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Limitless faces TnT in Second Conference Grand Finals today

AFTER six well-fought legs, the top 10 teams of the PBA 3×3 led by No. 1 Limitless and No. 2 TnT battle it out for the ultimate prize in the Second Conference Grand Finals on Wednesday at the Smart Araneta Coliseum.

The Appmasters seek to live up to their billing as the most accomplished squad in the standalone league, having previously won the First Conference crown and topping a total of four legs prior to the one-day finale.

Out to provide a serious challenge to the Southeast Asian Games-bound Limitless are the Almond Vosotros-led Tropang Giga, who are determined to go all the way after taking bronze in the maiden conference finals.

Similarly tipped to contend is No. 3 Meralco, which is embarking on a redemption tour after a disappointing exit in the quarterfinal round of the previous grand final.

No. 4 San Miguel Beer, meanwhile, looks to carry over the momentum from its amazing triumph in last week’s Leg 6 to vie for top honors.

Sitting in the lower ranks but definitely capable of springing surprises are Pioneer Pro Tibay (277), Barangay Ginebra (267), Platinum Karaoke (266), Purefoods (238), Sista (180) and Terrafirma (136).

The Appmasters, the Tropang Giga, the Bolts and the Beermen are seeded straight into the quarterfinal round while the six others have to dispute the four remaining berths in the preliminary phase beginning at 9 a.m.

Pioneer, Purefoods and Sista vie in Pool A while Ginebra, Platinum and Terrafirma slug it out in Pool B with the top 2 squads in each group advancing to the quarters.

A cool P750,000 awaits the conference champion while P250,000 goes to the runner-up and P100,000 to the third placer. — Olmin Leyba

Fed’s Bullard says 75-basis-point hike could be option if needed

REUTERS

FEDERAL RESERVE Bank of St. Louis President James Bullard said the central bank needs to move quickly to raise interest rates to around 3.5% this year with multiple half-point hikes and that it shouldn’t rule out rate increases of 75 basis points.

“More than 50 basis points is not my base case at this point,” Mr. Bullard said in a virtual presentation to the Council on Foreign Relations on Monday, adding the Fed under Alan Greenspan did such a hike in 1994 leading to a decade-long expansion. “I wouldn’t rule it out, but it is not my base case here.”

Fed Chair Jerome Powell has said that a 50 basis-point increase is possible at the Fed’s May 3-4 meeting. Comments by colleagues since then have hardened expectations they’ll make that move, as officials extend a hawkish pivot to curb the hottest inflation since 1981.

Mr. Bullard repeated he favors an interest rate of about 3.5%, citing a version of the Taylor rule, a guideline developed by Stanford University’s John Taylor that uses inflation, the unemployment rate and an estimate of the neutral interest rate —  a rate neither contractionary nor expansionary — to come up with his estimate.

“You can’t do it all at once, but I think it behooves us to get to that level by the end of the year,” Mr. Bullard said.

The Federal Open Market Committee’s first goal should be getting to a neutral rate soon, Mr. Bullard said. The committee estimates that rate at about 2.4%.

“We want to get to neutral expeditiously, I guess is the word of the day,” he said, repeating a word used by a number of colleagues. “I’ve even said we want to get above neutral as early as the third quarter and try to put further downward pressure on inflation at that point.”

The St. Louis Fed official said talk about recession was premature, with the Fed having only raised rates once at this point. He predicted that the US economy would grow at a healthy rate in excess of its long-term trend both in 2022 and 2023, adding he expects unemployment to fall below 3%.

Minutes of their March meeting showed many Fed officials favored raising rates by a half point and only opted for the more cautious 25 basis-point move because of the uncertainty around Russia’s invasion of Ukraine.

The account showed officials expect to start shrinking their balance sheet by $95 billion a month, or more than $1 trillion a year, and could announce a decision in May. Governor Lael Brainard said April 12 that could mean roll-off as soon as June.

A known hawk, Mr. Bullard has been favoring faster and more aggressive rate hikes by the Fed. He was the lone dissenter in the 8-1 policy vote in March having favored a 50 basis points move and has also pushed for balance sheet reduction.

That hawkishness is being mirrored by other central banks too. The Bank of Canada and Reserve Bank of New Zealand both this month raised their benchmark rates by 50 basis points — their biggest moves in 22 years — indicating a new sense of urgency among policy makers to rein in inflation.

Mr. Bullard’s hawkishness could yet prove to be a defining pivot for Fed policy makers, said Stephen Innes, managing partner at SPI Asset Management.

“The fact that Bullard is talking about a seventy-five basis point hike suggests other hawks are on the same page,” he said. — Bloomberg

Life and work of New York artist Basquiat showcased by sisters

Jean-Michel Basquiat, Jailbirds, 1983 — THE ESTATE OF JEAN-MICHEL BASQUIAT/ KINGPLEASURE.BASQUIAT.COM

NEW YORK —  The personal and professional life of American artist Jean-Michel Basquiat is being shared in a new experience titled, Jean-Michel Basquiat: King Pleasure in New York City.

Over 200 never-before or rarely seen paintings, drawings, ephemera and artifacts by Basquiat, who died of a drug overdose at age 27 in 1988, fill the space at the landmark Starrett-Lehigh building.

Basquiat’s sisters, Jeanine Heriveaux and Lisane Basquiat, created the exhibit to showcase Jean-Michel, his work, and the context of where he came from and how he lived.

“We wanted to make sure that we had — the passion that we’re feeling for the project and for him and the love that we have for him,” said Jeanine Heriveaux. “One of the things that we wanted to do was to ensure that people who appreciate Jean-Michel’s art had a fully immersive experience,” added Lisane Basquiat.

It took the sisters 18 to 19 months to fully realize the space that was created with ISG Productions. The pair spent hours pouring through his work.

The experience starts with “1960 – Introduction,” the year he was born where his self-portrait is found, and then transitions to “Kings County,” the location where the family grew up in Brooklyn. Other environments include “World Famous” and “Ideal” which showcases his studio and track the different periods of his life.

A replica of NYC nightclub Palladium’s VIP — Michael Todd Room, was also constructed to showcase the two paintings, Nu-Nile and Untitled, Jean-Michel created for the club in 1985.

“It was hard because Jean-Michel, like every one of his works, is absolutely amazing. And then also putting a focus on Jean-Michel’s very strong expression of what he felt and what he thought about what was happening in the world from a political and social, economic and cultural perspective,” said Lisane Basquiat.

There is also a focus on his very strong expression of the world with three galleries in the “SoHo” section that use titles of his work Royalty, Those Who Dress Better, and The Irony of a Negro Policeman.

In 2017 Jean-Michel’s vibrant, untitled 1982 portrait sold at auction by Sotheby’s for $110.5 million. At that time, it was the second-highest price ever for a work of contemporary art.

All of the items displayed are owned by the estate, which the family says they will never sell. —  Reuters

How PSEi member stocks performed — April 19, 2022

Here’s a quick glance at how PSEi stocks fared on Tuesday, April 19, 2022.


IMF GDP forecasts for Asia-Pacific economies

THE International Monetary Fund (IMF) expects a faster expansion for the Philippine economy this year, but still below the government’s growth target as the ongoing war in Ukraine clouds the global economic outlook. Read the full story.

IMF GDP forecasts for Asia-Pacific economies

Peso weakens on hawkish Fed

BW FILE PHOTO
THE PESO declined against the dollar on Tuesday due to hawkish comments from a US central bank official and higher oil prices. — BW FILE PHOTO

THE PESO retreated versus the greenback on Tuesday as oil prices shot up and with a US Federal Reserve official floating the idea of bigger rate increases to tame inflation.

The local unit closed at P52.46 per dollar on Tuesday, depreciating by 19 centavos from its P52.27 finish on Monday, based on data from the Bankers Association of the Philippines.

The peso opened Tuesday’s session at P52.35 versus the dollar. Its weakest showing was at P52.48, while its intraday best was at P52.31 against the greenback.

Dollars exchanged dropped to $1.087 billion on Tuesday from $1.142 billion on Monday.

The peso weakened as oil prices continued to increase, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Reuters reported that fuel prices picked up by more than 1% on Monday as outages in Libya ignited fears that coincided with the war in Ukraine on tighter supply.

Brent crude increased by 1.3% to close at $113.16 per barrel, while the US West Texas Intermediate (WTI) ended 1.2% higher at $108.21. During the session, Brent and WTI hit $114.84 and $109.81 per barrel, their highest since March 28.

Meanwhile, a trader said the peso weakened as the market reacted to hawkish comments from a Fed official.

St. Louis Federal Reserve Bank President James Bullard said the central bank should not rule out 75-basis-point increases in its benchmark rates as inflation hit 40-year highs in February and March.

Mr. Bullard noted such a move was made in 1994 under the Fed leadership of Alan Greenspan. “I wouldn’t rule it out, but it is not my base case here,” he said.

US inflation surged to 8.5% year on year in March amid record high fuel costs.

A Reuters poll last week showed analysts expect the Fed to raise rates by 50 bps each for its May and June review to respond to runaway inflation. These analysts also expect a 40% probability of recession by 2023.

For Wednesday, both Mr. Ricafort and the trader gave a forecast range of P52.30 to P52.50 versus the dollar. — L.W.T. Noble with Reuters

PSE index rises as China cuts banks’ reserve ratios

BW FILE PHOTO

SHARES improved on Tuesday after China’s central bank said it would cut banks’ reserve requirements to help prop up a slowing economy due to a fresh surge in coronavirus disease 2019 (COVID-19) cases.

The benchmark Philippine Stock Exchange index (PSEi) climbed by 41.63 points or 0.59% to close at 7,037.74 on Tuesday, while the broader all shares rose by 18.96 points or 0.50% to 3,742.92.

“The market rose on hopes [that] regional economic recovery of Asian emerging markets will get a lift from China’s looser central bank monetary policy intended to boost the economy from COVID-led lockdowns… The looser credit policy also helps to mitigate the adverse effects of hawkish US Federal Reserve tightening,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message.

“Philippine shares were bought up as investors continued to keep an eye on surging rates and commodities. Macroeconomic data outside the country remained weak, while locally others are making bets ahead of the earnings season,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan added in a Viber message.

“China’s March activity data broadly weakened on the worsened domestic COVID situation and escalation in restrictions,” Mr. Limlingan added.

China said on Friday it would cut the amount of cash that banks must hold as reserves for the first time this year, releasing about 530 billion yuan ($83.25 billion) in long-term liquidity to cushion a sharp slowdown in economic growth, Reuters reported.

The People’s Bank of China said on its website it would cut the reserve requirement ratio for all banks by 25 basis points, effective from April 25, but analysts said it might not yet be enough to reverse the slowdown.

China’s gross domestic product on Monday beat analysts’ expectations with a 4.8% increase in the first quarter from a year earlier, while data on March activity showed weakness in consumption, property and exports affected by COVID-19 curbs.

All sectoral indices ended in the green on Tuesday. Mining and oil gained by 256.36 points or 2.08% to 12,547; services went up by 26.72 points or 1.37% to 1,973.28; industrials improved by 79.70 points or 0.82% to 9,688.23; financials added 9.16 points or 0.55% to 1,658.79; holding firms rose by 26.31 points or 0.40% to 6,578.37; and property advanced by 1.78 points or 0.05% to 3,240.16.

Meanwhile, the MidCap index went up by 1.42 points or 16.60% to 1,184.74 and the Dividend Yield index added 8.22 points or 0.49% to close at 1,685.

Value turnover increased to P5.20 billion with 989.95 million shares changing hands on Tuesday from the P3.66 billion with 751.06 million issues seen on Monday.

Advancers outnumbered decliners, 102 versus 83, while 46 names ended unchanged.

Net foreign selling grew to P350.41 million from P198.13 million seen the previous trading day. — L.M.J.C. Jocson with Reuters

Safer for Marcos to keep mouth shut — analysts

FACEBOOK.COM/BONGBONGMARCOS

By Kyle Aristophere T. Atienza, Reporter

PHILIPPINE presidential candidate Ferdinand “Bongbong” R. Marcos, Jr. would probably avoid making a stand on key election issues given his dominance in presidential opinion polls, according to political analysts.

The late dictator’s son, who had not joined major presidential debates, would continue doing so to also avoid a public backlash, they said.

“The lack of clear programs and efforts to elevate the campaign to engage with voters on relevant issues show too much confidence and arrogance in their capacity to win,” said Maria Ela L. Atienza, a political science professor at the University of the Philippines (UP).

She also cited social media efforts by his supporters to revise history about his father’s martial rule.

His lawyer Victor D. Rodriguez did not immediately reply to a Viber message seeking comment.

Mr. Marcos and his running mate Sara Duterte-Caprio on Monday night held a campaign rally in the vote-rich central Philippine province of Cebu, whose governor Gwendolyn F. Garcia vowed a landslide victory for the tandem.

At the rally, Mr. Marcos reiterated his message of unity, which has been criticized for lack of substance. “We are not adversaries here. We love each other as Filipinos,” he said in Filipino, as he promised jobs and food on the table of every Filipino family.

“We have here two children of supposed strongmen capitalizing on their family names, local traditional allies and vast resources,” Ms. Atienza said.

She added that the lack of effort on his part to engage voters on key issues “underestimates Filipinos’ capacity to discern motives of candidates and make informed decisions.”

Their refusal to participate in debates organized by the Commission on Elections and answer questions from journalists “shows a low regard for institutions and democratic processes.”

Ms. Atienza said it might be difficult for the Marcos camp to change their tactics. “They can be expected to resort to traditional means of patronage by attacking the opposition instead of clarifying their programs and engaging with voters.”

The Marcos camp has deliberately kept their narrative “vague yet simple enough to resonate with voters,” said Julio C. Teehankee, a political science professor at De La Salle University.

“They have demonstrated a strong discipline in messaging and maintained the supposed “positivity” of their candidate, while allowing their online army to attack and defend,” he said in a Facebook Messenger chat.

“Time is on BBM’s side,” he said, referring to Bongbong Marcos’s initials. “The challenge for him is to maintain his numbers or shed just enough until he reaches the finish line.”

But voters might still notice that the “positivity” in his campaign is not genuine because his camp has repeatedly attacked opposition candidates, Mr. Teehankee said.

“If you already have the votes without any clear agenda or simply giving vague promises, why bother?” said Jan Robert R. Go, an assistant political science professor at UP.

“As much as we want the elections to be issue-based and centered on programs, the discourse has been focused on personalities,” he said in Messenger chat. “If they are already satisfied with ‘unity’ there is no incentive to add more.”

Rivals Vice President Maria “Leni” G. Robredo and Senator Panfilo “Ping” M. Lacson have been holding townhall fora to discuss their platforms. Manila City Mayor Francisco “Isko” M. Domagoso has also been meeting with various sectors nationwide.

Mr. Marcos and his running mate, who have appeared in vlogs of social media personalities, have refused to participate in debates organized by the Commission on Elections. Both of them are leading in opinion polls.

Victims of his father’s martial rule are seeking to get him disqualified from the presidential race after he was convicted by a court in the 1990s for tax evasion. The lawsuit is pending at the Commission on Elections.

Critics have also pressed the government to collect unpaid taxes worth more than P200 billion from the estate of the late dictator.

“They were initially confident of their lead and they did not want to risk exposing BBM and Duterte-Carpio to too much public scrutiny because the candidates may commit very public mistakes that may be costly to his campaign,” Ms. Atienza said.

Meanwhile, former officials and members of Mr. Domagoso’s presidential campaign were disappointed in his remarks against Ms. Robredo.

In a statement, the officials said his call for Ms. Robredo to quit the race was uncalled for. The mayor’s actions have reinforced their view that Ms. Robredo is the “only candidate with high integrity, composure, and expertise.”

“We initially believed it was Isko Moreno who could deliver effective and decisive action and bring about a new kind of politics in our country,” they said. “That vision of ours for the country has never changed. Mayor Isko Moreno, however, has already fallen far from what he thought he was.”

Mr. Domagoso has called the public flak he got “social injustice.”

Comelec withholds P90-M payment to election contractor

PHILIPPINE STAR/EDD GUMBAN

THE COMMISSION on Elections (Comelec) has withheld P90 million in payment from Smartmatic SGO Group for potential negligence after a data breach involving the software contractor for this year’s elections.

The election body would wait for the results of a government investigation before taking action, Comelec Chairman Saidamen B. Pangarungan told a Senate hearing on Tuesday.

The P90-million payment became due last March, but it would be released only after they are convinced that Smartmatic is innocent in the data leakage, he added.

The contractor has said the security breach had not compromised ballots and SD cards, adding it was limited to information on the company’s internal organization.

Senator Imelda “Imee” R. Marcos suggested changes to the Automated Election Law to require the advanced encryption standard (AES) provider to report to Comelec and the joint congressional oversight committee when an incident, breach or system interference occurs.

“The provider should show that its systems, its protocols are safe and secure over the long period of the election and the campaigns,” she said. “If it cannot secure its own system, how can we be confident that the system it provides Comelec is safe and secure?”

Mr. Pangarungan said they would study her suggestion. “It is not wise to take any drastic actions against Smartmatic that might prejudice the conduct of the elections on May 9.”

During the hearing, National Bureau of Investigation (NBI) Cyber-crime Division chief Victor V. Lorenzo said the primary suspect in the cyber-security breach, a former Smartmatic employee, might have worked with other people.

Smartmatic earlier said the former worker had downloaded nonsensitive, day-to-day operational materials from a repository readily available to all Smartmatic staff. He then shared it with people outside the company who have attempted to blackmail Smartmatic for money.

Ms. Marcos asked if there was a way of knowing if other Smartmatic employees at its Santa Rosa, Laguna warehouse were in cahoots with the suspect.

Smartmatic lawyer Christian Robert S. Lim, a former election commissioner, said there was no way, adding that they were monitoring their workers’ actions.

He added that they were evaluating their security systems. Smartmatic is “more stringently monitoring the traffic of internet servers now to determine if there is any unusual activity.”

It has also limited employee access to so-called configuration rooms, and workers can only get near machines for repairs.

“Maybe after the elections, there will be a series of training on cyber-security,” Election Commissioner Marlon S. Casquejo told senators.

They have also bought the AES software from Smartmatic as part of the contract so that the present system could be reused in the next elections without its help.

The NBI cited the need to appoint more specialized judges to handle cyber-crime cases.

Meanwhile, Comelec was set to send the official ballots for this year’s elections to city and municipal treasurers nationwide last night, it said in a statement.

It would deploy the ballots and supplies to be used in the May 9 elections from its warehouse in Pasig City in front of media and other groups. The event would also be streamed live on Facebook, it said.

Comelec finished printing all 67.4 million ballots on April 2. Last week, it started sending local absentee ballots for members of the military, police and media who can’t vote on election day. Local absentee voting will be held on April 27 to 29.

Election Commissioner George Erwin M. Garcia earlier said they would burn defective ballots in front of journalists, representatives of political parties, candidates and members of citizen’s arms. — Alyssa Nicole O. Tan and John Victor D. Ordoñez

US affirms defense commitment to Philippines 

US DEFENSE Secretary Lloyd Austin has affirmed his country’s commitment to Philippine security at a meeting with his counterpart at the Pentagon on Tuesday, the US Defense department said in a statement. 

The agency said US commitment to Philippine security is iron-clad, adding that their Mutual Defense Treaty commitments extend to Philippine Armed Forces, public vessels and aircraft in the South China Sea. 

Mr. Austin met with Philippine Defense Secretary Delfin N. Lorenzana at the US defense headquarters in Virginia, where they affirmed the importance of ensuring peace and stability in the disputed waterway, it added. 

They agreed to strengthen their treaty commitments, enhance maritime cooperation and improve interoperability and information-sharing. 

The officials also discussed the importance of unitedly condemning Russian aggression and standing behind Ukraine. 

China claims more than 80% of the waterway based on a 1940s map that overlaps with the exclusive economic zones of Vietnam, Malaysia, Brunei, Indonesia and the Philippines. Each year, trillions of dollars of trade flow through the sea, which is also rich in fish and gas. 

China has refused to honor a 2016 ruling by a United Nations-backed tribunal that voided its claim. — Norman P. Aquino 

TUCP files petition for P820 daily minimum wage in Central Luzon

TUCP FB PAGE

THE Trade Union Congress of the Philippines (TUCP) on Tuesday filed a petition seeking to increase the daily minimum wage in Central Luzon to P820 from P420, in line with petitions filed with other regional wage boards.

The TUCP said in a statement that the current P420 daily wage in Central Luzon is no longer sufficient to provide workers a decent living.

It said the region’s current daily wage was set almost three years ago, “when the regional wage board granted a measly P20.00 increase in 2019 which had been long dissipated by the succeeding price increases since that year.”

The TUCP said that with the rising prices of food and other essentials, the current minimum wage in the region “can only accord them and their families with nutritionally deficient survival meals.” 

“With the current minimum wage in Region III, a measly P15 per meal can be allocated per member of the family,” it said. “What kind of food can be bought for P15 nowadays?”

The TUCP said the minimum wage in Central Luzon puts earners and their families well below the poverty threshold of P16,226.00 per month The minimum wage implies monthly income of P10,920.00, or P9,570.55 when adjusted for inflation.

“Poverty incidence among families in Central Luzon is in the double digits except in Pampanga with 6.2% poverty rate,” it said, citing government data.

It said that the poverty rate was estimated at 24% in Aurora, 12.8% in Bataan, 14.9% in Bulacan, 17% in Nueva Ecija, 13.2% in Tarlac, and 22% in Zambales. — Kyle Aristophere T. Atienza

Manila Water targeting ‘smart, lean’ operations, signs Singapore tech deal

MANILA WATER Co., Inc. said it expects to exercise enhanced “cost discipline” this year as it undertakes major projects to supply its core East Zone water services business.

In a report, Manila Water President and Chief Executive Officer Jose Victor Emmanuel A. de Dios said: “We will streamline operations and rationalize operating expenses. Cost discipline will be reinforced to ensure the delivery of results through a smarter and leaner deployment of resources.”

The company’s main businesses are water services to Metro Manila’s East Zone (EZ), Non-EZ Philippines, and Non-EZ international.

The major EZ projects the company is currently undertaking are the Wawa Calawis water treatment project in Antipolo with a capacity of 80 million liters of water per day (MLD), and the 250 MLD East Bay Water Treatment Plant along Laguna de Bay.

Phase 1 of the Wawa Calawis water treatment plant is currently under construction. Its output will augment the water supply for EZ customers upon completion.

The report did not provide an estimate of capital expenditure (capex) this year. In 2021, the company allocated capex of P16.9 billion, with P13.9 billion invested in EZ operations. The bulk of the projects it pursued involved wastewater treatment capacity expansion, network reliability improvements, and tapping new water sources.

The company has 41 EZ wastewater treatment facilities. It also broke ground on the 53-kilometer (km) Mandaluyong West Sewerage System Project and the Aglipay Sewage Treatment Plant (ATP) with a 60 MLD capacity, expandable up to 120 MLD.

Non-EZ initiatives include potential projects in Central and Northern Luzon.

“We will work to improve our financial performance as well and introduce innovations that are thoughtful, swift, effective and most importantly, long-lasting to ensure the continued enhancement of shareholder value,” Mr. De Dios added.

Separately, Manila Water said it signed a memorandum of understanding (MoU) with Enterprise Singapore (ESG) to pursue technology exchanges.

The partnership will involve water technology test deployments by Singapore companies in the East Zone as well as outside Metro Manila.

ESG is an arm of Singapore’s Ministry of Trade and Industry (MTI).

It aids startups, small firms, and high-growth companies by supporting new, productivity-enhancing technologies.

Manila Water’s East Zone covers Marikina, Pasig, Taguig, Makati, San Juan, Mandaluyong, parts of Quezon City and Manila, and Rizal province. — Ram Christian S. Agustin with Luisa Maria Jacinta C. Jocson