Gov’t partially awards T-bills at higher yields

May 3, 2022 | 12:02 am

THE GOVERNMENT partially awarded the T-bills it auctioned off on Monday at higher rates on expectations of a higher April inflation, which could give the central bank an impetus to hike borrowing costs earlier than planned.

The Bureau of the Treasury (BTr) awarded just P12.613 billion in T-bills at its auction on Monday, slightly below the P15-billion program, even as the offer was oversubscribed, with bids reaching P23.731 billion.

Broken down, the government made a full P5-billion award of the 91-day debt papers as the offer attracted P10.536 billion in bids. The average rate of the three-month papers climbed by 13.2 basis points (bps) to 1.272% from the 1.14% seen at the previous auction.

The Treasury also raised P5 billion as planned from the 182-day securities as tenders reached P8.852 billion. The average yield on the tenor went up by 7.7 bps to 1.635% from the 1.558% quoted the previous week.

Meanwhile, the BTr made a partial P2.613-billion award of its offer of 364-day instruments as bids came in at just P4.613 billion, less than the P5 billion on the auction block. The average rate of the one-year tenor was at 1.933%, up by 3.2 bps from the 1.901% fetched at the previous auction.

At the secondary market on Monday prior to the auction, the 91-, 182, and 364-day T-bills fetched rates of 1.2501%, 1.5600%, and 1.9332% respectively, based on the PHP Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

National Treasurer Rosalia V. de Leon said in a Viber message to reporters after the auction that the BTr made a partial award as the market expects April inflation to have settled at around 4.6%.

Investors were also “immersed” in the aggressive tone of the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve, Ms. De Leon added.

The first trader said in a Viber message that demand for short-term debt papers “waned as dealers and investors wait for the Federal Open Market Committee (FOMC) meeting and April CPI (consumer price index) figure due towards the end of the week.”

A second trader said in an e-mail that demand for T-bills has been weak since last week, noting the market prefers slightly longer tenors with higher yields.

Inflation likely accelerated beyond the central bank’s target in April, analysts said, as food and oil prices continue to climb amid the ongoing Russia-Ukraine war and agricultural damage caused by Tropical Storm Agaton.

A BusinessWorld poll of 17 analysts yielded a median estimate of 4.6% for the April CPI, matching the midpoint of the BSP’s 4.2% to 5% forecast.

If realized, this would be faster than the 4% in March and the 4.5% in April 2021 and would be the first time that inflation would exceed the BSP’s 2-4% target band since the 4.2% print in November 2021. It will also match the 4.6% print seen in October.

April inflation data will be released on May 5.

Meanwhile, BSP Governor Benjamin E. Diokno said in an interview with Bloomberg TV last week that the central bank may consider hiking key interest rates at its June 23 meeting.

This marks a departure from Mr. Diokno’s previous statements that the central bank would only consider normalizing its stance in the second half or when the Philippine economy’s recovery firms up.

As for the US central bank, investors widely expect the Fed to raise rates by 50 bps when the FOMC meets on May 3-4, Reuters reported.

They are also bracing for signals from Fed Chair Jerome H. Powell about the future path of interest rates, the central bank’s plans for reducing its balance sheet and its view on when inflation will recede.

Policy makers raised rates in March by 25 bps, the first increase since 2018.

The BTr wants to raise P200 billion from the domestic market in May, or P60 billion via T-bills and P140 billion through Treasury bonds.

The government borrows from local and external sources to plug a budget deficit capped at 7.7% of gross domestic product this year. — T.J. Tomas with Reuters

Coca-Cola Beverages PHL ramps up recycling efforts

May 3, 2022 | 12:02 am

COCA-COLA Beverages Philippines, Inc. (CCBPI) is ramping up its plastic bottle collection program to include more communities.

Through its program “Tapon to Ipon: Basta Klaro, Panalo,” clear beverage plastic bottles made from polyethylene terephthalate (PET) material are collected and recycled by PETValue Philippines, the country’s first bottle-to-bottle recycling facility.

“Through Tapon to Ipon, we want to raise awareness about recycling and we want to do our part in ensuring that plastic packaging materials that are 100% recyclable are collected and used again,” Gareth McGeown, CEO and president of CCBPI, said.

All Tapon to Ipon collection hubs will now accept all types of clear post-consumer PET plastic beverage bottles, regardless of brands.

“At the same time, we’re starting a movement within local communities — World Without Waste is a collective movement and the contribution of every single individual is valuable,” he said, referring to Coca-Cola’s global goal to collect and recycle 100% of the bottles and cans it sells by 2030.

Coca-Cola developed an incentive-based strategy that would provide small business owners with additional income. Consumers can receive Coca-Cola products in exchange for the used plastic bottles that they will turn over at the Tapon to Ipon sari-sari store hubs.

It had a successful pilot program in Batangas City, followed by the expansion in Manila. There are plans to further expand the program throughout the country.

For consumers who use CCBPI’s Happiness on Demand (HOD) home delivery service in Las Piñas, Parañaque, Alabang, and Bonifacio Global City, they can turn over clear plastic bottles to the Coca-Cola HOD team upon delivery of their orders.

Former NLEX Corp. chief takes the helm of MPT South

May 3, 2022 | 12:02 am

METRO Pacific Tollways Corp.’s (MPTC) unit MPT South Corp. announced on Monday the appointment of Raul L. Ignacio, the former chief operating officer of NLEX Corp., as its new president and general manager.

He replaces Robert V. Bontia, who “has been designated as chief transformation officer to head on a full-time capacity the Business Transformation Office of Metro Pacific Tollways Corp.,” the company said in an e-mailed statement.

MPT South also said Mr. Ignacio “has extensive years of experience and expertise in our organization with a tenure that started with NLEX Corp. and has led our company’s initial venture into the mobility space by heading MPT Mobility since 2020.”

On Mr. Bontia, the company said: “As one of the most senior executives of the organization, [he] will ensure the effective implementation of vital groupwide transformation projects.”

MPT South’s existing projects include the 7.7-kilometer C5 Southlink and the 45.4-kilometer Cavite-Laguna Expressway.

The company is hoping to open the road section connecting Aguinaldo Highway to Silang East interchange of the P35-billion CALAX project by the third quarter of the year.

MPTC’s capex for the year is estimated to be P32 billion.

MPTC is the tollways unit of Metro Pacific Investments Corp., which is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

Netflix drops Meghan Markle’s animated series Pearl

May 3, 2022 | 12:02 am

header_photo — Rachel Meghan Markle — PHOTO FROM ROYAL.UK/DUCHESS-SUSSEX

STREAMING platform Netflix, Inc. said on Sunday it had decided to stop work on Meghan Markle’s family series Pearl as it reviewed animated content.

Dropping several projects, including Ms. Markle’s, was part of strategic decisions on production of animated series, the company said in a statement, without providing further details on its decision.

Archewell Productions, the company formed by Ms. Markle and her husband, Prince Harry, said last year that she would be an executive producer of Pearl. The series was to be centered on the adventures of a 12-year-old girl who is inspired by influential women from history.

The couple is formally known as the Duke and Duchess of Sussex. Archewell did not immediately respond to a request for comment.

Netflix also decided not to move forward with the two animated children’s series Dino Daycare and Boons and Curses.

The decision to cancel these shows comes after Netflix reported a loss of 200,000 subscribers in the first quarter, falling well short of its forecast of adding 2.5 million.

Last year, Netflix extended a deal for animation films with Comcast subsidiary Universal Pictures, a move that was expected to help Netflix hold on to child viewers.

Netflix said on Sunday it would continue to work on projects with Archewell, including the previously announced documentary series Heart of Invictus. This will focus on athletes competing in the Invictus Games for injured veterans in The Hague in 2022.

Netflix did not respond to a query on whether it would cut more animated shows. — Reuters

PSC releases P200 million for Hanoi Games campaign

May 3, 2022 | 12:02 am

THE Philippine Sports Commission (PSC) have cough up more than P200 million to fuel the country’s ambitious campaign to defend its overall title in the Hanoi Southeast Asian Games (SEA) set on May 12 to 23.

“The PSC had already released more than P200 million and could reach P230 million to fund the country’s SEA Games participation,” a source on Monday told The STAR.

Part of the Philippines’ 987-strong delegation, which included 646 athletes, had left for Hanoi on Sunday and on Monday while the bulk of it will follow suit next week in time for the opening ceremony on May 12.

There rests of the delegation will arrive on May 13.

Kickboxing, which will be led by former mixed martial arts champion Honorio Banario and 2019 SEA Games gold medalist Jean Claude Saclag and Gina Iniong Arao, flew on Monday.

The national kickboxers are out to eclipse, if not duplicate, their three-gold, two-silver and one-bronze harvest in the last edition of the biennial meet.

Jomar Balangui, Renalyn Dacquiel, Carlos Alvarez, Kurt Lubrica, Daryl Chulipaz, Emmanuel Cantores, Claudine Veloso, Gretel de Paz, and Zephania Ngaya are the other members of the team.

PSC commissioner and the country’s Hanoi Games chef de mission Ramon Fernandez and Philippine Olympic Committee President Abraham Tolentino are both optimistic of the Filipinos’ chances.

Other teams expected to fly this week are men’s football and beach handball, which will have games on Friday, diving (Sunday), rowing (Monday), chess, men’s and women’s futsal, pencak silat and kurash (May 10), and women’s football (May 11).

The country lorded it over the 2019 edition following a historic 149-gold, 117-silver and 121-bronze medal harvest. — Joey Villar

RLC-DMCI project on track for completion by 2024

May 3, 2022 | 12:01 am

CONSTRUCTION of Robinsons Land Corp. (RLC) and DMCI Homes’ joint venture project in Las Piñas is ongoing despite limitations posed by the pandemic.

Sonora Garden Residences is a 1.45-hectare condominium development within Robinsons Place Las Piñas complex along Alabang-Zapote Road, Las Piñas City.

Structural work on the first building, Cadence, is over 60% completed as of March 2022.

“With construction in full swing, the building is on track for ‘on time’ completion by June 2024,” the companies said in a statement.

The size of the condominium units ranges from 28 to 81.5 square meters with balcony. Units are now pre-selling at P4 million and up.

Sonora Garden Residences offers residents a chance to experience “resort-living,” while still near retail shops, restaurants, supermarkets, airports and business districts.

Around 70% of the property’s land area is allocated for open spaces, gardens, and various resort-inspired amenities such as swimming pools, basketball court, children’s play area, gym, sky lounges, etc.

Ateneo regroup getting ready for a tough FEU

May 3, 2022 | 12:01 am

By John Bryan Ulanday

ONCE unshakeable atop of the UAAP stratum for four long years, the mighty Ateneo had fallen. But as “humbling” as its collapse was, the three-time defending champion still sees a silver lining that would only clear the way for its flight to greater heights along the way.

Holder of 39 straight wins since 2018, the Blue Eagles got sent crashing back to Earth over the weekend by rival University of the Philippines with a tough 84-83 heartbreaker that they are hoping to serve as a much-needed wake-up call moving forward.

“This a good humbling experience for our organization, for me and for the team,” said coach Tab Baldwin as Ateneo lost a golden chance to go undefeated at 14-0 and book an outright finals berth with their lone yet biggest defeat of the season.

Riding on a 13-0 start including a 90-81 win in the opener against the Fighting Maroons, the Blue Eagles marched into the second part of the “Battle of Katipunan” brimming with hopes only to be spoiled by the slimmest of margins.

Baldwin said it’s his fault as the erstwhile invincible Ateneo team that trounced its first 13 assignments by an average gap of 18 points played catch-up basketball in a rare scenario against a spirited University of the Philippines (UP) side.

Ateneo trailed early by as many as 18 points before clawing back and figuring in a nip-and-tuck battle for only the first time in a long while with Ricci Rivero draining two crucial free throws to win it for UP.

“I made some tactical mistakes early and that hurt us. It contributed to digging a hole for our team and UP was really ready. They played really well and it’s just a case of trying to dig out of that hole right throughout the game,” Baldwin admitted.

“We haven’t been in that situation. I thought we didn’t have good composure and good decision making in that situation. Like anything else, you need those in order to be good at those,” he added.

Fortunately for the Blue Eagles, they are still the No. 1 seed in the traditional Final Four format with a twice-to-beat incentive against No. 4 Far Eastern University (FEU) for a still handsome four-peat chance as their ultimate goal from the beginning.

“That’s just the way it is. You don’t win them all and it’s not a question if you can’t win them all (because) you can but nobody ever has. So the truth is, you don’t win them all and now it’s just a case of regrouping, bouncing back and getting ready for a tough FEU team,” he vowed.

COL Financial earnings rise 38% as revenues climb

May 3, 2022 | 12:01 am

COL FINANCIAL Group, Inc. reported on Monday that its net income surged by 38% to P582 million in 2021, driven by a jump in commission revenues.

“While ranking #1 is not the benchmark that we measure our success on, we believe that this is the natural result of our strategy to focus on serving our customers,” COL Financial President and Chief Executive Conrado F. Bate said in a statement.

“By giving our self-directed investors the tools and knowledge that they need to invest wisely, this group of investors continues to become a bigger and more influential part of the country’s investing landscape,” he added.

Meanwhile, consolidated revenues rose to P1.3 billion, while its client assets hit P112 billion as the company saw P6.7 billion in net new flows.

The financial group reported that its client base also hit almost half a million investors by the end of 2021.

COL Financial said that it benefited from the increase in market activity in the Philippine Stock Exchange (PSE), due to its strategy of focusing on its retail investor base.

“As a result, COL ranked as the #1 stockbroker in the Philippines for the second year in a row, with a record market share of 8.6%,” the company said.

On the fund distribution side, the company said it started offering access to global funds through its platform.

“For the first time, COL clients were able to invest in a global multi-asset fund, resulting in a strong take-up from customers looking for investments outside of the local stock market,” it said.

Working with its fund partners, the firm said it intends to “continue its expansion of global products by adding over 20 global, theme-based equity funds in the first half of 2022.”

On April 27, the company said that it would pay out P0.085 per share in cash dividends to its shareholders. The dividends are equivalent to 65% of the company’s profits last year, and is 30.7% higher than its cash dividends from the previous year.

For 2022, COL Financial said it would continue its adoption of more efficient and scalable technologies, in addition to increasing its product offerings to address the different needs of its existing and prospective customers.

“While the current market conditions are more challenging than last year’s, we believe that we’ll be able to weather different market environments as long as we stick to our long-term strategy of putting our clients first at all times,” said Mr. Bate.

COL Financial shares ended lower on Monday by 1.63% or six centavos to close at P3.62 apiece at the stock exchange. — Luisa Maria Jacinta C. Jocson

Digital banks expected to boost PHL credit information system

May 3, 2022 | 12:01 am

Digital-banking — STOCK PHOTO | Image by Macrovector from Freepik

CREDIT Information Corp. (CIC) urged digital lenders to join the public credit registry to boost the database and help give unbanked Filipinos access to lending.

“The registration of digital banks as submitting entities is a valuable addition to the CIC database, especially as digital banks have the potential of penetrating the unbanked sectors,” CIC President and Chief Executive Officer Ben Joshua A. Baltazar said in a statement on late Thursday.

“Being a key driver of the country’s digital transformation, their participation in the Credit Information System can serve as a catalyst for broad-based financial inclusion and improved access to credit,” Mr. Baltazar said.

CIC’s submitting entities are institutions that lend to borrowers, including banks, nonbanks, trust entities, investment houses, financing companies, cooperatives, nongovernmental, micro-financing organizations, credit card companies, insurance companies, and government lending institutions.

The agency’s database currently includes the credit data of 33.1 million individuals. This is equivalent to about 49% of the Filipino adult population.

The CIC, through Letter Circular No. 2022-05, series of 2022 dated April 11, notified digital banks that they are covered by Republic Act 9510 or the Credit Information System Act.

Six entities were given licenses by the Bangko Sentral ng Pilipinas (BSP) to operate digital banks, namely the Overseas Filipino Bank (OFBank), Tonik Digital Bank, Maya Bank, UNO Digital Bank, Union Digital Bank, and GoTyme. OFBank, Tonik Digital Bank and Maya Bank are already operating while the rest are expected to be launched within the year.

Digital banks offer products and services through online platforms and do not need to set up branches.

The CIC is also bullish that digital banks will provide more lending opportunities to micro-, small-, and medium-sized enterprises (MSMEs).

“With the appeal and accessibility of financial services offered by digital banks for MSMEs, the CIC hopes that digital banks promptly comply so that MSMEs with low or no recorded credit data can build and improve their creditworthiness,” Mr. Baltazar said.

MSMEs make up about 99% of all registered businesses in the country and were among the most affected by the pandemic crisis. Many small businesses face difficulties in accessing formal lending due to lack of credit history.

The BSP has partnered with the Japan International Cooperation Agency for a credit risk database project that is aimed at boosting credit scoring models for small businesses. — Luz Wendy T. Noble

Comedian James Corden to leave late-night show next year

May 3, 2022 | 12:01 am

Late-Late-Show’s-YouTube-Special — British comedian James Corden in Late Late Show’s YouTube Special — MONTY BRINTON/CBS VIA CBS WEBSITE

LOS ANGELES — British comedian James Corden said on Thursday he will exit The Late Late Show on CBS television in 2023 after eight years as host to explore other opportunities.

Mr. Corden announced the news at an episode taping in Los Angeles. He told a studio audience that he saw the show, which he began hosting in 2015, as an “adventure” and not his “final destination” in entertainment.

“I never want this show to overstay its welcome in any way,” Mr. Corden said in a clip released on YouTube. “I always want to love making it. And I really think in a year from now that will be a good time to move on and see what else might be out there.”

Mr. Corden was relatively unknown in the United States when he began hosting the Late Late Show but generated buzz with his viral “Carpool Karaoke” segments in which he sang along with stars including Adele and Lady Gaga.

The comedian’s contract was due to expire in August but he agreed to host the show for one more season that will run through spring of next year.

Mr. Corden promised his remaining shows would be a “blast” filled with sketches and surprises.

“And there will be tears,” he said. “There will be so many tears. Because this has been the hardest decision I’ve ever had to make … I’ve never taken this job for granted.”

Mr. Corden, 43, also hosted the Tony and Grammy awards and appeared in films including the critically panned movie musical Cats.

“Seven years ago, James Corden came to the US and took television by storm, with huge creative and comedic swings that resonated in a big way with viewers on-air and online,” said George Cheeks, president and CEO of CBS.

“We wish he could stay longer, but we are very proud he made CBS his American home and that this partnership will extend one more season on The Late Late Show,” Mr. Cheeks added. — Reuters

Domestic trade in the regions: Which have (un)favorable trade balances?

May 3, 2022 | 12:00 am

DOMESTIC TRADE by value in 2021 rose by 21.6% to P718.44 billion, the Philippine Statistics Authority (PSA) said, reflecting a recovery in the economy from the low base formed by 2020, the first year of the pandemic. Read the full story.

How PSEi member stocks performed — May 2, 2022

May 3, 2022 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Monday, May 2, 2022.