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BSP seen hiking rates by 75 bps in 2nd half

BW FILE PHOTO

THE PHILIPPINE central bank is likely to raise its benchmark rate by a total 75 basis points in the second half when the economy is expected to regain its pre-pandemic level, Mitsubishi UFJ Group (MUFG) said.

“We continue to expect policy tightening to materialize in the second half of 2022, but a cumulative 75 basis points (bps) of rate hikes could be done versus our previous estimate of 50 bps,” it said in a note on Monday.

Last month, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said they would only consider increasing interest rates by the second half.

The Monetary Board on March 24 kept rates steady, saying it would keep supporting recovery until it gains traction. It, however, stressed it would be ready in case there was a need to respond to second-round effects of inflation.

MUFG analyst Sophia Ng said the progress of the Philippines’ economic rebound would determine the timeline of the BSP’s policy normalization.

“The BSP is likely to hike as early as the third quarter because that’s when the economy is expected to return to pre-pandemic levels as well. This would be the most important factor determining the timing of the first rate hike by the BSP,” she said in an e-mail.

She added that the central bank would likely become more aggressive if inflation breaches the 4.3% full-year projection.

“Looking at the current trajectory, the headline consumer price index may exceed 4% as soon as June, which is above the BSP’s inflation target range,” Ms. Ng said.

“As there is scope for oil prices to continue to rise, there are upside risks to the BSP’s inflation outlook. Should supply-side measures fail to rein in inflationary pressures the onus would be on the BSP to do so via the demand side by raising interest rates,” she added.

Inflation in March was likely 4%, according to a median estimate of 18 analysts in a BusinessWorld poll, near the upper end of the central bank’s 3.3-4.1% estimate. This would still be within the 2-4% target but faster than 3% in February. Inflation data is scheduled to be released on April 5.

The Monetary Board’s next rate-setting meeting is on May 19, while its first review in the third quarter is on Aug. 18.

MUFG also warned that the peso might continue to weaken due to risk aversion caused by the policy normalization of the US Federal Reserve.

It noted that the peso has been among the worst-performing Asian currencies in March. The peso last month slumped to its weakest level since October 2018.

On March 7, the peso breached the P52-a-dollar level for the first time during the month, closing at P52.18. Its weakest close in March was P52.475 on March 14.

The peso gradually strengthened to close at P51.74 on March 31, which is 1.45% weaker than its 2021 finish of P50.999.

“With the Philippines likely to record net capital outflows as well due to ongoing risk aversion and upcoming rate hikes by the Fed, the Philippines’ balance of payments is expected to record a deficit in 2022 from 2021’s surplus at 0.2% of gross domestic product, which will put further downward pressure on the peso,” MUFG said.

The Fed started to hike interest rates last month in a widely expected move to quell decades-high inflation in the United States.

Mr. Diokno said the BSP does not need to move in lockstep with the US Federal Reserve, noting that they only take into account external developments as far as they affect growth and the inflation outlook.

The Japanese bank also said the war in Ukraine has propelled demand for the safe-haven dollar.

“This will inevitably lead to larger trade and current account deficits, making the peso more vulnerable to rallies in oil prices as opposed to most other Asia excluding Japan currencies,” MUFG said.

It noted that the BSP’s current account deficit projection of 3.8% of the gross domestic product in 2022, if realized, will be the largest since the 5.3% in 1997 during the Asian Financial Crisis.

Despite the uncertainties caused by the war, MUFG on Friday raised its growth outlook for the Philippines to 6.5% from 6% previously, noting consumer spending amid more relaxed restrictions could boost recovery. However, this remains below the 6-7% target set by the government. — Luz Wendy T. Noble

ACEN, ib vogt plan 1,000-MW solar projects in Asia

AC ENERGY Corp. (ACEN) has partnered with German solar developer ib vogt to build at least 1,000-megawatt (MW) of renewable energy projects in the Asia-Pacific region, the Ayala-led company said on Monday.

“The joint venture partners will focus on late-stage, shovel-ready projects in Indonesia, Vietnam, Malaysia, Laos, Bangladesh, and other countries in the region,” ACEN said in a company disclosure.

It said the minimum operational capacity that will be built “over the coming years” has a potential for “further expansion.”

“Under the terms of the deal, ACEN expects to invest up to US$200-million equity investment in addition to debt funding to accelerate the deployment of renewable energy in Asia,” the listed energy platform added.

The two companies will establish a funding platform that will be used for building and running large-scale solar power plants across the region, prioritizing projects that are already in advanced stages of development.

Most of the projects will be derived from ib vogt’s pre-existing projects from its Asia development pipeline that is expected to deliver 5,000 MW, with some of the initial projects already slated for construction this year.

Patrice R. Clausse, president and chief operating officer of ACEN’s international business, said setting up the platform would build both companies’ presence in the region.

“ACEN has a strong history of partnering with best-in-class energy developers to build renewable energy projects across the Asia-Pacific region. ib vogt has a proven track record of developing solar projects across Europe, Asia, and North Africa,” he said.

Meanwhile, ib vogt Chief Executive Officer Anton Milner said the joint venture would accelerate the company’s ability to impact on the transition to clean and sustainable energy in Asia.

“This platform will complement our global strategy of developing a diversified portfolio of high quality IPP (independent power producer) assets,” Mr. Milner said.

On its website, ib vogt said it was provided in November last year with a 40-million-euro syndicated loan by German lender Commerzbank AG to support its working capital needs. ib vogt Chief Financial Officer Carl von Braun noted that the company was facing an important decade for renewable energy.

Berlin-based ib vogt has presence in more than 40 countries. It has built or is building more than 2,500 MW of photovoltaic power plants globally with a project pipeline of more than 40,000 MW.

ACEN aims to be the largest listed renewables platform in Southeast Asia as it targets to install up to 5,000 MW of renewables capacity by 2025. It now has more than 3,800 MW of attributable capacity in the Philippines, Vietnam, Indonesia, India, and Australia. Renewables account for 87% of the installed capacity.

At the stock exchange on Monday, shares in ACEN inched up by P0.16 or 1.84% to close at P8.86 each. — Ram Christian S. Agustin

Batiste wins album honor; Zelensky makes appeal at Grammys

JON BATISTE accepts the Grammy award for Album of the Year for We Are during the 64th Annual Grammy Awards show in Las Vegas, on April 3. — REUTERS/MARIO ANZUONI

LAS VEGAS — Multi-genre artist Jon Batiste won album of the year and R&B duo Silk Sonic took two of the top honors at a Grammy awards ceremony that featured a surprise appeal for support from wartime President Volodymyr Zelensky of Ukraine.

Mr. Batiste landed the night’s biggest prize for We Are, an album inspired by the Black Lives Matter movement.

“I believe this to my core —  there is no best musician, best artist, best dancer, best actor,” Mr. Batiste said. “The creative arts are subjective … I just put my head down and I work on the craft every day.”

Silk Sonic, featuring Bruno Mars and Anderson .Paak, claimed the song and record of the year awards for their 1970s inspired hit “Leave the Door Open.”

“We are really trying our hardest to remain humble at this point,” joked  Mr. Paak as the pair accepted the second honor.

Olivia Rodrigo, the 19-year-old singer of heartbreak ballad “drivers license,” was crowned best new artist.

“This is my biggest dream come true. Thank you so much!” Ms. Rodrigo said as she held her trophy.

Midway through the ceremony, host Trevor Noah introduced a video message from Mr. Zelensky, who contrasted the joy found through music to the devastation caused by Russia’s invasion of his country more than a month ago.

“What is more opposite to music? The silence of ruined cities and killed people,” Mr. Zelensky, wearing a green T-shirt, said in a hoarse voice. “Fill the silence with your music,” he added. “Support us in any way you can. Any, but not silence.”

The remarks preceded a John Legend performance that featured two Ukrainian musicians and a Ukrainian poet.

The highest honors in music were postponed from January during a spike in coronavirus disease 2019 (COVID-19) cases and moved from Los Angeles to the MGM Grand Garden Arena in Las Vegas. Thousands of spectators packed the venue, in contrast to last year’s scaled-down outdoor event.

Winners were chosen by some 11,000 voting members of the Recording Academy.

Mr. Noah urged the audience to think of the evening as “a concert where we are handing out awards.”

“We are going to be keeping people’s names out of our mouths,” Mr. Noah added, a jab about the Oscars slap by actor Will Smith, who told comedian Chris Rock not to mention his wife’s name.

Winners were chosen by some 11,000 voting members of the Recording Academy. — Reuters

 


And the winner is…

LAS VEGAS — The Grammy awards, the highest honors in the music industry, were out at a live ceremony in Las Vegas on Sunday. Below is a list of winners in key categories.

• Album of the Year:

We Are, Jon Batiste

• Record of the Year:

“Leave the Door Open,” Silk Sonic

• Song of the Year:

“Leave the Door Open,” Silk Sonic

• Best New Artist: Olivia Rodrigo

• Best Pop Duo/Group Performance: “Kiss Me More” by Doja Cat featuring SZA

• Best Pop Vocal Album:

Sour, Olivia Rodrigo

• Best Rock Performance:

“Making A Fire” by Foo Fighters

• Best Rap Performance:

“Family Ties” by Baby Keem featuring Kendrick Lamar

• Best Country Album:

Starting Over, Chris Stapleton

• Best Music Film:

Summer of Soul, Various Artists

  Reuters

Building an online community with The Queens

THE QUEENS: (L-R) Bianca Guidotti-Santos, Pia Wurtzbach, and Carla Lizardo

BEAUTY Queens Pia Wurtzbach, Bianca Guidotti-Santos, and Carla Lizardo began a friendship seven years ago when they were co-candidates at the 2014 Binibining Pilipinas pageant. They had a goal of doing projects together and made various attempts to do so. But it was only during the lockdown in 2020 when they had the time to pursue a joint passion project — a pageant-centric podcast named Queentuhan.

“After a year of doing Queentuhan, napansin namin (we noticed) that whenever we have a beauty queen on our show, we don’t talk about just pageants… We’d talk about life, and what she’s going through now,” Ms. Wurtzbach, who was crowned Miss Universe in 2015, said during an online press conference on March 28.

Since pageants are seasonal, the beauty queens thought of expanding their content with more relatable podcast topics.

“We want to talk about life. We want to talk about bigger things. We want topics that relate to more people and not just pageant fans,” Ms. Wurtzbach said.

This led the trio to establish the Spotify Original podcast Between Us Queens in Feb. 2021. With 61 episodes and counting, the podcast has grown into an online community of listeners beyond the streaming platform. The hosts encourage their listeners to take part in the women-centered conversations through The Queens Facebook Group and Discord. The group now has 8,000 members of mostly women sharing their stories, giving advice, and becoming friends.

In March, the beauty queens rebranded their content through a YouTube blog named The Queens. The vlog is the trio’s passion project, a way for their community to broadcast women empowerment with topics ranging from beauty, womanhood, friendship, and relationships, to current events. Launched on March 12, the vlog currently has three episodes.

“What happened was we created this safe space online. [It is] sort of a big sister relationship with our community where they can give us their feedback on the topics that we cover. They can ask for advice. We can also give advice, sometimes they send in voice submissions, and then we include that in our podcast,” Ms. Wurtzbach said.

“We were brainstorming on how to further grow the community, how to be more engaged and involved with getting to know your amazing women and men,” Ms. Lizardo — who was Mutya ng Pilipinas Intercontinental in 2010 — said.

“The first few episodes of our vlog are ‘a get to know’ about the three of us,” Ms. Guidotti-Santos — who took the Binibining Pilipinas International crown in 2014 —  said, adding that they want to show viewers that pageants can build friendships despite their competitive environment.

TOPICS OF CONVERSATION
The trio also began the #WeAreAllQueens social campaign with the goal of amplifying the stories of other women. Listeners who share their stories using the hashtag also get a chance to be featured on The Queens social media accounts on Facebook and Discord (https://discord.gg/PdsQYwtBT5).

“We want to have The Queens [community members] on the vlog. We want to know their stories. We want to know what they’ve experienced with what advice they can give,” Ms. Guidotti-Santos said.

Alongside the vlogs and podcasts, the trio also published workbooks online that tackle self-love, body image, love, and a lot more. These can be accessed for free every month on The Queens official website. They also hold online workbook sessions so that they can answer and reflect on the workbook topics along with their listeners.

“This workbook has so much information for young girls about anything about being a woman. We want to be a go-to place for women of all ages, be able to share their stories, and to network with other empowered women,” Ms. Lizardo said.

For more information, visit The Queens YouTube channel and website at https://www.thequeens.ph/. — Michelle Anne P. Soliman

Rockwell Land to use P9B of retained earnings for capex

LISTED developer Rockwell Land Corp. announced on Monday that it will use P9 billion of its P15.3-billion retained earnings for capital expenditures (capex) for the period 2022-2023.

“At the regular meeting of the board of directors (BoD) of the corporation held today, the BoD approved the appropriation of P9 billion out of the total retained earnings of P15.3 billion as of Dec. 31, 2021, for capital expenditures covering the period 2022-2023,” the company told the stock exchange.

Rockwell Land and Juan D. Nepomuceno (JDN) Realty through their joint venture Rockwell Nepo Development Corp. broke ground in March for “The Manansala” project at Rockwell Center Nepo in Angeles, Pampanga.

The project is the first residential building in the mixed-use Rockwell Center Nepo.

Encompassing 4.5 hectares, Rockwell Center Nepo, Angeles is “poised to offer a similar experience as the flagship Rockwell Center in Makati City,” Rockwell Land said in a statement.

“The development is set to have three residential towers and the first Power Plant Mall outside of Metro Manila,” it added.

The Manansala, which is scheduled for turnover in 2025,  will have lifestyle amenities such as swimming pools, a function room, a fitness gym, and a multi-purpose court, as well as 78% open space.

“Through this joint venture between Rockwell Land and JDN Realty, Pampanga’s well-heeled market will find elevated lifestyle experiences delivered to them within their burgeoning region of Central Luzon,” the company said. — Arjay L. Balinbin

Gov’t fully awards T-bills amid strong demand

BW FILE PHOTO

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Monday after several weeks of rejections and partial awards on the back of strong demand, despite expectations of rate hikes by the US Federal Reserve and Bangko Sentral ng Pilipinas (BSP) as inflation risks grow.

The Bureau of the Treasury (BTr) raised P15 billion as planned via the T-bills it auctioned off on Monday as total tenders reached P54.59 billion, almost three times as much as the initial offer.

Broken down, the BTr raised P5 billion as programmed via the 91-day T-bills at its auction on Monday as total tenders reached P29.350 billion. The average rate of the three-month debt dropped by 20.7 basis points (bps) to 1.380% from the 1.587% seen last week.

The government also raised P5 billion as planned from the 182-day securities as bids reached P14.17 billion. The average yield of the tenor went up by 17.4 bps to 1.781% from the 1.607% fetched at the previous auction.

Lastly, the BTr made a full P5-billion award of the 364-day T-bills as tenders reached P11.072 billion. The average rate of the one-year papers went up by 9.1 bps to 1.883% from the 1.792% fetched at the previous auction.

At the secondary market prior to the auction, the 91-, 182, and 364-day bills fetched rates at 1.3493%, 1.5347%, and 1.7434% respectively, based on the PHP Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

National Treasurer Rosalia V. de Leon in a Viber message to reporters said that the Treasury “finally” made a full award, with the rate of the 91-day tenor dropping amid heightened demand.

Ms. De Leon added that the higher rates for the 182- and 364-day tenors were due to a “higher inflation forecast this year” and as the BSP said it could start normalizing its pandemic-driven accommodative stance within the year, just like the Fed is doing.

A bond trader in a Viber message said investors want increased yields for longer tenors as they expect higher interest rates after six months. The trader added that investors are also looking ahead to March inflation data to be released on Tuesday for more cues.

BSP Governor Benjamin E. Diokno last week signaled the key policy rate could reach up to 2.75% by next year.

The central bank has kept its key rate untouched for the 11th straight meeting last month despite warning that its inflation target might be breached this year due to surging global oil prices brought by the Russia’s invasion of Ukraine.

At that meeting, the BSP said they now expect inflation to average 4.3% this year, above the 2-4% target and faster than the previous 3.7% estimate. The central bank also raised its inflation forecast for next year to 3.6% from 3.3%.

Analysts said headline inflation likely accelerated in March as the surge in global oil prices amid the Russia-Ukraine war caused faster increases in food and transport costs.

A BusinessWorld poll of 18 analysts yielded a median estimate of 4% for last month’s inflation, nearer the upper end of the central bank’s 3.3% to 4.1% projection.

If realized, this would be faster than the 3% in February and would match the upper end of the 2-4% target of the BSP. Still, it would be slower than the 4.5% seen a year earlier.

The Philippine Statistics Authority will release March inflation data today (April 5).

Central banks around the world have been tightening their monetary policies to temper inflation even in the face of risks to economic growth.

The Fed hiked its policy rates for the first time since 2018 by 25 bps last month to combat its surging inflation that reached a 40-year high. It also signaled more aggressive hikes in the coming meetings.

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

The government borrows from local and external sources to help fund a budget deficit capped at 7.7% of gross domestic product this year. — Tobias Jared Tomas

UP, La Salle eye solo second in front of returning collegiate fans

UNIVERSITY of the Philippines Fighting Maroons — THE UAAP

By John Bryan Ulanday

UNBLEMISHED pacer Ateneo is determined to break away while University of the Philippines (UP) and La Salle hope to stay within striking distance when they test separate counterparts in front of the returning collegiate fans in the University Athletic Association of the Philippines (UAAP) Season 84 at the Mall of Asia Arena.

Spectators for the first time will be allowed to watch live in the venue starting on Tuesday, heating up the four-game UAAP wars nearing the end of the first round headlined by the Blue Eagles’ bid for a 5-0 start.

Ateneo, the three-time defending UAAP king, tests the mettle of National University (NU) featuring the duel of brothers Dave and Shaun Ildefonso at 7 p.m. for a chance to also make it 31 straight victories since 2018.

In the opener at 10 a.m., La Salle eyes a quick rebound after becoming the latest victim of Ateneo in a 74-57 defeat over the weekend while UP shoots for a fourth win in a row against Adamson at 1 p.m. Struggling teams FEU and UE also lock horns at 4 p.m.

Wins by the Green Archers and the Fighting Maroons would arrange a battle for solo second place on Friday in a bid to keep a stone’s throw away from Ateneo nearing the second round.

But more than the crucial duels, teams beam with happiness and excitement to play in front of roaring fans once again after a week of silence behind closed doors.

“We’re really excited about it after almost two years. Hopefully, the supporters will be able to pump up the team. They could be a big help and be our ‘Sixth Man’ there,” said La Salle mentor Derrick Pumaren.

“It’s great for the fans. They’re part of the atmosphere. They’re all part of what makes UAAP a great competition,” added Ateneo coach Tab Baldwin, noting the return of the Philippine crowd to “where they belong.”

The UAAP is staging its 84th Season under a bubble setup amid the pandemic but decided to allow fans, slowly but surely, under a limited capacity for now with an assurance of the student-athletes’ health and safety.

The premier collegiate league held its first four playdates without an in-game crowd including the Ateneo-La Salle rivalry last Saturday that could have attracted a full-house gate attendance.

An easy-going everyman, with vulnerability beneath the bravado: The best performances of Bruce Willis

BRUCE WILLIS in a scene from 1994’s Pulp Fiction. — IMDB.COM

THIS year was shaping up to be another busy one for Bruce Willis: three films released already, with another eight in post-production. Willis has become an astonishingly prolific actor, wisecracking his way through direct-to-video genre releases and joining that elite band of 1980s and 1990s multiplex superstars (Nicolas Cage, John Travolta, Sylvester Stallone) whose box office capital had flatlined.

Willis’s recent reviews were uniformly negative. “Phoning it in” became a byword for his post-2012 career choices, after his last critically successful films, Looper and Moonrise Kingdom. Hard Kill (2020), Apex (2021) and A Day to Die (2022) will not live long in the cultural memory.

Willis’s recent decision to step away from acting after a diagnosis of aphasia — a language disorder caused by damage in the area of the brain controlling language expression and comprehension — brings his career to a cruel end.

In his day, Willis could still surprise and tantalize. Terry Gilliam, who, in 12 Monkeys (1995), directed Willis in one of his most complex performances as the time traveler tasked with saving the world from a deadly virus, once described him as “a guy who was vulnerable, a man who’s lost, not the man in charge of the whole thing.”

It is this paradox — helplessness and resilience — that has defined Willis’s screen persona for four decades.

In 1988, one of Hollywood’s most laser-focused high concept pitches — NYPD cop saves hostages in a skyscraper on Christmas Eve — gave Willis the chance to hit the stratosphere.

As John McClane in Die Hard he almost single-handedly defined the wise-cracking action hero in the late 1980s, bringing an everyman quality to his roles that made up for in quips and smirks what he lacked in the hardened muscularity of a Jean-Claude van Damme or an Arnold Schwarzenegger.

Willis would return to the Die Hard franchise every few years. The law of diminishing returns inevitably kicked in, but the original played up Willis’s vulnerability beneath the bravado.

For a time, Willis could always be relied upon when heroism was wanted. Need someone to climb to the roof of a church and save two kids in the middle of a lightning storm? Wes Anderson, in the delightfully off-beat Moonrise Kingdom (2012), knew just the man.

Need someone to lead a crack team of oil drillers into space and blow up an asteroid headed for Earth? Michael Bay’s Armageddon (1998) — the high watermark of impending planetary disaster films — might not have worked as well were it not for Willis’s deadly seriousness at the center of this madcap plot.

(And I wonder if it was his idea to have his character introduced by hitting golf balls off an oil-rig and using a Greenpeace protest boat as target practice? It certainly fits the devil-may-care persona Willis honed over his time in Hollywood.)

In Country (1989) is Exhibit A when listing Willis’s bona fides as an actor.

Light years away from John McClane, and a tantalizing glimpse of what he was capable of when given a good script and a no-nonsense director, Willis plays a Kentucky Vietnam vet struggling with PTSD.

If this story has been told before, no matter: Willis reins in the mannerisms and the one-liners and fashions something far removed from anything he ever played subsequently: a sad, lonely survivor, withdrawn from the world, passively shuffling through life.

Willis’ role as Butch Coolidge, the ageing boxer in Quentin Tarantino’s epoch-defining neo-noir Pulp Fiction (1994) has perennially been overshadowed by the more showy turns by John Travolta and Samuel L. Jackson. But go back and watch the film again: Willis is both crumpled and brutal, exposed and ruthless.

Tarantino cast him deliberately: “Bruce has the look of a ’50s actor. I can’t think of any other star that has that look,” he said.

Willis’ scenes with Ving Rhames in the basement of the sleazy pawn shop sit at the heart of the film, while his interactions with Maria de Medeiros as his girlfriend Fabienne are gentle and blackly comic. It gave Willis’ career a shot of adrenaline, and showed others in Hollywood how star power (and a significant pay cut) could exist within American independent cinema.

We all know the twist to The Sixth Sense (1999) by now. But M. Night Shyamalan’s supernatural thriller should perhaps be better remembered for Willis’ measured and understated performance as Malcolm Crowe, a child psychologist whose patient can talk to the dead.

Malcolm’s assumptions are wrong in this film, just as ours are: one of the most memorable aspects of Willis’ performance is that, as an actor, he knows the twist from the start, but as the character he does not.

The film’s muted visual design and slow-burning pace is mirrored perfectly by the actor. Shyamalan’s camera zooms and tracks drop clues, but Willis never lets on. He would work again with Shyamalan in Unbreakable (2000), a clever twist on the superhero genre.

The aphasia diagnosis now allows us to reflect on his career choices differently. Indeed, as the Los Angeles Times reported, his co-workers have been expressing concerns about his work for many years.

It is a shame we shall not see directors experiment with Willis’ persona and deconstruct it in interesting ways like Michael Mann did with Tom Cruise in Collateral (2004) or Darren Aronofsky with Mickey Rourke in The Wrestler (2008).

It now seems likely Willis’ swansong will be the yet to be released Paradise City, a crime thriller set in Hawaii seeing him reunited with John Travolta nearly 30 years after Pulp Fiction. Let’s see if that self-aware, easy-going, cool vibe remains intact.

 

Ben McCann is an Associate Professor of French Studies at the University of Adelaide.

Globe expects P10.5-B gain from current data center; new data center deal sealed

GLOBE TELECOM, Inc. on Monday said it expects a pre-tax gain of around P10.5 billion from its current data center.

The company also announced that it recently sealed its data center joint venture partnership with ST Telemedia Global Data Centres (STT GDC) and Ayala Corp. (AC).

“Globe will recognize a pre-tax gain of around P10.5 billion, coming from the partial monetization of its current data center business coupled with the revaluation of the carrying value of Globe’s retained interest,” the company said in a disclosure to the stock exchange.

Globe said its partnership with AC and STT GDC, a data center provider headquartered in Singapore, marks its “serious entry” into the growing data center space.

They hope to accelerate expansion efforts and innovation “in order to better serve their enterprise clients and expand their product portfolio to grab a larger share of the growing market opportunity.”

“More importantly, all three companies are aligned in their environmental, social and governance aspirations,” Globe added.

Global hyperscalers may need facilities in the country because “local hosting” is a “key requirement” to address the “strong demand” for cloud services, data analytics and consulting company GlobalData said in a recent statement.

It noted that many Philippine businesses have expressed intention to migrate workloads to the cloud, propelling the country’s cloud market to $2.8 billion by 2025 from $1.8 billion in 2020.

“Under the agreement, both STT GDC and AC shall subscribe to new shares in KarmanEdge, Inc., a 100% owned subsidiary of Globe that will house the carved-out data center business,” Globe said.

“The capital infusion by the new partners will result in a post-money valuation in the range of $350 million. Post execution of the share subscription agreement, Globe will remain the largest shareholder with a 50% ownership, followed by STT GDC with 40% and AC taking up the balance,” it added.

Globe also noted that it will receive proceeds of $100 million from the transaction with the remaining capital injected to be utilized by the business for future expansion and growth.

Globe Telecom shares closed 0.87% lower at P2,498 apiece on Monday. — Arjay L. Balinbin

Quasi-banks’ 2021 bad loan ratio worsens to 9.9%

NONPERFORMING LOANS (NPL) held by quasi-banks reached P14.081 billion as of end-2021, resulting in an NPL ratio of 9.9%, based on data from the Bangko Sentral ng Pilipinas (BSP).

These bad loans increased by 4.1% from the P13.523 billion booked as of end-2020. The NPL ratio inched up from the 9.6% seen a year earlier, but was lower than the 10.3% as of end-September.

Meanwhile, the industry’s gross loan portfolio rose by 0.7% to P141.976 billion as of end-2021 from P140.948 billion a year earlier.

Nonperforming assets (NPAs), which include real and other properties acquired, increased by 2.9% to P15.432 billion as of December 2021 from P15.004 billion a year prior.

Restructured loans held by the industry amounted to P2.106 billion in 2021, higher by 67% from the P1.26 billion seen as of end-December 2020.

Quasi-banks beefed up their loan loss reserves, which reached P5.646 billion at the end of last year. This climbed by 27.5% from the P4.43 billion logged at end-2020.

As of end-2021, quasi-banks’ loan loss reserves were equivalent to 4% of their portfolio, up from 3.1% a year earlier. With this, the NPL coverage ratio improved to 40.1% from 32.8%.

Meanwhile, quasi-banks’ allowance on NPAs rose by a quarter to P5.816 billion from P4.637 billion.

This brought the NPA coverage ratio to 37.7% from 30.9%.

BSP-supervised financial institutions with quasi-banking functions include financing companies and investment houses. — Luz Wendy T. Noble

POC lifts 90-day suspension of PATAFA and the persona non grata tag on Philip Juico

PATAFA President Philip Ella Juico. — PHILIPPINE STAR FILE PHOTO

THERE is now peace on the Philippine sports front now.

The Philippine Olympic Committee (POC) has withdrawn its 90-day suspension on the Philippine Athletics Track and Field Association (PATAFA) and the persona non grata tag on the latter’s president Philip Ella Juico during its emergency executive board meeting on Monday.

It both came in the aftermath of Mr. Juico and the PATAFA board and Asian pole vault record-holder Ernest John “EJ” Obiena smoking the peace pipe after months of conflict.

“The Executive Board of the POC fulfilled its gentlemanly pronouncement and has lifted the two resolutions rendered by the POC on the PATAFA,” said POC President Abraham Tolentino.

“The lifting of the resolutions hinged on the successful mediation between pole-vaulter EJ Obiena and the PATAFA,” he added.

After mending fences following the mediation initiated by Philippine Sports Commission chairman William Ramirez, PATAFA has reinstated Mr. Obiena into the national team.

As a result, the World No. 5 was endorsed to international meets like the Hanoi Southeast Asian Games set on May 12 to 23 and the World Championships scheduled on July 15 to 24 in Eugene, Oregon in the United States.

“As projected, there were no objections and the motions of lifting were to be considered unanimous,” said the congressman from Tagaytay. “It is therefore with great relief to announce that the POC hereby lifts the resolution declaring Mr. Juico as persona non grata and also the resolution suspending PATAFA as member of the POC,” he added.

With the lifting of both sanctions, Mr. Tolentino said Mr. Juico and PATAFA could resume their active status with the POC.

“As I have maintained even before, there are no losers but only winners. The main winner being the Filipino athlete,” he said. — Joey Villar

Entertainment News (04/05/22)

Viu tops premium VOD service list

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Harry Styles releases new single

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