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Yields on gov’t debt mixed on inflation, Fed minutes

YIELDS on government securities (GS) were mixed last week after the release of March inflation data and minutes of the US Federal Reserve’s latest meeting.

Moving inversely to prices, GS yields climbed by a week-on-week average of 1.83 basis points (bps), PHP Bloomberg Valuation Service Reference Rates on April 8 as published on the Philippine Dealing System’s website showed.

“We are trapped within a range given that the inflation picture has a lag and will still rise from the 4% reported for March,” Security Bank Corp. Chief Investment Officer for Trust and Asset Management Group Noel S. Reyes said in an e-mail interview on Friday.

“Expectations remain cautious, hence most volume are for servicing client flows by traders as the latter remains under-positioned and tactically trading the curve versus client demand,” he said.

The demand was still focused on shorter maturities, Mr. Reyes added, but “green shoots could be sprouting for the longer tenors already.”

“US Fed’s hawkish statements poured cold water on excessive buying and tempered demand interests,” he said.

“Investors were seen repositioning in the belly of the curve, seeing interest up to the FXTN (fixed rate Treasury note) 10-67 which was yielding above 6% early in the week,” First Metro Asset Management, Inc. (FAMI) said in a separate e-mail interview, as the market have already anticipated the elevated March inflation print due to surging oil prices.

“Local bond yields have also been supported by the corporate maturities this month as well as the good turnout of BTr’s (Bureau of the Treasury) FXTN 3-27 auction which was priced at 4.25% coupon or at the lower end of the market’s indications,” FAMI said.

Headline inflation rose to six-month high of 4% in March as rising global oil prices due to the Russia’s invasion of Ukraine affected food, utilities, and transport costs, the Philippine Statistics Authority reported on Tuesday.

March’s inflation print matched the median forecast in a BusinessWorld poll and was near the upper end of the Bangko Sentral ng Pilipinas’ (BSP) 3.3-4.1% forecast for the month.

This brought the first-quarter inflation to an average of 3.4%, still within the central bank’s 2-4% target for this year and below its 2022 forecast of 4.3%.

Meanwhile, the Treasury partially awarded the freshly issued three-year papers it offered last week as investors wanted higher yields as they expect the BSP to raise its key rates by the second half of the year.

The BTr only borrowed P25.791 billion out of the P35-billion program from the fresh three-year notes even as offers totaled P53.578 billion.

The tenor fetched a coupon rate of 4.25%, 19.48 bps higher than the secondary market yield ahead of the auction. The Treasury capped bids at 4.37%.

On the other hand, minutes of the Fed’s March 15-16 meeting released last week showed it was planning to hike its rates by a more aggressive 50 bps but decided on a 25-bp increase after factoring in the Russia’s invasion of Ukraine, Reuters reported.

At the end of trading on Friday, rates of the 91- to 182-day Treasury bills (T-bills) went down by 1.41 bps and 1.82 bps week-on-week to 1.3352% and 1.5165%, respectively. The one-year paper, meanwhile, went up by 4.7 bps to 1.7904%.

On the other hand, at the belly of the curve, the majority of the Treasury bond (T-bond) rates dropped. Yields on the two-, three-, four-, and five-year T-bonds fell by 2.25 bps (to 3.3632%), 1.31 bps (4.0606%), 3.01 bps (4.6762%), and 2.61 bps (5.1468%), respectively. Meanwhile, the seven-year paper inched up by 0.13 bp to 5.6284%.

The long end of the yield curve rose as rates of the 10-, 20-, and 25-year bonds went up by 4.23 bps (to 6.001%), 17.50 bps (5.7355%), and 6.03 bps (5.6115%), respectively.

“We may see a respite in a further rise on the short-end of the curve,” Mr. Reyes said. “However, as inflation remains on the table, and Fed executes their hawkish position, we will remain in a range.”

FAMI also expects “external pressures” such as the ongoing Russia-Ukraine conflict to affect the local bond market.

“Market may destabilize given Fed’s signal to reduce its balance sheet at a maximum pace of $95 billion per month along with quick and substantial policy rate hikes in the coming months,” FAMI said.

“Faster clips of headline inflation are likely in the coming months as we see more significant pass-through effects of higher oil prices and peso depreciation,” it added. — Ana Olivia A. Tirona with Reuters

CTA denies review of tax ruling favoring gas firm

THE Court of Tax Appeals (CTA) has denied the appeal of the Internal Revenue commissioner to review its previous decision setting aside Montalban Methane Power Corp.’s alleged tax liabilities amounting to P3.6 million for the calendar year 2009.

In a decision on March 30 but made public on April 6, the CTA en banc affirmed the first division’s ruling, which said the tax assessment was void due to the lack of a letter of authority (LOA).

“The Commissioner of Internal Revenue or any person duly acting on his or her behalf is hereby enjoined from proceeding with the collection of the taxes assessed against petitioner,” the court said.

The petitioner is the head of the Bureau of Internal Revenue (BIR), an agency authorized to assess and collect excess revenue tax, fees, and charges, and to enforce penalties and fines.

The respondent company is engaged in a landfill gas generation project based in Rizal province.

The BIR commissioner argued that the court made an error in ruling that the assessment was void due to the lack of an LOA and added that it was only an administrative tool, not a statutory requirement.

The court disagreed with the argument, saying the revenue officer assigned to the case continued the audit of the company only based on a memorandum of assignment, not an LOA.

“There must be a grant of authority, in the form of an LOA, before any revenue officer can conduct an examination or assessment,” the CTA en banc said, citing previous jurisprudence. “The memorandum of assignment, referral memorandum, or any equivalent document is not proof of the existence of authority of the substitute or replacement revenue officer.”

In a separate concurring opinion, CTA Associate Justice Maria Belen M. Ringpis-Liban said that an LOA is not needed in a case of re-assignment of revenue officers as long as a document of authority is signed by the BIR commissioner or a duly authorized representative.

The associate justice noted that the assessment was still void because the memorandum of assignment was not issued by a duly authorized representative of the petitioner. — John Victor D. Ordoñez

Corn farming program seeking to propagate sustainable best practices

REUTERS

CORN FARMERS in the Cagayan Valley and the Cordilleras will receive training in sustainable farming practices like climate-smart soil management and regenerative agriculture.

Project SIBOL is organized by Asia Society for Social Improvement and Sustainable Transformation (ASSIST) and Syngenta Philippines, Inc. and hopes to reach 20,000 farmers.

“Corn is one of the most significant crops in the country but productivity in the region has been hampered by problems related to intensive farming practices, leading to significant soil erosion and degradation. Named after the Tagalog word for sprout, growth, or germinate, Project SIBOL aims to help farmers… improve productivity and double their corn yields within the next three years from current levels of four metric tons per hectare,” ASSIST said in a statement.

The program will establish two pilot farms, in which farmers will employ sustainable technology and practices. The pilot farms will be located in Isabela and Ifugao, for replication in other corn-growing areas around the Philippines.

“Farming should not only be profitable but sustainable as well, as the existence of our growing global population depends on it. The SIBOL project will bring better soil health, yield, and income to the farmers of Cagayan Valley, and for the Philippines, greater food security and climate resilience,”  Syngenta Philippines Business Sustainability Manager Ruby Eduarte said.

“As our population continues to grow, food scarcity and security are becoming an unavoidable problem. We believe that SIBOL not only addresses these issues but also helps our farmers boost agricultural productivity and yield in a sustainable manner while enhancing long-term soil health at the same time. Our farmers are faced with numerous challenges. They don’t have to face these challenges alone,” ASSIST Executive Director Francis Macatulad said.

Project SIBOL was created with the assistance of Ifugao State University; Isabela State University; various municipal Agricultural Offices; Bureau of Soils and Water Management, and local government units. — Luisa Maria Jacinta C. Jocson

Tolentino: PHL will fight for the overall championship

THE PHILIPPINES will do their best to bring the overall championship in Hanoi, says Mr. Tolentino. — PIA

PHILIPPINE Olympic Committee (POC) President Abraham Tolentino is optimistic the country will fight host Vietnam tooth and nail in the overall championship race in the Hanoi Southeast Asian (SEA) Games scheduled on May 12 to 23.

“Our athletes will fight and will do their best to bring the overall championship back to the country,” said Mr. Tolentino during Sunday’s SEA Games Council meeting in Hanoi where they also discussed the 2023 edition of the biennial event set in Cambodia.

The Filipinos will have a daunting task against the Vietnamese, who are fielding in the biggest number of athletes at 965 — 534 men and 431 women — with a daring forecast of a 140-gold, 77-silver and 71-bronze medal harvest in 40 calendared events.

The Nationals, for their part, will field in just 656, or just more than half the country sent when it hosted and lorded over the 2019 edition with a 149-117-121 haul.

Vietnam wound up at distant second with a 98-85-105 collection that same year.

But the two nations could end up switching positions in Hanoi this time.

The congressman from Tagaytay and PhilCycling chief remained confident though that the Filipinos would answer the call.

“Preparations by our athletes are peaking and the national sports associations, just like the POC, are focused at keeping the country’s strong position in the Games,” said Mr. Tolentino.

IPC, AC Motors forge partnership for soon-to-rise Isuzu Roxas

From right are Isuzu Philippines Corp. (IPC) Executive Vice-President Shojiro Sakoda, IPC President Hajime Koso, AC Motors President Antonio Zara, and AC Motors Chief Operating Officer Alex Paguio. — IMAGE FROM ISUZU PHILIPPINES CORP.

ISUZU continues to widen its footprint by growing its network of dealerships in the country. Isuzu Philippines Corp. (IPC) and Isuzu Cebu, Inc. (ICI) held a formal signing ceremony of a Memorandum of Agreement last March 31 which paves the way for a new Isuzu dealership that will rise in Roxas City, Visayas. When completed, this will be the 48th showroom of Isuzu.

The ceremony was held at the IPC headquarters in Biñan, Laguna. IPC was represented by its President Hajime Koso and Executive Vice-President Shojiro Sakoda, while Isuzu Roxas was represented by AC Motors President Antonio A. Zara and Isuzu Automotive Dealership, Inc. (IADI) Chief Operating Officer Alex Paguio. Isuzu Roxas will be managed by ICI, a dealer group of Ayala-led AC Motors.

The 3,500-sq.m. dealership will rise in Barangay Baolo, Iloilo East Coast-Capiz Road, Roxas City. In a release, IPC said that Isuzu Roxas City will feature the new Isuzu Outlet Standard (IOS) which boasts of a cleaner and more streamlined interior and facade. Its 426-sq.m. showroom and service area can accommodate multiple vehicles for display and service.

Mr. Koso said that despite the challenges they all experienced in the past two years, the company is now one step closer to full health, and that he is excited for the grand opening of this newest addition to the Isuzu network. Mr. Koso also expressed confidence that under ICI’s leadership, Isuzu Roxas will bring in more sales for Isuzu. “I would like to take this opportunity to thank Isuzu Cebu, Inc., for supporting our expansion project and complying with our Isuzu Outlet Standard or IOS. As you may all know, we are on our road to 50 dealerships, and today seals (an) additional outlet. We have been wanting to further establish our presence in Western Visayas.”

He added, “On behalf of Isuzu Philippines Corp., I extend our heartfelt congratulations to ICI for this exciting new outlet. We are confident that with your leadership, Isuzu Roxas will bring in more sales for the network. We are all looking forward to the grand opening of Isuzu Roxas.”

For his part, AC Motors’ Mr. Zara stated, “The addition of a new Isuzu dealership in our rapidly expanding network is a strong testament to the growing preference for the Isuzu brand as we continue to widen our reach to our customers in Western Visayas. Roxas City has emerged into a booming city with a strong economic development brought by different businesses citywide, and we are confident that Isuzu Roxas can cater to more customers in the region.”

The dealership is scheduled to open in the second half of the year. For more information, visit www.isuzuphil.com or follow www.facebook.com/IsuzuPhilippines.

Style (04/11/22)

CRISELDA Lontok Joanne Blouse Billowy Sleeve

Criselda Lontok’s legacy lives

FASHION designer Criselda Lontok’s signature looks have been a staple among Manila society’s elite for decades. This summer, the label’s SS22 collection captures the late designer’s spirit effortlessly. Inspired by Lontok’s extensive archive and rich color palette, it offers a fresh take on her classic designs. Her signature florals and prints are still prominent in subdued, softer hues in polysilk and organza. Warm notes of orange and navy appear on a sunny caftan and feminine, linen-blend separates. Altogether, the looks feel more dressed-down and more every day, yet with a certain polish. Each of the collection’s silhouettes were carefully designed to easily flatter and be figure-skimming. Criselda Lontok is exclusively available at Rustan’s Makati, Rustan’s Shangri-La, Rustan’s Alabang, Rustan’s Gateway, Rustan’s Cebu and Rustans.com.

Coming soon: Uniqlo and Mame Kurogouchi collection

GLOBAL apparel retailer Uniqlo will launch the Uniqlo and Mame Kurogouchi 2022 Spring/Summer collection on April 29. This is the brand’s third collaboration with fashion designer Maiko Kurogouchi. Her brand has garnered renown worldwide for its timeless designs and innovative approach to fabrics. The collection will be available at stores around the Philippines and through uniqlo.com/ph. The AIRism-silk blend material developed for this collection, and used in tank tops and bra camisoles with deep back styling, feels incredibly smooth. There will also be a new knit fabric, featured in 3D Knit sweaters with soft V-necklines and skirts with back slits that flatter the legs and keep wearers comfortable, even in summer. The bra aims to enhance comfort by increasing the softness and elasticity of the cups. Another addition is ultra-thin, absorbent sanitary shorts. An innovative triple layer structure for sweat wicking dry fit, antibacterial and odor resistant performance absorbs 10-15 milliliters of moisture. Updated hues center on gradations from white to beige, brown, and black.

Fendi presents Peekaboo ISeeU Petite and Micro

FENDI expands the family of its iconic Peekaboo bag with the Peekaboo ISeeU Petite and the Peekaboo ISeeU Micro, a fun and colorful accessory to match one’s bags. Clean and minimal, geometric and curvilinear all at once, the Peekaboo is a bag conceived with both beauty and playful functionality at its core. Its original trapezium-shape is transformed into an architectural feat of contemporary leather artistry in the Fendi ateliers. The new Peekaboo ISeeU Petite has distinctive smaller proportions but maintains all the signature details of the iconic bag. Centred around a double turn lock upper frame, this structured bag is crafted from padded nappa leather and comes in 12 hues ranging from baby blue to violetta lilac, dark honey to mimosa yellow. Exotic leathers such as natural python, croco and lizard add exclusive variations to the family. Petite in the size but roomy enough to fit all the everyday essentials, it is meant to be worn crossbody. Meanwhile, the Peekaboo ISeeU Micro, a smaller version of the icon, comes in 10 vibrant colors in the softest and smoothest leather. Micro yet functional, it features a detachable metal handle for bag charm use, together with an adjustable and removable shoulder strap, and a cardholder on the inside. The bags are available in Fendi boutiques and on fendi.com starting this month. Fendi has boutiques at Solaire and Greenbelt 3.

More counterfeit banknotes documented in 2021

THE CENTRAL BANK documented more fake money last year as the economy reopened, which allowed for an increase in cash transactions.

“With renewed economic activities following the vaccination program and more relaxed community quarantine guidelines, the number of documented counterfeit banknotes rose by 7% from a year-ago,” the Bangko Sentral ng Pilipinas (BSP) said in its annual report.

The majority of these were retrieved from the country’s centers of economic activity.

Findings from the central bank showed more than half (55%) of the counterfeit notes were documented in Metro Manila, followed by CALABARZON (14.3%), Central Visayas (8.6%), and Central Luzon (5.6). These areas accounted for 83.5% of the volume of documented counterfeit bank notes in 2021.

In terms of parts per million (PPM), the volumes of counterfeit banknotes and coins in circulation in 2021 were at 7.9 PPM and 0.2 PPM, respectively.

Amid the rise in counterfeit money, the BSP noted the improved capacity of banks’ cash handlers to detect fake bills and coins.

Correctly classified counterfeit bank notes surrendered to the BSP for investigation rose 14.8%, while number of undetected counterfeit banknotes in banks’ deposits with the central bank dropped by 21.3%.

Throughout the year, the BSP conducted 11 law enforcement operations that resulted in the arrest of 19 individuals and the filing of 15 criminal charges.

“By the end of 2021, the BSP was able to secure a 100% conviction rate, with the conclusion of the three counterfeiting cases and conviction of the accused in criminal cases for counterfeiting or possession, or both, of counterfeit currencies,” it said.

Through the operations, the BSP confiscated 813 pieces of counterfeit New Generation Currency banknotes, 144 counterfeit dollars, other foreign currencies, firearms and ammunitions, and other counterfeiting- related items.

“As the country forges toward rebuilding the economy, the BSP shall continue its work of paving inclusive pathways to smoothly transition the national payment system from cash-heavy to cash-lite,” the central bank said.

BSP Governor Benjamin E. Diokno has said they are proposing stiffer penalties such as longer imprisonment for those involved in faking banknotes.

Central bank officials have said Filipinos remain heavily reliant on cash despite the rise in cashless transactions during the pandemic. By 2023, the BSP wants 50% of all payments done digitally. — L.W.T. Noble

Ukraine corn, wheat exports will plummet further, US says

REUTERS

THE US continued to slash estimates for Ukraine’s grain exports as sea routes were curbed following Russia’s invasion.

Ukraine’s corn exports will drop by another 4.5 million tons to 23 million tons and wheat exports by 1 million tons, according to the US Department of Agriculture’s (USDA) closely watched World Agricultural Supply and Demand Estimates, or WASDE. Global wheat stockpiles were revised down to 278.4 million tons, less than expected by a Bloomberg survey.

Russia’s war in Ukraine is upending trade flows out of the critical Black Sea breadbasket region, prompting warnings of food shortages as crucial supplies of wheat, corn and cooking oils are at risk. Food prices are surging at the fastest clip ever and worsening world hunger, putting pressure on other big growing areas to produce big crops this year.

“There’s an increased possibility of the conflict getting out of hand again. Peace is not coming any time soon,” said Jack Scoville, analyst at Price Futures Group Inc. in Chicago.

Grain and oilseed futures have jumped to record or near record highs, and also caused a spike in prices of farm necessities like fertilizer and fuel. Meanwhile, weather woes and inflation in key producers like the US and Brazil are clouding the outlook for this year’s crop supplies.

While USDA raised its forecast for Brazil’s current corn crop more than expected, the real test will unfold over the next several weeks. April is a critical growing period for the grain and if adequate rains don’t arrive in time it could crimp yields.

Most-active corn futures in Chicago briefly plunged after the US report hit but quickly bounced back to settle 1.4% higher at $7.6075 a bushel. Benchmark wheat rose 3.2% to $10.5825 a bushel and soybeans jumped 2.6% to reach $16.89.

Prices had been up prior to the report’s release amid news that Russia bombed a major rail evacuation hub in Ukraine, killing dozens of people.

SIDELINED SUPPLIES
To see how significantly the war is upending crop flows from Ukraine, its corn stockpiles tell the story. The war has left the country saddled with huge amounts of grain that it’s largely unable to move. With its ports shut, Ukraine is working to ramp up exports via rail, but the flows remain well below normal seaborne trade.

The chaos in the Black Sea so far hasn’t led to a jump in US grain exports, though there were signs of fresh corn demand this week when China scooped up 1.1 million tons, the Asian nation’s biggest such buy in almost a year.

Besides the worsening war that’s affecting Black Sea exports, the report was bearish, according to Naomi Blohm, senior market adviser at Total Farm Marketing in Wisconsin, with no changes to US corn reserves, bigger wheat supplies and a smaller-than-expected cut in US soybeans stockpiles.

SOY SWITCH
Shifts in the soybean markets are also underway. The report raised US exports while lowering shipments out of Brazil, as well as Ukraine and Russia.

South American soybean crops are down a combined 33 million tons below initial estimates from November, which marks a record loss for the region after a strong drought caused by La Nina weather patterns. With that cut in production, the smaller South American exports will drive more demand to the US for summer and early fall.

Bigger US exports will likely to shrink end-season US soybean stockpiles by 8.8%, the largest decline in the month of April since 2012. It’s an unusual move because supplies in America are typically well known at this time of year. — Bloomberg

PriceLOCQ app now accepted in more Seaoil stations nationwide

IMAGE FROM SEAOIL

INTRODUCED IN 2020, PriceLOCQ now has more than 200,000 active users. Seaoil, in partnership with financial technology company LOCQ, OPC, looks to grow the acceptance of the facility from 260 Seaoil stations to more than 400 before the year ends.

“PriceLOCQ’s primary goal of helping our consumers be more cost-efficient and save on fuel costs is timelier than ever. Doubling the expansion and rollout of PriceLOCQ in Seaoil stations is one of our targets this 2022 and it’s steadily moving. The app being available to more motorists is needed as fuel prices are volatile due to events happening around the world that affect the global fuel market,” said Seaoil President for Retail and CFO Mark Yu in a statement, adding that businesses can also make the most out of their fuel budget through PriceLOCQ for Business (PLB).

Packaged as an all-in-one web portal, PLB can lock current oil prices before a projected increase for future use, and fuel can still be redeemed at the same price. Fleet managers and businesses can opt to buy and store as much as 10,000 liters of gasoline or diesel in a virtual tank, reflected as “fuel balance.”

Fleet managers and owners using PLB can distribute purchased fuel to drivers anywhere in the Philippines via SMS through the portal. Once sent to recipients, they can simply present the code sent and gas up at Seaoil branches nationwide that accept PriceLOCQ.

As a reminder, Seaoil shared some tips on how to maximize PriceLOCQ’s money-saving benefits. First, consumers are asked to understand price trends by making long-term and short-term comparisons. Compare long-term price trends to understand if current prices are really high or if are merely in flux for a short period. Conversely, use short-term price trends to plan current fuel purchases. Second, maximize savings from PriceLOCQ by buying fuel when prices are low and redeeming when prices are high. Remember, fuel can be purchased ahead of time through the PriceLOCQ app and PriceLOCQ for Business platform. Lastly, consumers are asked to be realistic about the amount of fuel that is purchased.

For more information on PriceLOCQ, visit www.pricelocq.com. Learn more about PriceLOCQ for Business by visiting https://www.pricelocq.com/about-us/pricelocq-for-business.

Ateneo battles La Salle in second round of the UAAP Season 84 men’s basketball

ATENEO’S TYLER TIO — THE UAAP FB

ARCHRIVALS Ateneo and La Salle will usher in the equally exciting second round of the University Athletic Association of the Philippines (UAAP) Season 84 men’s basketball tournament starting this Holy Tuesday at the Mall of Asia Arena in Pasay City with the presence of their throng of fans at last.

Unbeaten Ateneo and La Salle figured in the last playdate that was held behind closed doors last Saturday owing to the UAAP’s strict bubble setting before it decided to welcome in-game crowds last Tuesday.

The three-time defending champion Blue Eagles (7-0) and the Green Archers (5-2) cross paths again in the main game at 7 p.m. of the latest schedule released by the league over the weekend following the thrilling first round.

Favor is on Ateneo, which took a 74-57 win over La Salle in the first salvo as part of its first-round wipeout and a 33-game winning streak in 2018.

In other games, second-running University of the Philippines (6-1) and No. 4 National University (NU) (4-3) bid to stay inside the top four at 10 a.m. while No. 5 Far Eastern University (FEU) (3-4) and No. 7 Adamson (1-6) collide in a crucial outing at 12:30 p.m.

Cellar-dweller University of the East (UE) (0-7) shoots for first win against No. 6 Santo Tomas (2-5) at 4:30 p.m.

All teams then will have a long break for the Holy Week before plunging back to action next Tuesday. — John Bryan Ulanday

Investors cash in Globe shares as Russia-Ukraine war continues

By Bernadette Therese M. Gadon, Researcher

INVESTORS chose to take profit on Globe Telecom, Inc. last week as the market’s overall negative sentiment amid Russia’s invasion of Ukraine dampened the telco’s data center joint venture and digital entertainment foray.

A total of 313,295 Globe shares worth P767.28 million were traded from April 4 to 8, data from the Philippine Stock Exchange showed.

Shares went down by 1.6% week on week, finishing at P2,480 apiece on Friday from its P2,520 closing on April 1. For the year, the stock fell by 24.3%.

“The news of Globe Telecom’s joint venture with ST Telemedia and its parent company Ayala Corp. as well as the launching of KROMA Entertainment seems to have been taken well by market players over the week,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in an e-mail interview on Friday.

“Unfortunately, the positive developments were overshadowed by negative sentiments abroad causing investors to adopt to a ‘sell on news’ mentality and cash in on any gains made,” Mr. Arce said.

He added that investors went back on the telecommunication stock “taking advantage of the dip” by Friday, however, it still underperformed compared with April 1’s closing.

Last Monday, Globe unveiled its joint venture with the Singapore-headquartered ST Telemedia Global Data Centres and Globe’s parent company Ayala Corp. to develop and build data centers in the Philippines, with a post-money valuation of around $350 million.

Globe aims to address the “significant and growing demand for data center services in the country.”

The Ayala-led telco remains to be the major shareholder in the venture with 50% ownership, followed by ST Telemedia (40%), and Ayala Corp. (10%).

It will also recognize a P10.5-billion pre-tax gain from partial monetization of its current data business center unit together with the revaluation of carrying value of Globe’s retained interest.

Separately, Globe officially launched on Wednesday its digital entertainment arm, KROMA Entertainment.

Formerly Sphere Entertainment, Globe’s media and entertainment leg first launched back in 2016 with film and TV production, and live concert/event management. KROMA added other projects such as digital magazine, artist and talent agency, and production house.

KROMA Entertainment Chief Executive Officer Ian Monsod said in a briefing that the entertainment company’s goal is to be the “leading digital entertainment player” in the country.

However, these developments were overshadowed by Russia’s invasion of Ukraine that pushed domestic inflation to a six-month high of 4% amid soaring global oil prices. The market’s sentiment was also dampened by the fresh waves of coronavirus disease 2019 (COVID-19) new infections in other countries.

In a Viber message, Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said that the announcements had given Globe a positive outlook, however, the stock and the market are dependent on current events and inflationary pressures’ impact on global growth.

“Aside from this are the uncertainties in the local election plus the possible surge of a new variant after the World Health Organization warned of it in the next two months,” he said.

“Basically, the [ST Telemedia] joint venture and the KROMA launch are good news for Globe. Unfortunately, those just got overshadowed [by the market’s overall negative sentiment],” Mr. Arce said.

“The percentage of disposable income for stock investments will likely decline,” Mr. Arce said. “In relation to Globe, with more and more people returning to the office and the potential resumption of face-to-face learning, spending for faster mobile and fixed internet plans may dwindle and eat into the company’s bottom line in the long run,” he added.

With the uncertainties posing on the stock market, Mr. Pangan said that the stock may be “bearish” in the short term, noting that the stock market will depend on how the conflict unfolds in the future, the Fed’s rate hikes, and the demand and supply strains.

Mr. Arce expects Globe to post P4.6 billion in net income in the first quarter and P5 billion in the second quarter to end the year with a net profit of “around P20.2 billion.”

Mr. Arce said that investors might opt to cash out amid the shorter trading week due to the Holy Week holidays.

He put his support and resistance levels for Globe at P2,220 and P2,680, respectively.

Meanwhile, Mr. Pangan placed his immediate support and resistance levels for the stock at P2,280 and P2,650, respectively.

Will Smith banned from attending Oscars for 10 years after slap

Will Smith in a scene from the film King Richard. — IMDB.COM

LOS ANGELES — Hollywood’s film academy on Friday banned Will Smith from attending the Oscars for 10 years after the best actor winner slapped presenter Chris Rock on stage at the Academy Awards ceremony 12 days ago.

The board of governors of the Academy of Motion Picture Arts and Sciences took the action at a meeting held one week after Mr. Smith pre-emptively resigned from the group over his outburst at the live, televised event.

“The 94th Oscars were meant to be a celebration of the many individuals in our community who did incredible work this past year,” academy President David Rubin and Chief Executive Dawn Hudson said in a statement.

“However, those moments were overshadowed by the unacceptable and harmful behavior we saw Mr. Smith exhibit on stage.”

In a statement, Mr. Smith said, “I accept and respect the Academy’s decision.” The actor has issued previous statements apologizing to Mr. Rock, the Oscars producers, nominees and viewers. In addition to the Oscars, the film world’s most prestigious awards, the board banned Mr. Smith from all other academy events and programs, in person or virtually, for 10 years.

The group did not say, however, that he would be ineligible to be nominated for Oscars during that time. Smith’s next movie, action thriller Emancipation, about a man who escapes from slavery, had been set for release later this year. No update on the Apple TV+ film has been given since Mr. Smith strode up to the stage at the March 27 ceremony after comedian Mr. Rock made a joke about the appearance of the actor’s wife, Jada Pinkett Smith, then smacked Mr. Rock across the face.

Less than an hour later, Mr. Smith gave a tearful speech on stage as he accepted the best actor award for his role in King Richard, portraying the father of tennis superstars Serena and Venus Williams. After the ceremony, he was seen dancing at Vanity Fair’s annual post-Oscars party.

Mr. Rock’s joke about Pinkett Smith made a reference to the 1997 film G.I. Jane in which actress Demi Moore shaved her head. It was unclear whether Rock was aware that she has a condition that causes hair loss.

Dana Harris-Bridson, editor-in-chief of online entertainment publication IndieWire, called the academy’s ban of Mr. Smith “too little, too late,” saying the group should have removed the actor from the ceremony at the Dolby Theater.

After the fact, the academy had few options, particularly since Mr. Smith resigned before his membership in the group could be revoked, she said.

“The moment they had was the moment in the theater,” she said.

In the Friday statement, the academy’s leaders said they did not adequately address the situation during the telecast.

“For this, we are sorry,” they said. “This was an opportunity for us to set an example for our guests, viewers and our Academy family around the world, and we fell short — unprepared for the unprecedented.”

Shortly after the incident, the academy said it had asked Mr. Smith to leave, but details of that statement have been disputed and the actor did stay for the rest of the ceremony.

The academy’s CEO and president also expressed “deep gratitude to Mr. Rock for maintaining his composure under extraordinary circumstances.

“We also want to thank our hosts, nominees, presenters and winners for their poise and grace during our telecast,” they said.

“We also hope this can begin a time of healing and restoration for all involved and impacted.” —  Reuters

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