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Car sales recover in May

PHILIPPINE STAR/ MICHAEL VARCAS

CAR SALES in May increased by more than four times from the same month last year after coming off a low base.

A joint report from the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA) on Monday showed that industry sales went up by 360.8% to 22,062 units in May from 4,788 in the same month in 2020.

Restrictions during the start of the pandemic had dampened consumer activity, with some dealerships just starting to reopen in mid-May 2020 after lockdown rules were relaxed.

Auto Sales

This year, May sales jumped by 23.6% from April, when tighter quarantine measures were in place.

Metro Manila and adjacent provinces were under a modified ECQ (MECQ) to curb a spike in coronavirus disease 2019 (COVID-19) infections until May 14.

“The industry remains optimistic of a nascent recovery but at the same time on guard for any downside risks of the pandemic particularly if lockdowns are reimposed in NCR Plus and in other regions resulting in a tepid consumer confidence,” CAMPI President Rommel R. Gutierrez said.

Sales of all vehicle categories improved in May. Commercial vehicle sales went up by 325.5% to 14,463 units in May compared with 3,399 in the same month a year ago, while also climbing by 17.8% from the April figure.

Passenger car sales surged by 447.1% to 7,599 in May from 1,389 units a year ago, up by 36.43% from the 5,570 sold in April.

For the first five months of the year, CAMPI data showed vehicle sales rose by 58.7% to 110,217 units, from 69,463 units in the same period in 2020.

Year to date, commercial vehicle sales increased by 49.6% to 75,193 units, while passenger car sales jumped by 82.4% to 35,024 units.

Toyota Motors Philippines Corp. (TMP) continued to have the largest market share at 48.86% in May after selling 10,799 units.

Mitsubishi Motors Corp. followed with 3,229 units sold at 14.64% market share, while Suzuki Philippines, Inc. sold 1,802 units, with 8.17% market share.

The car industry could recover to pre-pandemic sales as late as 2023, Mr. Gutierrez said earlier this year.

He added that recovery would be achievable if there are certainties in the market, consistent government policies, and widespread inoculation against COVID-19.

The best-case scenario for the industry in 2021, he said, is a 30-35% sales growth, but the provisional safeguard duties on imported cars could lower growth to 20-25% compared with last year’s figure. — Jenina P. Ibañez

SEC revokes Venture Securities’ license, slaps P32-M penalty

A SECURITIES and Exchange Commission (SEC) panel revoked the license and slapped a P32-million fine on Venture Securities, Inc. (VSI) and key officers over fraud that led to the collapse of another brokerage, R&L Investments, Inc.

In a decision dated June 11, the SEC Markets and Securities Regulation Department special hearing panel said VSI “indispensably contributed to, if they had not been the proximate cause of, the losses incurred by the clients of R&L.”

“We cannot tolerate and ignore any act or omission on the part of those involved in the capital market which would violate the norm set by the securities law, especially on the transactions and responsibilities of broker dealers and that would diminish or even just tend to diminish the faith of investors on the integrity of the capital market,” the panel said.

To recall, R&L Investments was placed under involuntary suspension in November 2019 by the Capital Markets Integrity Corp. (CMIC) after trading floor assistant and settlement clerk Marlo Moron stole over P700 million worth of client shares from R&L Investments.

The stolen stocks were transferred to a Venture Securities account under the name of Julieto Sulapas.

The SEC special hearing panel concluded that Venture Securities and its president, Wilfred Racadio, associated person Adora Aguilar, salesman Loreto Balabis, and settlement head Teresita Mosenabre did not comply with the “know-your-client” procedures and other responsibilities as required under the Securities Regulation Code.

“For one, the concerned officers of VSI were not present when Mr. Sulapas opened an account and failed to verify the authority of Mr. Moron to transact on behalf of Mr. Sulapas,” the panel said.

According to the panel, Mr. Sulapas’ account showed that he made around 2,800 buy transactions from 2012 to 2019 despite having only five cash payments recorded throughout. The SEC noted that Mr. Balabis, Ms. Aguilar, and Ms. Mosenabre did not review the transactions. 

VSI also did not maintain complete books and records.

“Moreover, VSI and its officers failed to report suspicious transactions to the Anti- Money Laundering Council and somehow even helped Mr. Sulapas evade the reporting threshold by issuing multiple checks for amounts lower than P500,000,” the SEC panel said.

The panel decided to revoke the registration and the license of VSI as broker and dealer. The brokerage was also slapped with an P8-million fine, while imposing penalties of P9 million for Mr. Racadio, P8 million for Ms. Aguilar, P5 million for Mr. Balabis, and P2 million for Ms. Mosenabre.

The VSI officers were also disqualified from being registered persons under the SRC.

“VSI and Mr. Racadio are held jointly and severally liable for the monetary penalty imposed on its officers and employees,” the SEC’s decision read.

The SEC panel said it cannot tolerate the practice of appointing “undiscerning” persons in firms involved in the capital markets, adding that those who “consciously and willfully commit” wrongful acts as officers or employees should be held accountable.

VSI has not responded to BusinessWorld’s request for comment as of press deadline. — Keren Concepcion G. Valmonte

DoE to NGCP: reduce fees and comply with required reserves

BW FILE PHOTO

Grid operator says department policy will not eliminate brownouts

By Angelica Y. Yang, Reporter

THE Department of Energy (DoE) told privately owned National Grid Corp. of the Philippines (NGCP) on Monday to reduce its transmission fees and ensure compliance with the ancillary services (AS) requirement if the latter wanted to help consumers.

Earlier, the system operator pointed out that if it implements a 100% firm-contracted requirement for its reserves, consumers will see “astronomical increases” in power rates.

Citing initial estimates, NGCP spokesperson Cynthia P. Alabanza previously explained the move would hit typical households in Luzon, Visayas and Mindanao with an additional P128, P108, and P278 in their power bills, respectively.

“It is not for NGCP to say that electricity will be more costly if they comply. Having the required reserves is not optional. If NGCP wants to help consumers, be magnanimous, and lower the cost of electricity, they should just reduce their transmission fee, reduce the Weighted Average Cost of Capital, and finish the transmission projects on time,” the DoE said in a statement on Monday.

The department also reiterated its call for the grid operator to ensure sufficient reserves instead of “making excuses to justify continued noncompliance with the DoE’s issuances.”

According to a department circular issued two years ago, the NGCP is required to procure 100% of firm-contracted reserves to guarantee the reliability of the grid.

The DoE said its 2019 AS policy clearly states that NGCP may engage in forward contracting, which allows the entry of additional capacities.

NGCP previously said it had contracted most of its reserves through a combination of firm and non-firm arrangements but added that its contingency reserves for Luzon are short of 72 megawatts, as of end-2020.

To avoid electricity price spikes, industry participants must comply with their obligations to increase the generation capacity, the DoE said.

“This can be done through the purchase of replacement power by the distribution utilities and the procurement of ancillary services or reserves by the NGCP,” it said.

Sought for comment on DoE’s statements, NGCP’s Ms. Alabanza said that the company does not deny its obligation to secure sufficient reserves.

“What we are asking is that the take-or-pay procurement policy being enforced by DoE first undergo scrutiny by the Energy Regulatory Commission because of what NGCP’s simulations show to be a significant impact on consumer rates,” she told BusinessWorld on Viber on Monday.

Firm contracting will not add new capacities to the grid since this will only change the payment terms of existing contracts, she said.

“Even if fully implemented, the thinning of supplies, and the possibilities of further rounds of red alerts and power interruptions throughout the Luzon grid will not disappear or be in any way mitigated,” Ms. Alabanza added.

According to her, the country has enjoyed better services and lower rates under NGCP.

“Since it took over operations in 2009, consumers have enjoyed a 23% reduction in transmission rates and a 75% reduction in transmission outages,” she said.

‘TAKE BACK CONTROL OF THE GRID’
In the same statement, DoE Secretary Alfonso G. Cusi said that “it is time for the government to take back the country’s grid,” as he cited issues of national security.

He was referring to the State Grid Corp. of China, one of China’s two grid companies, which holds a 40% share in NGCP. He previously described NGCP as a private firm with “substantial foreign ownership.”

In a public hearing last week, Mr. Cusi asked the Senate Committee on Energy to consider reverting grid control to the government to better manage power reserves and ensure national cybersecurity.

He also asked the chamber to consider giving authority to the DoE to prepare the annual transmission development plan (TDP), which is currently under the mandate of NGCP.

Mr. Cusi said the DoE did not approve the TDP because NGCP did not let state-led National Transmission Corp. review it.

Four months ago, NGCP said it had been consulting agencies and stakeholders about the updated TDP. The latest version of the plan, which covers the years 2021 to 2040, accounts for the needs of the power grid.

Your Netflix habit has a carbon footprint, but not a big one

FREEPIK.COM

STREAMING your favorite hour-long television show is the environmental equivalent of boiling a kettle for six minutes or popping four bags of popcorn in the microwave, according to an industry-backed study from climate group Carbon Trust.

The findings are encouraging to researchers — and good news for streamers such as Netflix, Inc., which helped fund the work — because they show the carbon footprint of streaming is smaller than some estimates in the past showed. Further, the study revealed ways in which entertainment companies can cut the emissions their products generate.

Like most industries, the film and television business is on a mad dash to cut carbon dioxide output, hoping to help mitigate the worst effects of climate change. While streaming a show has less of an impact on the environment than, say, the production of a new movie, companies are looking for any way they can to improve sustainability.

“There was a lot of misinformation and misunderstanding about the carbon impact of video streaming,” said Andie Stephens, lead author of the white paper and associate director at the Carbon Trust. “We therefore wanted to put this into perspective, and help to increase the knowledge and understanding of the impact of video streaming.”

The research found an hour of streaming emits the equivalent of about 55 grams of carbon dioxide into the atmosphere, based on a user in Europe. About half the emissions come from the device used itself, with larger and older technology harming the environment the most. The remaining emissions stem from home web routers and distribution networks — with a small volume coming from data centers, the centralized hubs where internet information is processed and stored.

Researchers behind the white paper also examined whether watching content in high definition had a greater impact on emissions than standard definition. They found it makes little difference. Further, the sustainability of the business has been improving. While demand for streaming has soared, especially during the pandemic, the amount of energy consumed by those activities has fallen as equipment becomes more efficient and green power rises in popularity.

A group called Dimpact — comprised of media companies and researchers from the UK’s University of Bristol — has been trying to gain a clearer picture of how bad streaming is for the environment. In March, the Bristol researchers created a carbon calculator. Using the tool, Netflix said in March about an hour of streaming emitted less than 100 grams of CO2 equivalent, similar to the latest findings.

The new report is a “validation of the work that we had done,” said Emma Stewart, the head of sustainability at Netflix.

Separately, Netflix plans to reach net zero greenhouse gas emissions by the end of 2022, a target that means it will offset all the emissions it can’t eliminate by that time. About 50% of Netflix’s emissions come from the physical production of new content, and 45% stems from corporate operations.

The company doesn’t include its customers’ web use in the calculation of its carbon footprint, though Ms. Stewart said they can encourage partners to make cleaner devices and customers to switch to so-called green tariffs, which add more renewable power to the grid. — Bloomberg

Finance chief tells local firms: Spend more for digitalization

FINANCE SECRETARY CARLOS G. DOMINGUEZ III — SEONGJOON CHO/BLOOMBERG

PRIVATE firms in the country should invest more in digitalization and innovation to remain competitive as technological advancements accelerates because of the coronavirus pandemic, Finance Secretary Carlos G. Dominguez III said.

“As our country recovers from the pandemic and industries get back on their feet, businesses will require heftier investments in innovation and technology in order to stay competitive,” Mr. Dominguez told participants in an event hosted by the Department of Science and Technology (DOST) on Monday.

“Technological innovations will build new industries and create many employment and investment opportunities. These will allow us to bounce back stronger from the pandemic and help ensure the long-term recovery of our economy,” he added.

The DoST launched its Advanced Manufacturing Center (AMCen) in Taguig City on Monday. AMCen is a technological hub and research center for additive manufacturing, which also houses the country’s first 3D printing research and development (R&D).

Mr. Dominguez said he expects the center to play a major role in the country’s shift to technology and serve as a starting point to upskill workers on advanced manufacturing activities.

Lockdowns and the continued spread of the coronavirus disease 2019 (COVID-19) forced businesses around the world to accelerate their digitalization plans to cope with the new normal.

Aside from actual infrastructure, current tax policies will further support R&D since the newly enacted Corporate Recovery and Tax Incentives for Enterprises (CREATE) law reduced the corporate income tax rate and offered special tax perks to the sector.

Republic Act 11534 or CREATE act will gradually cut the corporate income tax to 20% from 30%, and reform the country’s fiscal incentive scheme.

It also grants 100% additional deduction from taxable income on R&D expenses for eligible companies to encourage them to innovate and adopt new business models.

“The Department of Finance uses this fiscal policy as a tool to promote a regime that rewards innovation and the creation of new knowledge,” Mr. Dominguez said.

“The law provides significant reductions in corporate income tax rates for all enterprises in the country. These tax savings could very well be used by businesses to modernize their systems and processes,” he added.

Based on the latest Tholons Global Innovation Index released in March, the Philippines dropped out of the top 10 list of countries deemed as attractive destinations for technology, digital and innovation in 2020. The country is now at 18th in the Top 50 Digital Nations.

Meanwhile, the country reached its highest rank so far in the Global Innovation Index 2020 after ranking 50th out of 131 economies studied. — Beatrice M. Laforga

Taiwanese investigative series premieres on HBO GO

A DETECTIVE, a rookie policeman, and a politician are caught up in a series of crimes in the new HBO Asia Original Taiwan series, Trinity of Shadow, now showing on HBO GO.

Directed by Bo-Hao Hong, the 15-episode series follows a murder investigation that leads detective Tze-Wei, an up-and-coming public official Chi-Hsiao, and rookie policeman Chia-Hao into the dark labyrinth of a power play. As the trio close in on the truth, they are inextricably intertwined and forced to confront their demons, linked to a cold case from three years ago.

During an online press launch with media from Southeast Asia on June 10, Sandrine Pinna, who plays the lead detective Tze-Wei, said that the events snowball from the different choices of the characters in the show.

“When the audience watches the show, they can make their own choices. Their choices might be different from the characters, so there’s room for discussion,” Ms. Pinna said in Mandarin.

“And it also touches on topics like good and evil, and the relationship between the victim and the perpetrator,” she added.

Kaiser Chuang, who plays the public official Chi-Hsiao, said the show presents the audience with questions.

“There is a saying that ‘seeing is believing.’ Is it true? Maybe different people have different versions of the truth? What is more important could be what you believe in and can help you go on,” Mr. Chuang said in Mandarin, speaking through an English translator.

Mr. Chuang added that the storyline is realistic as it also takes elements of governance in Taiwan, and how some elements may apply to other Southeast Asian countries.

The rest of the cast in the series are: Frederick Lee (who previously starred in Midnight Food Store, The Scoundrels), Huang Wei-Ting (Love, Timeless; Wacko at Law), Ouyang Lun (Killed by Rock and Roll, Bad Boy Symphony), Wang Tzu-Chiang (HBO Asia Original Dream Raider, It’s Drizzling), Ray Fang (Moonglight Romance, Get Together), Peggy Tsang (Revenge of the Factory Woman, Parking), Wei Man (Brave to Love, Sweet Family), Jason King from the Canto-pop boy band MIRROR, and Stanley Yau (We Are the Littles, Who Sells Bricks in Hong Kong).

Trinity of Shadows premieres two new episodes every Sunday on HBO GO. The app is available on the App Store or Play Store.  HBO GO is also accessible via Cignal, Globe and SkyCable or at https://www.hbogoasia.com/. — Michelle Anne P. Soliman

SEC flags Flint Technology for unauthorized investment offer

FLINT.COM.PH

The Securities and Exchange Commission (SEC) has flagged Flint Technology Corp. for offering unauthorized investments to the public.

While the entity is registered as a corporation with the commission, the SEC stressed that it is not authorized to collect investments.

Flint Technology is run by Jan Andre M. Mercado and it is said to be a product of his other business, Signet Properties.

The entity also goes by Flint, Flint PH, and Flint Philippines. However, none of its other names are registered with the commission and none have licenses to collect investments from the public.

Flint is said to be a real estate crowdfunding platform powered by business financing platform SeedIn Technology, both of which are not registered as crowdfunding intermediaries or as funding portals.

“The scheme of Flint / Flint PH / Flint Philippines constitutes offering and sale of securities in the form of investment contracts to the public as its investors need not exert any effort other than to invest or place monies in its operation in order to receive profits,” the corporate watchdog said.

A minimum investment of P1,000 in Flint promises a 12% return per annum.

“Allegedly, the earnings will be taken from profits of the real estate investment that is offered to any person at any time,” the SEC said.

The commission is calling on the investing public to be cautious in investing activities and reminded to take precautions before engaging with Flint.

Sought for comment, Mr. Mercado said in a statement that his SEC-registered company had already filed its crowdfunding license application.

“Our legal team is prepared to work closely with the SEC in order to secure all necessary compliance requirements and abide with the current cf rules and regulations. We are confident to resolve any existing issue to protect the integrity of the company, as the welfare of the general public is what is of paramount importance to us,” he said.

“Rest assured flint is doing its best and is in constant communication with the SEC as we work hand-in-hand to ascertain a positive resolution for all parties involved,” he added. — Keren Concepcion G. Valmonte

Darren Espanto returns with his first virtual concert

Darren Espanto

FILIPINO-Canadian singer Darren Espanto sheds his teenage persona in his new online concert, Darren Home Run: The Comeback Concert, which will be shown on June 19 on ktx.ph, iWantTFC, and TFC IPTV.

Born on May 24, 2001, Mr. Espanto first appeared on Philippine television in 2014 as a contestant in The Voice Kids Philippines where he finished in second place under Team Sarah. In his seven-year career, Mr. Espanto has held major concerts in the Philippines, the USA, Canada, and the Middle East. His cover of Timmy Thomas’ 1990 single, “Dying Inside to Hold You,” has 49.8 million streams on Spotify.

A collaboration between ABS-CBN Events and MCA Music, the concert was initially scheduled on May 30 and 31, but was postponed after the singer was exposed to a coronavirus disease 2019 (COVID-19) positive individual. The virtual concert was rescheduled in June.

“It’s called Darren Home Run because in the past seven years, I feel like I have hit the bases in the music/concert scene in the Philippines. It’s kind of like I hit a home run in this show. I just came back from Canada so I’m very excited,” Mr. Espanto said in an online press launch on June 8 held via Zoom.
“This is the biggest virtual concert that I have ever done. Most of the songs that I personally chose for the setlist are close to my heart and are related to my journey in showbiz,” Mr. Espanto said in a mixture of English and Filipino.

The concert is directed by Paolo Valenciano, with TV direction by Jon Moll and musical direction by Soc Mina. Performances on the show are choreographed by D Grind.

“What I envisioned, he (Paolo Valenciano) really brought to life. And I’m happy with how everything looks,” Mr. Espanto said of the stage direction.

“Since this is virtual show, it has to be pleasing to the eyes even if it’s just on a screen. We want to bring the whole concert experience to your homes or wherever the people watching will be,” he added.

Darren Home Run: The Comeback Concert on June 19, 8 p.m., has a re-run the next day, June 20, at 10 a.m., via ktx.ph, iWantTFC, and TFC IPTV. His new single, “Tama Na,” is now available on digital music streaming services. Tickets to the concert are available via KTX.ph, iWantTFC, and TFC IPTV. VIP tickets — at P1,500 — are only for the June 19 live show via KTX.ph, and come with exclusive access to a Zoom party with Mr. Espanto. Regular tickets are available at P699. SKYcable subscribers can watch the concert commercial-free and in high-definition via SKY Pay-Per-View on June 19, 8 p.m., for P699. To get the pay-per-view passes, they can visit mysky.com.ph/skyppv or text SKY PPV <Account No.> to 23662. — Michelle Anne P. Soliman

Gov’t hikes Treasury bill award

BW FILE PHOTO

THE GOVERNMENT increased the amount of Treasury bills (T-bills) it accepted on Monday as rates continued to decline across the board amid robust liquidity in the market.

The Bureau of the Treasury (BTr) raised P21 billion in T-bills on Monday, higher than the programmed P15 billion, as it doubled its acceptance of non-competitive bids across all tenors.

Total tenders reached P100.296 billion on Monday, making the auction 6.6 times oversubscribed. This was also higher than the P92.52 billion in bids seen in the previous week’s auction.

Broken down, the BTr borrowed P7 billion via the 91-day T-bills from P28.229 billion in bids, up from the initial plan to raise just P5 billion. The three-month debt fetched an average rate of 1.118%, down by 5.8 basis points (bps) from the 1.176% seen last week.

The government raised another P7 billion from the 182-day papers versus the original P5-billion program as tenders hit P34.037 billion. The tenor’s average rate likewise dipped by 5 bps to 1.372% from 1.422% previously.

For the 364-day securities, the Treasury also upsized its award to P7 billion from the P5-billion plan, with demand for the papers reaching P38.03 billion on Monday. The one-year instruments were quoted at 1.577%, declining by 7.2 bps from the 1.649% fetched for the tenor last week.

National Treasurer Rosalia V. de Leon said yields dropped across all tenors as the market was awash with cash following  the redemption of retail Treasury bonds (RTBs) worth P131 billion.

“Liquidity looking for outlets as [the] RTB maturity further bolstered ample funds onshore, searching for yields,” Ms. De Leon said in a Viber message to reporters after Monday’s auction.

Meanwhile, a bond trader attributed the decline in T-bill rates to “easing inflation concerns and as investors continue to assess business prospects given the improvement in NCR (National Capital Region), but a corresponding increase in COVID cases in the countryside.”

Headline inflation was steady for the third straight month at 4.5% in May and fell within the 4-4.8% estimate of the Bangko Sentral ng Pilipinas (BSP).

Year to date, inflation averaged at 4.4%, higher than the 2-4% target of the BSP and its revised forecast of 3.9% for the year. May was the fifth month in a row that inflation went beyond target.

Meanwhile, health authorities in late May said new coronavirus cases have started to increase in cities and provinces outside the capital, while NCR and its nearby areas are experiencing a steady decline in new infections.

The Health department reported 7,302 new infections on Sunday, while active cases were at 59,865.

On Tuesday, the BTr will offer P35 billion in reissued 10-year Treasury bonds (T-bonds) with a remaining life of nine years and 24 days.

The Treasury wants to raise P215 billion from the local debt market this month: P75 billion via weekly offers of T-bills and P140 billion from weekly auctions of T-bonds.

The government is looking to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.4% of gross domestic product. — Beatrice M. Laforga

Globe says some modems sold as DITO’s; ready to take legal action

GLOBE.COM.PH

GLOBE Telecom, Inc. is ready take legal action against those who sell its Globe At Home WiFi modems with DITO Telecommunity Corp.’s stickers, the company said on Monday.

“It has come to our attention that certain individuals and retail establishments are illegally reselling and passing off as DITO Telecommunity modems several of our Globe At Home WiFi modems,” Globe said in an e-mailed statement.

Globe added that its WiFi modems are being sold to customers with DITO stickers, “making them appear as DITO modems.”

“We are prepared to take the necessary legal action against these unscrupulous individuals and establishments carrying out these deceptive business practices, through the assistance of law enforcement authorities,” it also said.

For his part, DITO Chief Administrative Officer Adel A. Tamano said in a statement: “It has come to our attention that there are so-called DITO-branded modems that are being sold online.”

“Let me take this opportunity to assure the public that the unauthorized use of the DITO branding in any form shall result in the possibility of prosecution for intellectual property infringement,” he added.

“There are no official DITO modems or pocket WIFI devices that have been launched at this time. DITO cannot and will not guarantee the performance and service should our SIM cards be used in these unauthorized devices in the market today,” Mr. Tamano explained.

Globe said that individuals who have bought or been made aware of this activity may report the matter to the Trade department’s Consumer Protection Group via its e-mail address at consumercare@dti.gov.ph or text 09178343330.

They may also report via Globe At Home’s official FB messenger, Globe added. — Arjay L. Balinbin

Bank lending to resume growth in third quarter as confidence improves

LENDING is expected to resume its growth next quarter after months of decline amid improved sentiment among lenders and borrowers as the economy gradually reopens and with the government’s vaccine rollout continues, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said on Monday.

“As we’re opening up the economy, I think there’s growing confidence. There will be [a] more optimistic outlook in the next few quarters so that’s where the situation is,” Mr. Diokno said in an interview with ANC on Monday, adding lending could resume its expansion by the third quarter.

“There’s a lot of liquidity in the system. There’s risk aversion on the part of the banks but I think confidence is coming back largely because of the vaccines. To me, that’s the game changer here,” he added.

Outstanding loans by big banks shrank for the fifth straight month in April, dropping by 5%, based on latest BSP data. Loans disbursed for production activities (-3.9%) and consumer loans (-10.2%) contracted that month. This, despite central bank measures that have infused over P2 trillion in fresh liquidity into the financial system. 

“That’s understandable because the banks have become stricter in their standards,” Mr. Diokno said. “On the other hand, [it’s also] because in the economy, there is less demand for expansion. If you are a businessman, you borrow to expand your business, but why will you expand at this time?”

Metro Manila and adjacent provinces were placed under strict lockdown measures in March and April due to the surge in coronavirus disease 2019 (COVID-19). Restrictions have been eased since then as cases dropped, and government officials and various stakeholders continue to push for the further reopening of the economy.    

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said the low base from last year will also support a recovery in lending next semester. 

“June was the first month of single-digit growth before overall lending crashed into negative territory by year-end,” Mr. Mapa said in an e-mail, adding he also expects loans disbursed by banks to post growth by the latter part of the third quarter.

Aside from the gradual reopening of the economy, Mr. Mapa said previous monetary policy decisions are expected to have worked their way into the financial system by next half. The BSP has said the transmission of interest rate adjustments takes six to nine months.

“As we roll into the third quarter, we will likely see the impact of BSP’s stimulus measures finally taking root. We note also that BSP can only do so much in terms of monetary policy, with the banks also needed to do their part to ensure that monetary stimulus is impactful and effective,” Mr. Mapa noted.

The central bank last adjusted benchmark interest rates in November when it trimmed borrowing costs to record lows. It has been on a pause since then and has said it would keep its policy stance accommodative to support the economy’s recovery.

The central bank will have its next policy review on June 24. — LWTN

In the Heights disappoints with $11-M opening weekend

In the Heights (2021) — IMDB.COM

LOS ANGELES — In the Heights, the acclaimed adaptation of Lin-Manuel Miranda’s Broadway show, didn’t hit all the right notes in its box office debut.

The Warner Bros. movie generated a wane $11.4 million from 3,456 US theaters in its first four days of release, below expectations heading into the weekend that suggested the film would reach $20 million. In the Heights also opened on HBO Max, the streaming service owned by the studio’s parent company WarnerMedia, though the company didn’t report its digital viewership.

The disappointing commercial reception is puzzling because critics embraced the film, showering it with some of the best reviews of the pandemic era. Moreover, Warner Bros. put substantial marketing heft behind the picture, and director Jon M. Chu and Mr. Miranda devoted a great deal of energy into promoting the movie, which compensated for the fact that its cast was comprised of mostly unknown stars and emerging actors.

The film’s hybrid release on HBO Max likely affected in-theater turnout, but it isn’t the sole reason that inaugural ticket sales for In the Heights came in under projections. Recent Warner Bros. releases like Godzilla vs. Kong, Mortal Kombat, and The Conjuring: The Devil Made Me Do It still pulled in solid receipts despite being offered simultaneously on streaming. But, as audiences are slowly making their way back to theaters, box office charts are indicating that people have been more inclined to show up for properties with more brand recognition. Though the Tony Award-winning In the Heights isn’t an original property like La La Land or The Greatest Showman, it’s not as well known as Mr. Miranda’s other musical sensation Hamilton, or even Rent, Les Miserables, or Cats.

To that end, box office prognosticators believe In the Heights can find an audience over the summer, similar to the box office sleeper hit that was 2017’s musical The Greatest Showman. The Fox movie debuted to a muted $8.8 million, but audiences fell in love with the soundtrack and Hugh Jackman’s charisma and returned to theaters over and over again. It tapped out with $174 million and $438 million globally, a huge result. Though In the Heights isn’t expected to reach those box office heights, it doesn’t have much competition on the horizon and could continue to play on the big screen.

Based on the 2008 Broadway show, In the Heights follows a bodega owner named Usnavi (Anthony Ramos), who discovers that his mom-and-pop stop-and-shop has sold a winning lottery ticket. As the lively neighborhood of Washington Heights in upper Manhattan reaches sweltering hot temperatures, friendships, relationships, and dreams are put to the test. The ensemble cast also includes Melissa Barrera, Leslie Grace, Corey Hawkins and Olga Merediz. Quiara Alegria Hudes, who wrote the book of the musical, penned the screenplay. In the Heights carries a $55 million production budget.

Also new to theaters this weekend, Sony’s animated family film Peter Rabbit 2: The Runaway arrived with a middling $10.4 million from 3,346 venues through Sunday. Amid the pandemic, films catered to family crowds, like Universal’s The Croods: A New Age and Warner Bros.’ Tom and Jerry, have been reliable theatrical draws, so the Peter Rabbit sequel could have a long life on movie theater marquees.

Overseas, Peter Rabbit 2 has already made $45 million. It cost $45 million to make. — Reuters

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