.

Meanwhile, the government targets GDP growth of 6.5% to 7.5% this year. This would be faster than the actual 5.6% expansion in 2023 that was below the 6-7% goal.

Mr. Luchangco added that loan growth will be boosted by expected rate cuts from the US Federal Reserve, which could be mirrored by the BSP.

“It’s probably going to be data-dependent, but our view is that sometime in the second half of the year, we’ll start to see the rate cuts, and I think it’ll even spur lending more,” he said.

BSP Governor Eli M. Remolona, Jr. previously said the Monetary Board is unlikely to begin its easing cycle in the first half of the year amid upside risks to inflation.

The BSP raised borrowing costs by a cumulative 450 basis points (bps) from May 2022 to October 2023, bringing the policy rate to a 16-year high of 6.5%.

For its part, the Fed has hiked its target rate by 525 bps to the current 5.25% to 5.5% range since March 2022. It is expected to begin easing its policy stance later this year.

Meanwhile, BPI is aiming to disburse P19 billion to P20 billion in sustainable retail loans in three years, an official said, after the bank launched a green retail loan product on Monday.

The bank is aiming to disburse P5 billion in loans this year under its Green Solutions product, BPI Retail Lending and Bancassurance Group Head Dexter Lloyd C. Cuajator said.

Green Solutions aims to provide financing for eco-build, solar panel mortgage, and electric vehicles.

BPI shares declined by P1.10 or 0.95% to close at P115 each on Monday. — AMCS

Entertainment News (02/06/24)

Jim and Saab’s podcast now with ANIMA Podcasts

WAKE Up With Jim and Saab has officially joined ANIMA Podcasts for its new season. Hosted by real-life couple Jim Bacarro and Saab Magalona since 2018, the long-running podcast moved to its new home this month. In a statement, the two said that the partnership will provide “full support in keeping episodes as authentic as possible.”

Shangri-La Plaza holds dragon and lion dance

TO welcome the Chinese New Year, Shangri-La Plaza has decorated its Grand Atrium with a gigantic dragon, red lanterns, and plum blossoms. There will also be fireworks display and Dragon and Lion Dance performance on Feb. 9 at 7 p.m. at the Internal Road next to the mall. The latter is meant to “awaken” the dragon and the lion before they dance to share blessings for the new year.

CCP, Iranian embassy, UPFI hold Iranian Film Festival

IN celebration of the 60th anniversary of diplomatic relations between Iran and the Philippines, the Cultural Center of the Philippines (CCP), the Embassy of Iran, and the University of the Philippines’ Film Institute (UPFI) present the 2024 Iranian Film Festival (IFF) this February. It opens on Feb. 6 at the Tanghalang Ignacio Gimenez (CCP Black Box Theater, CCP Complex, Pasay City) and will run at the UPFI Film Center (UP Diliman, Quezon City) from Feb. 7 to 9. The screenings are free and open to the public. The film lineup includes opening film The Survivor by Seifollah Dad, The Other One’s Dad by Yadollah Samadi, Gholamreza Takhti by Bahram Tavakoli, Wild Jonquils by Rahbar Ghanbari, Bodyguard by Ebrahim Hatamikia, Romanticism of Emad & Tooba by Kaveh Sabbaghzade, and Villa Dwellers by Monir Gheidi.

Lisa Frankenstein to screen in Philippine cinemas

AN eccentric love story from acclaimed writer Diablo Cody (known for Jennifer’s Body) will be hitting Philippine cinemas this February. Directed by Zelda Williams, the 1980s-set Lisa Frankenstein follows a misunderstood teenager and her high school crush, who happens to be a handsome corpse. The titular Lisa is played by Kathryn Newton, and her reanimated corpse boyfriend is played by Cole Sprouse. Unwavering support is offered by her plucky cheerleader stepsister Taffy, played by Filipino actress Liza Soberano in her first foray in Hollywood. The movie opens in theaters on Feb. 7.

Taiwanese comedy drama premieres on HBO GO

WARNER Bros. Discovery will be premiering the first three episodes of the new HBO Asia Originals Taiwanese series, The Accidental Influencer, on Feb. 10. Directed by Pei-Ju Hsieh, it follows Red Ho, a Taiwanese who dreams of owning an apartment and marrying her boyfriend as she hits a major milestone, her 30th birthday. However, her hope for a perfect life is dashed when she is suddenly dumped by her boyfriend on her birthday. The 13-episode comedy drama will be available exclusively on HBO GO.

Thea Astley releases her debut single ‘Never’

FILIPINO singer and host Thea Astley’s debut single is out now under Universal Records Philippines. The song is called “Never” and it is an R&B track that expresses one’s decision to never return to an ex-lover. According to Ms. Astley, the song was written during the height of the pandemic, and she described as a “declaration of self-love and empowerment that will resonate with those who have triumphed over heartbreak.” While the official music video for “Never” is still in the works, the track is out now on all streaming platforms.

Ken San Jose drops new single ‘Clock’

KEN SAN JOSE has released his new single, “Clock,” under Universal Records Philippines. Produced by Solomon Stark, the track combines soulful vocals with a layered production. The song talks of love, desire, and the anticipation of being reunited with a special someone. The fusion of pop and R&B is now available on all major streaming platforms, with its official music video coming out this month.

Indonesian singer Afgan releases 1st English single

AFGAN, one of Indonesia’s most popular stars, has dropped his new single and official music video, “Shallow Water.” Released via EMPIRE, the ballad will appear on Afgan’s forthcoming English album, Sonder. The song explores how past traumas can hinder a relationship and how the fear of making mistakes can prevent a relationship from evolving. “Shallow Water” is out now on all streaming platforms.

Winds of war are intensifying

PHILIPPINE STAR/KJ ROSALES

The war in Ukraine is at a stalemate. Ukraine’s counter-offensive against Russian invading forces has stalled due to delays in military transfers from the US and NATO because of budgetary and replenishment issues. Russia and Ukraine have depleted their war stockpiles and absorbed terrible losses on the ground, in the air, and at sea. For now, they’re down to a protracted fight. Russia is frantically restoring its diminished troop strength and relying on China, Iran, and North Korea for arms and ammo.

The Middle East conflict between Israel and Iran is widening. It began with a sneak attack by Hamas terrorists resulting in brutal murders and unspeakable atrocities. It was followed by Israel’s wrathful reprisal in the Gaza Strip that has reached overkill proportions. Iran’s other proxies are busy — the terror groups in Lebanon and Syria attacked Israel, while Houthi rebels attacked Israeli-linked ships in the Red Sea. American forces were also attacked in Iraq, Syria, and in the Red Sea, prompting robust counterstrikes by US-UK forces.

The latest action came after months of attacks by Houthi forces, in support of Hamas, on commercial shipping transiting the Red Sea and the commercially essential Suez Canal — around 14% of world trade normally transits the area. Yemeni Houthis, who bore the brunt of the air strikes and barrages of Tomahawk missiles, promise to retaliate. So has Iran after absorbing two terror strikes by ISIS in the city of Kerman resulting in 85 dead and 284 injured. Both vow to hit the US and Israel and bring them to their knees.

If this widens, expect oil supply disruptions. The escalating volatility, uncertainty, complexity, and ambiguity of the situation will likely lead to shortfalls, sea piracy, and higher inflation. Shipping lines are curtailing their passage through the Red Sea despite the protective presence of Western navies. Rising insurance costs and security risks have forced shippers to take the Cape of Good Hope route which is longer and costlier for importing nations, particularly in the Indo-Pacific.

In our region, China is at the lead with its Axis partners, namely, Russia, Iran, and North Korea, in support. Its aggressive behavior continues. It aims to be the next superpower and change the international order under US-led Western control. It needs to convert independent Southeast Asian nations into tributary states. The Philippines, Taiwan, and Vietnam are bearing the brunt of China’s South China Sea grab, military intimidation, and economic blackmail while deceitfully claiming to be the victim.

I’ve said this before: We are seeing the early stages of World War III unfolding before our eyes. This year’s presidential elections in Taiwan and the USA will greatly influence the fluid situation, apart from China’s gray zone tactics directed against them and us. Biting economic sanctions may lead affected countries to launch a war for survival. Beleaguered leaders of contending powers could also use the war card to deflect attention from domestic troubles. A miscalculation of an opponent’s national power could produce tragic results.

It’s those dynamic forces at play that will determine the path to war. As each day passes, the judgement scale continues to tilt steadily toward armed conflict. I believe that this assessment is shared by many citizens, including those in government: President Ferdinand Marcos, Jr., National Security Adviser Eduardo Año, Foreign Affair Secretary Enrique Manalo, Defense Secretary Gilberto Teodoro, and Presidential Adviser on the Peace Process Carlito Galvez. I’ve noted their unity of outlook and purpose in articulating our diplomatic and security policy.

The probability of war reaching our doorsteps, with or without our allies, keeps rising. When we were alone from 1991-2019 to deal with China’s arrogant coercions, it ignored our diplomatic protests and continued to bully and threaten us. After the USA, the UK, Japan, Australia, and some NATO countries finally came to life, China still remains unmoved. Freedom of Navigation Operations or FONOPS, joint patrols and exercises haven’t deterred China. Its behavior indicates that it really wants to be the new tiger on the hill, and ready to rumble.

An armed clash could happen this year or next. As such, preparedness cannot be over-emphasized should the worst case happen. War between the great powers will, beyond a reasonable doubt, adversely impact our society and the economy. Evidently, our communities must have the mindset to deal with what may come, while our government and our allies search for better ways to deter China from going kinetic — that can only bring the whole world down with it.

Our planning must include what we, as a major non-NATO ally, should also do in case deterrence fails. A fast and furious recounting of offered solutions is in order and, in some cases, in exchange for Enhanced Defense Cooperation Agreement or EDCA concessions.

  • Rapidly equip all under-armed and unarmed naval ships with similar or the same weapons, missile systems, and combat information centers as the forthcoming corvettes.
  • Rapidly acquire and/or manufacture smart kamikaze air-sea-land-launched drones in sufficient quantities that will ensure sustained operations against interloping or invading forces.
  • Request for hot transfers from the USA, Japan, and South Korea of F-15s, F-16s, and F-18s being replaced by F-35s; A-10s; HIMARS; and missile frigates from NATO about to be replaced, under WW2-like lend-lease terms.
  • Beef up the inventories of FA-50s, Brahmos standoff missiles, ATMOS artillery batteries, SPYDER anti-aircraft missile systems; Shaldag V fast attack craft; Sabra light tanks; C4ISTAR systems, etc.
  • Request for unfettered access to fuel, food, medical, communications, weapons and munitions stockpiles; and infrastructure development funding to harden logistics centers and networks, and build community air raid bunkers.
  • Rapidly reinvent the Reserve Force for combat to reinforce the regular forces and for Operations Other Than War, particularly civil defense.

War risk mitigation and crisis management readiness may be dichotomous imperatives, but we must go beyond our best to save our children and their future because only the dead will see the end of war.

 

Rafael “Raffy” M. Alunan III is a trustee of the Philippine Council for Foreign Relations, a life member of the Management Association of the Philippines, and incumbent president of the Rotary Club of Manila.

map@map.org.ph

rmalunan@gmail.com

NGCP says TRO delays full energization of Hermosa-San Jose line

THE National Grid Corp. of the Philippines (NGCP) has announced a delay in the full completion of its 500-kilovolt (kV) Hermosa-San Jose (HSJ) transmission line due to a temporary restraining order (TRO) issued by the Supreme Court.

In a statement on Monday, the grid operator said that the TRO, received on July 6 last year, was issued against the expropriation and construction on a portion of the transmission line owned by PHirst Park Homes, Inc. (PPHI).

“The HSJ was already energized on May 27, 2023, to accommodate power generation from Bataan. However, the court prohibition will affect the remaining works for its full completion,” the NGCP said.

The transmission line currently has a transfer capacity of 2,000 megawatts (MW), part of the full capacity of 8,000 MW of Lines 1 and 2. The rest of the capacity cannot be accomplished due to the work stoppage following the TRO, the company said.

Following the issuance of the TRO, the NGCP said it immediately stopped the project-related activities along Towers 170-178 of the HSJ transmission line, which it said delayed the ongoing stringing of the line’s remaining circuit.

The grid operator said it has “repeatedly reached out” to PPHI to “settle the issue amicably,” with ongoing negotiations “as early as February 2023.”

PPHI is a wholly owned subsidiary of the publicly listed Century Properties Group, Inc.

“NGCP made it clear to [PPHI] that the HSJ is an Energy Project of National Significance (EPNS), and its completion and energization are critical to preventing Luzon-wide power interruptions,” the system operator said.

“Still, we assert that the project’s activities can no longer be delayed given the greater national interest in the project’s immediate completion.”

Sought for comment, PPHI said that it “takes exception to any claims that it filed the petition to obstruct the implementation of NGCP’s project,” and that it has “refused to amicably settle” with the grid operator.

“PPHI acted in accordance with due process and full respect of the law,” it added.

“Considering the pending case with the Supreme Court, PPHI respectfully urges the parties to respect the legal process and refrain from commenting on the merits of the case. PPHI fully trusts that the Supreme Court shall resolve the case in due course,” the company said.

The P10.2-billion HSJ transmission line spans the provinces of Bulacan, Pampanga, and Bataan, which is said to serve as a major component in the planned Luzon 500kV transmission backbone. — Sheldeen Joy Talavera

High rates, remote work tipped commercial real estate into crisis

BLOOMBERG

Back when money in the bank was yielding almost nothing, commercial real estate became a haven for investors in need of reliable returns. Then central banks jacked up interest rates and a lot of properties suddenly looked like poor investments.

The troubles were compounded by the rise of home working and online shopping, which sapped demand for big, centralized workplaces and retail spaces. Valuations tanked, making it harder for landlords to refinance maturing loans secured against their properties without breaching the terms. One alternative was to sell out, but the prices on offer often failed to cover the outstanding debt.

By early 2024, banks caught up in the property slump were setting aside billions of dollars to cover soured loans.

  1. How big is the hit?

The crisis has been a slow-motion slide over many months, as most properties are privately held and valuations can take years to adjust to shifts in demand. The MSCI World Real Estate Index fell by 18% between the start of 2022 and the end of 2023, signaling where equity investors believed property values were headed. About $1.2 trillion of US commercial real estate debt was “potentially troubled” because of the slump in prices, advisory firm Newmark Group, Inc. said in August.

Vacancy rates for office buildings in major US cities hit records and landlords walked away from some properties now worth less than their debt, handing them to their lenders. US regional lenders were particularly exposed, and stood to be hurt harder than their larger peers, because they lacked the large credit card portfolios or investment banking businesses that could insulate them.

  1. Why did prices fall so far?

The rise in interest rates on risk-free government bonds from early 2022 led investors to demand higher yields when buying property. As yields on commercial real estate are the rental income as a proportion of a building’s value, and rents tend to be fixed for several years, property prices need to fall for yields to rise. It was a particular problem in places like Germany, where rental yields had reached record lows before the rate-hiking cycle began and many property owners entered the crisis carrying higher debt burdens than their peers elsewhere.

  1. Why are falling prices a problem?

Falling prices hamper a property firm’s ability to borrow. As the value of a landlord’s assets drops, its relative indebtedness — the all-important loan-to-value ratio — increases.

To avoid breaching the terms of its debt, the company may need to inject more cash into a property deal or take on more borrowing, albeit at higher rates and only if there’s enough rent to service it. If there isn’t, it may have to sell assets in an uncertain and falling market in which buyers will demand deep discounts. Those depressed prices make it harder for the industry to refinance the $2.2 trillion of US and European commercial property loans due to mature by the end of 2025.

  1. Which types of property were affected?

Office buildings were the biggest casualties as post-Covid changes in working patterns and poor energy efficiency combined with rising interest rates to crush values. Shopping malls were partly cushioned as their valuations had already taken a hit from the rise of e-commerce, so they were starting from a lower base when interest rates began to tick higher.

  1. Are there regional differences?

Rising interest rates had a bigger impact on Europe’s property prices as yields there were lower than in the US when central banks began their hiking cycle. However, valuations in the US fell further as it had a larger stock of new and empty buildings, and more Americans were still working from home. At the end of the third quarter of 2023, more than a fifth of office space lay empty in several major US cities.

  1. What can you do with an empty office?

One option is to convert it for residential use, if local planning authorities allow it. Another is to adapt the building to reflect today’s flexible working practices. But older buildings are expensive to upgrade, and energy efficiency improvements now demanded by governments and tenants add to the cost. The economics of these investments often don’t stack up at current prices. The alternative for landlords is foreclosure — handing unviable buildings back to their lenders.

  1. How is it likely to shake out?

There is a growing divide between the best office buildings and the rest. Those with top green credentials and modern, exciting space can still command top rents. Others require billions in spending to bring them up to standard — money that banks saddled with growing backlogs of impaired loans are unwilling to lend. You can knock buildings down and build better ones. But that route is becoming more challenging as policymakers focus on the embodied carbon in buildings from energy-intensive materials such as concrete, steel and glass. That means in many places they are determined to see properties refurbished, rather than redeveloped. — Bloomberg

AUB posts record profit of P8.3 billion in 2023

BW FILE PHOTO

ASIA UNITED Bank Corp. (AUB) and its subsidiaries booked a record consolidated net income in 2023, driven by an increase in loans and improved asset quality.

AUB saw its consolidated net profit climb by 32% to P8.3 billion last year from P6.3 billion in 2022, it said in a disclosure to the local bourse on Monday.

Its 2023 net income was “the highest in its 26-year history,” the bank said.

It translated to a return on equity of 18.6% and a return on assets of 2.38%, up from 16.1% and 1.9% in 2022, respectively.

“We attribute this vastly improved performance to our robust loan growth, more profitable net interest margin (NIM), continuously improving credit quality, and higher operating efficiency,” AUB President Manuel A. Gomez was quoted as saying.

“With our stronger performance in 2023, we expect to solidify our lead among the country’s top 10 listed universal banks in terms of compounded annual growth rate on key indicators… However, with interest rates expected to remain elevated this year, and global shocks a continuing concern, we have to remain agile to sustain our performance,” Mr. Gomez added.

The bank’s financial statement was unavailable as of press time.

Net interest income grew by 17% year on year to P15 billion in 2023.

“Amidst the environment of rising interest rates, AUB saw its NIM widen by 17% to P15 billion from 2022. Credit quality, as measured by net nonperforming loans, stood at 0.58%, well below the industry’s 1.6%. This led to reduced loan loss provisions of P1.2 billion, 27% lower than in 2022,” the bank said.

Meanwhile, operating expenses stood at P6.5 billion last year.

Its cost-to-income ratio went down to 36.3% from 37.6%.

Deposits with the bank stood at P292 billion in 2023, with low-cost current and savings account or CASA deposits making up bulk of the total, AUB said.

The bank’s assets grew by 4% year on year to P355.1 billion in 2023.

Equity also increased by 23% to P49.1 billion last year. The bank’s common equity Tier 1 ratio was at 16.88%, while its capital adequacy ratio stood at 17.49%, well above the regulatory requirements.

AUB’s shares rose by 50 centavos or 1.49% to close at P34 apiece on Monday. — AMCS

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