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T-bill rates may decline

RATES of Treasury bills (T-bills) on offer on Monday will likely go down after Metro Manila and nearby areas were placed under the strictest restriction measures again for one week amid surging virus cases.

The Bureau of the Treasury (BTr) is set to raise P20 billion via the T-bills on Monday, broken down into P5 billion each in 91- and 182-day debt papers and P10 billion in 364-day securities.

A bond trader said the average yields for the short-term debt could drop by 10-15 basis points (bps), while Noel S. Reyes, first vice-president and chief investment officer at Security Bank Corp., expects rates to move sideways or slightly lower.

Kevin S. Palma, peso sovereign debt trader at Robinsons Bank Corp., said the one-week enhanced community quarantine (ECQ) enforced in the so-called “National Capital Region (NCR) Plus bubble” will drive demand for government securities and pull down rates.

“GS yields have bounced off their year-to-date highs taking cue from lower US Treasury yields week on week coupled with strong demand for safe assets locally after the reimposition of ECQ in the nation’s capital,” Mr. Palma said in a Viber message on Sunday.

NCR and Bulacan, Cavite, Laguna, and Rizal will be under strict lockdown starting Monday to April 4 (Sunday), coupled with an 11-hour curfew between 6 p.m. to 5 a.m.

The tighter restrictions mean movement will be limited to essentials only, with operations of most establishments reduced and mass gatherings banned.

President Rodrigo R. Duterte decided to reimpose the strictest lockdown classification after the recent spike in coronavirus disease 2019 (COVID-19) cases in the country. The Health department reported 9,595 new infections on Saturday, bringing the number of active cases to 118,122 so far.

Meanwhile, the yield on the benchmark 10-year US Treasuries inched up to 1.67% on Friday from 1.63% the day before. Week on week, the rate fell by 7 bps from 1.74% on March 19, based on the data posted on the US Treasury’s website.

The BTr made a full award of the T-bills offered last week from P64 billion in total bids, even as rates continued to climb across the board.

Broken down, the Treasury borrowed P5 billion as planned via the 91-day papers, with total tenders reaching P12.572 billion. The three-month papers yielded an average rate of 1.336%, up than the 1.232% fetched during the March 15 auction.

It also raised P5 billion as programmed from the 182-day instruments as the tenor attracted P22.638 billion in bids. The six-month papers’ average yield climbed to 1.718% from 1.527% previously.

Lastly, it made a full P10-billion award of the 364-day T-bills it offered from P28.798 billion in bids. The one-year securities were quoted at an average rate of 1.997%, up from the previous rate of 1.99%.

Security Bank’s Mr. Reyes said the yield curve has flattened in the past two days, which shows the rate of short tenors could ease further while longer tenors will see some recovery.

“This ECQ adds to slower economic recovery and increased uncertainty and favors government securities which have corrected higher in terms of yields in recent weeks,” Mr. Reyes said.

The BTr wants to raise P160 billion from the local bond market this month, broken down into P100 billion in T-bills to be offered weekly and P60 billion via fortnightly auctions of Treasury bonds.

The government is looking to borrow P3 trillion this year from domestic and external lenders to help fund its budget deficit seen to hit 8.9% of gross domestic product. — Beatrice M. Laforga

Spectacular: 5,000 pack Barcelona rock concert after COVID tests

BARCELONA — Music fans in Barcelona hugged, danced and sang along at a sold-out rock concert on Saturday night after taking rapid COVID-19 tests in a trial that could revive the live music industry in Spain and beyond.

Some 5,000 fans at the show for Spanish indie band Love of Lesbian had to wear masks but social distancing was not required in the Palau Sant Jordi arena.

“It was spectacular. We felt safe at all times. We were in the front row and it was something we’d missed a lot,” said publicist Salvador, 29, after the show. “We are very proud to have had the chance to take part in this. We hope it’ll be the first of many.”

In surreal scenes after a year of social distancing, fans danced up close to one another, but the sea of faces covered in masks showed that things were not quite back to normal.

Health controls at the entrance delayed the start of the concert, but could not dampen the celebratory spirit.

“Welcome to one of the most exciting concerts of our lives!” lead singer Santi Balmes told the crowd to a roar of cheers.

The government-approved concert served as a test for whether similar events will be able to start up again.

“It will be safer to be in the Palau Sant Jordi than walking down the street,” concert co-organizer Jordi Herreruela told Reuters earlier on Saturday.

Pre-concert testing at three Barcelona locations was carried out by 80 nurses wearing full personal protective equipment. Some people winced as nurses swabbed their noses.

By midday, three out of 2,400 people already screened had tested positive and one had come into contact with a positive case, said Dr. Josep Maria Libre, a doctor who oversaw the testing. They were unable to attend the concert and would get a refund.

Attendees received their antigen test results in 10 to 15 minutes via an app on their phones. The test and a mask were included in the ticket price.

“I believe today we have made one thing a reality which is to show the world that culture is safe,” said Ramon, a 49-year-old fan. — Reuters

PAL to airlift 1M doses of Sinovac vaccines from Beijing on Monday

FLAG CARRIER Philippine Airlines (PAL) will airlift one million doses of Sinovac vaccines from Beijing, China on Monday, its spokesperson announced.

“One million doses of Sinovac vaccines will be airlifted by PAL from Beijing to Manila on March 29 (tomorrow). We will be utilizing our A330 aircraft for this all-cargo charter undertaking,” PAL Spokesperson Cielo C. Villaluna said in a statement on Sunday.

PAL’s first all-cargo vaccine flight to Manila from Beijing was on March 24. It carried 400,000 doses of Sinovac vaccines.

“Philippine Airlines looks forward to ferrying once again to Manila these vital goods that will enable the Philippine government to continue the momentum of the country’s vaccination program,” PAL said.

The flag carrier also said it would continue to operate its domestic and international flights while awaiting new guidelines from the Department of Transportation regarding the government’s decision to reimpose the enhanced community quarantine (ECQ) policy in Metro Manila, Rizal, Bulacan, Cavite, and Laguna.

The ECQ would take effect on March 29 (12:01 a.m.) until April 4 (11:59 p.m.)

PAL said the Department of Transportation would be working on the official guidelines for the aviation sector.

On Saturday, budget carrier Cebu Pacific said it would continue to operate its domestic flights as scheduled until April 4.

“Only essential travel is allowed at this time,” the budget carrier said in an e-mailed statement.

Cebu Pacific announced on March 23 the cancelation of a total of 36 domestic flights from March 25 to April 4, including flights from Manila to Boracay, Lagazpi, Cauayan, Cebu, Pagadian, Ozamiz, Iloilo, Puerto Princesa, Kalibo, Naga, and Virac.

Flights were canceled because of the stricter guidelines in the NCR (National Capital Region) Plus, where only essential travels are allowed, until April 4, 2021.

On Friday, PAL said a total of 75 international flights from March 26 to April 5 were canceled, including flights from Dammam, Tokyo, Osaka, Singapore, Fukuoka, Dubai, and Hong Kong to Manila.

PAL said it needed “to comply with the continuing restrictions that limit the maximum number of passenger arrivals from international flights to 1,500 a day for all airlines combined into Manila until 8:00 a.m. of April 19.”

Both PAL and Cebu Pacific advised affected passengers to rebook their flights, request refunds or store the amount of their tickets in a travel fund. — Arjay L. Balinbin

No disruption seen to farm logistics during ECQ

AGRICULTURE Secretary William D. Dar said farming and food logistics are not expected to be disrupted by the one-week enhanced community quarantine (ECQ) declared over Metro Manila and nearby provinces.

Mr. Dar told BusinessWorld by mobile phone that there are no restrictions on the movements of food and agricultural inputs.

“Farming and fishing will continue. Let us just observe all health and quarantine protocols,” Mr. Dar said.

At a briefing Saturday, the President’s spokesman Herminio L. Roque, Jr. announced that President Rodrigo R. Duterte approved the recommendation of the Inter-Agency Task Force to place Metro Manila, Bulacan, Cavite, Laguna, and Rizal under the strictest form of quarantine between March 29 and April 4.

ECQ imposes a curfew between 6 p.m. and 5 a.m.

Mr. Roque said mass gatherings of more than 10 people will also be banned for the period, including religious gatherings for the Easter holiday.

Mr. Dar said food remains sufficient to supply the locked-down population.

He added that food producers and farmers transporting their products during the lockdown only need to present identification cards (IDs) and food passes that the government issued earlier in the pandemic.

“There is enough food. Food producers just need to present their IDs and food passes,” Mr. Dar said.

Last year, quarantines raised the level of food wastage in the farms because produce could not be brought to market. — Revin Mikhael D. Ochave

Chinese apps join celebs in backlash against Western fashion brands over Xinjiang

BEIJING —  China’s top ride-hailing app dropped Swedish fashion retailer H&M from its listings as Chinese celebrities stopped endorsing foreign labels in a growing uproar over Western accusations of forced labor in Xinjiang.

H&M faced a public backlash in China when social media users in the country circulated a statement the company made last year announcing it would no longer source cotton from Xinjiang after reports of the use of forced labor by Uighur Muslims.

Western governments and rights groups have accused authorities in the farwestern region of detaining and torturing Uighurs in camps, where some former inmates have said they were subject to ideological indoctrination.

Beijing denies the accusations and describes the camps in question as vocational training centers which help combat religious extremism.

Search results for H&M in the Didi Chuxing ride-hailing app for all of China’s major cities yielded no results on Friday. The company did not immediately respond to a request for comment.

The backlash against H&M caused Chinese e-commerce giant Alibaba Group Holding Ltd., shopping app Meituan and the maps app for search engine Baidu, Inc. to each remove the Swedish retailer from their listings.

Other overseas brands, including Burberry Group PLC, Nike, Inc., and Adidas AG have also faced an online blowback for making similar statements regarding their sourcing of cotton in Xinjiang.

The Human Rights section of H&M’s website hmgroup.com on Friday no longer carried the link to the 2020 statement on Xinjiang. The statement could still be accessed through the page’s direct address.

Statements expressing concern about or intolerance of forced labor in Xinjiang previously seen on the websites of Inditex, VF Corp., PVH and Abercrombie & Fitch were no longer available on Thursday.

Following enquiries by Reuters, VF Corp. pointed to a statement on a separate section of its website that said it did not source from Xinjiang. A Google cache showed the statement had been added in the last four days. VF did not respond to a question asking why the statement had been moved.

PVH, Inditex, and Abercrombie & Fitch did not respond to a request for comment.

“We have to stand by the brands keeping statements condemning slavery and shame those who are taking them down. This is a defining moment for these brands,” said French MEP Raphael Glucksmann, one of 10 EU (European Union) individuals sanctioned by China who has run social media campaigns calling on retailers to stand against forced labor in Xinjiang.

“Consumers in Europe need to place counter pressure on companies retracting their statements.”

CHINA CELEBS DROP BRANDS
A message on the Chinese Weibo account of the German fashion house Hugo Boss said on Thursday that it would “continue to purchase and support Xinjiang cotton.” Hugo Boss said on Friday that it was not an authorized post, and had been deleted accordingly.

In an e-mail to Reuters on Friday, company spokeswoman Carolin Westermann said that an undated English-language statement on its website stating that “so far, HUGO BOSS has not procured any goods originating in the Xinjiang region from direct suppliers” was its official position.

The cotton row has spilled over into the entertainment world, with Chinese celebrities dropping several foreign retail labels, including six US brands such as Nike.

New Balance, Under Armour, Tommy Hilfiger, and Converse, owned by Nike, have come under fire in China for statements saying they would not use Xinjiang cotton.

Other brands affected include Adidas, Puma, and Fast Retailing’s Uniqlo.

“I can confirm that Uniqlo’s Chinese brand ambassadors have terminated their contracts,” said a Fast Retailing spokesperson.

“Regarding cotton, we only source sustainable cotton and this has not changed.”

At least 27 Chinese movie stars and singers have declared in the past two days that they would stop cooperating with foreign brands.

Their decision was widely praised by Chinese internet users for being patriotic and trended high on the popular Twitter-like microblog Weibo.

“I have bought these kinds of products in the past and this situation doesn’t mean that I will now throw them away, destroy them or something like that,” said graduate Lucy Liu outside a Beijing shopping mall. “What I’ll do is just avoid buying them for the moment.”

Beyond the fashion and retail industry, China sanctioned British organizations and individuals on Friday over what it called “lies and disinformation” about Xinjiang, days after Britain imposed sanctions of its own.

“China is firmly determined to safeguard its national sovereignty, security and development interests, and warns the UK side not to go further down the wrong path,” the Chinese Foreign Ministry said. “Otherwise, China will resolutely make further reactions.”

The sanctions are the latest sign of deteriorating relations between London and Beijing, including China’s crackdown on dissent in the former British colony of Hong Kong, which had been guaranteed its freedoms when it returned to Chinese rule in 1997. — Reuters

BSP to remain on guard against external shocks

THE CENTRAL BANK will remain on guard against external shocks as the pandemic stretches on, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said on Friday.

“The BSP will continue to adopt policies that will strengthen the economy’s resilience to external shocks,” Mr. Diokno said in his special message at the 16th Philippine Dealing System Annual Awards Night held virtually on Friday evening.

“These will include maintaining a market-determined exchange rate, sustaining a comfortable level of reserves, and keeping the country’s external debt manageable,” he added.

The peso closed at P48.49 versus the dollar on Friday, gaining nine centavos from its P48.58 finish on Thursday. However, it has weakened by 46.7 centavos from its P48.023 close on Dec. 29, the last trading day of 2020.

Meanwhile, the gross international reserves stood at $109.082 billion as of end-February, rising by 23.7% from the year-ago level of $88.187 billion. The country’s dollar reserves stood at a record $109.8 billion at end-2020 and are expected to increase to $114 billion by end-2021.

Ample foreign exchange buffers protect the country from market volatility and ensure it is capable of paying its debts in the event of an economic downturn.

External debt increased 17.8% to $98.488 billion in 2020 from a year earlier and was the highest since at least 2012, based on central bank data. This was equivalent to 27.2% of the country’s gross domestic product, rising from the 22.2% ratio in 2019.

Mr. Diokno said they will also remain vigilant of emerging risks within the financial system.

“The BSP will intensify its monitoring and surveillance over its supervised institutions to ensure that they remain responsive to emerging risks and to promote the continued soundness, stability, resilience, and inclusivity of the banking system,” he said.

The central bank left its key interest rate unchanged at a record low on Thursday, as it supports an economy whose recovery is at risk from a renewed surge in coronavirus disease 2019 (COVID-19) infections.

The Monetary Board kept the overnight reverse repurchase rate at an all-time low of 2% for a third consecutive meeting. Rates for the overnight lending and deposit facilities were also maintained at 2.5% and 1.5%, respectively.

The central bank has kept policy settings steady since its December meeting, but Mr. Diokno has said they will respond accordingly when the need arises, especially if rising inflation produces second-round effects.

Headline inflation reached 4.7% in February, the highest since the 5.1% in December 2018.

The central bank chief also said on Wednesday that 2021 is “too early” for the BSP to unwind the easy policy it implemented at the height of the pandemic as the economy is still recovering. He said there is a need to maintain monetary policy accommodations for the BSP’s price and financial stability objectives.

The Financial Stability Board met on March 23 to review the monetary authorities’ response to the pandemic.

“Third-party institutions all agree that the unprecedented interventions of financial authorities softened the impact of COVID-19,” the central bank said in a statement on Friday.

“There are indications that the global economy is now recovering at a pace faster than initially anticipated, although financial stability authorities suggest that the socioeconomic dislocations are still significant,” it added. — L.W.T. Noble

Riding the roads of change

Ultimately, COVID-19 appears to be speeding up change in the auto industry

By Bjorn Biel M. Beltran, Special Features Writer

THE WORLD has received a shock like no other with the outbreak of the COVID-19 pandemic, and car makers all over have been feeling the pressure.

In fact, according to data from global management consulting firm McKinsey & Company, it is estimated that the top 20 manufacturers in the global auto sector have seen profits decline by approximately US$100 billion in 2020, a roughly six-percentage-point decrease from just two years ago — a drop in profitability that might take years to recover.

Yet even before this great upheaval, the auto industry had been in the midst of rapid development and change. The pace of technology had sped up innovation in the industry for years, and with car manufacturers constantly looking for a competitive edge, the future of mobility looks very different from how it was previously imagined.

A RACE FOR INNOVATION
The digital revolution has ushered in an era of hyper-speed connectivity, and no longer is it limited to interpersonal communication. Utilizing technologies such as the Internet of Things and 5G, vehicles of the future can have access to a wealth of information by communicating with one another on the road, sharing data on things like the environment and weather conditions.

Such data could be used to prevent collisions, alert the driver to potential hazards, and even provide car makers design feedback on their models. The information could then be analyzed to optimize the manufacturing process of future cars.

The connectivity also allows for smart gadgets and cars to communicate with one another, allowing drivers to remotely control their vehicle functions with their mobile devices. Conversely, dashboards are becoming more and more sophisticated, allowing for easy playback of media from phones, laptops, and even smartwatches.

That’s not all. Other consumer trends are exerting their influence on the auto industry, particularly trends revolving around convenience and accessibility. Car subscription services are on the rise alongside ridesharing services as more consumers demand mobility solutions without the burden of a mortgage. Automakers are in the unique position of learning how to balance these new business models to meet the ever-changing expectations of their customers and meet their own revenue goals.

Sustainable mobility has also become a significant driver of change. Due to the increased availability and a positive consumer sentiment, electric vehicles are becoming more popular. Indeed, EV sales are poised to hit their highest level on record in 2021, according to the car shopping experts at Edmunds, with data showing that EV sales made up 1.9% of retail sales in the United States in 2020. Edmunds analysts expect this number to grow to 2.5% this year.

REIMAGINING THE FUTURE AFTER COVID-19
Such trends, along with the massive disruption brought about by the pandemic, have meant a time of rapid change in the development of the global automotive industry, even affecting such things as the process in which consumers buy their cars.

With the world on lockdown, consumers have had no choice but to use online sales channels in conducting their business. According to a recent McKinsey digital sentiment analysis, in Europe, the use of digital channels has increased by an average of 13 percentage points. Growth in online channels is high for every country surveyed, but the biggest boost has occurred in Germany, which has seen the use of digital channels jump 28 percentage points in response to the COVID-19 crisis. Moreover, 72% of first-time users in Germany and 70% of regular users are planning to continue engaging online even after the crisis subsides.

However, previous surveys by McKinsey have found that automotive players were uncertain about using digital channels to market their products. A 2019 Digital Quotient analysis, which is a McKinsey method for evaluating an organization’s overall digital maturity, revealed that the average automotive business has a clear need to digitize, with the industry earning a below-average score compared with other business-to-business players.

Consumer preferences are also changing. Surveys show that due to the economic downturn caused by the pandemic, more people are choosing to go for short-term, subscription-based services that do not tie up significant capital.

“On-demand mobility is on the rise,” McKinsey reported. “The COVID-19 crisis has reinforced the existing trend toward greater flexibility, as customers hesitate to commit to large-scale investments and want flexibility in a fast-changing world.”

“The automotive industry has reached a fork in the road: one path leads to reinvention and success, while the other maintains the current status quo. Business leaders will only have a brief window of opportunity to reimagine their core operations. To ensure their survival and success now and in the future, it’s time for automotive industry players to act,” it added.

SMC sets food donation drive in Metro Manila

SAN MIGUEL Corp. (SMC) is mounting another food donation drive to assist poor communities in Metro Manila, which the government placed again under the strictest quarantine measures due to rising coronavirus disease 2019 (COVID-19) cases.

Ramon S. Ang, SMC president and chief operating officer, said a statement on Sunday that the company sent out boxes of canned goods to assist local government units (LGUs) in providing food for their constituents.

Mr. Ang said the company is initially donating 86,400 pieces of canned goods that are set to benefit 17,280 families across Metro Manila LGUs.

He added that SMC committed to deliver 148,200 packs of NutriBun bread to benefit soup kitchens, medical frontliners, and villages in Pasig City.

“From our experience last year, we know that providing food is a big help to many Filipinos, especially those who live on daily paid work. If they’re unable to work, they won’t be able to put food on their tables. This is our way of helping at least narrow that gap and help keep people from hunger,” Mr. Ang said in the statement.

He added that the company will continue to keep in touch with LGUs and pledged to give more if there is a bigger demand from communities.

“We all have to do our part to ease the strain on our hospitals and medical frontliners at this time. We have to help stop the spread and stay at home. To do this, we also have to ensure our least fortunate countrymen will not go hungry,” Mr. Ang said.

SMC said it donated more than P516 million worth of food as part of its food donation drive last year.

Its weekly NutriBun donation drive also continued, with more than 100,000 buns donated to communities in Malolos, Bulacan; Tondo, Manila; Payatas, Quezon City; and Caloocan.

Meanwhile, SMC said it has other initiatives such as its own feeding center and food bank in Tondo, its own COVID-19 testing facility, a ready market for farmers produce across its Petron gas stations, and free COVID-19 vaccine for employees, among others.

“All aspects of our lives have been affected by the COVID-19 pandemic. Just as we have at the beginning, we remain committed to helping out in any way we can, be it through immediate assistance and relief, to helping our country with long-term recovery efforts,” Mr. Ang said. — Revin Mikhael D. Ochave

Poultry farmers seek gov’t help to set up Davao breeder facility

DAVAO CITY’S poultry and egg producers have asked the Agriculture department’s regional office to go ahead with the proposed establishment of a breeder farm in the city to ensure stable supply and food security.

“As of now we depend on hatching eggs from Luzon and other areas, and the breeder farms in Davao Region are small,” Lalaine Lillibeth A. dela Victoria, president of the Davao Poultry and Egg Producers, Inc., said.

Speaking at the 22nd Davao Agri Trade Expo Webinar Series on Biosecurity Measures and Farm Management Systems last week, Ms. Dela Victoria noted that supply has tightened recently for hatching eggs from both domestic and foreign supplies.

“The imported hatching eggs are not getting delivered because of the pandemic,” she said.

She also said demand for chicken has increased as an alternative to pork, which has been affected by African Swine Fever (ASF) outbreaks in parts of the region.

The Department of Agriculture’s Davao office has been rolling out livestock and poultry expansion programs to assist raisers affected by the ASF as well as other growers hit by the coronavirus pandemic.

Hog repopulation is being undertaken on a small scale with ASF-affected areas still being monitored and tested for the virus.

Ms. Dela Victoria said a breeder farm in the city would address long-term demand and ensure food security.

Davao Region produced 81,090 metric tons (MT) of chicken in 2019, seventh out of 16 producing regions, according to the Philippine Statistics Authority.

Davao City accounted for 61% of the region’s chicken output with 49,263 MT.

Chicken production in the region expanded at an annual average rate of 3.53% between 2015 and 2019, with the highest growth recorded in 2015 at 7.54%. — Maya M. Padillo

Senate to consider lower increase in deposit insurance

A SENATOR said lowering the increase in the maximum deposit insurance coverage proposed under measures amending the Philippine Deposit Insurance Corp.’s (PDIC) charter is an “option,” following concerns raised by banks on a possible rise in their premium payments.

Senator Juan Edgardo M. Angara, vice chair of the Senate Committee on Banks, said the measures amending the PDIC charter are now being reviewed by a technical working group, saying one issue being considered is the premiums paid by banks.

“Lowering insurance [below the current P500,000] is not an option; ideal is no change in premiums but insured deposit amount/coverage increases,” Mr. Angara told BusinessWorld in a phone message.

“Lowering below P1 million is an option we will have to discuss,” he added.

Senate Bill No. 1260, filed by Senator Ramon Revilla, Jr. and Senate Bill No. 2089, filed by Mr. Angara, both propose to increase the deposit insurance coverage to P1 million from P500,000.

Mr. Angara’s bill also seeks to amend provisions of Republic Act No. 3591 or the PDIC charter to address the “constantly changing Philippine financial landscape.”

The measure he filed also states that the maximum deposit insurance coverage shall be subject to review of the PDIC Board of Directors every three years and may further be increased to an amount “indexed to inflation or other economic indicators.”

It proposes to transfer the PDIC as a corporation attached to the BSP from the Finance department and also modifies some powers of the state deposit insurer to avoid overlapping functions with the BSP.

During a Senate hearing on March 19, both the Department of Finance and the Bangko Sentral ng Pilipinas expressed support for the bill. 

BSP Governor Benjamin E. Diokno had said in the hearing that the P500,000 maximum insurance deposit coverage “may be inappropriate at this time already.”

However, he said to make the increase sustainable, there should be a “necessary adjustment” in the premiums paid by banks. He said one possibility is increasing the premiums to two-fifth of 1% of total deposits from one-fifth of 1%.

PDIC President Roberto B. Tan also said if there will be an increase in the insurance coverage, “the adequacy of the deposit insurance fund as it is now will diminish.”

“That’s the reason why there must be some corresponding compensation for the deposit insurance fund to be adjusted. This will in effect require an increase in the assessment rate,” he said.

Cecilio D. San Pedro, president of the Chamber of Thrift Banks, said the increase in coverage will stabilize the banking system, but lenders affected by the pandemic may not be able to afford higher premiums.

“Increasing the premium coverage will create stability for the banking system as this will boost public confidence and trust in the banking sector. However, banks are adversely affected by the pandemic, particularly loan portfolios, hence cannot afford any increase in premium,” Mr. San Pedro said during the hearing.

He added that thrift banks would also have to address the requirements of their micro, small, and medium enterprise clients, a “major niche” of the sector, that have also been affected by the pandemic.

Bankers Association of the Philippines President Jose Arnulfo A. Veloso said the deposit insurance coverage, when indexed to inflation, should be adjusted to P675,000, adding that determining the limits should be left with the board of the PDIC “to allow for timely adjustments.”

“Maximum limits should reflect the country’s depositor profile and seek to protect the vast majority of depositors, with a particular focus on small depositors,” Mr. Veloso said in the hearing, adding that at the current rate P500,000, 97% of all bank depositors were fully insured. — Vann Marlo M. Villegas

Lonesome Dove author Larry McMurtry, 84

LARRY McMurtry, who wrote of complex relationships in novels such as The Last Picture Show and Terms of Endearment, and then helped redefine the American Old West with the epic Lonesome Dove, has died at 84, his publicist said on Friday.

The cause was heart failure, according to publicist Amanda Lundberg, who said by e-mail the author was surrounded by loved ones, including his wife Norma Faye and long-time writing partner, Diana Ossana, when he died on Thursday night.

In addition to his Pulitzer Prize for Lonesome Dove in 1986, Mr. McMurtry won an Academy Award in 2006 with Ms. Ossana for the screenplay for Brokeback Mountain about the relationship between two gay cowboys. He also was nominated in 1972 for his adaptation of his novel The Last Picture Show.

Mr. McMurtry wrote nearly 50 books —  collections of essays and criticism and memoirs in addition to his novels —  but Lonesome Dove had the most impact. It was a sweeping tale of two aging former Texas Rangers —  the amiable Gus and cantankerous Call — on a cattle drive from Texas to Montana.

“If anybody had any sense, they’d throw out Moby Dick and put Lonesome Dove in the center as the great American epic novel,” Carolyn See, a literature professor at the University of California Los Angeles, told the Los Angeles Times in 2003.

“No question about it. His heroes in that book are just terrific. His women are just terrific. And he sustains it for 800 pages.”

Mr. McMurtry was remembered for being as unassuming as he was accomplished.

James L. Brooks, who directed Terms of Endearment, recalled on Twitter how Mr. McMurtry had him adapt the novel into a screenplay, refusing “to let me hold him in awe” and was “working the cash register of his rare book store as he did so.”

Fellow novelist Stephen King called him a great storyteller.

“I learned from him, which was important,” Mr. King said on Twitter. “I was entertained by him, which was ALL important.”

Mr. McMurtry developed lasting affection for many of his characters and quite often brought them back for sequels. The principles from Lonesome Dove would eventually be in four books and the characters from The Last Picture Show generated five novels.

Critics praised Mr. McMurtry for his skill in fashioning nuanced and compelling characters and the way he brought them together — whether they were coming-of-age teenagers fighting small-town ennui in The Last Picture Show or a self-absorbed woman and her needy, dying daughter in Terms of Endearment.

Mr. McMurtry had a contrarian streak — he wore jeans with his tuxedo jacket to pick up his Oscar — and took a simple approach to his writing.

“I like making stuff up,” he told Texas Monthly in 2016. “I just write.”

Mr. McMurtry, the son and grandson of ranchers, was born on June 3, 1936, on a book-less cattle ranch near the West Texas plains town of Archer City. The town would be the model for Thalia, the setting for The Last Picture Show and its sequels.

He told interviewers late in his career that he thought his work peaked with Lonesome Dove in 1985.

“Constructing a long novel is a really demanding business,” he once said. “I don’t think there have been many novelists whose best work has been written after they were 60.”

Mr. McMurtry’s novels had contemporary settings until Lonesome Dove. That book, along with the successful television mini-series that followed and his other Western books, did not hew to the romantic myth of the Old West.

Instead of noble cowboys performing heroic deeds and taking part in dramatic gunfights, his characters endured endless hardships and lives of desperation.

When not writing books, Mr. McMurtry was selling them. After living in various places including Washington, D.C., where he owned a rare book store, in 1988 he moved back to Archer City, which had no bookstores or libraries in his youth, and built up a used book store complex that some collectors considered the biggest of its kind in the country.

In 2012 he reduced the Archer City operation by half but still maintained a personal collection of more than 28,000 books.

A disciplined author with a regular routine that called for composing five pages every morning at his manual typewriter, Mr. McMurtry loved movies almost as much as books.

In addition to The Last Picture Show and Terms of Endearment, his first novel, published in 1961, Horseman, Pass By was turned into the movie Hud, starring Paul Newman. He also wrote several screenplays and teleplays.

Mr. McMurtry underwent quadruple bypass surgery in 1991 and fell into a deep depression, inspiring what he said was one of his favorite books — his 1999 novel Duane’s Depressed, which revisited one of the main characters from The Last Picture Show.

Mr. McMurtry’s son from his first marriage is singer-songwriter James McMurtry. In 2011 he married Faye Kesey, widow of One Flew Over the Cuckoo’s Nest author Ken Kesey, who had been McMurtry’s classmate in a writing program at Stanford University in the late 1950s. The couple split their time living with Ms. Ossana in Tucson, Arizona, and in Archer City. — Reuters

New roads and high hopes

‘Build, Build, Build’ marches forward despite the pandemic

By Adrian Paul B. Conoza, Special Features Writer

AMID THE coronavirus disease 2019 (COVID-19) pandemic that disrupted economic activity and even halted road constructions temporarily, new roads were completed last year and more are set to be open as the current administration’s Build, Build, Build (BBB) program pushes through.

One of the most remarkable completed roads is the Metro Manila Skyway Stage 3, which was officially inaugurated last Jan. 14. The 17.93-kilometer (km) elevated expressway extends from Gil Puyat Ave. (the former Buendia Ave.) in Makati to the North Luzon Expressway (NLEX) in Balintawak, Quezon City.

The opening of Skyway Stage 3, which bypasses the often-congested EDSA, cuts travel time between Gil Puyat and Balintawak from two hours to 15 to 20 minutes.

Moreover, as constructor San Miguel Corp. noted in a statement, through this expressway, travel from Magallanes to Balintawak will only take about 15 minutes; Balintawak to Ninoy Aquino International Airport also 15 minutes; and Valenzuela to Makati 10 minutes.

Skyway Stage 3 has five sections: Gil Puyat Ave., Makati-Quirino Ave.-Nagtahan; Nagtahan-Aurora Blvd./Ramon Magsaysay Ave.; Ramon Magsaysay-Quezon Ave.; Quezon Ave.-Balintawak, Quezon Ave.; and Balintawak, Quezon City-NLEX Footbridge.

Last July 15, the Tarlac-Pangasinan-La Union Expressway (TPLEX) was completed and can now be fully utilized from Tarlac City and Rosario, La Union. The 89-km expressway cuts the travel from 3.5 hours to one hour, benefitting 20,000 travelers per day. This is being followed up by a proposal extending TPLEX by an additional 59 km up to San Juan, La Union.

In addition, at the NLEX Harbor Link, Segment 10, a 5.58-km elevated expressway connecting MacArthur Highway and C-3, and the 2.6-km C-3-R10 Section (Exit Ramp) were opened. This reduces travel time from NLEX to Radial Road 10, Navotas City (and vice versa) from one hour to 10 minutes.

Along with these finished roads, there are more projects along the road network that have been ramped up. Many of these are expected to be completed within this year.

Among the main roads in progress is the 8-km NLEX-SLEX Connector, which will connect the end of NLEX Harbor Link, Segment 10 in C3 Road, Caloocan City to Skyway Stage 3 through PUP Sta. Mesa.

As said by the Department of Public Works and Highways (DPWH) in a statement last January, a portion of the connector road, which spans 5 km from the Caloocan Interchange to España, Manila, is aimed to be open by yearend.

Meanwhile, the Arterial (Plaridel) Bypass Road, traversing from Batangas to Bulacan, is being widened from two lanes to four. Targeted to be finished by April, this widening is expected to address traffic diverted from Maharlika Highway and to cut travel between Burol, Batangas to Maasim, San Rafael in Bulacan to 24 minutes from 69 minutes.

Also in progress is the 30-km, four-lane Central Luzon Link Expressway (CLLEX), traversing Tarlac City and Cabanatuan, Nueva Ecija. CLLEX aims to reduce travel time within the area from 70 minutes to 20 minutes. The DPWH announced last February that the expressway will be open to the motoring public up to Aliaga, Nueva Ecija by May 15.

In the Southeast Metro Manila Expressway, C-6 (Phase I) project, which targets to reduce travel time from Bicutan, Taguig to Batasan, Quezon City from 110 minutes to 26 minutes, advanced construction activities for the workable area along Skyway/FTI-C-5/Diego Silang Section are ongoing.

The Alabang-Sucat Skyway Connection and Ramp Extension, which intends to provide direct access to and from the elevated Skyway to SLEX through the Alabang Viaduct, is 61% complete. The DPWH announced that the northbound portion of the extension will open by the second quarter of 2021.

Within the 45-km Cavite-Laguna Expressway (CALAX), which intends to reduce travel time between CAVITEX and SLEX from 90 minutes to 45 minutes, the 7.2-km segment that runs between Santa Rosa-Tagaytay Road Interchange and the Silang East Interchange may open by the third quarter, according to constructor MPCALA Holdings, Inc.

At the 66.74-km South Luzon Expressway-Toll Road 4, which intends to reduce travel time from Sto. Tomas, Batangas to Lucena City, Quezon from four hours to an hour, construction of the Tiaong Interchange in Quezon is ongoing.

Further south, the Quezon-Bicol Expressway is already considered in the Supplemental Toll Operations Agreement of the Toll Regulatory Board as part of SLEX-TR5.

The Camarines Sur Expressway, which is planned to reduce travel between San Fernando and Pili towns to 11 minutes, is already ongoing implementation.

Aside from these projects in Luzon, Visayas and Mindanao regions are not left out. The DPWH allots P1.23 billion for preliminary studies required to implement several big-ticket projects. These include 19 projects in Visayas, among them the Capiz-Aklan Coastal Road and Baybay-MacArthur Road, to name a few.

Mindanao, meanwhile, will receive funding for 29 projects, including Putik-Campo Island Diversion Road in Zamboanga City and Poblacion Sta. Maria-Malungon Road, connecting Davao del Sur to Sarangani.

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