Citi named Investment Bank of the Year in Asia by Banker Magazine

February 3, 2022 | 5:13 pm

CCO Aftab Ahmed — Citi Philippines CEO Aftab Ahmed

Citi Philippines plays role in win with banking team supporting institutional clients both in country and around the world

Citi was named Investment Bank of the Year in Asia for 2021 by the Financial Times owned Banker Magazine. Decided by an advisory panel including the Banker’s investment Banking editor, the award recognized Citi’s support for clients during the award period across its regional network.

Citi was also named globally as Investment Bank of the Year, Investment Bank for IPOs and Investment Bank for M&A.

Last year, Citi led multiple landmark deals across equity capital markets, debt capital markets, and mergers and acquisitions in the region including in the Philippines. This included roles on the successful US$1bn equivalent Monde Nissin IPO and Ayala Corporation’s US$400m perpetual bond. Citi has also led transactions that raised over US$10bn from global capital markets for Manila based the Asian Development Bank in 2021.

“Asia-Pacific is increasingly expected to be main growth region for global economic development in the coming years and, as a result, its vibrant capital markets are also expected to continue their strong upward trajectory. Citi, with its almost unrivalled international network, has been in a strong position to build up its presence and establish itself as a leading force within the region’s capital markets. The bank leverages the full breadth and depth of its cross-franchise strengths and relationships globally to deliver a comprehensive suite of solutions for clients in the region. It supports clients in established markets, as well as emerging markets,” read part of the editorial write up for the award.

Commenting on the strong performance of Citi Philippines’s institutional banking business, Citi Philippines CEO Aftab Ahmed noted, “We continuously enhance our relationships with institutional clients by working closely with them to understand their needs and find solutions that can help them manage and grow their businesses further. Citi’s global network in close to 100 markets enables us to provide clients with not only our full suite of products and services, but more importantly, value-added insights, best practices and thought leadership. This is our priority as a network bank, to connect our global clients to the Philippines and support our clients both locally and across Citi’s global network.”

Jan Metzger, head of banking, capital markets and advisory for Asia-Pacific at Citi, says: “We are running at record levels for capital raising for clients. This is a mix of balance sheet strengthening and financing to support growth. There is massive transformation happening across all industries, and with a global network this has helped sharpen our dialogue with clients as they increasingly want a global perspective.”

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vivo V23’s innovative photochromic design is sure to delight and impress

February 3, 2022 | 4:46 pm

V23lifestylephoto — The vivo V23 Series includes a photochromic technology that allows the smartphone to change in color when exposed to UV light.

Watch out for the arrival of V23 series in the Philippines!

This 2022, vivo makes a splash in the new year with the much-awaited launch of the V23 series that’s bound to be next “it” phone for influencers, style leaders, and content creators—the selfie set—with its revolutionary photochromic design and outstanding performance. Head on to https://www.vivoglobal.ph/v23-prelaunch/ to know more about vivo’s latest series smartphone.

Taking selfie phones to the next level, the V23 features an impressive 50 MP Front Camera for amazing detail coupled with an 8 MP Dual Front Vlog Camera—go ahead, strike a pose, day or night! It’s custom JNV chip assures of images that are brighter and more beautiful while videos look more natural and crisp-clear.

Delighting design

Like you and your ever-changing hues, the V23 series is first in its class to feature a stunning color changing glass process that instantly changes color when exposed to UV light—shifting in intensity and shades; in mood and feel. A real game changer!

Capture your life’s best moments

Be it for vlogging, or selfies, the V23 series is there to provide users with a powerful device that brings out the artistic filmmaker and keen-eyed photographer in you.

For those who love taking selfies with the gang, its 8MP Super Wide-Angle Camera allows for portrait shoots like never before, ensuring no one is left out in the frame. The V23 series’ custom JNV chip is also equipped with the highest-pixel sensor in the industry that allows its user to take poster-level selfies, where even the finest of details are captured distinctively.

Attuned to your lifestyle

In keeping with today’s active consumer lifestyles, the V23 series is designed to be the perfect partner on the go with its Dual 5G Standby and VoNR. Users can also enjoy freedom and power in their hands with its 12GB RAM + 256GB ROM with 4GB RAM Extended 2.0—allowing for more files, more videos, and more high-definition movies to be stored with no loss in performance. The Extended RAM also enables users to run multiple apps at once, at consistently fast speeds.

As Gen Z’s embrace more immersive and connected experiences that’s enabled through technology, their authentic selves easily shine through. With the style and power that the vivo V23 series provides, they can now share their life’s most exciting moments to the world!

For more updates about the V23 Series, visit vivo Philippines’ official website, Facebook, Twitter, and Instagram channels.

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DoST issues last call for technology business incubator programs

February 3, 2022 | 4:30 pm

Universities and startups have until this month to apply for grants funded by the Department of Science and Technology (DoST).

The HEIRIT (Higher Education Institution Readiness for Innovation and Technopreneurship) program prepares select universities to establish and operate technology business incubators (TBIs); while the Startup Grant Program provides funding support to startups with early-stage prototypes.

The HEIRIT program will be closed after this round.

“We already established 32 TBIs,” said Russell M. Pili, chief science research specialist and chief technology transfer officer of DoST PCIEERD (Philippine Council for Industry, Energy, and Emerging Technology Research and Development)’s Research Information and Technology Transfer Division.

“Depending on the circumstances for the next three to five years, PCIEERD will focus on strengthening TBIs and increasing their client reach,” she said in an e-mail. “Our long-term plan includes expanding our TBIs to science and technology parks in universities.”

A target of 25 universities will be selected to undergo training and preparation for TBI operations for the year 2022–2023 round, which closes on Feb. 14.

The HEIRIT program aims to assist higher education institutions in building their capacity for establishing and running an incubator.

Successful university applicants will be “handheld” in their first year of TBI operations; funding support between P10–15 million will be provided in the second year upon approval of a project proposal.

“We understand that the list of requirements may be daunting for universities, but we may also be surprised how determined some universities can be if they are really hungry for this opportunity,” Ms. Pili told BusinessWorld. “That zeal and enthusiasm are good qualities for future TBIs, and us in the government will be assured that our investments are in good hands.”

Among the recent TBIs launched under the program are Mapúa University’s Think and Tinker Laboratory, a fintech-focused business incubator; the Adamson University Technology Business Incubator for Neo-Environmental Science and Technology (AdUNEST); and Iloilo Science and Technology University’s Kwadra, which nurtures creative science and tech entrepreneurs.

STARTUPS
The Startup Grant Program, meanwhile, is open for applications until Feb. 18. Startups requesting fund assistance should aim to overcome R&D (research and development) roadblocks, strengthen intellectual property, and establish initial market traction.

PCIEERD will provide R&D funding support up to P5 million to startups with proposals for early-stage prototypes to market-ready products.

The five priority areas under the program are sustainable industries, learning/education, remote work productivity tools, content and talent development for the creative industries, and industry data-driven solutions.

“For startups to increase their chances to be approved for the program, we encourage them to attend the proposal writeshop conferences,” said Edward Paul H. Apigo, senior science research specialist for DOST PCIEERD, in an e-mail. The conferences provide tips on proposal writing and also explain each proposal component.

The startup grant is one of the commitments of the DoST under the Innovative Startup Act. Said Ms. Pili: “Of course, it will still depend on the availability of funds, but support for startups right now is a priority for us.” — Patricia B. Mirasol

For more information on HEIRIT, contact Russell M. Pili <rmpili@pcieerd.dost.gov.ph> and Leizl D. Sueno <ldsueno@pcieerd.dost.gov.ph>

Application requirements and details about the Startup Grant Program can be downloaded here. Startups can also register for the next writeshop conference on Feb. 10.

Spectrum, Ajinomoto partner to advance sustainability goals

February 3, 2022 | 4:07 pm

Spectrum, a wholly owned subsidiary of Manila Electric Company (Meralco), has partnered with Ajinomoto Philippines Corporation (APC) Group to help the latter reduce its carbon footprint through a pilot solar project in Bulacan province.

Under the partnership, Spectrum will install a solar photovoltaic (PV) system with a total capacity of 1,015.56 kilowatt-peak (kWp) at APC’s plant in the municipality of Guiguinto.

This will allow APC Group to generate approximately 1,331,500 kilowatt-hours of energy per annum, which translates to an estimated annual savings amounting to Php 700,000.

On February 3, Spectrum and APC Group held a ceremonial contract signing for this sustainability initiative that is expected to help APC Group achieve its goal to reduce its environmental impact by 50% while improving its business operations.

Speaking during the ceremonial signing, APC President Tsutomu Nara said: “APC Group considers this venture as a good investment in establishing a WIN-WIN solution as both our company and the Filipino society would benefit greatly from this endeavor. This is only the beginning of more developments in this area as we continue to expand our sustainability efforts.”

This project enables APC Group to contribute to parent company Ajinomoto Company Inc.’s sustainability targets by utilizing solar power.

Once Spectrum completes the installation, APC will be able to reduce its carbon footprint by an estimated 865 metric tons, which is equivalent to planting 1,950,523 trees or reducing 2,352,456 miles in vehicle travel per year.

Spectrum President and CEO Ferdinand Geluz, for his part, said: “We are proud and excited to partner with Ajinomoto in their first solar project here in the Philippines. This project is a symbol of our shared focus on sustainability, and one of our goals of reducing our reliance to non-renewable energy sources to ensure a more sustainable and brighter future.”

Seen in above photo (L-R) Spectrum COO Patrick Henry T. Panlilio, APC President Tsutomu Nara, and Spectrum President and CEO Ferdinand O. Geluz during the contract signing held in Makati City on February 3, 2022.

Spectrum is a renewable energy solutions provider offering tailor-fit solutions for industrial, commercial, and residential customers through an in-depth understanding of energy consumption behaviors and strategic partnerships with world-class technology partners.

APC Group, on the other hand, markets Ajinomoto products in the Philippines. The local unit of Japanese multinational firm Ajinomoto Co., Inc. aims to bring happiness to every Filipino through their products and services that contribute to food and wellness, and to better lives for the future.

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Fortress New Zealand delays full reopening until October

February 3, 2022 | 3:23 pm

New-Zealand-Auckland Skyline-buildings — Image via Anup Shah/Flickr/CC BY-SA 2.0

WELLINGTON/SYDNEY — New Zealand on Thursday announced a phased reopening of its border that has been largely closed for two years due to the coronavirus disease 2019 (COVID-19) pandemic, but travel bodies said self-isolation rules need to be removed to revive the struggling tourism sector.

Vaccinated New Zealanders in Australia can travel home from Feb. 27 without a requirement to stay at state-managed quarantine facilities, while New Zealand citizens in the rest of the world will be able to do so two weeks later, Prime Minister Jacinda Ardern said.

Foreign vaccinated backpackers and some skilled workers can come to the country beginning March 13, while up to 5,000 international students will be allowed to enter from April 12.

Tourists from Australia and other visa-free countries will only be allowed in by July and travelers from the rest of the world will be kept out until October under the plan. All travelers would still have to self-isolate for 10 days, Ardern said.

Opening borders in a managed way would allow people to reunite and help fill workforce shortages while ensuring the healthcare system could manage an expected increase in cases, Ms. Ardern said.

“Our strategy with Omicron is to slow the spread, and our borders are part of that,” she told a business audience in Auckland. The highly contagious variant of the virus currently dominant around the world was recently detected in New Zealand, and case numbers are slowly mounting.

FORTRESS NEW ZEALAND
New Zealand has had some of the toughest border controls in the world for the last two years, as the government tried to keep the coronavirus out.

Foreigners were banned from entering, and citizens looking to return had to either make emergency requests to the government or secure a spot in state quarantine facilities, called MIQ, through a website.

Critics have called the system unfair. The opposition National party leader Christopher Luxon described MIQ as a “lottery of human misery.”

The policies helped keep infections and deaths low. A country of five million people, New Zealand has had about 17,000 confirmed COVID-19 cases so far and just 53 deaths.

But it also left tens of thousands of expatriate New Zealanders cut off from families back home, led to job losses for residents and has been devastating for businesses dependent on international tourists.

A pregnant journalist who was trapped in Afghanistan highlighted the issue with the tough border controls last week. She has since been granted a place in MIQ and plans to return in March.

The travel and tourism sector slammed the self-isolation rules, saying it prevented any meaningful recovery in what had been the country’s top earner of foreign exchange until recently.

“People do not want to fly to New Zealand if they have to spend their first week sitting in a hotel,” said New Zealand Airports Association Chief Executive Kevin Ward.

He said analysis by Auckland Airport showed demand from Australia’s visitor market is estimated at just 7% of 2019 levels if the self-isolation requirements remain in place.

A spokesperson for Australian travel agent Flight Centre said isolation requirements would be a “dealbreaker” for the vast majority of potential travelers.

Tourism Export Council of New Zealand CEO Lynda Keene said the self-isolation rule was a “complete handbrake that will keep New Zealand disconnected from the world, not reconnected.”

Ardern said the government will be reviewing the self-isolation requirements.

“It will be a much more meaningful reopening for tourists if they are able to enter with lesser self-isolation,” she told reporters. — Praveen Menon and Jamie Freed/Reuters

Wilcon Depot launches official store on Shopee Mall

February 3, 2022 | 2:45 pm

The country’s leading home improvement and building store, Wilcon Depot, officially launches its official store on Shopee Mall—a new and more seamless way of home shopping for all valued customers nationwide.

Home shoppers can explore and shop for high-end products across multiple categories in just a few clicks! Customers can find home items to build and refine their spaces such as lighting, large and small household appliances, safety and security products, kitchen appliances, bathrooms accessories and fixtures, kitchenware, tools, home interior and decor products, and home care supplies.

The new Wilcon Depot Official Store on Shopee Mall features 7 brands exclusively available at Wilcon: Hamden, Direct Hardware, Heim, Kaze, Alphalux, Ariston, and Grohe. Wilcon also guarantees that more product offerings will be made available soon on its official store.

Hamden

Hamden offers a wide array of kitchen appliances, perfect for an efficient cooking and baking experience in the kitchen. Customers can shop for top-notch kitchen items, including gas burners, electronic hotplates, range hoods, induction hobs, cooktops, built-in hobs, ovens, and dishwashers. Some Hamden products are distinctly developed with Italian sabaf burners that guarantee high-level performances with an excellent flame distribution.

Direct Hardware

Offering the finest selection of hardware products, Direct Hardware guarantees quality and uncompromising security for all your building projects. Direct hardware is made of durable materials and crafted to last a long time.

Heim

Heim carries a stunning selection of furniture pieces and decorations that will surely transform your home. From sofas, chairs, tables, centerpieces, wall clocks, mirrors, paintings, organizers, houseware, kitchenware, and other home accessories, Heim is your number one partner in home furnishing.

Kaze

Kaze offers cooling solutions that can help keep and maintain clean air and allow you to relax peacefully and comfortably at home. You can shop high-grade inverter and window type air conditioners, ceiling fans, stand fans, wall fans, exhaust fans, and more! Create a cool, healthy, and clean space at home with Kaze.

Alphalux

Built to brighten up and satisfy every homeowner’s space, Alphalux offers high-quality lighting solutions that give value for money and energy-efficiency. Shop for bulbs, downlights, panel lights, ceiling lamps, flood lights, filament bulbs, track lights, pendant lights, wall lamps, emergency lights, LED tube, and louver to give light to your home.

Ariston

Experience premium showers with the right water heater at home from Ariston. Bearing the hallmarks of Italian design—stunning, slim, and safe—Ariston introduces four single-point water heater products: Aures Easy, Aures Comfort, Aures Smart, and Aures Luxury. Trust Ariston to provide premium comfort and satisfaction in the shower area with its slim body, adjustable temperature, and easy installation features.

Grohe

Guaranteeing high-standard quality in all of its product lines, Grohe is a top global brand of bathroom solutions and kitchen fittings suitable for every home. Towering with innovation, modern designs, and brilliant convenience, you can find an extensive collection of shower systems, bathtubs, kitchen and bathroom faucets and sinks, accessories, and more.

Aside from shopping for excellent quality home products, customers can also enjoy monthly great deals with promo tie-ups with Shopee Mall!

Shop now and experience a whole new way of home shopping at Wilcon Depot! Explore products from exclusive top brands at the official Wilcon store at the Shopee Mall by clicking this link.

You can also visit and shop now at any of their 73 outlets nationwide or shop online at Wilcon Online Store by visiting shop.wilcon.com.ph.

For more information about Wilcon, you can log on to www.wilcon.com.ph or follow their social media accounts on Facebook and Instagram. Subscribe and connect with them on Viber Community, LinkedIn, and YouTube.

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Biden orders nearly 3,000 US troops to Eastern Europe to counter Russia

February 3, 2022 | 2:44 pm

Task Force Thunderbolt commences Poland mission — IMAGE VIA DVIDS

WASHINGTON/MOSCOW — The United States will send nearly 3,000 extra troops to Poland and Romania to shield Eastern Europe from a potential spillover from the crisis over the massing of Russian troops near Ukraine, US officials said on Wednesday.

Russia has denied plans to invade Ukraine but signaled it was in no mood for compromise on Wednesday by mocking Britain, calling Prime Minister Boris Johnson “utterly confused” and accusing British politicians of “stupidity and ignorance.”

Moscow has deployed more than 100,000 troops near Ukraine’s borders and says it could take unspecified military measures if its demands are not met, including a promise by NATO never to admit Kyiv.

A Stryker squadron of around 1,000 US service members based in Vilseck, Germany would be sent to Romania, the Pentagon said, while around 1,700 service members, mainly from the 82nd Airborne Division, would deploy from Fort Bragg, North Carolina, to Poland. Three hundred other service members will move from Fort Bragg to Germany.

US President Joseph R. Biden, Jr., said the deployment was consistent with what he had told Russian President Vladimir Putin: “As long as he is acting aggressively we’re going to make sure we can reassure our NATO allies and Eastern Europe that we’re there,” he said, according to media reports on Twitter.

The objective, Pentagon spokesperson John Kirby said, was to send a “strong signal” to Mr. Putin “and frankly, to the world, that NATO matters to the United States and it matters to our allies.”

“We know that (Putin) also bristles at NATO, about NATO. He’s made no secret of that. We are making it clear that we’re going to be prepared to defend our NATO allies if it comes to that. Hopefully it won’t come to that.”

Poland’s Defense Minister Mariusz Blaszczak said the US deployment was a strong sign of solidarity. NATO Secretary-General Jens Stoltenberg also welcomed it, saying the alliance’s response to Russia was defensive and proportional.

Efforts to reach a diplomatic solution continued, despite some Western countries describing Russia’s main demands as non-starters and Moscow showing no sign of withdrawing them.

Mr. Biden and French President Emmanuel Macron discussed coordination of diplomatic efforts and plans to impose economic costs on Moscow should it invade Ukraine, the White House said. Mr. Macron said he was planning to talk to Mr. Putin soon too.

Turkish President Tayyip Erdogan is set to visit his counterpart Volodymyr Zelensky in Ukraine on Thursday after pitching Turkey as a mediator to ease tensions with Russia, while German Chancellor Olaf Scholz said he would meet Putin in Moscow soon, without giving a date.

The Kremlin said Mr. Putin told Britain’s Mr. Johnson that NATO was not responding adequately to its security concerns. Mr. Johnson’s office said he had told Mr. Putin an incursion would be a “tragic miscalculation” and they had agreed to apply a “spirit of dialogue.”

On Tuesday, Johnson had accused Russia of holding a gun to Ukraine’s head, drawing caustic remarks from Kremlin spokesman Dmitry Peskov before the call with Putin. Johnson had rescheduled the call to answer questions in parliament about accusations his staff violated coronavirus disease 2019 (COVID-19) lockdown rules.

“Russia and President Putin are open to communicating with everyone,” Mr. Peskov said. “Even to someone who is utterly confused.”

Russia’s Foreign Ministry mocked Mr. Johnson’s foreign secretary, Liz Truss, for saying in an interview that Britain was “supplying and offering extra support into our Baltic allies across the Black Sea” — two bodies of water that are on opposite sides of Europe — “as well as supplying Ukrainians with defensive weapons.” The UK Foreign Office later said she was listing separate geographic areas of support.

“Mrs. Truss, your knowledge of history is nothing compared to your knowledge of geography,” Russian Foreign Ministry spokesperson Maria Zakharova wrote in a blog post. “If anyone needs saving from anything, it’s the world, from the stupidity and ignorance of British politicians.”

BEAR VS. FOX
A day earlier, in his first public comments about the Ukraine crisis this year, Mr. Putin suggested Russia was being forced to protect itself from US aggression.

Washington has said it will not send troops to Ukraine itself to shield it from a Russian attack, but would impose financial sanctions on Moscow and send arms to help Ukrainians defend themselves.

Russia, still Europe’s main energy supplier despite being under US and EU sanctions since annexing Crimea from Ukraine in 2014, brushes off additional sanctions as an empty threat.

Washington and its allies have rejected Russia’s two main demands — that Ukraine be barred from ever joining NATO and that deployments of troops in eastern European countries that joined the alliance after the end of the Cold War be rolled back.

Spanish newspaper El Pais released what it said was a leaked copy of a US response to Russian demands, in which Washington offered talks with Moscow on an agreement for both sides to refrain from stationing offensive missiles or troops in Ukraine.

Washington could also provide reassurance that it had no cruise missiles in Poland or Romania, and discuss steps to prevent dangerous incidents at air or sea, said the document, which appeared to be in line with the public US position.

“I have seen nothing to suggest these documents are not authentic,” State Department spokesperson Ned Price said.

“What we have conveyed … are proposals for further diplomatic engagement. This will require engagement in good faith, some concerted fairly technical discussions, if they are going to result in anything,” he said. — Phil Stewart and Dmitry Antonov/Reuters

Meta shares sink 20% as Facebook loses daily users for the first time

February 3, 2022 | 1:32 pm

FACEBOOK owner Meta Platforms Inc.’s shares plunged more than 20% late on Wednesday after the social media company posted a weaker-than-expected forecast, blaming Apple’s privacy changes and increased competition for users from rivals like TikTok.

Facebook’s global daily active users declined from the previous quarter for the first time, to 1.929 billion from 1.930 billion.

Meta said it faced hits from Apple Inc’s privacy changes to its operating system, which have made it harder for brands to target and measure their ads on Facebook and Instagram. It also cited macroeconomic issues like supply-chain disruptions.

The 18-year-old tech giant, which also faces pressure from platforms like TikTok and Google’s YouTube, said it expected slowing revenue growth in the coming quarter due to increased competition for users’ time and a shift of engagement toward such features as its short video offering Reels, which generate less revenue.

Facebook reported 2.91 billion monthly active users in the fourth quarter, showing no growth compared with the previous quarter.

The after-hours slump in Meta shares vaporized $200 billion of its market value, while peers Twitter Inc, Snap Inc and Pinterest Inc lost another $15 billion in value.

Shares of Alphabet Inc, which posted record quarterly sales that topped expectations on Tuesday, were down nearly 2%.

Meta, owner of the second-largest digital ad platform in the world after Google, had previously warned its advertising business faced “significant uncertainty” in the fourth quarter.

Meta’s chief financial officer, Dave Wehner, told analysts on a conference call that the impact of Apple’s privacy changes could be “in the order of $10 billion” for 2022.

Apple’s changes to its operating software give users the choice to prevent apps from tracking their online activity for ads, making it harder for advertisers that rely on data to develop new products and know their market.

Meta forecast first-quarter revenue in the range of $27 billion to $29 billion. Analysts were expecting $30.15 billion, according to IBES data from Refinitiv.

“It’s clear that there are many big roadblocks ahead as Meta faces tough new competition for ad revenue such as TikTok, and as it contends with ongoing ad targeting and measurement challenges from Apple’s iOS changes,” said Insider Intelligence analyst Debra Aho Williamson.

The company’s total revenue, the bulk of which comes from ad sales, rose to $33.67 billion in the fourth quarter from $28.07 billion a year earlier, beating analysts’ estimates of $33.40 billion, according to IBES data from Refinitiv.

“I’m encouraged by the progress we made this past year in a number of important growth areas like Reels, commerce, and virtual reality, and we’ll continue investing in these and other key priorities in 2022 as we work towards building the metaverse,” CEO Mark Zuckerberg said in the earnings release.

In Meta’s earnings call, he said competition for users was one factor impacting the business, mentioning short video app TikTok by name and emphasizing Meta’s commitment to providing services for young adults.

Net loss from Meta’s Reality Labs, the company’s augmented and virtual reality business, was $10.2 billion for the full year 2021, compared with a $6.6 billion loss the previous year. It was the first time the company had broken out this segment in its results.

Mr. Zuckerberg had previously warned that the company’s investment in this area would reduce 2021 operating profit by $10 billion and would not be profitable “any time in the near future.”

Reality Labs posted revenue of about $2.3 billion in 2021. The company has not made public the sales numbers for its virtual reality Quest headsets.

The company said on Wednesday it would this year change its stock ticker to “META,” the latest step in its rebrand to focus on the metaverse, a futuristic idea of virtual environments where users can work, socialize and play. Meta did not comment on the price of a deal with Roundhill Investments, which said in January it would stop using the symbol for its Roundhill Ball Metaverse ETF.

The tech giant, which changed its name in October to reflect its metaverse aims, is betting the metaverse will be the successor to the mobile internet.

“Investors looking at Meta are starting to realize that buying their stock is no longer mostly an investment into their ad platform,” said Flynn Zaiger, CEO of social media agency Online Optimism. “Investing in Meta now looks more like a commitment that you believe that the metaverse will replace much of the internet consumers’ experience today.”

Meta’s rebrand comes at a time of increasing scrutiny from lawmakers and regulators over allegations of anticompetitive conduct and over the impacts of how it handles harmful or misleading content across its Facebook and Instagram platforms. — Elizabeth Culliford and Nivedita Balu/Reuters

EU’s border-free Schengen zone needs overhaul, political leadership – Macron

February 3, 2022 | 1:03 pm

TOURCOING, France — The European Union’s (EU) border-free Schengen area should be managed by regular ministerial meetings, just like the euro zone, French President Emmanuel Macron said on Wednesday, adding that this could start as early as next month.

National security concerns, waves of migration and, most recently, the coronavirus pandemic have led to the re-emergence of border controls in the Schengen zone and much criticism of how it functions, eroding what had been hailed as a milestone achievement in Europe’s post-World War Two integration.

Speaking to EU justice and interior ministers, Mr. Macron said what he dubbed the “Schengen Council” would evaluate how the border-free area was working but would also take joint decisions and facilitate coordination in times of crisis.

“This Council can become the face of a strong, protective Europe that is comfortable with controlling its borders and therefore its destiny,” he said in the northern French town of Tourcoing. He said its inaugural meeting could take place when the EU’s justice and home affairs ministers next gather, on March 3.

Such a proposal would need the support of other member states in the 27-nation bloc to take effect, though French officials say it would not require any change to EU treaties.

The EU has been deeply divided for years in its response to immigration and on how to police Schengen’s common external borders, and it remains to be seen how much France can achieve during its six-month presidency of the EU Council of Ministers — which mostly involves setting the agenda for meetings.

But Mr. Macron, who is all but certain to seek re-election as French president in April in a campaign largely dominated by security and identity issues, said he hoped that a step-by-step approach could win over a number of reluctant EU countries.

“We must reform Schengen,” he said. “There can be no freedom of movement if we do not control our external borders.”

France has also proposed an emergency response mechanism that could be triggered when the bloc’s external borders are under threat. — Reuters

Fighting COVID will help economy recover faster, lower inflation — IMF’s Georgieva

February 3, 2022 | 12:37 pm

IMF — A participant stands near a logo of the International Monetary Fund at the annual meeting in Nusa Dua, Bali, Indonesia, Oct. 12, 2018. — REUTERS/JOHANNES P. CHRISTO/FILE PHOTO

WASHINGTON — The coronavirus disease 2019 (COVID-19) pandemic remains the biggest risk to the global economy, and is contributing to rising inflation in many countries, International Monetary Fund (IMF) chief Kristalina Georgieva said on Wednesday.

Ms. Georgieva urged redoubled efforts to boost vaccinations and beef up defenses against the coronavirus, saying such moves — coupled with interest rate increases now being eyed or executed by central banks — would help ease supply chain disruptions and combat inflation.

“Pandemic policy is economic policy,” the IMF chief said. “The biggest risk for the performance of the world economy remains this year COVID and the disruption it causes.”

The IMF chief conceded that inflation had turned out to be a “more significant economic and social problem” than expected, and said economists had underestimated the impact of both delayed consumption and climate shocks on food prices.

Ms. Georgieva noted that vaccination rates in 86 countries had not reached a target of vaccinating at least 40% of their populations in 2021, and vaccination rates were at just 5% in low-income countries, compared with 70% in rich countries.

“Why is this a problem? Because what we do is we retain a breeding ground for more and more and more COVID variants,” she told an event hosted by the Washington Post.

The IMF last week cut its economic forecasts for the United States, China, and the global economy, and said uncertainty about the pandemic, inflation, supply disruptions and US monetary tightening posed further risks.

Ms. Georgieva said interruptions in global supply chains — initially expected to be brought under control as early as the first half of 2022 — were likely to continue because of COVID restrictions and other factors, including far higher demand for consumer goods such as computers and cars.

She warned that the dispute between Russia and Western countries over Ukraine was already driving energy prices higher, particularly in Europe, and complicated the already uncertain outlook for the global economy.

Ms. Georgieva’s deputy, Gita Gopinath, last week said an escalated conflict between Russia and Ukraine would likely further increase energy costs and commodities prices for many countries, keeping headline inflation rates elevated for longer.

She said the IMF underestimated the impact of climate change on food prices. “We have to recognize we are in a more shock-prone world, and we do have to expect these kind of shocks to be a factor in the future,” Ms. Georgieva said.

Economists also underestimated the impact of stimulus funding in fueling “more stronger consumer demand,” she said.

Ms. Georgieva said the US Federal Reserve was doing a good job communicating its plans to tighten monetary policy, and she expected it to sustain its well-calibrated and well-communicated approach to combat inflation while keeping the recovery going.

“If we reduce the risks of more variants and more lockdowns, we are helping supplies to come on time and we are helping the economy to recover faster,” she said. — Andrea Shalal and David Lawder/Reuters

Congress ratifies amendments to Public Service Act

February 3, 2022 | 12:35 am

globe-cell-site-telco-tower — GLOBE.COM.PH

Congress on Wednesday evening ratified the bicameral conference committee report of a bill amending the Public Service Act (PSA), which would now allow 100% foreign ownership in telecommunications, airlines and railways.

Under the reconciled version of House Bill No. 78 and Senate Bill 2094, telecommunications, domestic shipping, railways and subways, airlines, expressways and tollways, and airports have excluded from the definition of public utility.

Since these are no longer considered as public utilities, they will no longer be subject to the 40% foreign ownership cap under the Constitution.

Certified urgent by President Rodrigo R. Duterte, the measure will now be sent to Malacañang for his signature.

Lawmakers said the amendment to the PSA bill would open these key sectors to much-needed foreign investment and competition, which would translate to cheaper airfares, lower transportation and shipping costs, and affordable Internet services for consumers.

“Not only will the passage of this measure speed up the country’s economic recovery from the devastating effects of the pandemic, but it will also make our country competitive when it comes to attracting foreign investments which we sorely lack and need,” said Senator Mary Grace Natividad S. Poe-Llamanzares, who led the Senate contingent to the bicameral committee, during the plenary session late Wednesday.

Marikina City Rep. Stella Luz A. Quimbo said the bicameral committee was able to strike a balance between “opening up the economy to more foreign investors, protecting small businesses like jeepney operators, and ensuring that national security is safeguarded.”

Ms. Poe said the liberalization of these industries is not an invitation for foreign countries to take advantage of the Philippines’ resources, adding adequate safeguards were placed to protect national security and sovereignty.

Under the reconciled version, foreign state-owned enterprises are prohibited from owning capital in any public service classified as public utility or critical infrastructure.

Also, the measure prohibits foreign nationals from owning more than 50% of the capital of entities engaged in the operation and management of critical infrastructure, unless his or her country accords reciprocity to Philippine nationals.

The President is also given the authority to suspend or prohibit any proposed merger or acquisition, or investment in a public service that results in giving control to a foreigner or foreign corporation.

The measure also states that “no person shall be deemed a public utility unless otherwise subsequently provided by law.”

Under the measure, the definition of public utilities still includes distribution and transmission of electricity; petroleum pipeline transmission systems; water distribution systems; seaports and public utility vehicles. These will continue to be subjected to the 40% foreign ownership cap.

Senate President Pro Tempore Ralph G. Recto reiterated that he was against the passage of this proposed measure.

“I have no problem with foreign investments, especially when it comes to manufacturing, that’s where we need it the most,” he said. “But I do think that there are certain industries that need to be reserved for Filipinos, and that is consistent also with our Constitution, particularly certain critical infrastructure or industries.”

At the House, Gabriela Party-list Rep. Arlene D. Brosas also objected to the ratification of the measure.

“By providing a limited definition of public utility, this measure exploits the loophole in the 1987 Constitution to allow the circumvention of foreign ownership limits for all other types of public services…Ironically, we are ratifying this measure on the anniversary of the 1987 Constitution,” she said.

SIM CARD REGISTRATION
Meanwhile, Congress also ratified the bicameral committee report on the proposed SIM Card Registration law, which aims to co curb fraud and other crimes aided by subscriber identity module (SIM) cards.

“We hope that by legislating this measure, we would be able to eradicate mobile phone, internet or electronic communication-aided criminal activities,” said Ms. Poe.

The committee agreed to use the House version as the working draft, said Ms. Poe.

Under the approved version, all public telecommunications entities (PTEs) must require the registration of SIM cards as a prerequisite to their sale and activation.

An individual’s real name and phone number must also be provided upon the creation of an account in any social media network.

Data collected from registration will be kept by the respective PTE in a centralized database, strictly serving as a register for the processing, activation, or deactivation of subscription, and not for any other purpose.

PTEs and social media providers must keep relevant data and information for 10 years from the time the end-user deactivates their number or account.

All existing SIM card subscribers with active services are required to register within 180 days from the when the law takes effect. PTEs are mandated to deactivate SIM card numbers not registered within this period.

Ms. Poe said the sale of SIM cards to foreign nationals will be allowed, provided they comply with certain requirements. — Alyssa Nicole O. Tan

Manufacturing growth loses steam

February 3, 2022 | 12:34 am

worker-electronics-manufacturing-PEZA — REUTERS

By Jenina P. Ibañez, Senior Reporter

PHILIPPINE MANUFACTURING GROWTH lost steam in January, as the impact of Typhoon Odette and the surge in coronavirus disease 2019 (COVID-19) infections hampered demand and production, IHS Markit said on Wednesday.

The IHS Markit Philippines Manufacturing Purchasing Managers’ Index (PMI) reading slipped to 50 in January, from 51.8 in December 2021, ending four straight months of growth.

A reading of 50 indicates no changes in manufacturing conditions, while a reading above signals improvement and anything below suggests the opposite.

“The latest PMI data revealed an unfortunate start to the year for the Philippine manufacturing sector, with the surge in case numbers and Typhoon Odette hitting large parts of the nation,” said Shreeya Patel, an economist at IHS Markit.

“Anecdotal evidence suggested both factors weighed heavily on both domestic and international demand as well as firms’ ability to produce goods. Material shortages and delivery delays were also prominent, continuing pressure on vendor performance.”

Typhoon Odette struck the central and southern parts of the Philippines in December, causing billions in damage to both agriculture and infrastructure.

Starting January, Metro Manila and nearby areas were placed under Alert Level 3, a stricter lockdown, to contain another surge in COVID-19 cases, this time driven by the more infectious Omicron variant.

PMI is the weighted average of five sub-indices — new orders (30%), output (25%), employment (20%), suppliers’ delivery times (15%) and stocks of purchases (10%).

IHS Markit said the Philippines’ moderate PMI reading was mostly caused by a decline in output, with production volumes falling at its quickest rate in five months due to both the lockdown restrictions and bad weather. The stricter mobility curbs also caused weak demand and slower delivery times.

“International demand declined at the fifth quickest rate in the series with the pandemic and the typhoon reportedly weighing on sales to foreign markets,” IHS Markit said.

“Delivery times were also affected by adverse weather conditions and the pandemic with lead times lengthening at the start of the year.”

Meanwhile, factories continued to reduce their workforce, although at a softer rate.

Despite the production and demand declines, companies raised their pre-production inventories to prepare for possible shortages in the future. In contrast, post-production stocks dropped.

“Whilst the full impact of the typhoon and the Omicron variant are unknown, it’s clear production will certainly be impacted in the coming months as companies adapt once again,” Ms. Patel said. “Firms will hope for a quick recovery and remain prepared through advance ordering strategies.”

Out of the Association of Southeast Asian Nations (ASEAN) PMI reports released so far, both Indonesia and Vietnam recorded the highest growth in the region at 53.7, followed by Thailand at 51.7. Myanmar is behind the Philippines at 48.5.

Demand conditions in Indonesia improved on the back of new orders from overseas, while both new orders and output in Vietnam increased due to the absence of widespread restrictions, IHS Markit said.

The full ASEAN report will be released on Thursday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said storm damage from Typhoon Odette likely caused disruptions in some manufacturing activities, especially in the hardest-hit cities in Visayas and Mindanao.

Factory activity could pick up in the coming months after Metro Manila was again placed under a more relaxed Alert Level 2 this month, he said in a Viber message.

Nicholas Antonio T. Mapa, ING Bank N.V. Manila senior economist, said the surge in cases due to the Omicron variant weighed on business sentiment. The rapid spread of the Omicron variant showed how new variants could still impact the country’s growth outlook.

According to IHS Markit, both the pandemic and typhoon moderated business sentiment to its weakest since August 2021. However, the overall outlook was still positive as firms hope for a “return to normality” and “fruitful market conditions” this year.

“Future growth aspirations and outlook will need to always consider the possibility of a return to tighter mobility curbs during episodes of virus waves,” Mr. Mapa said in an e-mail.

“Despite this recent disruption, firms remain optimistic that the Omicron wave and the fallout from Odette will be short-lived, a speed bump that merely saps some momentum but is unable to change the overall growth narrative. We believe expansion in manufacturing may continue for as long as virus mitigation is effective.”

Trade Secretary Ramon M. Lopez in a Viber message to reporters said the typhoon had a huge impact on manufacturing capacity as many areas lost basic utilities like power and water.

“But these factors are now getting resolved and on Omicron, we are seeing a downward trend, so we can expect an improvement in the PMIs in the months to come.”