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RRR cuts still on the table

By Luz Wendy T. Noble, Reporter

THERE is still room to reduce the reserve requirement ratio (RRR) of big banks to achieve the Bangko Sentral ng Pilipinas’ (BSP) goal to bring this down to a single digit by 2023, officials said.

“Further adjustments on the RRR remain on the table, depending on domestic liquidity and recovery in credit demand in the coming months,” BSP Deputy Governor Francisco G. Dakila, Jr. said in at online briefing on Dec. 16.

It was in 2020 when the central bank last reduced the RRR of lenders — by 200 basis points for big banks in April and another 100 bps for thrift and rural banks in July.

The RRR for big banks is currently at 12%, one of the highest in the region. Reserve requirements for thrift and rural lenders are at 3% and 2%, respectively.

“The gradual buildup in the volume of issuance of BSP securities will also support efforts to align RR ratios with the region by allowing liquidity absorption using auction-based monetary operations,” Mr. Dakila said.

The central bank has started offering BSP securities in September 2020. The one-month bills, together with the term deposits, are the central bank’s tools used to mop up excess liquidity in the financial system and guide market interest rates.

BSP Governor Benjamin E. Diokno said the central bank has already infused liquidity worth more than P2 trillion into the financial system through these measures during the pandemic.

Security Bank Corp. Chief Economist Robert Dan J. Roces said the next RRR cut may be done when there is already stable growth, which may be seen by the second half of 2022.

“As activities strengthen, domestic liquidity could slowly get sapped enabling BSP to cut RRR to support easing liquidity,” Mr. Roces said in a Viber message.

UnionBank of the Philippines Chief Economist Ruben Carlo O. Asuncion said the central bank will consider the financial system’s need for liquidity and macroeconomic recovery in determining the timing for the next RRR cut.

“If fourth-quarter gross domestic product comes out better than expected, we may expect the RRR cut sooner rather than later,” Mr. Asuncion said in a Viber message.

Prior to the pandemic, Mr. Diokno vowed they will slash the RRR to a single digit to make the reserve requirements for the local banking industry at par with its regional neighbors.

Haus Talk prices IPO shares at P1.50 apiece

BW FILE PHOTO

By Keren Concepcion G. Valmonte, Reporter

RESIDENTIAL developer Haus Talk, Inc. has priced its initial public offering (IPO) shares at its ceiling of P1.50 apiece, the company said in a letter to the exchange on Wednesday.

“This may be a sign of optimism, given the better market sentiment amid the COVID-19 (coronavirus disease 2019) cases in the country remaining low over the past few weeks,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message. 

With the P1.50 per share price tag, the company may raise up to P750 million from the sale of 500 million primary common shares.

In its preliminary prospectus dated Dec. 14, Haus Talk said it plans to use net proceeds “to bolster its growth” through land acquisitions and project development. The company also plans to use proceeds for general corporate purposes.

Haus Talk will be allocating 64% of the proceeds or P462 million to acquire properties in Antipolo City, Bacoor in Cavite, and Calasiao in Pangasinan. It plans to develop the properties from 2022 to 2024.

“In the case of the land acquisition activities of the Company amounting to an estimated value of [P640 million], the difference between the estimated value and allocation of proceeds amounting to P462,014,575, will be sourced from internally generated funds and debt,” the company said.

Meanwhile, Haus Talk plans to use 30% or P216.58 million to develop its 240,647-square meter (sq.m.) property in Mariveles, Bataan. The company is eyeing to build a 2,200-unit horizontal socialized housing project, which is expected to bring in P2.8 billion in revenues. 

“The project will be developed in three phases, with each phase commencing within the first three years of disbursement. The P216.58 million will be split among the land development, construction, and administration expenses of the project,” Haus Talk said.

Haus Talk is also allocating 6% or P45.10 million of net proceeds to acquire equipment and to hire “executive-level talents,” which include heads of finance, information and technology, investor relations, audit and risk management, and human resource.

According to the Dec. 14 prospectus, the company plans to conduct its offer period from Jan. 3 to 7 next year, while its listing at the small, medium, and emerging (SME) board of the Philippine Stock Exchange (PSE) is tentatively scheduled for Jan. 17.

Haus Talk is slated to be the first company to debut at the PSE next year. It will list under the stock symbol “HTI.”

“With the offer period scheduled next year, this may give investors enough time to decide on their subscriptions given the upcoming holidays,” Mr. Pangan said.

Haus Talk tapped the Investment & Capital Corp. of the Philippines to be the offer’s underwriter and issue manager.

SMIC registers P15-billion fixed-rate bonds

THE Securities and Exchange Commission (SEC) said it received on Wednesday the registration statement of SM Investments Corp. (SMIC) for a P15-billion fixed-rate bond offering.

SMIC is planning to offer P10-billion fixed-rate bonds with a P5-billion oversubscription option. The offer will consist of Series I bonds due in 2025 and Series J Bonds due in 2027.

This will be the second tranche from the company’s P30-billion shelf-registered debt securities program. SMIC issued the P10-billion initial tranche in October last year.

Proceeds from the P15-billion fixed-rate bond issuance will be used to refinance its existing debt obligations as well as for general corporate purposes.

According to SMIC’s offer supplement, the company aims to issue its Series I and Series J bonds in February 2022. The bonds will be listed at the Philippine Dealing & Exchange Corp.

SMIC tapped BDO Capital & Investment Corp. and China Bank Capital Corp. as joint issue managers of the offer.

BDO Capital and China Bank Capital will be joined by BPI Capital Corp., EastWest Banking Corp., First Metro Investment Corp., RCBC Capital Corp., and SB Capital Corp. as joint bookrunners and joint lead underwriters.

On Wednesday, shares of SMIC at the stock market closed 2.88% or P28 lower to end at P943 each. — Keren Concepcion G. Valmonte

A milky Christmas

CATHEDRAL WINDOW

POPULAR YouTube chef Ryan Morales Reyes (otherwise known as Ninong Ry, with 1.25 million subscribers) entertained guests at a webinar last week called Shume-chef with Nestlé Carnation. The canned milk brand used the opportunity to launch its new formulation of evaporated milk (called “Evap” on the label and in many households as such), with more milk and in a new easy-to-open box package.

Jero Jhocson, Ground Brand Manager of Nestle Dairy Culinary said, “With this new product, we truly believe that anyone can be a home chef.” The brand also introduced a recipe via a new commercial, played during the webinar, which showed a mother cooking “Braised Chicken in Milky Glaze” —  a take on the familiar chicken pastel. (More recipes are available on https://cookwithcarnation.ph/)

Mr. Reyes is popular for his down-home approach, appearing like a favorite (and slightly rude) relative while whipping up quite tasty dishes on his YouTube channel, which debuted last year.

Ang ninong, nagtatago talaga iyan’ pag pasko, eh (Godfathers usually hide during Christmas),” he said during the webinar. He made the dish in the commercial, chicken pastel, peppering it with his signature attitude. “Ang sikreto lang naman talaga sa paglelevel-up sa mga masarap nating lutuin ay, una — cook with love talaga (The secret, really, to level up our cooking is to, really, cook with love),” he said. “Pagmamahal ang isa sa pinaka-importanteng ingredients ng pagluluto natin (Love is one of the most important ingredients in our cooking).”

But then, he says, “Siempre, gagamit tayo lagi ng high-quality ingredients (Of course, we should always use high-quality ingredients).”

Turning the cap on the box of milk, he said, “Wala nang can opener needed. Hindi kayo pwersadong ubusin (You don’t need a can opener anymore. You’re not forced to finish the can).”

Mr. Reyes gave a few tips on preparing the chicken quarter: one, to look for the joint to cut it more easily, bend the chicken to hear a sound, then cut where you hear the sound. “Madali lang siya. Hindi niyo kailangang ma-pressure (It’s easy. There’s no need to be pressured).”

He seared the chicken in butter after sprinkling it with Magic Sarap (flavor granules from Maggi) and freshly ground pepper. After searing, he sauted this in onion and garlic: “Sa mga nagtatanong kung anong dapat unahin — sibuyas o bawang —  pagsabayain na natin para walang magtanong (To those who are asking which should go first — onion or garlic – let’s just put them at the same time so nobody asks any questions).”

He then added some of the Nestle Carnation Evap: “Mas marami, mas milky, mas masarap (more, milkier, tastier).” After adding his potatoes, he poured even more milk, then remarked at the easy-open cap: “O kita niyo? Hindi ko naubos. Takpan natin. (See? I didn’t finish it. Let’s cover it).”

After finishing this dish, Mr. Reyes also prepared a dessert, Cathedral Window (colored gelatin squares in a milky white gelatin base). Jokes aside, he was asked if he liked preparing main dishes or desserts more. He said that he liked preparing savories more. “Ramdam mo yung init. I feel like, that way… mas connected ako sa pagkain, and kapag connected ako sa pagkain, connected ako doon sa taong pinapakain ko (You feel the warmth. I feel like that way… I’m more connected to the food, and when I’m connected to the food, I’m connected to the person I’m feeding).”

After that, he asked for a sash and crown for his pageant-style answer. — JLG

 


BRAISED CHICKEN IN MILKY GLAZE

Ingredients

1 kg chicken leg and thigh

2 sachets Maggi Magic Sarap

3 tbsp butter

1 head garlic, minced

1 pc large onion, chopped

1 pc potato, diced

1 pc small carrot, diced

1 pc Chorizo de Bilbao, sliced

1 small can whole button mushroom, rinsed and quartered

2 tbsp all-purpose flour

2 cups water

½ cup Nestle Carnation Evap

12 pcs quail eggs, boiled and peeled

¼ cup green peas, frozen

Directions

Season chicken with 1 sachet of Maggi Magic Sarap. Lightly sauté chicken in butter. Remove and set aside.

Sauté garlic, onion, potato, carrot, chorizo and mushroom in the same pan.

Add flour and cook for 2 minutes while stirring. Pour water and bring to simmer. Add chicken and cook for 15 minutes.

Season with remaining sachet of Maggi Magic Sarap. Stir in Nestle Carnation Evap, quail eggs and green peas. Transfer to a serving plate and serve.

CATHEDRAL WINDOW

Ingredients

Gelatin Squares in different colors

For White gelatin:

1 tbsp unflavored gulaman (gelatin) powder

1 cup water

1 tsp vanilla extract

1 pack Nestle Carnation Evap 250 ml

2/3 cup Nestle Carnation Condensada

Directions

To prepare milk mixture, combine gulaman powder, water, Nestle Carnation Evap, Nestle Carnation Condensada and vanilla extract. Gently simmer. Pour half of the mixture into the cathedral mold. Scatter diced red, green and yellow gulaman. Pour the rest of the milk mixture. Set aside to cool for 15 minutes. Refrigerate overnight to set. Dip the cathedral mold in warm water for 10 seconds. Unmold into a plate and serve.

Ahanmisi, Alaska Milk dominate skidding Blackwater Bossing

AHANMISI tallied 17 points, 8 rebounds, and 2 assists to lead Alaska over Blackwater. — PBA IMAGE

By Olmin Leyba

GAMES ON SATURDAY
(Smart Araneta Coliseum)
4 p.m. – NLEX vs Phoenix
6:45 p.m. – Ginebra vs. Magnolia

MAKING the most of the opportunity against a long-skidding opponent, Alaska Milk steamrolled Blackwater, 98-75, to regain traction in the 46th Philippine Basketball Association (PBA) Governors’ Cup on Wednesday at the Smart Araneta Coliseum.

Skipper Maverick Ahanmisi took charge with 17 points plus eight rebounds as the Aces arrested a two-game slump and improved to 3-2 in a game that was essentially an all-Filipino battle with both imports playing sparingly due to injuries.

Alaska’s Olu Ashaolu strained his calf and managed to score 10 in 22 minutes while Blackwater’s Jaylen Bond, bothered by groin injury, posted two in what could possibly be his farewell outing for the Bossing (0-5).

Jeron Teng added 14 while Rob Herndon and former Blackwater Mike Tolomia chipped in 12 apiece for Jeff Cariaso’s squad, which bounced back from heartbreaking losses to Barangay Ginebra (80-77) and TNT (81-77).

“We felt those two were winnable games so going into this game, we just focused on the intangibles and not committing many turnovers,” said Mr. Cariaso.

“Just staying hungry, staying focused, and playing within what we do and we believe good things will happen to us.”

Mr. Cariaso added they made sure they had the right mentality in the clash with the Bossing, who were determined to snap a long-standing 23-game losing streak prior to Wednesday’s matchup.

“We used an analogy of playing against your older brother in one-on-one pickup all your life. There’s always one time when you’re going to beat your older brother so we focused on making sure that tonight, that doesn’t happen to us,” he said. “I think perspective played a big part in understanding that they (Bossing) are gonna be ready to play.”

A limping Mr. Ashaolu exited the game in the third quarter and Mr. Cariaso is praying he will recover fully in time for the Aces next assignment after the holidays.

The Aces unleashed a 17-7 second-quarter closeout to establish initial separation from the Bossing, 50-43.

Further tightening the defensive screws after the break, the Aces held Blackwater to only 17 points in the third quarter on a 29.4% clip and enjoyed a 20-point lead at one point.

They later widened the gap to as many as 26 at 92-66 before settling for a 23-point winning margin.

SEC revokes registration of iWATCH.PH

THE Securities and Exchange Commission (SEC) has revoked the registration statement of iWATCH.PH Corp. for its unlicensed investment solicitation activities similar to a “pyramid scheme.”

The SEC released two advisories against the entity earlier this year. In April, the regulator warned that the investment program of iWATCH.PH has “the characteristics of a pyramid scheme.” The SEC released another advisory in Filipino the following month.

“iWATCH.PH’s employment of executive soaps as its products is nothing but a smokescreen to ostensibly make it appear that it is involved in selling consumer products,” the SEC said in an order of revocation dated Dec. 13.

“The fact of the matter is that it is offering the opportunity to earn profits by investing in its investor-recruitment business in the guise of selling product packages,” it added.

The SEC noted that the entity describes itself on its website as an “online business that gives Filipinos a lifetime reason to earn in 20 different ways and with multiple features, giving them no excuses to have nothing coming in to have a greater life even further.”

“The company also posted pictures of its registration from different government agencies and claimed that its operation is legitimate,” the regulator said.

Investors have to pay a membership fee of P2,188 before getting the opportunity to earn as an “iWatcher.” 

The entity is luring investors to earn through its avail package, direct referral bonus, leadership bonus, salesmatch bonus, maintenance bonus, repeat direct referral bonus, and unilevel bonus, among others.

While iWATCH.PH was registered with the commission on Dec. 10, 2018 under company registration number CS201842541, it did not have the secondary license to sell or offer securities to the public.

iWATCH.PH requested the SEC to lift its advisory against the entity in April. However, the SEC’s Enforcement and Investor Protection Department (EIPD) informed the entity that it “is not inclined to favorably recommend the approval of its request to lift the advisory.” 

The EIPD also required iWATCH.PH to submit the company’s audited financial statements and income tax return in the previous years, as well as copies of its contracts or agreements.

The regulator also requested a detailed explanation of how investors earn in the company’s program as well as a Food and Drug Administration certificate of approval for its products.

The SEC met with iWATCH.PH’s counsel in June, where the company’s representative discussed its marketing scheme and its business model.

In July, the SEC issued a show-cause order against iWATCH.PH and its stockholders-directors-incorporators, including Reiner Cadiz, Mark Joseph Regalario, Jerome Joseph Operio, Norman Galanza, and Rex Panganiban Regalario.

The company and the persons involved replied to the SEC’s show-cause order and denied that it is engaged in a pyramid scheme. It explained that “the customer or distributor earnings are not dependent on the number of recruits, rather, it is based on the perseverance and hard work in performing [the] avenues of earning.”

The SEC denied iWATCH.PH’s settlement offers twice. In November, the regulator denied the settlement offer as “the company has failed to raise any substantial argument that would warrant the lifting of the advisory and to accept the offer.”

BusinessWorld tried to reach out to iWATCH.PH’s main office through the number listed on its website for comment; however, the number could not be reached. Mr. Operio and Mr. Regalario have yet to respond to BusinessWorld’s request for a statement via Facebook Messenger as of press time. — Keren Concepcion G. Valmonte

Grinch hits candy cane makers with sugar shortage, twisted supply chain

MATHILDE LANGEVIN /UNSPLASH

CHICAGO — Orders have been pouring into Andrew Schuman’s candy cane business this year, but business has been anything but sweet.

“We’re not taking new orders from new customers,” said Mr. Schuman, chief executive officer of Hammond’s, based in Denver, Colorado. “We can’t keep up with demand.”

Candy makers, like retailers and farmers, have been slammed during the pandemic with high commodity prices, labor shortages, and transportation and supply chain snarls, preventing them from fully cashing in on the holiday season.

For more than a century, Hammond’s Candies has twisted and packed up the classic Christmas treat for tiny gift shops and massive grocers alike. It is the largest wholesale supplier of US handmade candy canes.

This year, Hammond’s labor costs have increased 30%, yet staffing remains a problem: The company’s 250-person crew is down nearly 100 people.

Hammond’s is not alone.

When Sam’s Club, a Walmart unit, placed an order for Doscher’s Candy Co.’s gourmet candy canes, co-owner Greg Clark was thrilled. Still, he said, Doscher’s had staff and supplies to produce about 70% of the hand-crafted candies Sam’s Club wanted.

“More and more Sam’s Club members are shopping for seasonal candy, including candy canes,” a company spokeswoman said. “In an effort to meet the anticipated demand, we increased buys from other suppliers and pulled inventory and production forward where possible.”

Total seasonal confectionery sales are up 20% over last year, for the five-week period ending Dec. 5, according to the National Confectioners Association and IRI market data. Winter holiday non-chocolate sales — including candy canes — are up more than 34% from 2020.

Retailers have increased holiday candy items per store by more than 9%; and the total amount of non-chocolate products in stores is up nearly 23%, according to the data.

Many consumers are scrambling to stock up for the holidays after missing family gatherings last year.

“This is the fourth grocery store I’ve hit today, trying to find enough candy canes for our tree and stockings,” grumbled Terri Andresson, 51, browsing at Mariano’s grocery store in Chicago.

Kroger Co., which owns Mariano’s, declined to comment.

Spangler Candy Co., the largest US candy cane maker, ran extra shifts this fall to meet demand, said president Kirk Vashaw. The Ohio-based firm turned away business and faced supply-chain headaches.

“We would have the cherry flavoring scheduled to come in on Monday, but the trucks were delayed, so we would have to stop and switch over to raspberry,” Mr. Vashaw said.

SUGAR SHORTAGES
Facing tight global supplies, some sugar suppliers have limited sales to food manufacturers.

The US imports about a quarter of its annual sugar needs, according to US Department of Agriculture data. A swath of this year’s domestic crop was destroyed when Hurricane Ida tore across Louisiana, the nation’s second-largest sugarcane producing state.

Meanwhile, freight prices are soaring, and Brazil and Thailand — two of the world’s top sugar producers — had smaller-than-expected crops. Sugar prices are at a decade-high.

“I’ve heard that some commercial buyers are looking at erythritol as a substitute sweetener,” said Bob Cymbala, a food trader at A&J Global USA, referring to a sugar substitute made from corn.

But prices are rising for corn-based sweeteners too. Clark from Doscher’s Candy said suppliers of corn syrup — used to make candy canes — are quoting a 10% hike in 2022.

As sugar supplies tightened, the US government adjusted sugar import quotas after some overseas sugar suppliers failed to deliver the product.

Rick Pasco, president of the Sweetener Users Association trade group, said candy producers are hurt by the US sugar policy, which limits imports to protect local growers.

“We are only getting a fraction of what we need,” Mr. Pasco said. — Reuters

SEC clears BPI capital increase

BW FILE PHOTO

BANK of the Philippine Islands (BPI) has received the approval of the Securities and Exchange Commission (SEC) to increase its capital stock to P50.6 billion in line with its merger plans with unit BPI Family Savings Bank, Inc. (BFSB).

“The amendment to the Articles of Incorporation — increase in authorized capital is related to the proposed merger of BFSB to BPI,” the bank said in a filing with the local bourse on Wednesday.

It said the SEC gave its approval on Dec. 21.

After the SEC’s approval, BPI’s Article of Incorporation has been amended to reflect the higher capital stock from P49.6 billion previously.

This follows the increase in the common stock of BPI to 5 billion shares from 4.9 billion shares.

The planned merger has already secured regulatory approval from the Bangko Sentral ng Pilipinas (BSP). Meanwhile, the Philippine Deposit Insurance Corp. said its approval will be dependent on the view of the BSP’s Monetary Board.

For its part, the Philippine Competition Commission has said the transaction can be exempted from review as it qualifies as an internal restructuring.

BPI earlier said its merger with BFSB would take effect once the SEC issues a Certificate of Merger or by Jan. 1, 2022, with BPI as the surviving bank.

It was in January when BPI first disclosed the merger plan, citing the reduction in the gap in the regulatory reserve requirements between commercial banks and thrift banks as a factor for the move.

BFSB is the country’s largest thrift bank with assets worth P294.519 billion as of June 30, based on BSP data.

BPI is the fourth largest among universal and commercial banks with assets worth P1.891 trillion as of end-June.

BPI’s net income in the July-to-September period rose by 3% year on year to P5.657 billion from P5.495 billion, as lower credit provisions offset the decline in interest earnings. Its nine-month net earnings increased by 1.8% to P17.5 billion.

On Wednesday, shares in BPI closed lower by 40 centavos or 0.43% at P91.70 apiece. — Luz Wendy T. Noble

Frayna grabs solo leadership in routing Calimbo

WGM JANELLE MAE FRAYNA

By Joey Villar

WGM Janelle Mae Frayna showed she isn’t slowing down anytime soon as she crushed a listless Mariel Calimbo in a 36-move King’s Indian masterpiece on Wednesday to ascend to the solo lead after eight rounds of the 2021 Philippine National Women’s Chess Championship at the PACE in Quezon City.

The top-seeded 24-year-old Ms. Frayna did not leave anything to chance and threw everything at her disposal at Ms. Calimbo’s exposed king to extract the full point, the former’s sixth which was good for solo first place.

And it looked like nothing could stop Ms. Frayna, who lost to 13-year-old sensation Ruelle Canino in the opening round on Saturday, for now.

Third seed Jan Jodilyn Fronda, the 2019 winner who was Ms. Frayna’s co-leader the round before, could not sustain the pace as she was left with a draw against second pick Shania Mae Mendoza via repetition.

Their duel lasted only 16 moves in a Ruy Lopez game.

Ms. Frayna, an Army woman and proud daughter of Camarines Sur, was shooting for another win against a dangerous Rinoa Mariel Sadey in the ninth round being played at press time.

Ms. Sadey downed Ms. Canino in 50 moves of a Pirc Defense to stay in the middle of the pack at sixth with 4.5 points.

Ms. Mendoza stayed at No. 3 with five points along with Kylen Joy Mordido, who is being tipped to become the country’s next Woman Grandmaster (WGM), and Marie Antoinette San Diego.

Ms. Mordido trounced Bernadette Galas in 38 moves of a Sicilian encounter while Ms. San Diego crushed Francois Magpily in 30 moves of yet another Sicilian.

The event, which is backed by PSC chair Butch Ramirez, Chess Movement, Inc. chair Dr. Ariel Potot, PCSO general manager Royina Garma, Endgame Sports founder Atty. Cris Aspiras, POC President Bambol Tolentino, NCFP chief Butch Pichay and Atty. Roel Canobas, stakes P50,000 to the champion and a berth to the Hanoi Southeast Games in May next year.

Twitter, T-Mobile drop CES plans over COVID-19 concerns

FACEBOOK parent Meta Platforms, Inc., Twitter, Inc. and Pinterest, Inc. separately said on Tuesday they will not send teams to the Consumer Electronics Show (CES) in Las Vegas next month as concerns grow about the Omicron variant.

US wireless carrier and conference sponsor T-Mobile additionally said the vast majority of its contingent would no longer be going and that its chief executive would no longer be delivering a keynote speech in person or virtually. The other companies had not planned large in-person gatherings at the show.

“While we are confident that CES organizers are taking exhaustive measures to protect in-person attendees, we are prioritizing the safety of our team and other attendees with this decision,” T-Mobile said.

CES in the past has attracted over 180,000 people from around the world to a sprawling set of casinos and convention spaces in Las Vegas, serving as an annual showcase of new trends and gadgets in the technology industry.

The Consumer Technology Association, which runs CES, said on Tuesday that the show is going forward from Jan. 5 through Jan. 8. Health precautions will include vaccination requirements, masking and the availability of coronavirus disease 2019 (COVID-19) tests, the association said.

Twitter had planned to have some employees attend to participate on panels. Both Twitter and Facebook said they are now exploring virtual opportunities.

Pinterest even before canceling had already planned a scaled-down meeting area for its sales and partner teams from years past.

Many companies including Qualcomm, Inc., Sony Electronics and Alphabet, Inc.’s Google and self-driving vehicle unit Waymo have said they are moving forward for now with plans to attend and show off new hardware or host meetings. General Motors Co. said on Tuesday that Chief Executive Mary Barra is still scheduled to introduce the US automaker’s electric Silverado pickup truck and discuss company strategy in person at the conference on Jan. 5.

Other companies had long ago planned for virtual presences, among them chipmaker Nvidia Corp., which is having two executives deliver a keynote address by video. — Reuters

Chimes from Crusader times: Recreating Nativity Church’s Medieval music

BELLS from the 12th Century that researchers say used to play music inside Bethlehem’s Church of the Nativity and were hidden by Crusaders, are displayed in Jerusalem, Dec. 14. — REUTERS/AMIR COHEN

JERUSALEM — Crusader-era bells and organ pipes from the Church of the Nativity in Bethlehem are inspiring researchers’ efforts to re-create music as it may have sounded in the birthplace of Jesus during almost 800 years ago.

Worried they might otherwise be destroyed, mid-13th century Crusaders buried the 13 bronze bells near the church on the eve of a Muslim offensive, slathering them in animal fat to protect them from rust, said David Catalunya, who is leading a project to build facsimiles of them.

“It’s a very long process, not only in terms of constructing the materiality of the instruments but also its cultural context and its intellectual context,” said Mr. Catalunya, a researcher from the universities of Oxford and Wuerzburg, Germany.

With the exploratory research phase complete, he estimates it will take about five years to cast fully functioning copies.

Meanwhile, a knock of the knuckles is enough to bring a clear, high-pitched chime from the originals, whose clappers have long since rotted away — as demonstrated to Reuters at the Custody of the Holy Land for the Roman Catholic church, which holds the unique collection.

“It’s half of the original sound, (which) was much richer and louder and a little bit lower,” Mr. Catalunya said.

The bells were part of a carillon that accompanied chants inside the church, said Franciscan friar Father Stephane, the Custody’s liturgist.

They were discovered in the early 20th century, along with 222 Medieval copper pipes from the Church of the Nativity’s organ, during construction at the church’s Franciscan compound, Father Stephane said.

The collection also includes the scepter of the Bishop of Bethlehem and candlesticks from the 12th century which, according to Mr. Catalunya, were made in France, suggesting a shared provenance with the bells and organ pipes, which Father Stephane says are the oldest in Christendom.

Father Stephane said he hoped the collection would be displayed, and played, at a Jerusalem museum the Custody plans to open by 2024.

“These bells are very significant for us because they are the bells of Bethlehem (and a) symbol of Nativity in the Christian world,” he said. — Reuters

Digital infrastructure seen to benefit from full foreign entry

FITCH SOLUTIONS said the removal of foreign ownership cap in public services could increase foreign investment appetite in the Philippines, particularly in the telecoms and technology sectors.

“Increased foreign investment in the telecoms and technology sectors will serve the growth of such assets, particularly terrestrial fiber networks where coverage is particularly limited,” think tank Fitch Solutions said in a commentary e-mailed to reporters on Wednesday.

The Philippine Senate recently approved a bill amending the Public Service Act (PSA), or Commonwealth Act No. 146, to relax restrictions on foreign investment in public services such as telecommunications, air carriers, domestic shipping, railways, and subways.

“The government’s decision to remove the cap on foreign ownership in several industries including telecoms will improve the appetite for foreign direct investment in the Philippines,” Fitch Solutions said.

“Downside risks to foreign investment and improvements to fixed networks include the Philippines’ proximity to escalating tensions between China and Taiwan, as well as the appeal of mobile broadband,” it also said.

Senator Mary Grace Natividad S. Poe-Llamanzares, primary author and sponsor of the bill, has said that the proposed legislation includes safeguards to protect national security, such as prohibiting foreign state-owned enterprises from owning capital in any public service classified as critical infrastructure.

Foreign investments will also be reviewed by the National Security Council.

Fitch Solutions said that attempts by Western parties to “counter Chinese influence in the Philippines telecoms sector are now possible.” 

There have been indications of a growing interest in the Philippines from technology companies, it also noted.

“In June 2021, we covered Alibaba’s entry into the Philippines’ cloud computing market which we see as potentially the beginning of a peak in activity from hyperscalers that are reconsidering the placement of data centers in Asia in the midst of heightened tensions in the South China Sea, China’s National Security Law and concerns over the sustainability of recurrent data center construction in certain markets,” the think tank said.

Fitch Solutions sees the Philippines as one of the fastest-growing cloud markets in the region over the medium-term.

It is expected to expand “at a compound annual growth rate of 28.9% between 2021 and 2024 to reach a market size of $1.3 billion.”

But despite the investment, the Philippines will still be one of smallest cloud computing markets in the Asia-Pacific region, as recent activity is “insufficient to significantly improve the country’s scarce terrestrial digital infrastructure.”

“That said, liberalizing the market should see an influx of international tech-players looking to monetize the Philippines’ long-term growth opportunity, and we could see the country’s cloud computing market forecasts revised upwards,” Fitch Solutions said. — Arjay L. Balinbin