2022 has not been kind to Musk’s Tesla. Exxon is catching up

December 18, 2022 | 5:31 pm

JUST TWO MONTHS AGO, Elon Musk speculated that Tesla, Inc. would eventually be worth twice as much as Saudi Arabian Oil Co. — AKA Saudi Aramco, AKA the biggest listed company in the world with a market capitalization (then) of $2.1 trillion. As it turns out, the more relevant comparison is with a somewhat smaller oil major.

The symbolism of Tesla’s electrified market cap surpassing that of Big Oil stalwart Exxon Mobil Corp. in June 2020 was inescapable. By the beginning of this year, Tesla was 350% bigger than Exxon. Yet a lot has happened in the intervening (almost) 12 months and especially the last (almost) two months. Russia invaded Ukraine, sending oil markets crazy (good for Exxon). And then Musk invaded Twitter, Inc., sending everyone crazy (not so good for Tesla). On Thursday evening, the platform hosted yet more convulsions as Musk suspended the accounts of several journalists on dubious grounds and deployed, with his unique phrasing, the term “assassination coordinates.”

Today, Tesla is only 16% bigger than Exxon. The symbolism can be overplayed. Oil consumption didn’t end in 2020 and electric vehicles (EVs) aren’t heading into the ditch today. Across those 30 months, however, it is worth noting that Exxon’s rehabilitation owes something to the unlikely success of an activist fund. Engine No. 1 LLC capitalized on investor disenchantment with Exxon’s high spending and weak returns to force board and strategy changes. Oil’s revival explains much of Exxon’s rally since then, but renewed capital discipline has also been crucial. The stock hit an all-time peak last month.

Under normal circumstances, one might entertain the possibility of an activist tilting at Tesla today. About $740 billion of value has evaporated in the course of just over a year. The chief executive, for all his genius reputation, overpaid for Twitter, tried to wriggle out of the deal, and then was forced to buy it. Along the way, he has sold a ton of Tesla stock and may yet leverage some of his remaining stake to refinance Twitter’s debt. He also risks burdening Tesla’s brand with his seemingly pathological desire to provoke on the platform. Musk has often boasted that Tesla never pays for advertising and it is now perhaps getting more free advertising than ever — just maybe not the best kind. That is particularly unhelpful at a time when Tesla is suddenly having to do what ordinary carmakers have always done: ease off production and offer incentives to manage softer demand. Meanwhile, long-laggardly rivals are now launching highly-regarded electric models of their own.

But Tesla isn’t Exxon. Exxon has a functioning board of directors with which to engage and, while he wields considerable power, no-one would say the company’s fate is tied inextricably to that of its Chairman and CEO Darren Woods. Don’t get me wrong: Tesla does have a board. But the fact that, apart from Musk himself, the longest-serving member on that board is his own brother rather says it all.

While Musk’s stake in the company has been reduced to about 13%, that number is mostly irrelevant. He is synonymous with Tesla. Belief in his genius has played a crucial role in Tesla getting to where it is; he’s celebrated when the company succeeds and deployed in the face of any setback. Musk is simultaneously Tesla’s greatest asset and gravest risk. Besides inviting the inevitable online backlash, any activist seeking to change Musk’s mind would be on a fool’s errand anyway. And any activist seeking to actually remove him would have to ask: How much is an electric car maker shorn of Musk’s aura really worth?

This gets at the real problem facing Tesla investors today. The ratio to Exxon is, symbolism aside, meaningless; the more pertinent consideration is how Tesla’s valuation compares to the wider market. The wipeout in Tesla’s stock this year reflects a collapse in its forward price/earnings multiple from more than 130 times to 29 times. That has taken the stock’s premium to the S&P 500 down from 524% to 70%.

So, cheaper. Tough to call a 70% premium cheap, though; the aura is dimmed but still quite bright. I can’t see Warren Buffett swooping in at these prices, put it that way.

You know who else isn’t swooping in? Musk. We are just two months on from him holding out the prospect of Tesla’s valuation swelling to more than $4 trillion, and it has since shrunk to more like one eighth of that. And yet Musk chose this week — just ahead of a cloudy quarter ending, note — to dump another $3.6 billion worth of what should be, by his logic, an ever more undervalued stock. Should Tesla’s shareholders decide to take him at his deeds, rather than his words (or tweets) that premium still has ample room to fall further.

BLOOMBERG OPINION

Iran’s central bank blames protests for currency’s fall

December 18, 2022 | 5:15 pm

iran-flag-international-2693210_1920 — STOCK PHOTO | Image by jorono from Pixabay

DUBAI — Iran’s central bank governor on Saturday partly blamed recent anti-government unrest for the fall of the Iranian currency to record lows, while authorities detained a prominent actress who had voiced support for protesters.

The unrest, which poses one of the biggest challenges to theocratic rule in Iran since the 1979 Islamic Revolution, also saw groups of oil workers holding protests on Saturday to demand higher wages, according to reports on social media.

The wider unrest currently gripping Iran was triggered by the Sept. 16 deaths in detention of Mahsa Amini, a 22-year-old woman who was arrested for wearing “inappropriate attire” under Iran’s strict Islamic dress code for women.

Authorities on Saturday detained Taraneh Alidoosti, star of “The Salesman” which won an Academy Award for best foreign language film in 2016, after she voiced support for the protests and posted a photo of herself without a head scarf with a sign reading “Woman, life, freedom” — a main slogan of demonstrators.

“Alidoosti, who did not provide documents backing up some of her claims, was arrested hours ago by an order of the judicial authority,” the official news agency IRNA quoted a judiciary statement as saying.

The statement said several celebrities had been summoned over “unsubstantiated comments about recent events, and publishing provocative material in support of earlier street riots”, and that some were detained. It did not elaborate.

In 2020, Ms. Alidoosti received a five-month suspended sentence after she criticized on Twitter the morality police, which enforces hijab or Islamic dress code.

Ms. Alidoosti was the latest of dozens of artists, journalists and lawyers detained over the past three months for speaking out against a violent security crackdown on the protesters, some of whom have been released on bail.

Separately, Central Bank Governor Ali Salehabadi acknowledged that “the events of the past two months” had contributed, along with U.S. sanctions, to a record fall of the Iranian currency, but suggested dollars could be injected into the market to shore up the troubled rial.

“To make adjustments in the (foreign exchange) market, we in the Central Bank will act both as a market-maker and as a hard currency policy maker,” Mr. Salehabadi told state TV. “Whichever hard currency is more in demand, we will offer that in the market.”

Iran’s troubled currency fell to a new low against the U.S. dollar on Saturday as Iranians desperate to find safe havens for their savings have been trying to buy dollars, other hard currencies or gold.

The dollar sold for as much as 395,600 rials on the unofficial market, up from 386,800 on Friday, according to foreign exchange site Bonbast.com.

The economic daily Donya-e-Eqtesad’s website gave the dollar rate as 382,300, up 1.2% from Friday.

The rial has lost nearly 20% of its value since the nationwide protests erupted three months ago. In May 2018, the currency was trading at about 65,000 per U.S. dollar just before the United States withdrew from Iran’s nuclear deal with world powers and reimposed sanctions on the country.

A video shared on Twitter by 1500tasvir, an account that has 400,000 followers, showed what it said was a metro station in Tehran on Saturday with the crowd chanting, “Political prisoners must be freed!”

According to the activist HRANA news agency, 495 protesters had been killed as of Friday, including 68 minors. Sixty-two members of the security forces have also been killed. It said 18,450 people are estimated to have been arrested. — Reuters

N. Korea fired two ballistic missiles, says SK military

December 18, 2022 | 5:14 pm

SEOUL/TOKYO — North Korea fired two ballistic missiles towards the sea off the Korean Peninsula’s east coast on Sunday, South Korea’s military said.

Japan’s Vice Defense Minister Toshiro Ino said the North Korean-fired ballistic missiles seemed to have landed outside Japan’s exclusive economic zone (EEZ).

The missiles flew to an altitude of 550 kilometers (kms) (342 miles) and covered a range of 250 kms (53 miles), according to the Japanese Defense Ministry.

Mr. Ino said there had been no report of damage from the missiles so far.

The North’s missile launch comes just days after the country tested a high-thrust solid-fuel engine that experts said would allow quicker and more mobile launch of ballistic missiles, as it seeks to develop a new strategic weapon and speed up its nuclear and missile programs.

The test, overseen by leader Kim Jong Un, was conducted on Thursday at North Korea’s Sohae Satellite Launching Ground which has been used to test missile technologies, including rocket engines and space launch vehicles, the official KCNA news agency reported on Friday.

North Korea has conducted an unprecedented number of missile tests this year, including an intercontinental ballistic missile (ICBM) capable of reaching the U.S. mainland, despite international bans and sanctions.

In November, North Korea test-fired an ICMB that Japanese officials said had sufficient range to reach the mainland of the United States and that landed just 200 kms (130 miles) off Japan

Japan on Friday unveiled its biggest military build-up since World War Two with a $320 billion plan that will buy missiles capable of striking China and ready it for sustained conflict. — Reuters

Pope in 2013 signed resignation letter in case of bad health

December 18, 2022 | 5:14 pm

ROME — Pope Francis revealed in a new interview published on Sunday that after he was elected in 2013, he signed a letter of resignation to be used if someday severe and permanent health problems made it impossible to carry out his duties.

Pope Francis, who turned 86 on Saturday and appears to be in good health except for a knee ailment, made the comment in an interview with the Spanish newspaper ABC.

The pope Francis said he gave the letter to then-Vatican Secretary of State Cardinal Tarcisio Bertone, who was a holdover from the previous papacy of Benedict XVI. Cardinal Bertone remained in the position for about six months after Francis was elected on March 13, 2013.

Pope Francis has often said he would resign if health impaired him from running the 1.3 billion-member Roman Catholic Church.

Pope Francis was asked if he believed an official norm should be established for cases when health problems or an accident impeded a pope.

“I have already signed my resignation. Tarcisio Bertone was Secretary of State. I signed it and I told him: ‘In case of impediment for medical reasons or whatever, here is my resignation’,” the pope Francis was quoted as saying.

“You have it. I don’t know to whom Cardinal Bertone may have given it, but I gave it to him when he was Secretary of State,” pope Francis said, adding he was revealing it for the first time in public.

In an interview with Reuters in July, pope Francis dismissed speculative reports his resignation was imminent and repeated his often-stated position that he might resign someday if failing health made it impossible for him to run the Church – something that had been almost unthinkable before Benedict XVI, now 95, resigned in 2013. It was the first papal resignation in six centuries.

Since July, the pope Francis has made three international trips – to Canada, Kazakhstan and Bahrain — and plans to visit Democratic Republic of Congo and South Sudan Jan. 31-Feb. 5.

He was to have made that trip last July but his knee problem forced its postponement. He now uses a cane for short walks and a wheelchair for longer indoor distances.

In the ABC interview, pope Francis said he believed Pope Paul VI (1963-1978) and Pope Pius XII (1939-1958) had signed similar resignation letters. Both pontiffs, however, died while in office. — Reuters

Elon Musk restores Twitter accounts of journalists but concerns persist

December 18, 2022 | 5:12 pm

Elon Musk reinstated the Twitter accounts of several journalists that were suspended for a day over a controversy on publishing public data about the billionaire’s plane.

The reinstatements came after the unprecedented suspensions evoked stinging criticism from government officials, advocacy groups and journalism organizations from several parts of the globe on Friday, with some saying the microblogging platform was jeopardizing press freedom.

A Twitter poll that Mr. Musk conducted later also showed that a majority of the respondents wanted the accounts restored immediately.

“The people have spoken. Accounts who doxxed my location will have their suspension lifted now,” Mr. Musk said in a tweet on Saturday.

Twitter did not immediately respond to a Reuters request for comment. A Reuters check showed the suspended accounts, which included journalists from the New York Times, CNN and the Washington Post, have been reinstated.

The U.N. human rights chief welcomed the reinstatements, but said he continued to have concerns.

“Twitter has a responsibility to respect human rights: @elonmusk should commit to making decision based on publicly-available policies that respect rights, including free speech. Nothing less,” Volker Turk, the United Nations high commissioner for human rights, wrote.

Donie O’Sullivan, a CNN reporter who had been among the journalists who were suspended and then reinstated, said he still could not tweet because the platform was demanding his removal of one of his posts. He said he would appeal.

Officials from France, Germany, Britain and the European Union had earlier condemned the suspensions.

The episode, which one well-known security researcher labeled the “Thursday Night Massacre”, is being regarded by critics as fresh evidence of Musk, who considers himself a “free speech absolutist,” eliminating speech and users he personally dislikes.

It also occurred amid an exodus of advertisers and as the company has slashed jobs. Sources familiar with the matter said there had been layoffs in Twitter’s engineering departments this weekend. The employees affected worked for the part of the company that kept the social media platform running and were told via email on Friday evening, The Information reported.

Shares in Tesla TSLA.O, an electric car maker led by Mr. Musk, slumped 4.7% on Friday and posted their worst weekly loss since March 2020, with investors increasingly concerned about his being distracted and about the slowing global economy.

Roland Lescure, the French minister of industry, tweeted on Friday that, following Mr. Musk’s suspension of journalists, he would suspend his own activity on Twitter.

Melissa Fleming, head of communications for the United Nations, tweeted she was “deeply disturbed” by the suspensions and that “media freedom is not a toy.”

The German Foreign Office warned Twitter that the ministry had a problem with moves that jeopardized press freedom.

ELONJET
The suspensions stemmed from a disagreement over a Twitter account called ElonJet, which tracked Mr. Musk’s private plane using publicly available information.

On Wednesday, Twitter suspended the account and others that tracked private jets, despite Mr. Musk’s previous tweet saying he would not suspend ElonJet in the name of free speech.

Shortly after, Twitter changed its privacy policy to prohibit the sharing of “live location information.”

Then on Thursday evening, several journalists, including from the New York Times, CNN and the Washington Post, were suspended from Twitter with no notice.

In an email to Reuters overnight, Twitter’s head of trust and safety, Ella Irwin, said the team manually reviewed “any and all accounts” that violated the new privacy policy by posting direct links to the ElonJet account.

“I understand that the focus seems to be mainly on journalist accounts, but we applied the policy equally to journalists and non-journalist accounts today,” Ms. Irwin said in the email.

The Society for Advancing Business Editing and Writing said in a statement on Friday that Twitter’s actions “violate the spirit of the First Amendment and the principle that social media platforms will allow the unfiltered distribution of information that is already in the public square.”

Mr. Musk accused the journalists of posting his real-time location, saying it amounted to providing “basically assassination coordinates” for his family.

The billionaire appeared briefly in a Twitter Spaces audio chat hosted by journalists, which quickly turned into a contentious discussion about whether the suspended reporters had actually exposed Mr. Musk’s real-time location in violation of the policy.

“If you dox, you get suspended. End of story,” Mr. Musk said repeatedly in response to questions. “Dox” is a term for publishing private information about someone, usually with malicious intent.

The Washington Post’s Drew Harwell, one of the journalists who had been suspended but was nonetheless able to join the audio chat, pushed back against the notion that he had exposed Mr. Musk or his family’s exact location by posting a link to ElonJet.

Soon after, BuzzFeed reporter Katie Notopoulos, who hosted the Spaces chat, tweeted that the audio session was cut off abruptly and the recording was not available.

In a tweet explaining what happened, Mr. Musk said “We’re fixing a Legacy bug. Should be working tomorrow.” — Reuters

New home for 2023? Move in to this RFO condo in BGC!

December 17, 2022 | 8:00 am

As 2023 draws near, we start to think about how we can better ourselves for the year ahead. We look back on how we can improve things surrounding all aspects of our lives, including our relationships, finances, and our well-being. Most times, looking to transfer to a new home at the start of the year comes to play.

So if you are in search for a home to welcome 2023, RLC Residences has one that’s ready for you. The Trion Towers lets you live near where you work so you can live a comfortable lifestyle. Here are multiple reasons why this ready-for-occupancy condo in BGC is the right home match for a better you:

Strategic Location

Start anew in a home where everything is within reach. The Trion Towers fits this statement perfectly – especially since this property is sitting at the heart of Bonifacio Global City (BGC) in Taguig.

With traffic now coming back to full scale, this means losing precious time and energy on the road as we go to our destination every day. If you live at The Trion Towers and you work within this business district, you can easily go to your office without spending too much time on the road. Instead, you can spend more time resting, bonding with friends and loved ones, and even fulfilling other hobbies or pursuits after work or during the weekends.

Aside from your workplace, it’s also easy to reach commercial centers, destination hubs, and other essential establishments within BGC. Known for its dynamic city life offerings, you can be in major malls and lifestyle hubs in just a few minutes coming from your place at The Trion Towers.

Spacious Homes

Another good thing about The Trion Towers is its expansive living spaces that are all ready for you. This means no more waiting for a long time to move in and call this place your own.

Depending on your needs, this condominium offers one-, two-, and three-bedroom units with balcony options. Ranging from 37 to 102 sqm., these generously-sized flats offer a comfortable home with a high ceiling where you can live conveniently and at ease.

32 Ready-to-Use Amenities

Given that The Trion Towers is a ready-for-occupancy property, you’ll be glad to know that you can immediately take use of its 32 facilities for fitness, leisure, and wellness. Indoor and outdoor amenities such as a fitness gym, an exercise and dance room, a boxing room, and an exercise porch are all set for you to kickstart your active lifestyle. Recreational activities can also be done in the Gaming Room, Outdoor Pools, Private Theater, Indoor and Outdoor Playscapes for children, Music Room, Landscaped Passion Garden, and more. As for relaxing amenities, the Tranquility Pool, Soothing Spa and Sauna Room, Yoga and Pilates Room, and Therapeutic Massage Room are also available for you.

Enticing Home Deals

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Want to call The Trion Towers your city home? Get in touch with a Property Specialist today or visit rlcresidences.com to learn more. You can also check the latest updates on RLC Residences by following them on Facebook and Instagram.

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Consumers more pessimistic in Q4 — BSP

December 16, 2022 | 4:22 pm

inflation-market — Marketgoers purchase fresh vegetables at the Marikina Public Market, Oct. 10, 2022. — PHILIPPINE STAR/WALTER BOLLOZOS

CONSUMER and business sentiment declined in the fourth quarter due to elevated prices of goods, higher interest rates, and a weakening of the peso, according to the Philippine central bank.

The Bangko Sentral ng Pilipinas (BSP) on Friday said the consumer confidence index slipped to -14.6% from -12.9% in the third quarter, its 10th straight quarter of pessimism or since the -54.5% consumer outlook in Q3 2020, when the country locked down due to the coronavirus disease 2019 (COVID-19) pandemic.

However, this was higher than the -24% in fourth quarter last year.

Meanwhile, business confidence index fell to 23.9% from 26.1% in the prior quarter, marking its second straight decline.

“Consumers anticipated that interest and inflation rates may increase, the peso may depreciate against the US dollar, and the unemployment rate may decline in Q4 2022, Q1 2023, and the next 12 months,” the BSP said in a statement.

Consumer sentiment for the first quarter next year also worsened to 9.5% from 13.4% previously.

Consumers were also less upbeat on their long-term outlook, with the index falling to 21.7% for the next 12 months from 33.4%.

Although consumer sentiment for the next quarter and for the longer-term outlook were still positive, they were still less upbeat, BSP Department of Economic Statistics Senior Director Redentor Paolo M. Alegre, Jr. said in an online briefing on Friday.

“For consumers, they cited higher increase in prices of goods, low income, higher household expenses and fewer available jobs,” Mr. Alegre said.

Headline inflation rose to a 14-year high of 8% in November, from 7.7% in October. For the January-to-November period, inflation averaged 5.6%, below the BSP’s full-year forecast of 5.8%.

“In particular, consumers expected the inflation rate may rise to 5.9% for the next 12 months, breaching the upper end of the National Government’s inflation target range of 2-4% for 2022 and 2023,” the BSP said.

“Businesses expected that the peso may continue to depreciate against the US dollar and that the peso borrowing and inflation rates may continue to rise in Q4 2022, Q1 2023 and the next 12 months,” the central bank said.

The peso closed at P55.56 versus the US dollar on Friday, up by 12.5 centavos from its P55.685 finish on Thursday. Year to date, the peso has weakened by P4.56 or 8.2% from its P51 close on Dec. 31, 2021.

“Further, businesses expected that inflation may breach the upper end of the National Government’s 2–4% inflation target range for 2022–2023. In particular, firms were expecting that inflation may settle at 6.2% in Q4 2022, 6.1% for Q1 2023 and 5.9% for the next 12 months,” it added.

This quarter’s business sentiment of 23.9% fell from the 39.7% seen in the fourth quarter of 2021.

The business confidence index for the next quarter was at 31.3%, also lower from the 43.9% in the previous quarter.

Companies also grew less confident for the next 12 months, as the index decreased to 46.2% from 57.7%.

Businesses also expect access to lending would be tighter in the fourth quarter of 2022.

“Firms expected that their financial condition and access to credit would be tighter in Q4 2022 as their corresponding indices declined further,” the BSP said.

The Monetary Board has so far increased borrowing costs by 350 basis points since May to tame inflation, including its recent 50-bp hike on Thursday, bringing the key rate to 5.5%.

The central bank interviewed 5,499 consumers for the survey held Oct. 1-13, and 1,501 business owners for the survey held on Oct. 4-Nov. 22. — Keisha B. Ta-asan

Twitter suspends several journalists, Musk cites ‘doxxing’ of his jet

December 16, 2022 | 3:30 pm

Twitter on Thursday suspended the accounts of several prominent journalists who recently wrote about its new owner Elon Musk, with the billionaire tweeting that rules banning the publishing of personal information applied to all, including journalists.

Responding to a Tweet on the account suspensions, Mr. Musk, who has described himself as a free speech absolutist, tweeted: “Same doxxing rules apply to ‘journalists’ as to everyone else,” a reference to Twitter rules banning the sharing of personal information, called doxxing.

Mr. Musk’s tweet referred to Twitter’s Wednesday suspension of @elonjet, an account tracking his private jet in real time using data available in the public domain. Musk had threatened legal action against the account’s operator, saying his son had been mistakenly followed by a “crazy stalker.”

It was unclear if all the journalists whose accounts were suspended had commented on or shared news about @elonjet.

“Criticizing me all day long is totally fine, but doxxing my real-time location and endangering my family is not,” Mr. Musk tweeted on Thursday.

He had tweeted last month that his commitment to free speech extended “even to not banning the account following my plane, even though that is a direct personal safety risk.”

He tweeted on Thursday that there would be a seven-day suspension for doxxing, following that up with a poll asking Twitter users to vote on when to reinstate the doxxed accounts.

He then said he had offered too many options on the poll and would redo it, after results showed that some 43% voted for reinstating the accounts “now” — the largest share for any option.

Twitter did not immediately respond to a request for comment.

The suspensions echo chaotic actions at Twitter since Mr. Musk took over, including rapid firings of top management and thousands of employees, seesawing on how much to charge for Twitter’s subscription service Twitter Blue, and reinstating banned accounts, including that of former President Donald Trump.

Twitter now leans heavily on automation to moderate content, doing away with certain manual reviews and favoring restrictions on distribution rather than removing certain speech outright, its new head of trust and safety, Ella Irwin, told Reuters this month.

‘QUESTIONABLE AND UNFORTUNATE’

Among the journalist accounts suspended on Thursday was that of Washington Post reporter Drew Harwell (@drewharwell), who wrote on social media platform Mastodon that he had recently written about Musk and posted links to “publicly available, legally acquired data.”

Twitter also suspended the official account of Mastodon (@joinmastodon), which has emerged as an alternative to Twitter. Mastodon could not immediately be reached for comment.

Sally Buzbee, the Post’s executive editor, said Mr. Harwell’s suspension undermined Mr. Musk’s claims that he intended to run Twitter as a platform dedicated to free speech.

Mr. Harwell, however, was able to speak on a Twitter spaces conversation with fellow journalists late on Thursday evening, a chat that Mr. Musk himself briefly dropped in on.

“You dox, you get suspended. End of story,” Mr. Musk said on the chat as Mr. Harwell rejected the assertion that he had exposed Mr. Musk’s real-time location, saying he had simply posted about @elonjet.

Twitter updated its policy on Wednesday prohibiting the sharing of “live location information.”

The accounts of Times reporter Ryan Mac (@rmac18), CNN reporter Donie O’Sullivan (@donie), and Mashable reporter Matt Binder @MattBinder were also suspended, as was that of independent journalist Aaron Rupar (@atrupar), who covers US policy and politics.

Mr. Mac recently posted a number of Twitter threads on the @elonjet suspension and interviewed Jack Sweeney, the 20-year-old operator of the account.

A spokesperson for The New York Times called the suspensions “questionable and unfortunate. Neither The Times nor Ryan have received any explanation about why this occurred. We hope that all of the journalists’ accounts are reinstated and that Twitter provides a satisfying explanation for this action.”

CNN said it had asked Twitter for an explanation on the suspensions and would reevaluate its relationship with the platform based on that response.

The other reporters could not immediately be reached for comment. — Reuters

ChatGPT owner OpenAI projects $1 billion in revenue by 2024 — sources

December 16, 2022 | 2:54 pm

artificial-intelligence-3382507_1920 — STOCK PHOTO | Image by Gerd Altmann from Pixabay

ChatGPT, the new chatbot that is the talk of Silicon Valley, can spit out haikus, crack jokes in Italian and may soon be the scourge of teachers everywhere facing fake essays generated by the AI-powered technology.

But a question it can’t fully answer is this: How will OpenAI make money?

The research organization, co-founded by Elon Musk and investor Sam Altman and backed by $1 billion in funding from Microsoft Corp., is expecting its business to surge.

Three sources briefed on OpenAI’s recent pitch to investors said the organization expects $200 million in revenue next year and $1 billion by 2024.

The forecast, first reported by Reuters, represents how some in Silicon Valley are betting the underlying technology will go far beyond splashy and sometimes flawed public demos.

OpenAI was most recently valued at $20 billion in a secondary share sale, one of the sources said. The startup has already inspired rivals and companies building applications atop its generative AI software, which includes the image maker DALL-E 2. OpenAI charges developers licensing its technology about a penny or a little more to generate 20,000 words of text, and about 2 cents to create an image from a written prompt, according to its website.

A spokesperson for OpenAI declined to comment on its financials and strategy. The company, which started releasing commercial products in 2020, has said its mission remains advancing AI safely for humanity.

In a taste of what’s to come, startups including Synthesia and Jasper, the latter having relied on OpenAI’s tech, have drawn Fortune 500 companies to use their video-generation or AI copywriting tools, according to their websites. OpenAI has also attracted attention as an AI provider and potential Google search competitor, with ChatGPT answering queries for more than 1 million users so far.

Microsoft, providing OpenAI capital and computing power for its software, is a beneficiary. Asked about ChatGPT and whether Microsoft viewed such technology as experimental or strategic, its President Brad Smith told Reuters that AI has progressed faster than many predicted.

“We’re going to see advances in 2023 that people two years ago would have expected in 2033. It’s going to be extremely important not just for Microsoft’s future, but for everyone’s future,” he said in an interview this week.

Some investors expressed skepticism. Certain large venture-capital firms passed on backing OpenAI this year, questioning if it could justify a higher valuation or compete with rivals like Alphabet Inc-owned Google, sources familiar with its fundraise attempt who did not invest said.

A “capped-profit” structure that OpenAI created in 2019 also represented an unusual restriction for venture capital. OpenAI wanted to safeguard its mission by limiting backers’ returns to 100 times their investment, or less in the future.

Others may be doubling down. Microsoft this year has looked at adding to its stake, two other sources told Reuters and the Wall Street Journal previously reported. Its hope is to drive business for Microsoft’s cloud as more enterprises embrace AI.

MARKETING GURU
ChatGPT is based on what’s known as a large language model, trained with text data so it can answer prompts like a human. Similarly powerful technology that Google built and is narrowly testing with users led one of its engineers this year to say the software was sentient.

Reality is far from that, many scientists say. ChatGPT’s responses at times can be inaccurate or inappropriate, though it’s built to decline hateful prompts and improve with feedback. OpenAI warns users, ChatGPT “may occasionally produce harmful instructions or biased content.”

The potential to generate flawed answers is one reason why a big player like Google has guarded public access closely, concerned that chatbots could harm users and damage its reputation. Google declined to comment.

The caution has created a void that startups have sought to fill. A company called Cohere, run partly by ex-Googlers, is working on commercial products after a $125 million fundraise led by Tiger Global in February. Another, Adept, announced a $65 million raise in April, and Stability AI touted $101 million in funding after the August release of its text-to-image generator.

Among those building applications atop OpenAI has been Jasper, which says it has drawn 80,000 marketers to draft ads, emails, blogs or other content with its software. The fast-growing company is expected to double its revenue to about $80 million this year, a source familiar with the matter told Reuters. Its chief executive did not comment on the figure.

Gil Elbaz, co-founder of TenOneTen Ventures, said marketing represented one of the clearest businesses for today’s chatbots. CarMax Inc., for instance, has used OpenAI through Microsoft’s cloud to create thousands of customer review summaries for used cars that it is marketing, a case study on Microsoft’s website shows.

Victor Riparbelli, CEO of text-to-video startup Synthesia, said money so far is “in a lot of the more boring use cases.”

His London-based company has more than 20,000 customers including Amazon.com Inc. using its software, which can generate corporate training and product marketing videos, though longer term the goal is AI producing Hollywood-quality content, he said. Amazon confirmed its use of the technology.

Such startups risk OpenAI or Big Tech companies spotting lucrative applications and copying them, which is why Synthesia built its key software in-house. At the same time, application developers could win out financially if technology like OpenAI’s becomes a commodity, said Alan Cowen, chief executive at research startup Hume AI and a former Google researcher.

For now, OpenAI must determine how to sustain ChatGPT while shouldering what its CEO Altman described as “eye-watering” operating costs.

“I don’t think OpenAI intended to make a business out of ChatGPT. I think it functions as a demo … and a way to gather human feedback for free,” said Mr. Cowen. “Usage grew a lot faster than expected, so they are now contemplating monetization.” — Reuters

Building habits: Effective learning approaches for lawyers taking MCLE courses

December 16, 2022 | 2:50 pm

Without a doubt, lawyers are among the busiest professionals. They have among the most hectic daily schedules. That is why it is always a challenge for them to comply with certain requirements of the profession, particularly the Mandatory Continuing Legal Education (MCLE), which requires them to complete 36 hours of continuing legal education activities per compliance period (usually every three years).

Fortunately, the Supreme Court has started allowing MCLE compliance online — approved even before the onset of the ongoing pandemic and originally aimed at enabling older, differently-abled, and offshore-based members of the Integrated Bar of the Philippines to comply with Bar Matter No. 850 that will keep them abreast with the law, professional ethics, and enhanced standards of the practice.

In April 2022, the Supreme Court even extended the deadline for MCLE compliance for the current (seventh) compliance period, which now lasts from April 15, 2019 to April 14, 2023. The move was due to the restrictions and other setbacks brought about by the ongoing pandemic.

Changing perceptions about MCLE

Moreover, institutions facilitating MCLE courses have also become more flexible and creative in helping make completion of the requirement a breeze. Ahead of those centers is ACCESS MCLE, the pioneer and principal proponent of online MCLE offerings in the country.

“It has always been our goal to change the way lawyers look at MCLE,” said ACCESS MCLE Co-Founder Atty. Ma. Louella M. Aranas. “We aim to make them see MCLE as a chance to learn something new, thus ACCESS MCLE curates its courses to cover issues that are not usually tackled but are undoubtedly interesting. We want to challenge our learners’ minds and open enriching conversations.”

Being the leader in its field, ACCESS MCLE offers two options for learners who are signing up for MCLE — Online On-Demand and Flexible-Synchronous MCLE.

On-Demand vs. Flexi-Synch

The revolutionary Online On-Demand format allows learners to complete pre-recorded lectures at their most convenient time. ACCESS MCLE has made sure that all on-demand lectures are presented in high-quality materials with clear and crisp videos plus other learning aids for better appreciation and higher effectiveness.

On the other hand, Flexible-Synchronous or Flexi-Synch MCLE facilitates an online classroom setup that is made more convenient particularly for learners with very hectic schedules. That is because courses are facilitated in specified dates monthly and throughout the year. Thus, if a learner misses a session, he/she just needs to log in at the specified day and time on the succeeding month/s.

“We currently have a good balance between On-Demand and Flexi-Synch for ACCESS MCLE learners. I noticed that many practitioners enroll in Flexi-Synch due to unfamiliarity with the mechanics of On-Demand learning, which is really just like watching a movie or series on Netflix. Enroll and register with ACCESS and then choose from our wide selection of courses,” Atty. Aranas said.

Thus, taking On-Demand MCLE at ACCESS MCLE could be integrated into a learner’s daily habits. “That is why we recommend ACCESS On-Demand MCLE to busy learners as there is no schedule, time, or place to do it. Convenience is the only consideration. Moreover, our On-Demand courses are designed not just to educate but to also be highly interactive. The topics are unique and the lecturers are the best subject matter experts,” Atty. Aranas advised.

To learn more about ACCESS MCLE and its programs, visit https://accessonline.ph/.

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Condo demand up by 33%; Pasig is Top 5 condo-seeker hotspot

December 16, 2022 | 2:40 pm

Bali-Oasis-OL — Bali Oasis is a Balinese-themed mid-rise condo community set amid open spaces and resort-style amenities along Marcos Highway, Pasig City.

The Philippine real estate industry is firmly back on its feet. Real estate consultancy and research firm Colliers saw pre-selling take-up of residential properties for the first nine months of 2022 breached full-year 2021 figures according to its Q32022 Property Market Report. “Colliers believes that residential demand should be supported by improving consumer and business sentiment in Metro Manila,” said Colliers Associate Director Joey Roi Bondoc.

This is affirmed by Lamudi’s 2Q2022 The Outlook Quarterly Report, where it cited a 33% increase in demand for condo units across the country with Pasig as one of the Top 5 hotspots in Metro Manila. “Pasig’s sustainable transport program and other initiatives undertaken in recent years to improve the city’s quality of living have enticed more and more property seekers to the city. The presence of bike infrastructure, pocket parks, and sidewalks along with various office and residential buildings contribute to its popularity among property seekers, especially as awareness surrounding the benefits of active transport increases,” cited Lamudi about Pasig in its “22 Cities to Watch in 2022” list.

Aspire by Filinvest expects its recently-unveiled Malang building within its green and sustainable mid-rise condo community Bali Oasis Phase 2 in Pasig to sufficiently address this steep climb in condo demand. “We believe that the ideal pairing of Pasig’s dynamism and urban convenience matched with Bali Oasis Phase 2’s resort-style living will resonate with property seekers looking for a refreshing and relaxing respite while being close to life’s essentials. We agree with Colliers that more investors are becoming more discerning with green and sustainable features playing a crucial role in their investment decisions, and they can find it here,” shared Filinvest Land President Tristan Las Marias.

Live Your Dream

Bali Oasis is a Balinese-inspired urban oasis located along Pasig City’s main artery, Marcos Highway. This green and sustainable mid-rise condo community that offers studio, 1-bedroom, and 2-bedroom units is set within Bali Oasis Phase 2 — a sprawling 1.7-hectare property that boasts of lush greens, resort-style amenities, and smartly-designed units. All these create the perfect backdrop for a peaceful respite from the hustle and bustle of the city. Filinvest Land, the developer behind Bali Oasis Phase 2 and the Aspire by Filinvest brand, recently unveiled the last building for the project.

“Today, we officially unveil the last building of Bali Oasis Phase 2, opening another chapter in this thriving green and sustainable community. Filinvest Land invested over P800 million for this latest addition to Bali Oasis with 303 new condo units. Bali Oasis Phase 2 opens more opportunities for Filipino families to enjoy the resort-inspired green lifestyle that this project offers,” said Filinvest Land First Vice-President, and Brand and Product Head Aven Valderrama.

Filinvest Land unveils the last building for Aspire by Filinvest’s Bali Oasis. From left to right are Dreambuilders Pro Area Manager for North Luzon Buildings Allan Moreno, Filinvest Land Senior Geographical Project Manager Olive Gelizon, Filinvest Land Vice-President and Brand and Product Head for Mid-rise Buildings Aven Valderrama, Filinvest Land Broker Sales Head for Greater Metro Manila East Ruby Rivera, and Filinvest Land In-house Sales Head for NCR Southeast Joey Berenguer III.

Go green

Bali Oasis Phase 2 was designed to be a haven for green, eco-friendly living. Its masterplan features four stylish buildings and over 60% of greens, open areas, and amenities. Residents get to enjoy the lush greeneries found generously within the development, characterized by iconic date palm trees and several pocket gardens within. The spacious and sprawling community also allows for fresh air to breeze through its common areas and within the buildings.

Choose health

Enhancing Bali Oasis Phase 2’s laid-back atmosphere are resort-inspired amenities that create countless opportunities for residents to relax, stay healthy, and make memories with their loved ones. Residents can enjoy an active lifestyle with a clubhouse, adult and kiddie pools, children’s play areas, fitness gym, music room, and basketball court.

Live smart

Bali Oasis Phase 2 offers smartly-designed studio, 1-bedroom, and 2-bedroom units. The studio and 1-bedroom units are suited for individuals and newlyweds who are looking forward to having their own oasis in the city while the 2-Bedroom units are fit for growing families to raise their children in. These units are prepped and ready to accommodate work-from-home, online classes, and everything remote and digital. Residents can also enjoy peace of mind with a guarded entrance, perimeter walls and 24-hour security.

With Bali Oasis Phase 2’s strategic location along Marcos Highway, home is a convenient distance from all lifestyle essentials. Prime universities Miriam College, Ateneo de Manila University, and University of the Philippines are a few kilometers away while shopping hubs, schools, hospitals and churches are nearby. With its accessibility, Bali Oasis makes an ideal home and an attractive real estate investment for people looking to tap the lucrative rental market in the area.

Dreams Built Green

Bali Oasis Phase 2’s master plan is aligned with Filinvest Land’s long-term goal of creating green and sustainable developments fit for the needs of the better normal embodied by its rallying cry “Dreams Built Green.” Bali Oasis Phase 2 is one of Filinvest Land’s over 280 projects in over 50 key areas that follow this green building principle. It is no wonder that Filinvest Land is a 10-time BCI Asia Top 10 Developers in the Philippines awardee.

For a limited time only, interested investors have a chance to win a 3D2N staycation for two at the exclusive Crimson Resort and Spa Boracay. More information can be found at https://aspirebyfilinvest.com/project/bali-oasis-2.

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Harry and Meghan’s Netflix series wraps up — but what is the effect on the royals?

December 16, 2022 | 2:25 pm

LONDON — Beyond the drama of feuding brothers and Machiavellian royal aides working with a hostile press, the key issue which arises from Prince Harry and his wife Meghan’s Netflix documentary is whether it does lasting damage to King Charles and the British monarchy.

Over six hours of television, Harry and Meghan delivered a swathe of accusations against what they portrayed as a tone-deaf institution which was unconcerned about their emotional well-being and prepared for them to suffer if it meant better media coverage for other more senior royals.

“It’s like living through a soap opera where everybody else views you as entertainment,” Harry said in one of the final episodes released on Thursday.

When the couple married in a glittering ceremony in 2018, their union was hailed as a breath of fresh air, the epitome of a modern monarchy: the then-hugely popular prince and the glamorous, biracial, American actress.

But as they recounted in graphic detail in their documentary series, that fairytale soon turned sour amid a slew of negative press coverage, some of which Harry blamed on those working for Prince William, his elder brother and now heir to the throne.

“It looked cold, but it also felt cold,” Harry said of his family’s feelings towards him at their last official engagement. In 2020, the couple decided to step back from their royal roles, moving to California and becoming financially independent.

The exit of the Duke and Duchess of Sussex was bad news for the institution, said Catherine Mayer, author of recent biography Charles: Heart of a King.

“The departure of Meghan and Harry from royal ranks has been far more damaging to the monarchy than the coverage that vilifies them understands or accepts,” she told Reuters.

“Her arrival was this source of enormous hope for people of color, and also just younger people. Her departure is seen as a failure and a betrayal, and that’s immensely damaging to the monarchy because the monarchy needs consensus to survive. It needs support to survive, and it’s losing it.”

But opinion polls suggest that may not be the case. According to a YouGov poll last week, Harry, who once topped such ratings, and Meghan are now the most unpopular royals in Britain apart from his uncle Prince Andrew, who settled a US sex abuse lawsuit in February. William and his wife Kate were the most popular, although surveys show younger people are much more ambivalent than older Britons about the monarchy in general.

The royals have been in a similar position before. In the early 1990s, the disintegration of Charles’s marriage to his first wife, Harry’s mother the late Princess Diana, was played out in the full glare of the media.

Following Diana’s public accusations against the royal household and her death in 1997, the future of the 1,000-year-old institution seemed at times uncertain. But it
bounced back to become more popular than ever, with Harry and his brother William to the fore.

According to Harry, the subsequent popularity of Meghan was seen as a problem, stealing the limelight from those “born to do this”, a less than subtle dig at his brother and father.

If Harry’s assessment that negative stories were being planted against him and Meghan is true — an accusation rejected by newspapers and aides who have spoken publicly — then the campaign could perhaps be seen as successful.

A Savanta survey found 59% of respondents in Britain said it was a bad idea for Harry and Meghan to air their documentary, with a half saying they did not trust that the show would be an accurate account of the couple’s experience.

“Personally, I don’t think that it will do lasting damage to the monarchy,” royal biographer Claudia Joseph said of the Netflix documentary.

“I think that people that are royalists will still be royalists and will see this as Meghan and Harry again throwing their toys out of the pram, and the people that are republicans will remain republicans and blame the royal family for the way they’ve treated Harry and Meghan.”

Or, as 45-year-old London local Tarek Hilal said on Thursday: “In the long run, it just won’t make a difference. Storm in a teacup.” — Reuters

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