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Italy’s restaurants cry for help as COVID bites into New Year bookings

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ROME — Italian restaurant and club owners are seeking urgent government support due to increased cancellations prompted by a surge in coronavirus infections, they said in a statement on Wednesday.  

Business group Fipe-Confcommercio said the growing number of cases and the quarantine rules imposed on close contacts of COVID-19 sufferers had prompted 25%–30% cancellations in New Year’s Eve dinner bookings.  

“December … which alone accounts for 10% of restaurant revenues, is largely compromised,” they said, asking the government to extend a coronavirus disease 2019 (COVID-19) debt moratorium and a lay-off compensation scheme for workers.  

Daily cases have soared this week, peaking at a record high 78,313 on Tuesday as the highly contagious Omicron variant spreads.  

Prime Minister Mario Draghi has tightened COVID-19 rules for the holiday period, banning concerts and open-air events and shutting down discos until Jan. 31.  

“Discos and clubs have literally been wrecked without any prior notice,” Confcommercio said.  

The virus is ravaging several sectors of public life, including theaters. Milan’s La Scala opera house was forced to cancel a ballet scheduled for this week due to growing infections among the dancers.  

Italy has also imposed restrictions on travelers, including on those inside the European Union who need to take a coronavirus test before departure, a move that provoked the ire of tour operators and hotel owners.  

Tourism minister Massimo Garavaglia said in a statement he agrees with the concerns about the lay-off scheme and urged the labor ministry to act quickly.  

“The spread of the new variant risks causing social damage, along with harming revenues,” he said. — Reuters

Financial literacy or luck? The year small-time traders made a big impact

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LONDON/NEW YORK — In May, San Diego-based Emily was feeling flush from a year of double-digit gains earned from trading stocks. Equity options, which some fellow stay-at-home investors were dabbling in, would juice up her returns, she decided.  

Emily was among the army of small-time investors who shook up stock markets in 2021. Some earned fortunes by squeezing out hedge funds from short positions on so-called “meme” stocks such as retailer GameStop and cinema group AMC Entertainment.  

But AMC proved to be Emily’s downfall. As its shares hovered around $15, she began selling “naked call options” that allowed holders to buy underlying stock from her at pre-agreed price. Instead of falling as expected, however, AMC stock rocketed.  

Naked options meant Emily did not actually own the shares. When AMC shares hit $72.62 on June 2, margin calls kicked in — essentially a demand for cash to top up her brokerage account.  

“I was on the phone with [brokerage] TD Ameritrade’s margin team, telling them to give me more time … but it was either I sell it or they sell it,” she said. Eventually, she said she liquidated her portfolio, losing $670,000.  

Emily is not the trader’s real name but she provided documents confirming her identity. Reuters could not independently verify the size of her losses but reviewed brokerage statements showing she sold sizable call options on AMC and other stocks in May.  

“It was very devastating. I couldn’t sleep,” Emily said. Having quit her human resources job at the end of 2019 to trade full time, she now works as a delivery driver.  

Her account is a cautionary tale of what can happen when booming markets tempt inexperienced investors to risk it all.  

But for every Emily, there is a small-time trader who surfed this year’s stock market boom, energized by economic recovery, central bank money-printing and government cash handouts.  

TD Ameritrade, the broker Emily used, says along with broker Schwab, it added six million new accounts this year.  

Conditions were ripe for retail trading even pre-pandemic, as new mobile platforms enabled individuals to buy stocks, or fractions of stocks, at tiny or even non-existent commissions.  

“Everyone can get their bit of the pie,” said Ben Phillips, a 30-year-old London-based pilot who started trading in 2019. He calls himself a long-term investor, but also day trades “as a bit of fun, a bit of gambling.”  

The retail wave was the “main reason” global equity demand reached $1.1 trillion this year, JPMorgan strategist Nikolaos Panigirtzoglou said.  

“By acting as momentum traders, retail investors will most likely continue to propagate the equity markets, at least for the coming year. They will have no alternatives because interest rates will stay near 0%,” he added.  

BIG BUYERS  

Retail trading, unlike meme crazes, seems unlikely to fade.  

US retail traders have bought a net $281 billion worth of US stocks so far this year, against $240 billion in 2020 and $38 billion in 2019, according to Vanda Research.  

Many forayed into equity options, lifting US volumes more than 40% from 2020, analytics firm Trade Alert estimates.  

They also account for up to half the trading in single-stock options — wagers on individual shares — according to JPMorgan. That in turn took such options’ share of total option volumes to a record high this year, Reuters analysis of Trade Alert data shows.  

The retail frenzy is most pronounced in US markets and even platforms popular in Europe say traffic is generally highest in US companies such as Tesla, Nio, Apple, Amazon, and GameStop.  

But the trend is broadening.  

Russia’s Moscow Exchange says 26 million retail accounts are registered with it, up four-fold from early 2020, and both the bourse and brokerage Tinkoff plan to expand trading hours, including into the weekend.  

In India, 19% of trading in November was by mobile phone — one barometer of retail activity — according to Bombay Stock Exchange data, versus 7% in November 2019.  

SLOWDOWN  

Trading activity growth has slowed, possibly as central banks signal higher interest rates are coming.  

Brokerage eToro’s online platform, which has two-thirds of its customers in Europe, saw 106 million trades in the third quarter of 2021, half of the first quarter total, though well above early-2019 levels of 63 million.  

Meagre returns elsewhere persuaded Mr. Phillips, the pilot, to start trading in late 2019.  

While his Tesla holdings were hit hard by the March 2020 sell-off, he bought more after watching YouTube videos where traders advised watchers to “buy the dip.”  

The subsequent bounce quadrupled Mr. Phillips’ initial 15,000-pound ($20,100) outlay, he said, but he has no plans to sell, citing his “10-year conviction” on Tesla.  

Others such as Dan, a 24-year-old student from northern England, caught the trading bug through “boredom” and reading online chatrooms such as “WallStreetBets” that pumped meme stocks.  

Requesting his full name not be used, Dan says he made four times his 1,000-pound investment in GameStop, though friends who got in late lost money.  

He has since quit day trading, calling it “luck,” but invests in stocks via a British savings account. The experience had “helped me be more financially literate,” he added.  

Emily, the Californian trader, also still trades but in smaller volumes. She hopes one day to rebuild her portfolio. — Tommy Wilkes, Saqib Iqbal Ahmed and Elizabeth Howcroft/Reuters  

What can world leaders do to make COP26 deforestation pledge a success?

REUTERS

KUALA LUMPUR — Global leaders who have pledged to halt deforestation by 2030 must move quickly to strengthen forest protection laws, line up funding, and include indigenous people in conservation efforts to have the best chance of success, environmentalists said.  

More than 100 leaders last month agreed to halt and reverse deforestation and land degradation by the end of the decade, underpinned by $19 billion in public and private funds to invest in protecting and restoring forests.  

The commitment — made at the COP26 climate talks in Glasgow and backed by forest-rich countries such as Brazil, Indonesia, and the Democratic Republic of Congo — covers forests totaling more than 13 million square miles (33.7 million sq km).  

Fran Raymond Price, global forest practice lead at environmental group WWF International, said there was an urgent need to see the Glasgow forest declaration turned into meaningful action.  

“The political will demonstrated by the governments who signed this commitment is a welcome first step,” she told the Thomson Reuters Foundation.  

“[But] we need to see this now translated into legislative action within the next year or two, with transparency, accountability and involvement of … indigenous peoples and local communities,” she said.  

Cutting down forests has major implications for global goals to curb warming, as trees absorb about a third of the planet-heating carbon emissions produced worldwide, but release the carbon they store when they rot or are burned.  

Forests also provide food and livelihoods, clean the air and water, support human health, are an essential habitat for wildlife, regulate rainfall and offer flood protection.  

Last year, an area of tropical forest the size of the Netherlands was lost, according to monitoring service Global Forest Watch.  

The Glasgow declaration was broadly welcomed but many environmentalists noted similar zero deforestation pledges had repeatedly been made and not met by both governments and businesses.  

Those include the 2014 New York Declaration on Forest (NYDF), the United Nations sustainability goals and targets set by global household brands.  

Under the Glasgow pledge, further leader and ministerial meetings are expected in 2022 and beyond to assess progress and drive implementation of the pact.  

“Transparency, as well as continued pressure from civil society, indigenous groups and local communities, and consumers, will be critical elements to monitor the progress on commitments and enable success,” said Ms. Price on the deal’s implementation.  

“For the future of our forests, we need this declaration to succeed.”  

FOREST CONVERSION BANS  

An annual report published in late October on the NYDF — backed by more than 200 countries, firms and green groups — found that the sustained reductions in forest loss needed to meet its 2030 target to end deforestation are highly unlikely.  

To avoid the Glasgow pact meeting a similar fate, countries that committed to the accord and that import deforestation-risk commodities — like palm oil, soy, timber and beef — need to quickly introduce legislation and regulations to boost conservation.  

Companies in richer countries like China, the United States, Britain and those in the European Union often rely on such raw materials to fuel their businesses — but don’t always have safeguards to protect forests.  

There has been some progress, however, with both the EU and the United States proposing new laws aimed at curbing the import of commodities linked to deforestation.  

Countries should also make it mandatory for businesses in those commodity sectors to put in place human rights and deforestation safeguards, environmentalists said.  

As well, companies should use technology to monitor forest destruction and ensure supply chains are sustainable and transparent, they said.  

Forest-rich nations where many of these commodities are produced will also need to implement new and stricter laws to halt deforestation and land conversion, they added.  

Those should include incentives for small landowners and local communities to bolster forest protection, they said.  

“A good and logical first step by the signatory governments would be to issue a moratorium on all further destruction and degradation of intact forests,” said Toerris Jaeger, secretary general of the Oslo-based Rainforest Foundation Norway.  

“Once an area of intact forests is fragmented and opened up through road construction, it’s extremely hard to avoid further deforestation and loss of carbon to the atmosphere.”  

Indonesia’s environment minister dismissed as “inappropriate and unfair” the Glasgow deal to end deforestation by 2030, in an abrupt about-face just days after her country agreed to the pledge.  

But the Southeast Asian nation, which is home to the world’s third-largest tropical forests and also its biggest palm-oil producer, has seen deforestation rates buck the worsening global trend in recent years.  

That is partly due to an Indonesian moratorium on new conversion permits for primary forest and peatland, and on new palm oil plantations.  

Mr. Jaeger said the most recent national climate action plans submitted by the five largest rainforest countries under the Paris Agreement would still allow 20 million hectares (49 million acres) of tropical forests to be cut down over the next decade.  

“Ending deforestation will require changes in policy, regulation, governance and financial incentives across different countries and actors, to make it more valuable to keep the forest than destroy it,” he said.  

ACT FAST  

In a sign of the scale of the challenge, deforestation in Brazil’s Amazon rainforest soared 22% in a year to the highest level since 2006, the government’s annual report showed last month.  

The data undercut President Jair Bolsonaro’s assurances that the country is curbing illegal logging.  

And while causes of deforestation vary from place to place, some of the challenges faced are common across different regions, Mr. Jaeger said.  

These include a lack of policies that efficiently regulate land use and deforestation, lax or missing enforcement of the laws and regulations that do exist, and weak land rights for the traditional communities that live in and off the forests.  

Other problems are financial incentives that stimulate economic or subsistence activities driving deforestation, and a lack of financial reward for protecting forests, he added.  

“A joint approach across all these dimensions is needed to bend the curve and end deforestation by 2030,” he said.  

“It’s important to act fast and not wait as we approach 2030 to start reducing deforestation.”  

Nations also have to develop ways to reward the maintenance of intact forests and the restoration of degraded and deforested areas, to make it feasible to end deforestation and increase forest cover, Mr. Jaeger said.  

Funding for this will in large part have to come from rich countries, he added.  

A study published late last month by Britain’s University of Sheffield found that, globally, indigenous peoples’ lands have roughly a fifth less deforestation than non-protected areas.  

“Indigenous peoples must be at the center of forest protection,” said Kiki Taufik, head of Greenpeace’s Indonesian forests campaign.  

“Efforts to halt deforestation cannot succeed without rapid recognition of indigenous peoples’ land rights.”  

JOIN HANDS  

For the Glasgow pledge to be effective, it must include a simple reporting mechanism that transparently discloses progress, said Emmanuelle Berenger, sustainable forest management lead at certification body the Rainforest Alliance.  

As well, all government ministries must work together, not separately, on tackling deforestation, she added, while financiers and businesses also need to build strong alliances around the Glasgow declaration’s goals.  

In agriculture, firms should move rapidly to responsible sourcing, ensuring human rights are respected and local communities’ livelihoods are considered, Berenger said.  

Affordable technologies — such as satellite images — are available to monitor progress of the declaration, she said.  

Forest protection received unprecedented visibility at the COP26 meeting but countries now need to pivot swiftly from commitments and goodwill to action, including providing more finance, said Tim Christophersen, who leads the UN Environment Programme’s nature-for-climate branch.  

That should happen no later than by COP27, set to be held next year in Egypt, he added.  

The Glasgow meeting should provide the impetus for nations to build strong partnerships with buyers, sellers and other parties in the “forest carbon value chain,” especially indigenous and local people, he said.  

“Never have we attempted this kind of complex systems change in such a short time frame … but we have all we need to make it happen,” he said of the 2030 goal.  

“We have climate champions across society — from youth leadership in the Global North to the indigenous peoples of the Global South. We have only to join hands and make it happen.” — Michael Taylor/Thomson Reuters Foundation  

When should you go to hospital for a headache? A doctor explains how to tell if it’s an emergency

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“I waited for hours in emergency last night with this dreadful headache, but eventually gave up and left. Should I have kept waiting at the hospital?” 

This is a surprisingly common scenario I encounter as a general practitioner. If you’re wondering how bad your headache needs to be to go to the hospital, here’s the advice I give my patients.  

Let’s start with when you definitely should go to the hospital for a bad headache.  

Serious and urgent causes of headaches include infection, bleeding, clots, and tumors. Don’t hesitate to go straight to the hospital (via ambulance, or with a trusted driver) if you notice one or more of the following:  

  • sudden onset of the worst headache you’ve ever had  
  • headache that worsens with exercise or sexual intercourse  
  • neck stiffness (new since the headache started)  
  • high fever that doesn’t lower with over-the-counter pain medication  
  • headache after trauma to your head or neck
  • personality changes and/or strange behavior
  • weakness/numbness on one side of your body.  

Three specific situations are also urgent:  

  • pregnant or recently pregnant women who develop a sudden severe headache  
  • people who are immunocompromised (such as someone living with HIV or on strong immune-suppressing medications)  
  • people who’ve had any COVID-19 vaccine in the previous four to 42 days, and who have a persistent headache despite taking simple painkillers.  

If you are reading this and identify with any of the above, stop reading now and go straight to the hospital.  

Thankfully, most headaches are less serious and can be managed without a hospital trip. But they can still take a serious toll.  

As you read this, 15% of Australians are taking painkillers for a headache.  

But just because you don’t need to race to the hospital doesn’t mean you shouldn’t get help, especially if you’re experiencing regular headaches.  

Start by making a long appointment to see a GP to discuss your headache and nothing else. Give it the time and attention it deserves.  

It’s helpful to take a record of your headaches for your doctor’s appointment: a “headache diary.”  

The most important tool doctors have to diagnose headaches is your history. You may feel they are asking a lot of questions, but that’s because there are so many possible causes. Bear with your GP as they try to get you the most accurate diagnosis.  

Here are the kinds of questions a doctor may ask, or be asking themselves while they assess you:  

  • Is the pain caused by something straightforward?  

Possible common causes include dehydration, eye/neck strain, teeth grinding, lack of sleep, or caffeine withdrawal. Even taking regular painkillers can cause “medication overuse” headaches; the cure can become the cause.  

  • Where in your head is the pain?  

Sometimes the location of the pain gives a clue. For example, about 35% of headaches are “tension headaches”, which feel like a tight band around both sides of your head. Another 4% are “cluster headaches”, which start behind one eye (which can go red and watery) and are often associated with a stuffy nose.  

  • Do you have any other symptoms accompanying the headache?  

A migraine episode may be preceded by an “aura” (such as flashes of light), and often includes symptoms like nausea or vomiting, extreme sensitivity to noise and light, and blurred vision.  

Fevers, an altered sense of smell, fatigue, and pressure in your ears are features associated with acute sinusitis.  

  • Is there a pattern to your headaches?  

Certain headaches, such as migraine episodes or tension headaches, may have triggers that set them off, including certain foods, sleep deprivation, particular smells, or emotional stress.  

Hormonal headaches track with menstrual cycles. Once an association is noticed, you may be able to pre-empt and treat headaches early.  

  • Do you have any other medical conditions?  

Rarely, very high blood pressure (a hypertensive crisis) can cause a headache. However, raised blood pressure during a headache is usually simply your natural response to pain.  

It’s essential to have chronic and recurrent headaches diagnosed properly by a doctor. Your GP may send you to another specialist (such as a neurologist or ear, nose and throat surgeon) depending on how complicated your situation appears.  

Headaches rarely need diagnostic investigations, but if your doctor is worried they may organize a CT scan, MRI scan, or lumbar puncture.  

Even if you’re sent for further testing, a specific cause may not be found. If that’s the case, your doctor’s goal will be to help you manage your headaches and lessen their impact on your life.  

Migraines deserve a special mention here as they can be so debilitating and poorly understood.  

Many people self-diagnose “migraines” incorrectly. But a bad headache is not the same thing as a migraine attack, and some migraine attacks do not even include a headache.  

If you think you have migraine attacks, get them diagnosed and treated properly.  

If you can avoid going to the hospital unnecessarily when you have a headache, you’ll benefit yourself and Australia’s healthcare system.  

Every time you present to an emergency department, it costs you hours of your life, and the community an average of A$561.  

Seeing your GP is obviously more time-efficient and instead costs the community between A$38 to A$75.  

If headaches interfere with your life, please prioritize your health. See a doctor, get a management plan for them — and save yourself a painfully long wait in emergency. 

  

Natasha Yates is Assistant Professor, General Practice, at Bond University in Australia. 

This article is republished from The Conversation under a Creative Commons license. Read the original article. 

From one family-owned business, a new way of nurturing Filipino communities

Haus Talk Board of Directors: (L-R): Agnes Siapno (Chief Finance Officer), Albert Madlambayan (AVP of Construction), Luis Pio Madalambayan (Director / Construction Council-Bataan), Noemi Madlambayan (Corporate Secretary), Leah Madlambayan (Director / VP of Sales & Marketing) , Rachel Madlambayan (Director / President), Terence Madlambayan (Chairman / VP of Business Development), Joselito Madlambayan (AVP Construction - South), Judith Madlambayan (VP Treasury) and Edward Madlambayan (VP of Construction)

A breed of their own, family-run  small and medium enterprises (SMEs) are usually tricky to manage because of the many challenges that can threaten–or, unfortunately, end–their existence, which include: tension among the owners, whether related to the business itself, or personal; the lack of a proper succession plan; and the ever-changing needs of the market.

However, of the many family-owned SMEs that don’t quite make it, there are those that stand out as beacons of success and resiliency–enterprises such as Haus Talk, a homegrown real-estate company run by the Madlambayans of  Pampanga. Established in the 1980s, Haus Talk was the product of the family’s pivot from a completely different industry: sugar.

“Even at that time, our parents had that foresight—they were future-oriented and had the willingness and ability to adapt and plan ahead for market shocks and tumbles. These traits were necessary to protect and ensure the viability of our assets,” says Haus Talk Director and President, Maria Rachel Madlambayan. 

Despite the blow to their sugar business, Maria Rachel and siblings – Terence Madlambayan, Chair and VP for Business Development; Luis Pio Madlambayan, Director and Construction Council (Bataan Project); Maria Leah Madlambayan, Director and VP of Sales and Marketing; Joselito Madlambayan, Director and AVP of Construction; Noemi Madlambayan, Corporate Secretary; Maria Agnes Siapno, Chief Finance Officer; Gloria Judith Madlambayan, VP of Treasury; Rufino Albert Madlambayan, AVP of Construction; and Edward Madlambayan, VP of Construction—maintained a steadfast entrepreneurial spirit. Their ventures were led by their mother Pacita, Haus Talk Chair Emeritus, after their father Jose suddenly passed away in 1985.

The beginnings of Haus Talk

Madlambayan Family ( L-R): Agnes, Edward, Joey, Noemi, Terence, Leah, Albert, Maita, mom Pacita, Luis Pio and Judith.

Rolling up their sleeves and leveraging their property in Pampanga, the family raised livestock and tried their hand in farming (and even opened a pawnshop), before finally deciding to venture into real estate by dividing their one-hectare property and selling lots to other families in the province. This marked the beginnings of Haus Talk, as well as the Madlambayans’ expansion outside of Pampanga.

Haus Talk’s first stop was Cavite, where the Madlambayans established a 3.6-ha development that catered to underserved mid- to low-income families who wanted to live in an affordable gated community.  The company’s formal establishment in 1994 spurred more residential developments, which included Eastview Homes 1 and 2 in Antipolo; Southview Homes 1 and 2, and South Hills in San Pedro  Laguna; and Eastview Homes Marikina, Tradition Square Maceda, Eastview Town Homes Marikina, Tradition Square, and Winn Residences in Metro Manila.

Ongoing developments

In the works are more horizontal developments in Brgy. San Roque (Eastview Homes 3 and Eastview Residences Premiere) and Brgy Baguyo (Celestis 1 and 2) in Antipolo; and Sta. Rosa (Southview Homes) and San Pedro (Southview Homes Calendola) in Laguna. Early next year, the Eastview Condominiums is set to be launched in Antipolo, as well as their high-end development in Quezon City, 50 Jocson Residences.

Also in the pipeline are more economic and mid-market housing projects in  Antipolo and San Pedro Laguna, as well as Mariveles, Bataan, and Calasiao, Pangasinan.

All of these projects feature Haus Talk’s competitive strengths: they are one of the leading residential developers in Antipolo and San Pedro Laguna; all their locations are strategic; they have a diversified portfolio and have socially responsible, affordable developments; and their integrated operations are led by an experienced management team.

Today, Haus Talk stands out because of a simple business formula that the Madlambayans have followed throughout the years: Build houses for the working class that is worth every peso of their investment; design houses that exceed the buyer’s expectations; develop idle lands into some of the country’s finest locations; and, finally, create communities that would be a source of pride, especially for the first-time home buyer.

“And in every development, we also want to present to our buyers’ properties that we ourselves would be proud of,” says Maria Leah, Director and Vice President for Sales and Marketing. “As a family-run business, we know how important it is for a family to have a place to call their own, and we want to be the ones to help our fellow Filipinos build and achieve their dreams.”

The Madlambayans’ strong sense of family has also been the secret sauce to Haus Talk’s success. Since the early 1990s, Terence, the eldest, has led his siblings in navigating the ins and outs of their ventures, and each family member takes ownership of their roles across all functions, from operations to sales, marketing, business development, finance, purchasing, and construction. 

It’s a synergy that is guided, still, by their late father’s business philosophy: Aim high, but keep your feet close to the ground.

“It’s a great privilege to be able to help steer this company, a legacy from our family, and make it an instrument, so that every Filipino is able to achieve the ultimate dream – to own a piece of land on which they can build a home of their own,” says Terence.  “We will continue to be a conduit for that great Filipino dream as we begin to look at new land development investments and opportunities in the coming years.”

 


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Eastwood – Quezon City New Year countdown returns with safe, socially-distanced celebration

Zild, Leanne and Naara, and Darren Espanto to lead annual New Year’s Eve revelry to welcome 2022

One of Manila’s longest running and most -anticipated New Year’s Eve celebrations, Eastwood – Quezon City New Year Countdown, makes its highly awaited return this year with a celebration centered on ensuring the safety of revelers while providing world-class entertainment and dazzling spectacles.

Darren Espanto

Eastwood – Quezon City Countdown to 2022 is open to fully-vaccinated guests, who are given the option to avail one of the exclusive dining pods spilled across the expansive alfresco areas of the Eastwood Mall Open Park.

Each dining pod can accommodate up to 4 pax of all ages and comes with a set of food and beverage. Ticket prices are: Gold – Center – P6,000, Silver (Left Wing) – P3,000 and Silver (Right Wing) P3,000. Tickets are available at Ticketnet.com.ph and at the Eastwood Mall Concierge from Dec. 29 to 31, 2021.

Zild

Guests who will avail of the dining pods can enjoy a sumptuous meal prepared by Eastwood Richmonde Hotel and the best views of the celebrations, which will feature live performances by Zild, Leanne and Naara, and Darren Espanto from 9PM onwards.

Hosted by Will Devaugn and Stefany Stefanowitz, the Eastwood-Quezon City New Year Countdown to 2022 will also feature the Dazzling Star Drop, Eastwood City’s own version of the world-famous Ball Drop in New York’s Times Square, and will be followed by a grand fireworks display at 12MN. For the first time ever, the grand fireworks display will be held in two locations, with one lighting up the sky at the Eastwood Mall Open Park and another at the Global One Building near Eastwood Citywalk.

Leanne and Naara

“We are thrilled to once again welcome back our customers safely to our annual New Year’s eve tradition. Rest assured that we have intensified our safety protocols and we designed the event area with limited seating capacity to ensure proper social distancing among guests. Our goal is to really encourage everyone to welcome 2022 with renewed hope, reinvigorated spirit and a more optimistic outlook in life,” says Graham Coates, head of Megaworld Lifestyle Malls.

Guests in Eastwood City can also enjoy various promos and deals from participating stores, and buy New Year merchandise from different pop-up stores in the venue. They can also stop by the mobile bars and choose from a wide selection of drinks, or take souvenir photos at the projection photo wall located at the Eastwood Mall Open Park.

Those at home, meanwhile, can join the festivities online via the live stream on Eastwood City and Megaworld Lifestyle Malls Facebook page.

For more information and full mechanics, guests can call the Eastwood Mall Concierge at 8709-9888 or 8709-0888, 0917-8380111 or log on to www.megaworld-lifestylemalls.com. Guests can also visit Eastwood City (@eastwoodcity) or Megaworld Lifestyle Malls (@megaworldlifestylemalls) on Facebook and Instagram for quick updates.

 


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BSP says Dec. inflation likely slowed

PHILIPPINE STAR/ MICHAEL VARCAS

THE BANGKO SENTRAL ng Pilipinas (BSP) said headline inflation likely eased in December as local oil prices slipped, although Typhoon Odette may have pushed food prices higher.

The consumer price index (CPI) probably rose within the 3.5% to 4.3% range this month, BSP Governor Benjamin E. Diokno told reporters in a Viber message on Wednesday.

If realized, inflation could fall within the BSP’s 2-4% target.

To compare, headline inflation settled at 4.2% in November and at 3.5% in December 2020.

“Higher electricity rates along with the uptick in food prices due to weather disturbances are the primary sources of inflationary pressures during the month,” Mr. Diokno said.

The Manila Electric Co. earlier said the overall rate for typical residential consumers increased by P0.3143 per kilowatt-hour (/kWh) to P9.7773/kWh this month from P9.4630/kWh in November.

Agricultural damage caused by Typhoon Odette reached P8 billion, according to the latest estimate of the Department of Agriculture.

On the other hand, Mr. Diokno said the rollback in pump prices and the peso appreciation may have helped slow inflation.

For this month, the price of gasoline, diesel, and kerosene declined by about P0.50, P1.40, and P1.65 per liter, respectively, based on data from the Department of Energy (DoE). 

A mandatory price freeze was implemented for kerosene in areas that were placed in a state of calamity due to Typhoon Odette, the DoE said. Some oil companies have also suspended price hikes for gasoline and diesel in typhoon-hit areas in Visayas and Mindanao.

Meanwhile, the peso has generally appreciated in December, thanks to the strong remittance inflows from overseas Filipino workers during the holidays. The peso’s best close so far this month was at P49.93 on Dec. 20, also its strongest finish since it closed at P49.85 on Nov. 12.

However, at its close of P50.46 on Tuesday, it depreciated by seven centavos from its P50.39 finish on Nov. 29.

“Looking ahead, the BSP will continue to monitor emerging price developments to help achieve its primary mandate of price stability that is conducive to balanced and sustainable growth of the economy,” Mr. Diokno said.

Headline inflation has exceeded the BSP’s target in 2021, except in July when it stood at 4%. This was mainly attributed to food supply issues. Inflation year to date is at 4.5%, which is still above the central bank’s 4.4% forecast for the year.

At its last policy review for the year on Dec. 16, the BSP kept rates at record lows as it cited the need to support growth amid the threat of the Omicron variant.

Mr. Diokno has said they are ready to respond to potential second-round effects of inflation. He noted constraints to the supply of key food items and petitions for transport fare hikes may cause faster inflation.

The Philippine Statistics Authority will release the December CPI report on Jan. 5, Wednesday. — Luz Wendy T. Noble

NG debt hits P11.9-T as of end-November

REUTERS

By Jenina P. Ibañez, Senior Reporter

THE NATIONAL Government’s (NG) outstanding debt stood at P11.93 trillion as of end-November, preliminary data from the Bureau of the Treasury (BTr) showed.

The end-November debt level was 17.7% higher year on year, but it slipped by 0.3% from P11.97 trillion in October.

BTr in a statement on Wednesday said the debt level slipped month on month due to the net redemption of domestic securities and favorable foreign exchange rate.

Government debt grew by 21.8% since the start of the year, or the equivalent of P2.14 trillion over 11 months.

The end-November debt figure also exceeds the P11.73-trillion government debt projection for the year.

Domestic borrowings accounted for 70.7% of the total, while the rest was sourced from foreign creditors.

Domestic debt at the end of November dipped by 0.3% to P8.44 trillion from the previous month, but grew by 17.4% year on year.

Outstanding government securities slipped by 0.3% to P7.9 trillion from the end-October level, but rose by 18.8% from the same period in 2020.

The government still owes the P540 billion it borrowed from the central bank to continue funding the country’s pandemic response.

Meanwhile, external debt declined by 0.4% to P3.49 trillion month on month, but jumped by 18.6% from end-November last year.

“The lower external debt for the month was attributed to (Philippine peso) appreciation against the (US dollar) and other foreign currencies adjustments amounting to P11.64 billion and P4.05 billion respectively,” the Treasury said.

“This more than offset the net availment of external obligations amounting to P2.90 billion.”

Broken down, foreign debt included P1.53 trillion in loans, dipping by 0.1% since the end of October.

Government securities also slipped by 0.6% to P1.96 trillion in November.

This included P1.54 trillion in dollar notes, P231 billion in euro bonds, P86 billion in yen paper, P19.79 billion in yuan notes and P85.6 billion in peso global bonds.

Total outstanding guaranteed debt declined by 2% to P417.85 billion as of end-November from a month earlier, and fell 5.6% from the same period last year.

“The lower level of guaranteed debt was due to the net redemption of both domestic and external guarantees amounting to P4.94 billion and P3.49 billion, respectively,” BTr said.

“Local currency appreciation also trimmed P0.77 billion to offset the P0.58 billion effect of net appreciation on third-currency denominated guarantees against the US dollar.”

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the slight month-on-month decline in outstanding debt could be attributed to the depreciation of the peso in November.

This resulted in the lower peso equivalent of the country’s external debts denominated in foreign currencies, he said in a Viber message.

“Further re-opening of the economy would help increase business activities that help increase tax revenue collection and also help reduce government spending on various (coronavirus) programs, thereby narrowing the budget deficit and, in turn, reduced the need for more borrowings.”

Ruben Carlo O. Asuncion, UnionBank of the Philippines, Inc. chief economist, said he was expecting slightly higher National Government debt.

“But with spending targets yet to be met, it seems the National Government is sticking to what they have now.”

In a Viber message, he noted the country’s change-in-cash, which was at P643 billion as of end-November.

“I don’t expect any huge rise by end-2021 as well,” he said.

Home prices jump in Q3 amid robust demand

REUTERS
A silhouette of the skyline is pictured at sunset in Quezon City, Nov. 27, 2020. — REUTERS/ELOISA LOPEZ

By Luz Wendy T. Noble, Reporter

THIRD-QUARTER residential property prices rose by its fastest pace since the second quarter of 2020, thanks to an uptick in demand for condominium units and townhouses.

The Bangko Sentral ng Pilipinas (BSP) said the Residential Real Estate Price Index (RREPI) jumped by 6.3% year on year in the third quarter, following two consecutive quarters of annual decline.   

This was the fastest growth since the 26.6% seen in the April to June period last year amid the strict lockdown to curb the coronavirus pandemic.

Housing prices recover in Q3 (2021)

The central bank attributed the higher home prices partly to “stronger consumer demand,” especially for condominium units and townhouses.

“This is consistent with the outcome of the third-quarter Consumer Expectations Survey, which showed a higher percentage of consumers preferring to buy real estate property in the reference quarter amid signs of economic recovery,” the BSP said in a statement.

Nationwide home prices also inched up by 0.7% quarter on quarter.

The rise in home prices in the third quarter reflects the recovery in the property market, said Colliers Philippines Associate Director Joey Roi H. Bondoc.

“Pent-up demand for condominium units is fueling take-up for vertical projects,” Mr. Bondoc said in an e-mail.

He added that remittance inflows are driving demand for both landed homes and condominium units across the country.

JLL Philippines Research Head Janlo C. de los Reyes said buyers may have taken advantage of promotional offerings by developers.

“The favorable monthly amortization and discounts (in select projects) offered by developers helped buoy residential sales and push prices in general,” Mr. De los Reyes said.

The RREPI takes into account the average change in home prices across building types and locations. This provides the BSP guidance into the property market where bank exposure is regulated.

Condominium unit prices increased by 13.6% year on year in the third quarter, reversing the 15% drop a year ago. This was the fastest increase since the 30.1% in the second quarter of 2020.

Bank of the Philippine Islands (BPI) Lead Economist Emilio S. Neri, Jr. said the slowdown in demand from employees of Philippine Offshore Gaming Operators (POGO) should have translated to “meaningful price deflation” for condominiums, but instead prices have gone up.

Prices of townhomes surged by 37.1% in the third quarter, the quickest rise since the series started in 2016.

“Townhouses are fast becoming exclusively for the rich [as they are] up 37.1% year on year, just as wages fall and unemployment remains elevated,” Mr. Neri said.

On the other hand, prices of single detached/attached homes and duplexes dropped by 4.2% and 0.2%, respectively.

In Metro Manila, home prices increased by 11.4%, ending four straight quarters of annual contraction. Prices of townhomes and condominium units jumped by 26.4% and 13.4%, respectively, while prices of single detached/attached houses fell by 8.8%.

In the provinces, average home prices rose by 4.9%, driven by higher prices in townhomes (46.2%), duplexes (13.8%) and condominium units (13.2%). On the other hand, prices of single detached/attached houses declined by 3.8%.

The third quarter saw granted home loans surge by 51.1% year on year and by 32.3% quarter on quarter. New housing units accounted for 84.7% of the residential real estate loans.

Colliers’ Mr. Bondoc said improving economic conditions and easing restrictions may continue to fuel demand for residential properties next year.

On the other hand, JLL’s Mr. De los Reyes said housing demand may decline in the next quarters “as the post-holiday COVID landscape and the upcoming national elections may see waning buyer and investor sentiment in the short term.”

BPI’s Mr. Neri said the low interest rates may have partly contributed to the continued rise in home prices.

“For financial stability reasons, the Monetary Board may have to consider unwinding some of its emergency policy settings, especially the protracted negative real policy rate environment,” Mr. Neri said.

Earlier this month, the central bank maintained the key policy rates at record lows.

BSP orders freeze on InstaPay, PESONet fee hikes

BW FILE PHOTO

THE BANGKO SENTRAL ng Pilipinas (BSP) imposed a moratorium on increases in InstaPay and PESONet fees for person-to-person fund transfers, in a bid to hasten the Philippines’ transition into a cash-lite economy.

The Monetary Board on Dec. 23 approved the moratorium on any hike in fund transfer fees through PESONet and InstaPay, effective immediately. The Memorandum No. M-2021-071 was signed by BSP Governor Benjamin E. Diokno on Dec. 28

PESONet is an electronic fund transfer scheme under the National Retail Payment System which can be considered as an electronic alternative to the check system. It is ideal for high-value business transactions beyond P50,000 and is credited to the receiver by the end of a banking day.

InstaPay is its retail counterpart which allows for real-time transfer of funds up to P50,000, making it ideal for e-commerce as well as urgent payment needs.

“The lifting of the moratorium shall be reviewed by the BSP upon issuance of pricing standard/guidelines or once the volume of digital payments reaches 40% of the total retail payments in the country, whichever is earlier,” Mr. Diokno said.

The central bank is hoping that 50% of payments will be done online by 2023.

In 2020, digital payments made up 20.1% of all transaction in terms of volume, the BSP earlier said. This is an improvement from the 10% in 2018 and the mere 1% in 2013.

The rise in the country’s online transactions was fueled by payment-to-merchant and person-to-person use cases, the BSP said.

“The said moratorium is expected to not only help the economy but also sustain the momentum in the use of digital payments,” Mr. Diokno said.

The BSP said transfer fees that are currently waived may only be restored up to the amount that was reported to the central bank prior to the moratorium.

Meanwhile, financial institutions that have yet to offer InstaPay and PESONet services are expected to report their initial rates to the BSP’s Payment System Oversight Department at least 60 days before its implementation.

Compliance by financial institutions will be monitored by the Philippine Payments Management, Inc. (PPMI) as part of its mandate as the BSP-accredited payment system management body. The PPMI is expected to report to the central bank cases of noncompliance within the next banking day from the date of notice.

At the start of the pandemic, many financial institutions waived their InstaPay and PESONet transfer fees as a relief measure for consumers. The BSP has extended the waiver of fees for fund transfers until the end of 2021.

Based on the BSP’s latest advisory, there are over 30 financial institutions that still offer free InstaPay and PESONet transfers at least until Dec. 31. — Luz Wendy T. Noble

Mining shares sustain rise, but uncertainty remains

By Luisa Maria Jacinta C. Jocson

MINING stocks maintained their surge on Wednesday as the market cheered the lifted ban on open-pit mining, prompting traders and analysts to assess the longer-term impact on profits while staying wary on the move’s continuity when the country elects new political leaders.

“Definitely it’s a game changer for the mining industry, considering the lift will boost more investments towards the industry. What we saw today [in the stock market] was a knee-jerk reaction, as it will take time before formal business operations will take fruition,” Astro C. del Castillo, managing director at First Grade Finance, Inc. said in a phone interview.

Signed on Dec. 23, Department of Environment and Natural Resources (DENR) Administrative Order (DAO) 2021-40 lifted the nationwide ban on open-pit mining, repealing DAO 2017-10 issued by late DENR Secretary Regina L. Lopez, who was openly against mining.

Open-pit mining was first banned in the provinces in 2010 and later evolved into a nationwide ban in 2017.

“Mining related issues ended in green territory today, as market participants cheered the reports that mining regulators have lifted the four-year ban on open-pit mining,” Timson Securities, Inc. Trader Darren T. Pangan said in a Viber message.

“Over the short-term, this development boosted the sentiment towards the sector. In the longer time horizon, investors may be assessing the impact that this may have on the bottom-line results of the affected companies,” he added.

On Wednesday, the mining and oil index improved by 2.82%, with shares in Philex Mining Corp. gaining by 3.82% and in Global Ferronickel Holdings, Inc. by 2.84%.

“I’m sure the industry will shift to higher gear, considering the opportunities opened. I think investors are wary that hopefully the regulation will not change, considering that the National Government will be changing in the next few months,” Mr. Del Castillo said.

“The Philippines will be on the radar screens of investors, especially in foreign ones invested in our resource development, which is mines,” he added.

Officials of listed mining companies welcomed the government decision, which Dante R. Bravo, president of Global Ferronickel, described as a help to “restart the economy.”

“It is timely and an important policy change because it will signal to the investors that the government is already open to new mining investments. Open pit is one of the safest mining methods and this method will make a lot of mining projects viable and operable in a relatively short period of time,” Mr. Bravo said in a text message.

“Generally, we are bullish in the metals market next year. Demand is strong as we are short of so many raw materials as consumption is rising sharply, and governments are focused on more infrastructure spending,” he added.

In a Viber message Philex Mining’s Public and Regulatory Affairs Head Francis G. Ballesteros said, “Hopefully, this will create a friendly investment climate for the mining industry in the country and encourage investors to support big-ticket mining projects like our Silangan copper and gold project in Surigao del Norte.”

“Responsible mining can be a catalyst of economic recovery amidst the Covid-19 pandemic. Further, if allowed to flourish within the government regulations, it can unleash prosperity for all without compromising the needs of future generations,” he added.

Meanwhile, environmental groups opposed the lifting of the ban, citing the move’s environmental consequences.

Open-pit mining has been criticized for its effect on the environment, particularly the pollution and damage it causes. Acid mine drainage is one potential impact from mining that releases dangerous metalloids into local streams and groundwater.

“I think it’s not a surprise that there will be strong opposition to this, especially environmentalists. But as long as the government can walk the talk to implement the strict regulatory measures, then I guess it will be a win-win situation for government the environmentalists,” Mr. Del Castillo said.

“We hope these resources will trigger the government to look into manufacturing, not just importing the raw materials. The success of this mining industry should be a partnership with the public and government. The public should be responsible to report anomalies in the industry, while guarding the environment,” he added.

National Coordinator for Kalikasan People’s Network for the Environment Leon A. Dulce said the government decision would be detrimental to the environment, especially after Typhoon Odette (international name: Rai.)

“This is a despicable move by the Duterte government to sneak in the reversal on the open-pit mining ban while people are preoccupied with responding to Typhoon Odette. Adding insult to injury, destructive mining is actually responsible for the degradation of watersheds in the Caraga, Negros, and Central Visayas regions that aggravated the floods and other destructive impacts of Odette,” he said in an e-mail message.

The Kalikasan People’s Network for the Environment reiterated these sentiments in a statement, saying that lifting the ban is not a timely solution.

“We condemn the Duterte government’s lifting of the open-pit mining ban when people are still responding to the plight of millions affected by Super Typhoon Odette. Talk about priorities in these times of crisis,” the statement read.

“The promise that this move will bring in money for economic recovery is nothing but disinformation. Only 12% of mineral resources plundered in the Philippines by big mines trickle back to our economy as taxes, fees, and royalties. For every P10 worth of minerals they will plunder, only a peso will return to the Philippines,” it added.

AC Energy subscribes to P14-B shares of solar, wind subsidiaries

AYALA-LED AC Energy Corp. has agreed to subscribe to the shares of two subsidiaries for a combined P14 billion to fund the units’ separate projects in solar and wind energy development.

AC Energy disclosed to the stock exchange on Wednesday its subscription to the shares of Santa Cruz Solar Energy, Inc. (SCSEI) for P6,999,631,590 to give it a 99.99% stake in the subsidiary.

SCSEI is developing a 283-megawatt (MW) solar farm in San Marcelino, Zambales. The funds will be used by the company to build the project.

AC Energy signed the subscription agreement on Dec. 28 for 69,996,316 common A shares and 629,966,843 redeemable preferred A shares of the subsidiary.

It said the closing of the transaction is subject to its full payment of the subscription price and the necessary regulatory approval by the Securities and Exchange Commission on the increase in SCSEI’s authorized capital stock.

Separately, AC Energy disclosed on Wednesday its signing of a subscription agreement to 99.96% of the total outstanding shares of Bayog Wind Power Corp. (BWPC) for P7 billion.

The listed company subscribed to 36,218,032 redeemable preferred D shares, 29,759,408 redeemable preferred E shares, and 4,022,560 redeemable preferred G shares of BWPC. The transaction also took place on Tuesday.

“The subscription will be used by BWPC to fund continuing works for the construction of the 160-MW Pagudpud Wind Project in Barangays Balaoi and Caunayan, Pagudpud, Ilocos Norte,” It said.

AC Energy added that the project will be wholly owned by it after the board approval of the acquisition of the ownership interest of UPC Philippines Wind Investment Co. BV and Stella Marie L. Sutton in BWPC.

“The acquisition is subject to agreed conditions precedent including required partner, financing, and regulatory approvals, and subject further to execution of definitive documentation,” it said.

On Wednesday, shares in AC Energy declined by 0.18% or two centavos to close at P11.18 each. — Luisa Maria Jacinta C. Jocson