Remote work pay cuts send the wrong message

June 15, 2023 | 12:03 am

computer-laptop-mobile phone — CHRISTINA WOCINTECHCHAT-UNSPLASH

CEOs frustrated that workers aren’t coming into the office more often are trying a new tactic: tying in-person attendance directly to higher pay.

At least one big law firm has explicitly linked office presence to employee bonuses. At other companies, the connection is more tacit. Google recently said it would use face time as a factor in performance reviews; executives didn’t have to spell out that these ratings influence compensation. Nor did IBM Chief Executive Officer Arvind Krishna need to explain what he meant when he said “your career does suffer” if you work remotely; if it’s harder to get a promotion, it’s naturally going to be harder to get a raise.

Leaders who want to experiment with this approach should proceed carefully. A compensation disparity hits differently when framed as a penalty for remote workers than as a bonus for commuters. And a clear policy is likely to work better than vague insinuations.

Some bonus for regular in-person attendance actually seems reasonable. Commuting is time-consuming, and something most people find unpleasant. It’s expensive, and not only because of the price of parking or train tickets — if you can’t be home in time to pick up your kid from day care, you’ll have to hire someone to do it. If you don’t have time to cook, you’ll have to get takeout. The costs add up.

And a study last year by Jose Maria Barrero, an economist, and several collaborators suggested that remote work lessened wage-growth pressures because workers value it so highly. As my colleague Jonathan Levin wrote at the time, “remote work has an ‘amenity value,’ much like a company car or an office gym.” Clawing back that amenity could be expensive: A survey of London workers conducted by Bloomberg Intelligence earlier this year found that employers would need to give hefty raises to lure people back to offices five days a week.

But the recent crop of CEO comments tying pay to office presence aren’t framing remote work as an amenity. They’re calling it a performance problem for which remote workers should be financially penalized. And that suddenly makes it less palatable.

Some of this is basic loss aversion, the psychological principle that bad is stronger than good. If you find $20, you’ll be mildly pleased. But if you lose $20, you’ll be seriously annoyed.

But there’s more going on here. There are questions of fairness. Several studies have shown remote workers are more productive. Shouldn’t workers be paid for their output? Not to mention that polls have consistently shown a preference for remote work among groups at greater risk of discrimination, such as women, older workers, people of color, and the disabled.

Yet paying for face time, rather than output, is a practice companies have long used. It’s part of the reason that men earn more than women do — on average, men tend to report spending longer hours working. Women — especially mothers — generally report less, because they do more unpaid labor at home.

To be clear, people who log more hours don’t necessarily get more done. But many managers have overlooked that detail. A pre-pandemic study of consultants showed that people who pretended to work long hours were rated highly by their bosses, regardless of their output. Employees who were honest about working “only” full time were penalized — even though they churned out just as much work.

This is why, for years, workers have used tricks to give the appearance of putting in more time than they are — leaving a jacket on the back of their desk chair, for example, or scheduling e-mails to send at odd hours. (Don’t pretend you’ve never been tempted.)

Many attempts to cut through the politicking and reward employees for their actual output — such as Best Buy’s long-gone “results only work environment” — have sputtered.

This isn’t to say that all remote workers are more productive — or that there’s no reason beyond company politics to show up in person. As pro-office executives are often quick to argue, even if remote employees write more lines of code or create more PowerPoints, that’s not the only way to create value. Mentoring, collaborating, contributing to a positive company culture — these create value, too. And most are more readily done in person than remotely.

But Barrero points out that although remote and in-person workers might be contributing in different ways, it would be hard to say which type of worker contributes more value overall. Moreover, he warns, in-office workers aren’t necessarily working all the time they’re present, even if that’s what managers assume: Recent data has found that, during working hours, in-office workers were more likely than remote workers to play computer games.

“The key is to think about why you want the employees to be in the office,” Barrero told me. “An extra day in the office where they would be doing the exact same thing at home just seems like capriciousness.”

Indeed. But whoever said companies were entirely rational?

If companies want to financially reward employees who take the trouble to come into the office more frequently, they should be explicit about it: Come in X many times, get Y amount of extra money. Then workers can decide if juice is worth the squeeze. And executives will have to be honest about the bottom-line value of an occupied seat.

BLOOMBERG OPINION

Cormac McCarthy, dark genius of American literature, 89

June 15, 2023 | 12:03 am

NEW YORK — Cormac McCarthy, whose nihilistic and violent tales of the American frontier and post-apocalyptic worlds led to awards, movie adaptations, and sleepless nights for his enthralled and appalled readers, died on Tuesday at the age of 89.

Mr. McCarthy — arguably the greatest American writer since Ernest Hemingway or William Faulkner, both of whom he was sometimes compared to — died of natural causes at his home in Santa Fe, New Mexico, according to a statement from publisher Penguin Random House that cited his son, John McCarthy.

Little known for the first 60 years or so of his life, rapturous reviews of 1992’s All the Pretty Horses — the first in “The Border Trilogy” — changed all that. The book was made into a movie — as were 2005’s No Country for Old Men and 2006’s Pulitzer Prize-winning The Road.

But Mr. McCarthy was never seen on the red carpet. An intensely private man, he almost never gave interviews. He granted a rare exception for Oprah Winfrey in 2007, telling her: “I don’t think (interviews) are good for your head. If you spend a lot of time thinking about how to write a book, you probably shouldn’t be thinking about it, you probably should be doing it.”

Mr. McCarthy wrote with a distinctive, spare style that eschewed grammatical norms but drew the reader in relentlessly to his world of blood, dust, and an unforgiving universe.

“He stood at the window of the empty cafe and watched the activities in the square and he said that it was good that God kept the truths of life from the young as they were starting out or else they’d have no heart to start at all,” he wrote in typical fashion in All the Pretty Horses.

NOT RESPECTABLE
Born Charles Joseph McCarthy, Jr. on July 20, 1933, in Providence, Rhode Island, Mr. McCarthy was one of six children in his Irish Catholic family, and later switched to using the old Irish name of Cormac.

His father was a lawyer and he was brought up in Tennessee in relative comfort. But middle America was not for him.

“I felt early on I wasn’t going to be a respectable citizen. I hated school from the day I set foot in it,” he told the New York Times in another rare interview in 1992.

He served in the Air Force in the 1950s and was married twice before the 1960s were out — first to Lee Holleman, who he met at college and with whom he had a son, and later to English singer Anne DeLisle, from whom he separated in 1976. After a short spell in Europe, he returned to Tennessee to settle near Knoxville, Tennessee and later moved to El Paso, Texas and then to Santa Fe.

His first book The Orchard Keeper, set in rural Tennessee and published in 1965, landed with Faulkner’s last editor, who recognized the young writer’s potential. But despite positive reviews — and some shocked reaction — for this and other early works like Child of God and Outer Dark, commercial success eluded Mr. McCarthy and he scraped by on writers’ grants.

In 1985 Blood Meridian was published, garnering little attention at the time, although it is now considered his first truly great novel and perhaps his best. With lots of violence and no heroes, it tells the tale of a gang of scalp hunters in the mid-19^th century West.

All the Pretty Horses, a coming-of-age book that kicked off a trilogy centered around Texas ranch hands at the close of the frontier, finally brought him acclaim in the 1990s.

The trilogy was followed by No Country for Old Men, a deeply disturbing and yet riveting Western crime novel about a drug deal gone wrong, quickly adapted into a movie by Joel and Ethan Coen that won the 2007 best picture Oscar.

This was the time that also saw the publication of The Road — perhaps even darker than what went before. Set in a world where an unnamed disaster has ended society and food production, a father and his son walk through a devastated landscape occupied by desperate people. The full depths of human depravity are on display — but also the love that the small family is able to sustain through it all. The Road won multiple awards and was also made into a movie in 2009.

Then came a long period until two new companion novels were released in 2022 — interconnected books The Passenger and Stella Maris that were unmistakably Mr. McCarthy, now approaching 90 years of age, albeit somewhat gentler — and, perhaps, valedictory.

“Enough,” says one character for whom death is approaching. “I have never thought this life particularly salubrious or benign and I have never understood in the slightest why I was here. If there is an afterlife — and I pray most fervently that there is not — I can only hope that they won’t sing.”

In a statement, Nihar Malaviya, CEO of Penguin Random House, said, “Cormac McCarthy changed the course of literature. For 60 years, he demonstrated an unwavering dedication to his craft, and to exploring the infinite possibilities and power of the written word.”

Mr. McCarthy was married three times, divorcing his third wife Jennifer Winkley in 2006. He had two children: Cullen, born in 1962, and John, born in 1998. — Reuters

Dingdong eyes restaurant reservations, retail shops, motorcycle taxis

June 15, 2023 | 12:03 am

LAST-MILE delivery solution startup Dingdong plans to explore restaurant reservations, retail shops, and the motorcycle taxi business to diversify its services.

“To further enhance the seamless experience, we will introduce a unique feature that allows customers to reserve tables at our wide selection of partner restaurants,” Dingdong Founder and Chairman Dong Dantes said in an e-mail interview.

“Looking ahead, our application aims to expand its services to include retail shops, incorporating exciting and innovative features that set a new standard in the e-commerce space. We are also exploring the possibility of entering the motorcycle taxi business in the near future,” he added.

According to Mr. Dantes, one of the growth areas for delivery businesses in the Philippines is the growing demand and shift in consumer preferences.

“Delivery service providers are expanding beyond their traditional role of goods delivery, venturing into sectors such as food, grocery, and pharmacy delivery,” Mr. Dantes said.

“This strategic diversification allows them to access new revenue streams and reach a broader customer base,” he added. “This expansion also creates opportunities for partnerships and cross-promotion with local businesses, driving mutual growth.”

On May 30, Dingdong and on-demand food and door-to-door delivery mobile application RiderKo signed a memorandum of agreement to create an all-in-one platform for local delivery service.

Starting June 12, the Dingdong application, powered by RiderKo, will be available for download on App Store for iOS and Play Store for Android.

Aside from diversification, Mr. Dantes also sees technological advancement and customer demand for sustainable options as growth areas for the delivery services industry.

“Advancements in technology have revolutionized the delivery services industry. From real-time tracking to route optimization and automated systems, technology plays a vital role in improving efficiency, reducing costs, and enhancing the overall customer experience,” said Mr. Dantes.

“Another growth factor in the delivery service industry is the sustainability and eco-consciousness of the customers: Customers and businesses are increasingly conscious of reducing their carbon footprint and opting for eco-friendly delivery options, such as electric vehicles and environmentally friendly packaging,” he said.

Mr. Dantes said delivery service providers that will prioritize sustainability are likely to gain a competitive edge.

“This is the reason why in our pipeline, we are looking at providing e-motorcycles in the future,” he said.

Dingdong is set to pilot e-motorcycles from Passenger Urban and Rapid Electric Vehicle Solutions, Inc. (PURE-EV) as a delivery option.

“We take great pride in being the first to introduce e-motorcycles from PURE-EV to meet the evolving delivery demands of our valued customers,” he said.

“In the coming days, we will be piloting this innovative offering, demonstrating our commitment to embracing cutting-edge technology and driving positive change in the industry. These endeavors serve as inspiration and fuel our dedication to continuous innovation and excellence,” he added. — Justine Irish D. Tabile

Xiaomi launches new Redmi Note 12 series phones

June 15, 2023 | 12:02 am

Redmi-Note-12S-black-1-thumb — REDMI NOTE 12S

1 of 2

SMARTPHONE brand Xiaomi last week launched in the Philippines the newest phones in its Redmi Note 12 series, the Note 12 Pro and Note 12S.

Tomi Adrias, Xiaomi Philippines marketing head, said at the launch event last week that the additions to the Redmi Note 12 series aim to enhance smartphone features that matter to the lifestyles of today’s youth.

“The new models expand their smartphone options, so they could find the right device that matches their personality and everyday needs,” Mr. Adrias said.

“We promise to commit to providing accessible technology at an affordable price,” he added.

The Redmi Note 12 Pro has a 108-megapixel (MP) main camera and an 8-MP ultra-wide angle camera, supporting 4K video resolution.

It has a 6.67-inch FHD+ AMOLED DotDisplay with a 120Hz refresh rate and support from Dolby Vision and Dolby Atmos.

The phone is also powered by a Snapdragon 732G processor and a 5,000mAh battery with 67W turbocharging.

The Redmi Note 12 Pro is available in the colors Star Blue, Glacier Blue, Polar White, and Graphite Gray.

Meanwhile, the Redmi Note 12S has a 6.43” FHD + AMOLED DotDisplay with a 90Hz refresh rate and 180Hz maximum sampling rate.

It is powered by a MediaTek Helio G96 processor and 5,000mAh battery with 33W fast charging.

Available colors include Ice Blue, Pearl Green, and Onyx Black.

The recommended retail price for the Redmi Note 12 Pro is P14,999, while the Redmi Note 12S is priced at P12,999.

Both products have 8GB of RAM and 256GB of internal storage.

The new smartphones are now available for purchase online and in authorized Xiaomi stores. — Miguel Hanz L. Antivola

BSP term deposit yields rise ahead of Federal Reserve policy meeting

June 15, 2023 | 12:02 am

By Keisha B. Ta-asan, Reporter

TERM DEPOSIT YIELDS of the Philippine central bank rose on Wednesday, ahead of the US Federal Reserve’s policy meeting.

Demand for the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) stood at P286.877 billion, higher than the P240 billion on the auction block. Last week, bids reached P249.767 billion against P220 billion on offer.

The central bank raised the volume for the TDF auction to P240 billion and adjusted the allocation between the seven- and 14-day tenors, BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement.

“Total tenders reached P286.877 billion, higher than the BSP’s expected volume range,” he said. “The respective bid-to-cover ratios for the seven-day and 14-day TDF stood at 1.183x and 1.210x, further reflecting market participants’ preference for both tenors.”

Tenders for one-week term deposits reached P153.730 billion, surpassing the P130-billion offer. Last week, bids hit P133.675 billion against P120 billion on offer.

Banks asked for yields ranging from 6.55% to 6.6144%, narrower than 6.375% to 6.625% on June 7. The average rate for the seven-day debt rose by 1.1 basis points (bps) to 6.5933%.

Meanwhile, the 14-day deposits attracted P133.147 billion in bids, higher than P110 billion being sold by the central bank. Last week, tenders hit P116.092 billion against a P100-billion offer.

Accepted rates for the two-week debt ranged from 6.5% to 6.6299%, also narrower than 6.3% to 6.6344% last week. This caused the tenor’s average rate to increase by 0.54 bp to 6.5981%.

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

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

“The BSP’s monetary operations will remain guided by its assessment of prevailing liquidity conditions and market developments,” Mr. Dakila said.

The higher TDF yields on Wednesday followed the higher rates of US Treasuries, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

The two-year Treasury yields hit 4.707% over night, the highest since March, before easing by 4 bps to 4.6519% in Asian hours, Reuters reported.

The benchmark 10-year yields also climbed to the highest in two-and-half weeks at 3.8450%. They were last down by three bps to 3.8056%.

The US Federal Reserve may also pause its tightening cycle on June 15, Mr. Ricafort said. “However, the markets recently priced in a possible 25-bp Fed rate hike on July 26, as also signaled earlier by some Fed officials.”

The Fed is widely expected to hold off on raising interest rates after a softer US inflation report. Consumer prices in the US rose by 4% in May, the slowest in more than two years, easing from April’s 4.9%.

However, sticky core inflation may still prompt the US central bank to hike policy rates after this week’s meeting. US core inflation slightly slowed to 5.3% from 5.5% a month ago.

“Any future Fed rate moves could be matched by the BSP to maintain a healthy interest rate differential and help stabilize the peso exchange rate and overall inflation,” Mr. Ricafort said.

Last month, the Philippine central bank kept the key rate at 6.25%. It was its first pause after increasing borrowing costs nine times straight since May last year, for a total of 425 bps.

Inflation eased to an eight-month low of 6.1% in May. To date, it has averaged 7.5%, still above the BSP’s 5.5% full-year forecast and 2-4% target. — with Reuters

Actor Treat Williams killed while riding motorcycle

June 15, 2023 | 12:02 am

The actor Treat Williams, known for his roles in Hair and Everwood, was killed in a motorcycle accident on Monday, his longtime agent said.

Barry McPherson, Williams’ agent for 15 years, confirmed that the actor was killed when the motorcycle he was driving was involved in an accident with a car in Dorset, Vermont.

Williams was 71.

People magazine, citing Jacob Gribble, the fire chief in Dorset, reported the accident took place when a car turned into Mr. Williams on Route 30. Mr. Gribble told the magazine that Mr. Williams was the only person hurt in the accident, and that he had been airlifted to a hospital in Ticonderoga, New York.

Mr. Williams’ break-out role was for the 1979 movie Hair, based on the Broadway musical. He also starred in Everwood as a neurosurgeon who moved his family from New York City to Colorado. — Reuters

Financing sustained growth: Tax reforms

June 15, 2023 | 12:02 am

(Third of four parts)

The government economic team or the members of the Development Budget Coordination Committee (DBCC) will hold another Philippine Economic Briefing (PEB) today in Singapore with a clear goal of attracting more foreign investments to create more jobs in the country. The economic team also went to Singapore and Jakarta for the first PEB in the second week of September last year.

Very likely among the important announcements to be made by the team will be on the recently enacted economic liberalization measures like the Public Service Act Amendment and Retail Trade Liberalization, the proposed Maharlika Investment Fund, and taxation policies.

I checked the revenues/GDP ratio of some ASEAN countries and saw that the ratio is generally similar among them — 15-18% in 2021. Vietnam’s was 20% in 2019 but there was no data for 2021. Note that this is for National Government revenues alone and does not include the revenues of local government units (LGUs) as they have their own local taxes, fees, and other sources of income. If LGU revenues are included, overall revenues/GDP ratio can easily rise to 16-17%.

One notable thing in the Philippines’ tax policy is that it imposes relatively high taxes on international trade, both exports and imports, at 3.3% of GDP. Whereas Singapore has zero, Malaysia has only 0.3%, Thailand 0.6%, and Vietnam 1.3%.

The Philippines has the highest VAT rate in the ASEAN at 12%, yet its revenues from general taxes including VAT is low, only 2%, while Thailand and Singapore with VAT rates of only 7% and 8% have general taxes revenues of 3.5% and 2.4% respectively (see Table 1).

Finance Secretary Benjamin Diokno has acknowledged the problem in the country’s VAT system. He noted that from 2016 to 2020, the Philippines collected an average of P723 billion from VAT, which is just 0.40 of the expected VAT collection. The ASEAN average is 0.57 — Thailand has the highest VAT efficiency at 0.79, while Singapore has 0.71 efficiency.

Mr. Diokno has attributed the low efficiency to the many VAT exemptions granted by the government in various sectoral laws. He is correct and I believe reviewing those VAT exemptions should have been done yesterday, or at least today.

Here are recent tax-related reports in BusinessWorld: “Government urged to consider inflation impact of new taxes” (May 14), “Excise tax collection below target due to illegal tobacco — BIR” (May 18), “Tax reforms generated P202.8B in revenues in 2022” (May 29), “PHL posts lowest VAT efficiency in region” (May 31), “Gov’t warned against overdependence on ‘regressive’ sin taxes” (June 4), “Tax system being outmaneuvered by digital companies” (June 5), “PHL needs a more ‘dynamic’ excise tax regime — solon” (June 5), “EV industry lobbying for incentives to support new-vehicle adoption” (June 13).

The DBCC has listed seven new tax measures, but they have not yet released updated revenue projections publicly. So, I built this table with projections of some measures mentioned in BusinessWorld. The first four measures are projected to give the government some P29 billion a year.

I add my own two proposals. One, imposing an income tax on military and uniformed personnel (MUP) pension which is big — P160 billion in 2021, P164 billion in 2022, and is projected to be P214 billion in 2023 and P241 billion in 2024, rising further in succeeding years. Currently the MUP pensions are big and tax free.

In 2022, the average monthly pensions were P4,528 for the Social Security System, P13,600 for the Government Service Insurance System, and P40,049 for the MUP. The projected average MUP pension in 2023-2024 would be about P43,000/month and up. This falls in the 25% income tax rate.

My second proposal is to bring the Philippines VAT rate back to 10% from 12%, then remove the VAT exemption of many sectors (see Table 2).

Imposing a VAT of 10% on the sales of renewables will have an upward price effect on power consumers. But bringing down VAT from 12% to 10% for coal, gas, and oil plants, which constitute about 80% of total power generation, will have a price deflation effect for the consumers. Overall, the consumers will likely be better off.

Many MUP pensioners may likely oppose taxation of their pension and they are wrong to do so. First, while in active service they contributed nothing for their own pension; second, their pension comes 100% from taxes and they do not want to contribute to the tax too. This will give them a bad image and public perception that their motto “To serve and protect” refers more to themselves, their superiors, and their pension, and less the public.

The above tax measures should be coupled with spending cuts, borrowings cuts, and, later, tax cuts as the public debt continues to decline. Then more public and private resources will be devoted to more infrastructure, better justice administration, and more business innovations.

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers

minimalgovernment@gmail.com

PLDT Enterprise, PEZA promote

June 15, 2023 | 12:02 am

THE Philippine Economic Zone Authority (PEZA) has partnered with the business-to-business arm of PLDT Inc. to support information and communication technology (ICT) industries and promote the country’s digital ecosystem.

PLDT Enterprise said in a statement on Wednesday that its agreement with the PEZA seeks to promote the country’s capabilities in becoming a digital hub in the global business market. The partnership will be supported by PLDT Enterprise’s expertise and solutions.

PEZA Director General Tereso O. Panga said the partnership is part of the agency’s efforts to lure more investments into the Philippines.

“We firmly believe in the Philippines’ competitiveness in becoming a business destination for global investments. In doing so, we will continue with our mission to proactively pursue investment leads and seek out new opportunities to showcase the country’s potential,” Mr. Panga said.

Melvin Jeffrey Chan, PLDT Enterprise vice-president, said the partnership allows PEZA-certified companies to accelerate their businesses via the company’s communication network.

“We aim to enhance the country’s digital prowess while exploring opportunities to co-innovate with domestic and foreign investors,” he said.

Meanwhile, PLDT Enterprise said it remains committed to enabling industries and pushing for digital transformation and automation in the country through its infrastructure.

“As part of our commitment to empower businesses, we continue to expand our reach as a solutions provider so we may be able to address the various needs of industries and contribute to the country’s economic growth,” PLDT Enterprise First Vice-President Vic Tria said.

PLDT Enterprise, the corporate business arm of PLDT, offers fixed-line, wireless, and ICT solutions that help business owners adapt to evolving technological needs by providing access to solutions that optimize efficiency, continuity, and connectivity, and enhance customer experience.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave

With no big customers named, AMD’s AI chip challenge to Nvidia remains an uphill fight

June 15, 2023 | 12:01 am

ADVANCED Micro Devices Inc. (AMD) Tuesday gave new details about an artificial intelligence (AI) chip that will challenge market leader Nvidia Corp., but the company left out what Wall Street wanted to know — who plans to buy it.

Santa Clara, California-based AMD said the forthcoming chip, which will start trickling out in the third quarter followed by mass production beginning in the fourth quarter, will have 192 gigabytes of memory.

That could help tech companies get a handle on the spiraling cost of delivering services similar to ChatGPT, AMD Chief Executive Lisa Su told Reuters in an interview. She spoke following a keynote presentation in San Francisco during which Ms. Su showed an AI system on the MI300X chip writing a poem about the city.

“The more memory that you have, the larger the set of models” the chip can handle, Ms. Su said. “We’ve seen in customer workloads that it runs much faster. We really do think it’s differentiating.”

But unlike past presentations where AMD has talked up a major customer for a new chip, AMD did not say who will adopt the MI300X or a smaller version called the MI300A. The company gave no details on how much the chip will cost or how it will bolster its sales.

AMD’s shares have doubled in price since the start of the year and touched a 16-month high earlier on Tuesday, but closed down 3.6% after the presentation on the AI strategy. Nvidia shares finished 3.9% higher at $410.22, making it the first chipmaker to close with a market capitalization above $1 trillion.

“I think the lack of a (large customer) saying they will use the MI300 A or X may have disappointed the Street. They want AMD to say they have replaced Nvidia in some design,” said Kevin Krewell, principal analyst at TIRIAS Research.

Nvidia, whose shares have surged 170% so far this year, dominates the AI computing market with a market share of 80% to 95%, according to analysts.

Nvidia has few competitors working at a large scale. While Intel Corp. and several startups such as Cerebras Systems and SambaNova Systems have competing products, Nvidia’s biggest sales threat so far is the internal chip efforts at Alphabet Inc.’s Google and Amazon.com’s cloud unit, both of which rent their custom chips to outside developers.

Aside from the AI market, AMD said it has started shipping high volumes of a general purpose central processor chip called “Bergamo” to companies such as Meta Platforms.

Alexis Black Bjorlin, who oversees computing infrastructure at Facebook parent Meta, said the firm has adopted the Bergamo chip, which targets a different part of AMD’s data center business that caters to cloud computing providers and other large chip buyers.

But investors were searching for news on AI. Nvidia’s lead there has come not only from its chips, but also from more than a decade of providing software tools to AI researchers and learning to anticipate what they will need in chips that take years to design.

AMD on Tuesday provided updates to its Rocm software, which competes against Nvidia’s Cuda software platform.

Soumith Chintala, a Meta vice-president who helped create open-source software for artificial intelligence, during the presentation said he has worked closely with AMD to make it easier for AI developers to use free tools to switch from the “single dominating vendor” of AI chips to other offerings like those from AMD.

“You don’t actually have to do that much work — or almost no work in a lot of cases — to go from one platform to the other,” Mr. Chintala said.

But analysts said just because sophisticated companies like Meta can wring good speeds from AMD chips, that was no promise of broader market traction with less sophisticated buyers.

“People still aren’t convinced that AMD’s software solution is competitive with Nvidia’s, even if it is competitive on the hardware performance side,” said Anshel Sag, an analyst at Moor Insights & Strategy. — Reuters

Tranquility reigns over markets still awash with cash, for now

June 15, 2023 | 12:01 am

LONDON — Soaring interest rates, slowing economic growth and a banking sector still recovering from a March rout might suggest a note of market caution, yet world stocks are at 14-month highs, the S&P 500 stock index has entered a bull market and gauges of volatility are eerily calm.

For some, the answer to exuberant markets lies in the ample cash still sloshing around the financial system. But it may not last, especially with the US Treasury potentially set to drain funds and risk appetite from markets with a surge in bill issuance.

BNP Paribas estimates excess global liquidity has risen by $640 billion since the end of third quarter of 2022 and is “unsustainable” when some central banks are trying to offload bonds they hold in a process known as quantitative tightening.

As the second half of 2023 approaches, a more challenging environment could emerge for risk assets currently benefiting from ample liquidity.

OK FOR NOW?
For the short term, at least, analysts expect risk assets to remain buoyant.

The US Federal Reserve in March loosened financial conditions with an emergency credit facility for cash-starved banks, Japan’s central bank is still buying government bonds to push money into the system, and the European Central Bank is selling down the government bonds it holds at a relaxed pace.

Crossborder Capital founder Michael Howell notes “Japan is creating liquidity,” while “we expect more Chinese (monetary) easing.”

Total global liquidity, a measure of cash and credit in the world economy, has risen to almost $170 trillion in June, Crossborder calculates, from $158 trillion in October.

Central banks have added a net $1.7 trillion into money markets since November, it also estimates, a move that correlates with a risk-taking trend.

World stocks have gained 11% year to date, bolstered by US tech stocks rallying on an AI boom. The VIX index, a measure of implied volatility dubbed Wall Street’s “fear gauge,” last week hit its lowest since early 2020. A gauge of expected choppiness in US Treasuries is near levels last seen in February.

WILDCARD
Liquidity has “lots of moving parts,” said Richard Clarida, a former Federal Reserve vice chair and now a global economic advisor at bond fund PIMCO. He said the US debt ceiling deal could be a “wildcard,” depending on who buys a wave of new bonds.

The US Treasury is set to rebuild its general account by issuing $1 trillion or more of short-term bills, potentially at rates appealing enough to suck cash out of riskier assets.

This may also crimp banks’ ability to lend as they raise deposit rates to compete with T-bills, reducing the flow of credit to corporations and consumers.

Invesco’s head of multi-asset Georgina Taylor, said the firm has prepared for the drain by keeping a long position on the dollar, which typically benefits when investors turn more cautious.

But an alternative scenario is that US money market funds, stuffed with cash after depositors fled regional banks in March, buy enough newly issued Treasuries to keep rates stable.

Their cash tends to go into reverse repos, a Fed facility that offers generous rates for parking money overnight, and may move into T-bills instead, said Ken Taubes, chief investment officer Amundi US.

This shift of money “basically from one government pocket to another,” said Mr. Taubes, is “one of the reasons the markets are somewhat benign around this issue.”

WARNING LIGHT
BNP Paribas said its base case is for global liquidity to fall 6%–9% by end-September and 7%–11% by yearend, but liquidity is not the only reason behind the current upbeat sentiment.

“Liquidity is not a force that reverberates immediately into financial markets,” said JPMorgan global market strategist Nikolaos Panigirtzoglou.

As well as the AI boom, strong balance sheets and abundant cash at tech megacaps like Apple are attracting investors to these stocks, which dominate global equity indices.

Nonetheless, Morgan Stanley said in a note it was sticking with a bearish view on stocks given expectations for an earnings recession, and Pictet Asset Management’s chief strategist Luca Paolini said he was “underweight” equities and buying government bonds in anticipation of a credit squeeze and ensuing recession.

“There is a lot of money in the world and every time we see positive (economic or earnings) surprises, people put this money to work,” Paolini said. “But there are strong risks the market is ignoring, so we are still positioning for weakness in risk assets.” — Reuters

Dining In/Out (06/15/23)

June 15, 2023 | 12:01 am

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The Pen offers an escape on Father’s Day

ON FATHER’S DAY, Sunday, June 18, The Peninsula Manila thinks that it’s only fitting to treat dad to an all-star weekend staycation while indulging in Escolta’s Sunday brunch buffet. And since Dad deserves his quality downtime, he gets to experience Salon de Ning’s one-afternoon-only pop-up Pen Ultimate Father’s Day Dream Lounge on June 18, from 1 to 6 p.m., where he’ll enjoy complimentary cocktails and pica-pica, snazzy grooming services and many more, as well as win prizes. The Father’s Day Dream Lounge will offer complimentary male grooming services from Back Alley Barbershop; a display of Triumph motorcycles and automobiles from Rolls-Royce, Lotus, and Mini Cooper; For Him skincare by VMV Hypoallergenics whose expert technicians will provide complimentary hand treatments; funky and functional ceramic art from Pottery Sessions; custom-made menswear crafted in Singapore by Common Suits; pens and inks for fountain pen aficionados by Manila Pen; bespoke spectacles by R.E.M. Rapid Eye Movement Manila; rare timepieces from Vintage Grail, collectible vinyl and DJ music; artisanal chocolates from Auro Chocolate; and small bites and innovative cocktails. The Father’s Day Ultimate Getaway Staycation Room Package (June 16 to 18) offers many amenities, from lounging by the outdoor pool, working out in the fitness center, enjoying The Gallery Club Lounge, lunch or dinner buffet in Escolta, and complimentary access to the Pen Ultimate Father’s Day Dream Lounge in Salon de Ning. Room rates start at P17,300 for a Premier Suite (exclusive of taxes). Meanwhile, Escolta’s Father’s Day Brunch Buffet on June 18 is available from noon to 3 p.m. It comes with a complimentary invitation to Salon de Ning’s Pen Ultimate Father’s Day Dream Lounge. The brunch is P7,200 with free-flowing Champagne for two hours, P4,200 with no Champagne (adults), and P2,250 for children under 12. All prices are inclusive of 10% service charge and prevailing government taxes. For inquiries or reservations, call 887-2888, extensions 6630 (Room Reservations) or e-mail ReservationPMN@peninsula.com; 6691 or 6694 (Restaurant Reservations) or e-mail DiningPMN@peninsula.com.

Conrad Manila offers Father’s Day feasts

CONRAD Manila is honoring fathers with an exclusive Father’s Day promotion designed to delight the palate. Brasserie on 3, the hotel’s signature restaurant, presents “Feast to Fatherhood” on June 17-18. The lunch and dinner buffet — starting at P3,500 net — will see dads dining for free with every four paying adults. China Blue by Jereme Leung presents the “Father’s Day Feast Set Menu” from June 16-18, priced at P49,880 net for 10 persons, featuring a menu of China Blue favorites. At C Lounge, it’s time for “Dad’s Night Out” from June 12-18. Starting from 5 p.m. till late, this experience is priced at P2,288++ and includes a three-glass Chivas whiskey flight, one cigar from Don Juan Urquijo, and five truffle chocolate balls. Bru, Conrad Manila’s café, invites guests to “Treats for Tatay” throughout the month of June. With a minimum purchase of P1,000, dads receive a complimentary Father’s Day mini cake. Conrad Spa offers the exclusive “Father’s Day Rejuvenation” package which includes a 60-minute body massage, a 30-minute deep cleansing facial, and a complimentary 60-minute training program with a professional gym instructor. Available throughout June. For more information or to make reservations, visit www.conradmanila.com or call 8833-9999.

Father’s Day delights at City of Dreams

CITY of Dreams Manila unveils offerings especially made for dads to feel like a king on their special day. Cantonese restaurant Crystal Dragon presents an exclusive Father’s Day menu available until June 18, which features such dishes as Chilled Spicy Marinated 25 Heads Chilean Abalone with squids, shrimps, and clams; Double-boiled Sea Treasure Soup with maca, fish maw, conpoy and pork stomach; and Roasted Farm Duck with black truffle sauce. Fathers dining on June 18 will receive a complimentary gift. Fete dad with Nobu Manila’s eight-course tasting menu for a dinner celebration. At P8,871.42 net per person, the special menu is highlighted by Grilled Wagyu Beef with crispy kabocha, nasu, shitake and garlic SMR (soy-mirin reduction). Fathers booked on any day from June 16 to 18 at any of City of Dreams’ three Forbes Travel Guide-rated hotels — Nüwa Manila, Nobu Hotel, and Hyatt Regency Manila — will receive a special gift. Two restaurants at The Shops at the Boulevard — Jing Ting, specializing in Northern Chinese cuisine, and Red Ginger, which offers authentic Southeast Asian dishes — are both offering menu exclusives for the month of June. Eligible Melco Club members receive food vouchers redeemable from 6 a.m. to 11 p.m. that day. For inquiries, call 8800-8080 or e-mail guestservices@cod-manila.com or visit www.cityofdreamsmanila.com.

New World Makati Hotel toasts Dad

CELEBRATE Father’s Day with New World Makati Hotel’s array of experiences when guests stay or dine at the property. From the “A Toast to Dad” room package that includes breakfast and dad’s cocktails of choice, a hearty buffet feast at Café 1228, all-you-can-eat dim sum at Jasmine, to decadent cakes and sweets at The Shop. The “A Toast to Dad” room package (starting at P8,500++) comes with two cocktails from Bar Rouge as well as a complimentary bowl of chips and dip. Dad can choose from nine cocktails inspired by and named after iconic figures both on and off-screen such as “The King” inspired by Elvis Presley — a banana and coffee cocktail that pays tribute to Elvis’ favorite fruit, with Darkness 8 Years Whisky, banana liqueur, and coffee liqueur; “Shaken, Not Stirred” inspired by James Bond, a suave drink with Christian Drouin Gin, Mancino Secco Vermouth, and olive brine; and Bohemian Rhapsody inspired by Freddie Mercury, a heady mix of Smoky Joe Islay Whisky, lime juice, Earl Grey syrup, mint, and egg white; to name a few. The room package also includes an overnight stay in a Deluxe or Residence Club Deluxe room with breakfast for two. Residence Club room bookings get exclusive access to the 24^th Living Room lounge. For reservations, guests can book online via https://bit.ly/NWMFathersDayStay.

Dad’s Day Out at The Oriental Hotels

THE ORIENTAL Hotels and Resorts is offering families in the countryside memorable special events with its Dad’s Day Out promos. Four-star The Oriental Leyte in Palo will have a feast of a buffet dinner on June 18 at its Samsara Restaurant, which is known for its Asian, Filipino and international dishes for P999 for adults and P499 for children. Enhancing the seaside dinner is an acoustic musical group, The Oriental Performing Ensemble, and fire dancers. Beyond Father’s Day, the resort hotel is offering the Baecation Couple Deal for P9,888 until the end of the year, inclusive of a Premier Garden View room, breakfast for two, dinner for a couple with themed set-up, a bottle of wine, and use of swimming pool and gym. Up north, The Oriental Bataan in Mariveles beckons with a buffet dinner for P899 for adults and P449 for kids, which also features a guitar trio to serenade diners. The hotel’s Forest Grill also has the 12 Shots Standing Promo, consisting of Kahlua, Antonov Vodka, Tanduay Rhum, Gilbey’s Gin, Crème de Cacao Brown (Walsh), Crème de Cacao White (Walsh), Drambuie, Triple Sec, Fundador, Blue Curacao (Walsh), Disaronno Amaretto, and El Hombre. All this for P1,098, with daily winners receiving a serving of chili cheese fries. The hotel also holds the Chill and Grill every promo Thursday at 6 p.m. Avail of the Mid-Year Sale for as low as P4,100 until June 30, covering an overnight stay at a deluxe cellar room, breakfast for two, use of facilities, and 10% off on all food and beverage outlets. Down south in Legazpi City, Dad’s Day is business as usual at The Proxy By Oriental — Albay despite the threat of Mayon’s eruption. Feast on a buffet dinner of global flavors on June 17 with an acoustic band at the hotel’s poolside BARcode for P799 for adults and P399 for kids. Guests can also stroll at the boutique hotel’s well-manicured Magayon Garden with a view of the volcano’s perfect cone from a safe distance. It also has a Mid-Year Sale for P2,888 for a Deluxe Queen or Twin room with breakfast for two. All properties will be raffling off raffle prizes for overnight stays, buffet dinners, or pool access good for two to diners. Reservations are required for the Father’s Day and room promos. For more information, log on to www.theorientalhotels.com or follow the hotels’ individual Facebook or Instagram accounts.

Dairy Queen unveils cool new treats for Father’s Day

DAIRY queen has two limited-time offers: the new Father’s Day Blizzard Cake and Father’s Day Blizzard Topper — Amazing Blue Swirl. The Father’s Day Blizzard Cake, available in an eight-inch round cake for P1,199, is an ice cream cake made with a base layer of vanilla soft serve, a middle layer of Dairy Queen’s signature fudge and crunch center, and a top layer of Oreo Blizzard, which is then covered with blue frosting and finished with a simple message. The Father’s Day Blizzard Topper — Amazing Blue Swirl can be availed with any regular, medium, or large Blizzard for an additional P10. The Father’s Day Blizzard Cake is available for take-out and delivery via Dairy Queen’s official channels, as well as delivery partners GrabFood, foodpanda, and Pick.A.Roo (prices may vary). Meanwhile, the Father’s Day Blizzard Topper — Amazing Blue Swirl is available exclusively via in-store take-out. Both will be on the menu from June 13 to 18 only.

Starbucks offers Ocean Friends merch

STARBUCKS just launched its special PH exclusive merch collection, Ocean Friends. This cute and whimsical collection of mugs and tumblers are in the shapes and prints of the gentle giants of the sea. With every purchase, 5% will go to Plastic Credit Exchange (PCX) to help offset and reduce plastic waste. PCX is dedicated to diverting plastic waste from ending up in nature. This collection is available in all stores and online through the Starbucks Flagship stores in Lazada and Shopee.

Krispy Kreme treats dads to Coffee Doughnut Creations

KRISPY Kreme is introducing its Coffee Doughnut Creations, inspired by coffee flavors, just in time for Father’s Day. Take a sip or rather a bite of the Kaffe Latte, an unglazed vanilla cake spread with coffee flavored coating and coffee kreme icing, drizzled with dark chocolate. Pair a coffee with the Mocha Kreme Filled, a shell doughnut filled with vanilla kreme, dipped in coffee flavored coating, topped with coffee kreme and dark chocolate chips. Completing the collection is the Tiramisu, an unglazed dark chocolate ring doughnut filled with mocha, dipped in tiramisu coating, topped with mocha icing and cocoa powder. These caffeine-loaded treats are available until June 23 in all Krispy Kreme stores nationwide.

Heineken Silver available Lazada’s Drinkies PH

HEINEKEN Silver beer is now available on the Drinkies PH flagship store on Lazada. While it’s still made from Heineken’s own special A-Yeast that gives each brew the characteristic balanced taste, it only has an ABV of 4% and contains 35 kcal per 100 ml and zero fat or sugar. At the Lazada store, Heineken Silver beer can be ordered in 330 ml cans or bottles for as low as ₱439 for a pack of six or ₱1,619.00 for a pack of 24. There is an option to stock up on Heineken Silver beers in 24-pack 500 ml cans for ₱2,389. Drinkies PH is also offering the Heineken Monobundle that lets customers enjoy six bottles each of Heineken Silver Beer, Heineken Original, and Heineken 0.0 for ₱1,299. The drinks are also available in installments. For instance, one can purchase the 24-pack Heineken Silver beers and only pay ₱555.86/month for three months. More modes of payment are also accepted through the Lazada app like cash on delivery, and credit card and online payment.

Father’s Day offers from Pizza Hut

CELEBRATE Father’s Day with Pizza Hut’s “Superb Treats for Dad,” with three combos to choose from, plus a freebie that can be had when ordering them ahead of time. The first combo is the Superb Treat for 6-8, at P1,899: one Supreme Large Pan Pizza, one Pepperoni and Mushroom Panalo Large Pan Pizza, one Family Spaghetti Bolognese, eight WingStreet Garlic Parmesan wings, and one Pepsi Pitcher for dine-in or one Pepsi 1.5L for takeout and delivery. Then there is the Superb Treat for 4, at P1,199: one Bacon Cheeseburger Large Pan Pizza, one Family Spaghetti Bolognese, four WingStreet Garlic Parmesan wings, and one Pepsi Pitcher for dine-in or one Pepsi 1.5L for takeout and delivery. Finally, there is the Superb Triple Pizza Treat, P1,199: one Meat Lovers Large Pan Pizza, one Pepperoni Lovers Large Pan Pizza, and one Hawaiian Panalo Large Pan Pizza. If the customer orders Pizza Hut ahead of time for their Father’s Day celebration, they will get six pieces of WingStreet Buffalo wings for free. To enjoy the freebie, simply place an order any time before 4 p.m. of June 18, with a minimum of P1,100 (excluding delivery charge), for pick-up or delivery scheduled not later than 5 p.m. on June 18. This offer is exclusive to the 8911-1111 hotline, www.pizzahut.com.ph, and the Pizza Hut mobile app, available for Android (https://play.google.com/store/apps/details?id=com.pizzahut.ph) and iOS (https://apps.apple.com/ph/app/pizza-hut-philippines/id1527383194) devices. Meanwhile, the Superb Treats for Dad combos are available for dine-in and takeout in all Pizza Hut stores nationwide, and for pick-up and delivery through the 8911-1111 hotline, www.pizzahut.com.ph, and the Pizza Hut mobile app.

Fiesta Combo treats await dads at Mang Inasal

MANG Inasal celebrates Father’s Day with Fiesta Combos perfect to be shared with the whole family. The “Feast for Daddy” promo is ongoing until June 18 at all Mang Inasal stores nationwide and is available for dine-in, takeout, and delivery. With the promo, customers can enjoy Mang Inasal Fiesta Combos with bilaos of Ihaw-Sarap favorites plus other treats. The Buddy Fiesta Combo (good for two to three diners) is a Buddy Fiesta plus three drinks and two Extra Creamy Halo-Halo Add-On. Meanwhile, the Family Fiesta Combo is great for a family with four to six members because it is composed of Family Fiesta plus six drinks and four Extra Creamy Halo-Halo Add-On. Apart from the Fiesta Combos, Father’s Day can also be made more special with the recently launched Mang Inasal Palabok Fiesta Size that is perfect for groups of 10 people. Price starts at ₱569. Place orders via the Mang Inasal Delivery App or through https://manginasaldelivery.com.ph/.

Walking is good for business

June 15, 2023 | 12:01 am

A HANDS-ON CHIEF EXECUTIVE takes “walking the talk” literally. The peregrinations take place around his organization, intended to observe the business firsthand and gain insights on how it is going. Walking around gives visibility to the leader as he moves around the premises, looking in charge. Strolling around the workplace allows the chief to chat with his employees (How did your root canal go?) and see how they handle customers, and whether they’re taking too many coffee breaks.

Management by walking around (MBWA) was extolled as an attribute of excellent companies in the probably now dated (1982) business bestseller, In Search of Excellence by Peters and Waterman. Some of the cited excellent companies in that book have gone under.

In an interview by a fellow mogul hosting a banking program over the net, one conglomerate head and retail tycoon admits to occasionally dropping in on his retail outlets unannounced. He is not accompanied by a coterie of staff and security and just wanders around the store by himself to get a feel of how things are going. He observes whether customers are stacking products on their carts. He understands that the retail staff recognizes him and pretends he’s just a regular customer.

The visible leader is not to be confused with an executive who has been stripped of his corporate functions. This one too is just aimlessly wandering around. The enforced idleness consigns him to long coffee breaks and chats with the receptionist. This lost soul carries folders and memo pads around as if on the way to a meeting. Such a drifter is classified as part of the “walking wounded” already scouting for a new career outside. He is walking around just to pass the time since he no longer has an office. He is not invited to any meetings except the one involving financial management workshops for retirees.

Walking around is intrinsic to some businesses.

Some micro-entrepreneurs make a living by moving around. They carry their wares around and go to their customers. They weave through cars stalled in traffic to sell bottled water, corn on the cob, and boxes of grapes with no expiry dates. Mendicants too move around, peddling alleviation of guilt. These vending activities pick up during rush hours when traffic is stalled. The Economic Law on Street Vendors states: “The volume of street vendors is inversely proportional to the speed of the vehicles.”

Walking around the mall for a Sunday stroll after lunch is good for business too. Most malls have removed seats for the weary mallgoers to rest on. There is, after all, no revenue stream from a consumer who is just sitting down and reading his eBook. The pop-up stores take up all the available space. (Foot massage over here, Sir.) And if one wants to sit and rest, then he should order yogurt or bubble tea from a pop-up outlet. Seats should not be mere furniture available to the weary. Three seldom-vacant rocking chairs at the edge of the mall are there as a special promo with the phone number on how to order.

Even a political leader in power needs to walk around and be seen. It’s not enough to have photos waving at the camera at the steps of a private plane, on the way to yet another foreign country. Walking around, even in business conferences to announce foreign commitments to invest, projects visible leadership.

Walking, perhaps next to swimming, is the most aerobically appropriate form of exercise. Brisk walking brings up the heartbeat rate, especially when accompanied by decades-younger walkers smartly overtaking one and leaving a scented trail of half-an-hour-old eau de cologne, and sopping wet sweatshirts — a scent that should be bottled to fend off sniffing dogs that prowl the mall with their walkers.

As to corporate walking, it seems that going to and coming from meetings takes up the most strenuous form of mobility. So, companies now put meeting rooms together on one floor to reduce the need to take the stairs between presentations. Virtual meetings that only require staying home are becoming a thing of the past.

The most difficult walk is the one out the door with no plans of going back after lunch. Indeed, walking is good for business… especially when you know where you’re headed.

Tony Samson is chairman and CEO of TOUCH xda

ar.samson@yahoo.com