BANKS DID NOT avail of rediscount loans in March, leaving the central bank’s facility untapped for the first quarter of the year.
“There are no availments under the peso rediscount facility and the Exporters’ Dollar and Yen Rediscount Facility (EDYRF) covering the period January 1 to March 31,” the Bangko Sentral ng Pilipinas (BSP) said in a statement on Monday.
March was the sixth consecutive month that the rediscount window was not used by lenders.
Last year, the rediscount window was only tapped in March, April, August, and September, with loans reaching P26.9 billion, down by 77.7% from the 2019 level. Meanwhile, the EDYRF was left untouched in 2020.
Banks’ decision to not tap the rediscount window shows that liquidity in the financial system remains ample, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a Viber message.
“It does tell us that liquidity has been high because of the aggressive monetary policy last year. What would likely prompt banks to return to use BSP’s rediscounting facility again would be the need for more liquidity, which obviously still, at this juncture, is not needed,” Mr. Asuncion said.
The central bank slashed borrowing costs by 200 basis points last year to record lows to provide support to the economy.
For this month, applicable rates for the peso rediscount loans are at 2.5%, regardless of maturity.
Meanwhile, all dollar- and yen-denominated loans are priced at 2.19425% and 1.92983%, respectively. — L.W.T. Noble
RLC RESIDENCES started construction of two projects in Pasig City in the first quarter.
In a statement, the company said it recently held concrete-pouring ceremonies for Cirrus and SYN.
Cirrus is targeting urban professionals with its “smartly-sized” studio units, while SYNC is aiming to attract startup couples and young professionals.
“These high-rise condominiums have been impressing property investors based both in the Philippines and abroad for its incredible locations, generous unit offerings, structural design, and a superb selection of recreational facilities,” RLC Residences said.
As a kid growing up in Italy, I remember watching the American TV series Happy Days, which chronicled the 1950s-era Midwestern adventures of the Fonz, Richie Cunningham and other local teenagers.
The show, combined with other American entertainment widely available in Italy in the 1970s and 1980s, shaped my perception of the United States long before I ever set foot in the country. Today, I call the US home, and I have developed my own understanding of its complexities. I am able to see Happy Days as a nostalgic revival of an ideal, conflict-free American small town.
Happy Days was a product of Hollywood, which is arguably still the epicenter of the global entertainment industry. So recent news that the streaming service Netflix is opening an Italian office and will begin massively funding original local content with the intent of distributing it globally on its platform — following a strategy already launched in other European countries — struck me.
This could be a potentially game-changing move in global entertainment. And it might even change how the world perceives, well, the world.
I have explored the global media landscape from the privileged vantage point of Los Angeles for the past 15 years.
TV and movies are one way that people, as we go through life, make sense of the world, building on the archive of our personal experiences and opinions of other places.
Absent direct experience with a people or nation, we speculate on what we do not know. This process involves a variety of sources, including reading, Googling and accounts from somebody we trust. But often it is media that exposes people to other cultures, above and beyond our own.
TV and movies fill the knowledge gaps with powerful images and stories that inform the way we think about different cultures. If the media’s messages have consistency over time, we may come to understand these as facts.
But media portrayals may well be inaccurate. Certainly, they are incomplete. That’s because movies and TV series aren’t necessarily meant to depict reality; they are designed for entertainment.
As a result, they can be misleading, if not biased, based on and perpetuating stereotypes.
For example, there is no shortage of Italian and Italian American stereotypes in American entertainment. From the award-winning Godfather saga to the less critically acclaimed Jersey Shore TV series, Italians are often depicted as tasteless, uneducated, linked to organized crime — or all three.
But the way people are exposed to media entertainment is changing. Today streaming platforms like Netflix, Amazon Prime, Apple TV+, and Disney+ collectively have 1 billion subscribers globally.
Being a relative newcomer in producing original content, Netflix cannot rely on a large library of proprietary content to feed its 204 million paid members in over 190 countries, as legacy Hollywood players can. So it is increasingly creating original productions, including a number of non-English language originals from places such as Mexico, France, Italy, Japan, and Brazil.
We might call this an example of “glocalization of entertainment” — a company operating globally, adapting its content to meet the expectations of locally situated audiences across the world.
This is already the modus operandi, for example, of many popular reality TV shows. American Idol is an American adaptation of Europe’s Pop Idol. The X Factor, Big Brother, and Dancing with the Stars have similarly international origins.
Now, however, glocalization comes with a twist: Netflix intends to distribute its localized content internationally, beyond the local markets.
It is not the global reach of Netflix’s platform per se that would break down old stereotypes. French critics panned the American-produced, internationally distributed Netlix series Emily in Paris for its cliched, romanticized portrayal of the city.
Foreign TV executives must create shows for Netflix that both appeal to local audiences and have international potential, while remaining authentic in their portrayal of their country. If Netflix’s Italian team thinks The Godfather is what international audiences expect from Italy, international audiences may tune in — but Italians won’t.
To become truly international, Netflix would also have to foster the development of original local ideas not only in European countries with well-developed cultural industries but also in smaller countries and those with emerging entertainment industries, such as African nations.
A side effect of this strategy could be that Netflix upends the traditional way that media informs our understanding of foreign people and lands by more accurately representing these places.
But that’s a tall order, and it’s not, of course, guaranteed.
Netflix’s transformative potential comes from allowing local creatives to tell stories about their own cultures and then distributing them truly internationally. It will depend on the company’s willingness to implement this strategy in a consistent, sustained, inclusive, and thoughtful fashion.
Over time, widespread exposure to a diverse array of international media content might change the way people in the US and worldwide think and feel about other cultures they have never, and may never, come into direct contact with.
All it takes is one click — one choice to watch, perhaps even unknowingly, a foreign-produced series.
The way Netflix works, using algorithms to suggest content as viewers make selections, can prolong an initial exposure to and interest in foreign content. Artificial intelligence meant to feed us more of what we like may end up a surprising force for change, making us rethink what we thought we knew.
Paolo Sigismondi is a Clinical Professor of Communication, USC Annenberg School for Communication and Journalism.
THE Philippine Stock Exchange, Inc. (PSE) added three securities to the list of firms compliant with Islamic guidelines on finance for the latest quarter ending March 25.
In a memorandum released on Monday, the PSE added Converge Information and Communications Technology Solutions, Inc., Global Ferronickel Holdings, Inc., and SPC Power Corp. to the list of Shari’ah-compliant securities.
The PSE conducts quarterly screenings on listed securities’ Shari’ah compliance to make investment opportunities in the local bourse inclusive to Muslim investors.
“The exchange engaged the services of IdealRatings, Inc. to screen listed companies in accordance with the standards for Shari’ah compliance as stipulated by the Accounting and Auditing Organization for Islamic Finance Institutions,” the PSE said.
Ideal Ratings specializes in checking securities for their compliance with Shari’ah law.
The screening process involves checking firms on their engagements with businesses in adult entertainment, alcohol, cinema, defense and weapons, financial services, gambling, gold and silver hedging, interest-bearing investments, music, pork, and tobacco.
Income earned by companies from these engagements must be less than five percent.
Firms also undergo a financial ratios screening. Cash or interest-bearing deposits and interest-bearing debt of a company should not go beyond 30% of its market capitalization.
A total of 57 firms passed the criteria, the same number of firms which passed the screening last quarter.
Companies bumped off the list were Concepcion Industrial Corp., Euro-Med Laboratories Phil., Inc., and Xurpas, Inc. — Keren Concepcion G. Valmonte
FINANCIAL TECHNOLOGY player SquidPay Technology, Inc. is looking to form a joint venture firm with Philstar Development Bank, Inc. to enter the country’s digital banking sector.
Squidpay is looking to invest up to P900 million to buy 60% of shares in the Batangas-based Philstar Development Bank to push the planned joint venture, AbaCore Capital Holdings, Inc., said in a filing with the local bourse on Monday. The firm owns Philippine Regional Investment Development Corp., (PRIDE) the parent firm of Philstar Development Bank.
Once the joint venture is created based on the parties’ memorandum of agreement signed in January, the remaining 40% stake in the Batangas lender will be retained by PRIDE and incumbent stockholders.
“The joint venture will target the ever growing need for cashless payments considering the pandemic and the Bangko Sentral ng Pilipinas’ (BSP) drive for digital banking,” AbaCore said in its filing.
SquidPay’s current business mainly focuses on online and offline payment solutions for automated fare collections, bill payment, e-commerce payments, merchant payment services, and electronic loading.
The fintech player has secured its operator of payment system and electronic money issuer licenses from the central bank.
The BSP released a framework for digital banks in November, making it a separate type of lender from commercial, thrift, rural, and Islamic banks. Entities that aim to set up an online bank in the country need to have a minimum capital of P1 billion.
AbaCore’s shares closed trading at P1.22 apiece on Monday, down by four centavos or 3.17%. — L.W.T. Noble
JLL PHILIPPINES has been ranked as the leading investment advisory firm in the country, with 48% market share in 2020, according to data analyzed and published by Real Capital Analytics (RCA).
“To say that 2020 was exceptionally difficult is an understatement, but this fuels JLL Philippines to be even more committed in providing sound investment advice to our clients as they reshape their real estate strategies to thrive in the next normal,” P. Ryan Isip, JLL Philippines’ head of capital markets, said in a statement.
“The pandemic has made way for new real estate dynamics and more sophisticated investors, and so JLL will continue to leverage on our industry expertise and property technology (proptech) to be able to continue providing the most innovative client-centric solutions,” he added.
JLL has operated in the Philippines since 1997, and currently manages about 5.3 million square meters of real estate with a workforce of over 1,300 employees.
RCA study also showed JLL as the leading hotel investment advisory firm in Asia Pacific for the tenth consecutive year. JLL advised on the most transactions, as measured in dollar value, in the Asia Pacific region.
GMA News and Public Affairs has launched its first original podcast, The Howie Severino Podcast, on April 8. Bannered by multi-awarded veteran broadcast journalist Howie Severino, the weekly podcast features insightful conversations with personalities from various fields and industries. Mr. Severino, who also serves as GMA Network’s Vice-President for Professional Development, is one of the hosts of the documentary program I-Witness. “I have been a journalist for 33 years but podcasting is fresh territory for me,” said Mr. Severino in a statement, noting that this will be “pure conversation, no visuals.” Podcast enthusiasts can expect “wide-ranging discussions, where both guests and host bring many years of experience, eclectic interests and quirky thinking to bear on timely topics.” For its pilot episode, Mr. Severino featuresaward-winning broadcast journalist Jessica Soho, who discusses her journey in the broadcast industry, her hit show Kapuso Mo, Jessica Soho, and gives listeners her two-cents worth on the digital space and social media platforms. She also talks about “woke” millennials and why she has high hopes for them. The Howie Severino Podcast is available for free on Spotify, Apple Podcasts, and other streaming platforms, with new episodes streaming every Thursday.
Dua Lipa streams concert Studio 2054
SING and dance along with Grammy award-winning artist Dua Lipa in her virtual concert Studio 2054 which will stream for free on iWantTFC and MYX on April 14 (8 p.m.). It will also air on the Kapamilya Channel and A2Z on April 18. Aside from the concert — which will feature Elton John, Kylie Minogue, Miley Cyrus, FKA Twigs, J Balvin, Bad Bunny, Tainy, Angèle, and The Blessed Madonna as guests — viewers will also be treated to behind the scenes footage of Dua Lipa’s preparation for the show and never-before-seen clips in a documentary called The Story Behind the Show, which will also be available for video-on-demand streaming on iWantTFC starting on April 21 at 8 p.m. MYX will air replays on April 18 (10 p.m.) and April 20 (3 p.m.). Meanwhile, The Story Behind The Show will air on April 21 (8 p.m.), with replays on April 25 (10 p.m.) and April 27 (3 p.m.). Viewers can also watch the digital concert and documentary on A2Z and the Kapamilya Channel on April 18 at 9:45 p.m. and 10:45 p.m., respectively. The iWantTFC app is available on iOs and Android, or visitiwanttfc.com.
Ace Banzuelo releases new single
SINGER-songwriter/producer Ace Banzuelo has released his new single “Mayari” under Sony Music Philippines. According to Mr. Banzuelo, the trap-infused synth pop tune was inspired by the goddesses and characters of Filipino mythology, using it as a metaphorical springboard to essay his personal take on romance, toxic masculinity, and privilege. “The song’s approach to the myth discusses how wrong arrogance and privilege is when used as a leverage to attract someone,” Mr. Banzuelo said in a statement. “Mayari” has 1980s-sounding synths, hip-hop/R&B verses, and modern trap beats. His earlier singles, “Himala” and “Malayo,” both released in 2020, have amassed a combined 4 million streams on Spotify. “Mayari” is out now on all digital platforms worldwide via Sony Music Philippines.
Doja Cat unveils new single
DOJA Cat’s song “Kiss Me More” featuring SZA is the first single from the three-time Grammy nominee’s new album, Planet Her. The song was written by Doja Cat, SZA, Yeti Beats, Rogét Chahayed, tizhimself, and Carter Lang and produced by Yeti Beats. The single is accompanied by a music video (https://www.youtube.com/watch?v=0EVVKs6DQLo) directed by Warren Fu. Doja Cat’s third album, Planet Her, is set for release in the summer via Kemosabe/RCA Records. Stream the song at https://smarturl.it/xKMMx.
HK Tourism Commission launches City in Time project
THE TOURISM Commission of Hong Kong (HK) recently launched the City in Time tourism project, which integrates augmented reality (AR) and multimedia technologies to present combinations of historical panoramas and real-life surroundings. Together with lively animation and special sound effects, the project lets locals and tourists travel through time and enjoy enriched visual and audio experiences with their smartphones. To experience 360-degree historical panoramas featuring heritage photos or illustrations by young Hong Kong artists, locals and tourists can scan the AR markers installed at designated locations using their smartphones with the City in Time mobile app downloaded. The mobile app is also equipped with a selfie function that enables users to share their City in Time experience on social media platforms. They can also understand more about the history of Hong Kong by browsing photos and information of the iconic spots with the mobile app. The first phase of the City in Time project has been rolled out in seven designated locations in Central and six in Tsim Sha Tsui. The AR markers are installed on redesigned visitor sign poles at these locations. Each sign pole has a different color combination to complement elements of local architecture and reflect the tastes of Hong Kong. The mobile app is available for free download at the Apple App Store and Google Play. Locals and tourists can also embark on virtual journeys on the City in Time website (cityintime.hk).
SHAKEY’S Pizza Asia Ventures, Inc. said it would offer free coronavirus disease 2019 (COVID-19) vaccine to all of its employees across the country, and donate 5,000 doses to the government.
The listed company said in a regulatory filing on Monday that it contracted 20,000 doses under tripartite agreements between the Philippine government, vaccine manufacturers, and the private sector.
Shakey’s said its vaccination initiative will be given for free and on a voluntary basis to all employees from its Shakey’s Pizza, Peri-Peri Charcoal Chicken, and R&B Milk Tea brands, and its corporate support and commissary personnel.
It added that vaccine doses will also be available for the dependents of the company’s employees, and for business partners such as franchisees, service providers, and contractors.
The company also announced that it is presently doing organization-wide information and awareness initiatives to convince hesitant employees and assist in increasing the vaccination rate.
Meanwhile, Shakey’s said the 5,000 doses to be donated to the government will pass through the Department of Health and will be deployed following its prioritization strategy and allocation framework.
“Health and safety will always remain our top priority. Our philosophy is that guests must know, feel, and see that they are safe. A crucial component of that is ensuring that our employees are safe and healthy as well,” Shakey’s President and Chief Executive Officer Vicente L. Gregorio said in the disclosure.
To recall, Shakey’s previously teamed up with RelianceUnited, a wholly owned subsidiary of United Laboratories, to ensure the safety of its employees and prevent the spread of COVID-19. The company also implemented a COVID infection control program that concentrates on the long-term implementation of occupational safety and health measures.
“Telemedicine hotline services, including telephone-based medical consultation and triaging, diagnostic testing, and daily monitoring of health conditions are likewise made available to all employees,” the company said.
Mr. Gregorio said the company remains committed to maintaining the safety of its guests and employees.
“Since the beginning of the pandemic last year, we have implemented strict sanitation and safety procedures that are aligned with World Health Organization recommendations. We likewise rolled out more convenient off-premise options to our guests, such as park & order and park & dine-in,” Mr. Gregorio said.
For 2020, Shakey’s posted a net loss of P247 million due to the temporary closure of 91% of its store network as a result of quarantine measures. The company’s total sales last year reached P6.6 billion.
On Monday, shares of SPAVI at the stock exchange rose 0.28% or two centavos to finish at P7.23 each. — Revin Mikhael D. Ochave
THE BIDEN administration is stepping up scrutiny of China’s plans for a digital yuan, with some officials concerned the move could kick off a long-term bid to topple the dollar as the world’s dominant reserve currency, according to people familiar with the matter.
Now that China’s digital-currency efforts are gathering momentum, officials at the Treasury, State Department, Pentagon and National Security Council are bolstering their efforts to understand the potential implications, the people said.
American officials are less worried about an immediate challenge to the current structure of the global financial system, but are eager to understand how the digital yuan will be distributed, and whether it could also be used to work around US sanctions, the people said on the condition of anonymity.
A Treasury spokeswoman declined to comment. A National Security Council spokeswoman did not reply to a request for comment.
The People’s Bank of China (PBoC) has rolled out trial issuance of a digital yuan in cities across the country, putting it on track to be the first major central bank to issue a virtual currency. A broader roll-out is expected for the Winter Olympics in Beijing next February, giving the effort international exposure.
Many key details of the digital yuan are still in flux, including specifics on how it would be distributed. China’s recent establishment of a joint venture with SWIFT, the messaging nexus through which most cross-border settlements pass through today, suggests it is possible a digital yuan could work within the current financial architecture rather than outside of it.
US officials are reassured that China’s intentions aren’t to use the digital yuan to evade American sanctions, according to people familiar with the matter. The dollar’s current dominance in cross-border transactions gives the US Treasury the power to cut off much of a business or even a country’s access to the global financial system.
China’s officials have said the main intentions of the digital yuan are to replace banknotes and coins, to reduce the incentive to use cryptocurrencies and to complement the current private-sector run electronic payments system — dominated by Ant Group Co.’s Alipay and Tencent Holdings Ltd.’s WeChat Pay. The PBoC has been working for years on the digital yuan, also called the e-CNY, having set up a specialist research team in 2014.
“To provide a backup or redundancy for the retail payment system, the central bank has to step up” and provide digital-currency services, Mu Changchun, the director of the PBoC’s digital-currency research institute, said at an event last month.
The PBoC is also examining the potential for using the digital yuan in cross-border payments, launching a project studying the issue with a unit of the Bank for International Settlements along with the United Arab Emirates, Thailand and Hong Kong’s monetary authority.
The Biden administration isn’t currently planning to take any action to counter longer-term threats from China’s digital currency, the people familiar with the discussions said. However, China’s plans have given renewed impetus to efforts to consider the creation of a digital dollar, they said.
Members of Congress have also been increasingly interested in a digital dollar, aware of China’s moves, and asked Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen about the issue in hearings earlier this year.
Mr. Powell said in February the Fed was looking “very carefully” at a digital dollar. “We don’t need to be the first. We need to get it right.”
Ms. Yellen has signaled interest in research into the viability of a digital dollar, a shift from a lack of enthusiasm under her predecessor, Steven Mnuchin.
“It makes sense for central banks to be looking at” issuing sovereign digital currencies, she said at a virtual conference in February. Yellen said a digital version of the dollar could help address hurdles to financial inclusion in the US among low-income households.
A recent report from the US Director of National Intelligence said the extent of the threat of any foreign digital currency to the dollar’s centrality in the global financial system “will depend on the regulatory rules that are established.”
China’s currency makes up little more than 2% of global foreign exchange reserves compared with nearly 60% for the US dollar. Policy decisions, rather than technical developments, will also be necessary to push forward yuan internationalization, as China maintains a strict regime of capital controls.
China’s financial system is too “fragile and weak” to pose a real threat to the dollar’s status as the world’s reserve currency, according to Mark Sobel, US chairman for the Official Monetary and Financial Institutions Forum.
“At the end of the the day the markets have more confidence in the Fed” than China’s central bank, said Sobel, a former senior US Treasury official for international matters. — Bloomberg
THE PESO weakened against the dollar as coronavirus cases in the country continued to rise and with the economic outlook in the United States showing some improvement. — BW FILE PHOTO
THE PESO retreated against the greenback on Monday amid cautious sentiment due to the continued increase in infections and with the dollar becoming more appealing as the US economy moves to reopen.
The local unit closed at P48.56 per dollar on Monday, depreciating by two centavos from its P48.54 finish on Thursday, based on data from the Bankers Association of the Philippines. The market was closed on Friday for the Day of Valor.
The peso opened Monday’s session at P48.56 per dollar. Its weakest showing was at P48.585 while its intraday best was at P48.56 against the greenback.
Dollars exchanged dropped to $373 million from $659.28 million on Thursday.
The peso weakened due to the continued increase in infection cases which dampened market sentiment, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message.
Coronavirus disease 2019 (COVID-19) cases in the country totaled 11,378 on Monday to bring the tally to 876,225. Active cases reached 157,451.
Meanwhile, a trader in an e-mail said the peso’s depreciation was due to investors’ preference for the dollar after a stronger-than-expected US producer inflation report.
Data from the US Labor department released on Friday showed the producer price index for final demand rose 1% in March, picking up from the 0.5% pace in February, Reuters reported, noting this shows the economy’s reopening amid improved public health environment and substantial fiscal response.
US Federal Reserve Chairman Jerome Powell on Thursday stressed the inflation pickup will be transitory, adding he expects supply chains will adapt and become more efficient.
For today, Mr. Ricafort gave a forecast range of P48.50 to P48.60 per dollar while the trader expects the local unit to move within the P48.45 to P48.65 levels. — L.W.T. Noble