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Hong Kong imposes 21-day quarantine for visitors, adds South Africa to banned list

HONG KONG – Hong Kong extended a compulsory quarantine by an extra seven days to 21 days for all visitors outside China, effective Friday, in stepped-up efforts to prevent a new variant of the novel coronavirus from spreading.

Authorities also banned all people who have stayed in South Africa in the past 21 days from boarding for Hong Kong.

Hong Kong has already banned all flights arriving from the United Kingdom from Monday and the city said on Wednesday two students who returned from the UK were likely to be infected with the new super-virulent strain of COVID-19.

In a statement midnight on Friday, authorities said people who have stayed in places outside China during the 21 days before their arrival have to undergo 21 days of compulsory quarantine in designated quarantine hotels.

“Noting the drastic change of the global pandemic situation with the new virus variant found in more countries, there is a need for the government to introduce resolute measures immediately… to ensure that no case would slip through the net even under very exceptional cases where the incubation period of the virus is longer than 14 days,” a government spokesman said. — REUTERS

Denmark finds 33 cases of new variant of coronavirus

COPENHAGEN, Dec 24 (Reuters) – Denmark has identified 33 infections with the new variant of the coronavirus that has been spreading rapidly in parts of Britain, according to authorities.

The State Serum Institute (SSI), Denmark’s infectious disease authority, said in a report published on Wednesday that the cases had been found in COVID-19 tests carried out between Nov. 14 and Dec. 14.

Denmark, an international leader in genome sequencing, has so far analysed genetic material from 7,805 positive tests in that period, meaning the variant was found in about 0.4% of the infections.

Since just 13.5% of all the positive tests in the period have been analysed so far, the SSI said that variant percentage could change.

“The latest sequencing results indicate that there is societal infection in Denmark with the new English virus variant, albeit at a very low level,” the SSI said.

Denmark, like several other countries, has suspended flights from Britain, where the new variant of the virus – thought to be more transmissible than others circulating – has spread quickly in southern England, including London.

Preliminary information did not suggest the 33 people who contracted the variant had any connection to England or had been travelling in other countries, the SSI said. — REUTERS

China to suspend UK flights indefinitely -foreign ministry

BEIJING, Dec 24 (Reuters) – China will suspend direct flights to and from the United Kingdom indefinitely over fears of a new strain of the coronavirus, Wang Wenbin, a foreign ministry spokesman said on Thursday.

“After much consideration, China has decided to take reference from other countries and suspend flights to and from UK,” Wang told reporters at a daily briefing.

“China will closely monitor relevant developments and dynamically adjust control measures depending on the situation,” Wang said.

Countries across the globe are shutting their borders to Britain after the emergence of a highly infectious new coronavirus strain.

There are currently eight weekly flights between mainland China and the United Kingdom, according to aviation data provider Variflight, including one each by Air China , China Eastern Airlines and China Southern Airlines.

British Airways operates two flights a week from London to Shanghai. — REUTERS

What you need to know about the coronavirus right now

Dec 24 (Reuters) – Here’s what you need to know about the coronavirus right now:

 

Singapore confirms first case of new coronavirus variant

Singapore confirmed its first case of the new coronavirus variant found in the United Kingdom, while 11 other people who were already in quarantine returned preliminarily positive results for the new strain.

Singapore has been conducting viral genomic sequencing for recently arrived confirmed COVID-19 cases from Europe. The patient with the new variant came to Singapore from the UK on Dec. 6, had been quarantined on arrival and tested positive on Dec. 8.

All her close contacts had been placed in quarantine, and had tested negative at the end of their quarantine period. The health ministry said it had been able to ringfence the case so that there was no further transmission.

 

Early success leaves South Korea scrambling

After a summer of touting South Korea’s approach as a model for the world, officials acknowledge the success of earlier efforts helped fuel over-confidence that left them straining to contain a third wave and scrambling to defend a cautious vaccine timeline.

Frontline fighters in South Korea’s war against the virus outlined what they say were critical mistakes by the government, including not investing in enough manpower and training for the tracing programme, not mobilising private hospitals fast enough to free up more beds, indecisive social distancing policies, and adopting a slow approach to securing and rolling out vaccines.

Lim Seung-kwan, chief of Gyeonggi Province’s COVID-19 emergency response task force, said it was time to consider dropping mass tracing in favour of more targeted epidemiological surveys that seek to better understand specific patterns of the virus’ spread while freeing up trained medical personnel to provide patient care.

 

U.S. vaccine rollout slow, could hit snags

Millions of COVID-19 vaccines are sitting unused in U.S. hospitals and elsewhere a week into the massive inoculation campaign, putting the government’s target for 20 million vaccinations this month in doubt. That’s nine days to give out nearly 19 million shots or over 2 million people vaccinated a day including on Christmas Day.

Hospitals said the first COVID-19 vaccinations started slowly last Monday as they navigated preparing the previously frozen shots for use, finding employees to run the vaccination clinics, and ensuring proper social distancing both before and after vaccination. Some said they did only about 100 shots the first day.

Beginning in January or February, Americans employed in a range of industries will be eligible for inoculation, provided they are essential frontline workers. The absence of a plan to verify vaccine candidates’ jobs and confusion over who qualifies as essential raise the risks of fraud and disorganization.

 

COVID-19 death rates improving in U.S. hospitals

The U.S. health care system is getting better at caring for COVID-19 patients, according to a new study published in JAMA Internal Medicine on Tuesday.

When researchers analyzed insurance claims of COVID-19 patients in nearly 400 hospitals, they found the average death rate had fallen to 9.3% in the May-June period, from 16.6% in the January-April period.

“The strongest determinant of improvements in hospital-level outcome was a decline in community rates of infection,” the researchers wrote, adding that the association between community COVID-19 case loads and death rates “suggests hospitals do worse when they are burdened with cases and is consistent with imperatives to flatten the curve.” — REUTERS

(Compiled by Karishma Singh; editing by Richard Pullin)

 

BoI to miss P1-T investment pledge goal

INVESTMENT PLEDGES to the Board of Investments (BoI) are likely to fall short of the government’s P1-trillion target this year, according to the agency.

The BoI had received P905 billion of investment pledges as of Dec. 18, BoI Managing Head Ceferino S. Rodolfo told an online news briefing on Tuesday.

“I’m not sure if the target will be met,” he said in mixed English and Filipino. “Two or three weeks ago we were confident, but we’re still waiting for endorsements from other government agencies so I don’t know if those will be out.”

Investment projects awaiting endorsement account for another P68 billion, he said. If all these remaining projects are approved, the BoI would still fall short of the goal by P27 billion.

The agency last year approved a record P1.14 trillion in investment pledges, which it attributed to strong economic fundamentals and consumer confidence. The approved investments rose by a quarter from P915 billion in 2018.

The BoI accounts for the bulk of planned projects registered with investment promotion agencies.

The bulk of approved investments for 2020 came from infrastructure projects, including the P740-billion San Miguel Corp. subsidiary airport project in Bulacan, along with toll roads and telecommunication towers, Mr. Rodolfo said.

BoI-approved investments doubled in the first half of 2020 after domestic investments  jumped by 166% to P626.7 billion due to the San Miguel airport project. But foreign investments at the time plunged by almost three-quarters to P18.6 billion.

The BoI recently started an investment promotion campaign focusing on the car, aerospace, electronics, copper and nickel, and business process outsourcing sectors. The drive, in partnership with the United Kingdom, will use digital, social media, events and print marketing.

The Philippine Economic Zone Authority, another investment promotion agency, aims to approve more than P100 billion in investment pledges by year-end.

The agency posted P72.6 billion in investment pledges in the 10 months through October, more than a quarter lower than a year earlier. It approved P117.54 billion in investments last year. — Jenina P. Ibañez

November budget gap swells

THE government’s budget deficit continued to widen in November due to higher spending, while tax collections dropped.

The fiscal gap worsened 2.5 times to P108.2 billion from a year earlier, according to data released by the Treasury bureau on Wednesday.

This brought the 11-month budget gap to P713.8 billion, more than nine times the amount last year.

A government experiences a deficit when it spends more money than it takes in from taxes and other revenues. This gap between income and spending forces the state to borrow, increasing the national debt.

An increase in the budget gap can boost a sluggish economy by giving more money to people who can then buy and invest more. But long-term deficits can be bad for economic growth and stability.

Economic managers this month said the budget deficit this year would be equivalent to 7.6% of economic output, lower than the previous 9.6% estimate. The gap was P660.2 billion last year.

Government expenditures rose by 2.3% year on year to P374.1 billion after it released cash subsidies to the poor and funded its national health insurance program, the Treasury bureau said.

Government financial institutions also spent for the state’s coronavirus pandemic response and lending programs for affected sectors.

This brought the year-to-date spending to P3.686 trillion, 11.59% higher than a year earlier.

Revenue collections dropped for the eighth straight month to P245.8 billion in November, almost a fifth lower than a year earlier. This brought 11-month revenues to P2.617 trillion, a tenth lower than a year ago.

Tax revenues during the month declined by 17.02% to P235.9 billion, data showed.

Collections by the Bureau of Internal Revenue slid by 17.4% to P191.7 billion, while Customs collections fell by 13.29% to P43.7 billion. Revenues from other offices plunged by almost three-quarters to P500 million.

Government revenues from nontax sources also slumped by 51.65% to P9.9 billion from a year earlier.

Treasury bureau revenues fell by 48.61% to P2.8 billion after its share from the income of the state gambling regulator fell, as well as earnings from its bond sinking fund. Income from other offices fell by 52.77% to P7.1 billion.

A P140-billion stimulus fund is expected to boost economic recovery prospects this quarter, “partly supporting narrower economic contraction,” Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in an e-mail.

About P103.27 billion or 74% of the total had been released as of Dec. 18. — Luz Wendy T. Noble

Philippine house prices fall for first time in 4 years

By Luz Wendy T. Noble, Reporter

HOUSING PRICES fell for the first time in four years in the third quarter, reflecting low consumer confidence amid a coronavirus pandemic, according to the Philippine central bank.

Prices fell by 0.4% from a year earlier based on the Bangko Sentral ng Pilipinas’s (BSP) residential real estate price index, it said in a statement on Wednesday.

This compares with a 4.5% uptick a year ago and a 26.6% jump in April to June this year, the central bank said. This was also the first time the index fell since it first started in 2016.

The index fell by 14.1% from a quarter earlier, the BSP said. It traced the index decline to weak consumer demand for houses and lots.

“This is consistent with the outcome of the Q3 2020 consumer expectations survey, which pointed to the low preference of consumers to buy real estate property amid the pandemic and economic uncertainty,” it added.

The index measures the average change in home prices across building types and locations and gives the central bank an insight into the property market, bank exposures to which are regulated.

Among housing types, prices of condominium units fell the most at 15%, from a 30.1% hike in the second quarter, the BSP said.

Prices of duplex homes also dropped by 8.8%, while prices of townhouses and single detached/attached houses rose by 12% and 7.4% respectively.

In Metro Manila, residential home prices dropped by 12.2%, with condominium units and duplexes both falling by 17.9% and 11.8% respectively.

Prices of single detached/attached houses and townhomes rose by 23.3% and 11.2% respectively.

Outside the capital region, prices of housing units rose by 6.4%, led by townhomes (12%), followed by single attached/detached houses (6.5%) and condominium units (3.6%). Prices of duplex homes fell by 13.3%.

Housing loans plunged by 43% in the third quarter from a year earlier, but climbed by 60% from the previous quarter. Three-fourths of the loans were for new housing units, the central bank said.

The slump in housing loans also reflect tighter credit standards imposed by banks during the pandemic.

Luxury home sales became a trend, with many rich buyers spending on upscale projects even during the pandemic, Colliers Philippines Research Manager Joey Roi H. Bondoc said.

“In the first nine months of 2020, around 48% of mid-income projects that were sold during the period were located in Parañaque, Pasig and the Alabang-Las Piñas area,” he said in a note.

“During the same period, the bulk of upscale to luxury projects that were sold were in Parañaque, Bay Area, Ortigas Center and fringe, and the C-5 Pasig corridor,” he added.

Meralco unit to take full control of Global Business Power

A SUBSIDIARY of Manila Electric Co. (Meralco) will fully own one of the leading power producers outside Luzon after the latter’s two biggest stakeholders signed a deal to transfer their respective holdings for around P34.47 billion.

In a regulatory filing on Wednesday, Meralco said its unit Meralco PowerGen Corp. (MGen) signed agreements with Beacon Powergen Holdings, Inc. and JG Summit Holdings, Inc. for the transfer of their respective shareholdings in Global Business Power Corp. (GBP).

Beacon Powergen holds a 56% ownership interest in GBP, while JG Summit holds 30%. These will be acquired by MGen, which has an existing 14%, for P22.44 billion and P12.02 billion, respectively.

Meralco said the transfer is expected “to deliver scale and operational synergy” to both GBP and MGen “and further enable these companies to provide ample and reliable supply of power to distribution utilities, electric cooperatives, and other customers at competitive rates.”

JG Summit and Metro Pacific Investments Corp. (MPIC), the parent firm of Beacon Powergen, also made separate disclosures of the deal. They said the transaction is part of their decision to “consolidate their power sector investments into a single vehicle.”

The purchase price will be paid in installments, with 60% at closing, 20% after six months and the remaining 20% after 18 months. The transaction, subject to customary closing conditions as well as regulatory and third-party approvals, is expected to close within the first quarter next year.

Meralco President Ray C. Espinosa said that the acquisition would allow MGen to build its own generation portfolio, with at least 1 gigawatt of renewable energy capacity in five years.

GBP has power generation assets in the Visayas and Mindanao with a gross capacity of 1,091 megawatts.

Lance Y. Gokongwei, JG Summit president and chief executive officer, said in a statement: “We are happy with how GBP has performed since our investment in 2016. The challenge now is how to further grow the business and take it to the next level. I am confident that combining this under Meralco, where JG Summit is also a significant shareholder, is the best way to achieve synergies and create further value.”

MPIC and JG Summit hold a 45.46% and 29.56% interest in Meralco, respectively.

Jose Ma. K. Lim, MPIC president and chief executive officer, said that the combination of investments in MGen was “strategic” for the company.

“This combination is a strategic one for MPIC as it presents opportunities in terms of promoting scale and operational efficiency while, at the same time, streamlining capital for MPIC’s other growth areas,” Mr. Lim said.

On Wednesday, shares in Meralco inched up 0.21% to finish at P282.60 apiece. Shares in JG Summit shed 1.11% to end at P71.20 per piece. MPIC shares went up by 0.24% to P4.18 each.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Angelica Y. Yang

SEC warns public against investing in Maxx Profit

THE Securities and Exchange Commission (SEC) has warned the public from investing or to stop any investment in a group named Maxxprofit Computer Trading (Maxx Profit), which it said solicited funds despite being unregistered.

In an advisory on its website, the corporate regulator said Maxx Profit is not registered with the SEC neither as a corporation nor as a partnership, and is also not authorized to solicit investments from the public as it has not acquired the specific license to do so.

Showing screenshots of the said group, the SEC said Maxx Profit — headed by Jonard Laurilla — is offering investment packages that promise earnings of 200% in just 12 days.

Further, it said the group promises that any member is eligible for a direct bonus equivalent to 50% if the said member recruits, and a unilevel bonus of 1% up to the 10th level.

“Since the above-described scheme involves the offering of securities to the public, the Securities Regulation Code (SRC) requires that these securities are duly registered and that the concerned corporation and/or its agents have appropriate registration and/or license to sell such securities to the public,” the SEC said.

For violating the SRC, the regulator said people acting as salesmen, brokers, and agents or those acting for Maxx Profit in convincing the public to invest may be penalized with a maximum fine of P5 million pesos, a 21-year imprisonment, or both.

“Also, those who invite or recruit others to join or invest in such ventures or offer investment contracts or securities to the public may incur criminal liability, or otherwise be sanctioned or penalized accordingly,” the SEC said.

BusinessWorld sought the comment of Maxx Profit’s Mr. Laurilla, but has not received a reply as of deadline time. — Revin Mikhael D. Ochave

SEC approves public offerings of Cityland, PSIF

THE PUBLIC offerings of Philippine Stock Index Fund Corp. (PSIF) and Cityland, Inc. have been cleared by the corporate regulator, giving investors more choices to see their funds appreciate.

In a statement on Wednesday, the Securities and Exchange Commission (SEC) said it approved the registration statements of PSIF that covers up to P50 billion worth of units of participation, and Cityland for commercial papers that amount up to P815 million.

The public offering of PSIF will be up to P50 billion units of participation, with an initial price of P1 apiece, the SEC said.

“The fund will invest the proceeds in securities comprising the Philippine Stock Exchange Composite Index for capital appreciation, which will in turn benefit unit holders,” it said.

BPI Investment Management, Inc. will be the offer’s fund manager, principal distributor, investment advisor, and transfer agent.

PSIF’s units will be offered via several authorized distributors such as Affinity Capital Corp., BPI Capital Corp., BPI Investment Management, Inc., Citicorp Financial Services and Insurance Brokerage Philippines, Inc., COL Financial Group, Inc., First Metro Securities Brokerage Corp., Wealth Securities, Inc., and Unicapital Securities, Inc.

Meanwhile, Cityland will offer commercial papers with a term that will not exceed one year. The securities will be offered via the company’s authorized salesmen.

The SEC said that Cityland had projected that it would raise P808.17 million from the offer.

“The proceeds will partially finance the construction of a 27-storey commercial and residential condominium project, which the company launched in October 2018 and expects to complete in June 2022, as well as future projects and maturing debt,” SEC said. — Revin Mikhael D. Ochave

Ayala energy arm infuses P350M into subsidiary for site acquisition

AYALA-led AC Energy Philippines, Inc. has subscribed to the shares of Buendia Christiana Holdings, Corp. (BCHC) worth P350 million, which the subsidiary will use to acquire potential project sites.

AC Energy Philippines, or ACEN, said on Wednesday that it had signed an agreement to subscribe to 3.5 million shares with a par value of P100 in its wholly owned unit.

BCHC is a special purpose vehicle that will own the land for its parent firm’s development projects.

“The subscription will be used by BCHC to fund acquisition of potential project sites,” the Ayala Corp. subsidiary said in a disclosure to the local bourse.

ACEN has subscribed to BCHC’s redeemable preferred B shares, which are scheduled to be issued out of the increase in the unit’s authorized capital stock. The shares will be paid in tranches with a partial payment of P150 million on the acquisition day.

The balance of the subscription price will be payable upon demand, with the approval of BCHC’s board of directors, ACEN said about the terms of payment.

It added that the transaction is subject to the necessary regulatory approvals from the Securities and Exchange Commission (SEC) on the increase in the authorized capital stock of BCHC and the full payment of the subscription price.

Last week, the Ayala firm approved around P11 billion in funding for a Pampanga-based solar energy project and a wind farm to be constructed in Ilocos Norte.

In the third quarter, ACEN recorded an attributable net income of P977.78 million, or around three times higher than the P322.3 million recorded a year ago. Revenues surged 51% to P5.26 billion largely because of a jump in energy sales as a result of new contracts.

Shares in ACEN on Wednesday improved 0.41% to close at P7.37 apiece. — Angelica Y. Yang 

Aboitiz InfraCapital, Globe partner for community WiFi service in VisMin areas

ABOITIZ INFRACAPITAL, Inc. has partnered with Globe Telecom, Inc. to offer community WiFi service in Visayas and Mindanao areas, the Aboitiz group’s infrastructure arm said on Wednesday.

In an e-mailed statement, Aboitiz InfraCapital said the partnership would accelerate the availability of community broadband access in select barangays in Davao and Cebu.

“Formerly known as KapitWiFi, KonekTayo WiFi is a fast and secure community WiFi service that aims to provide households with affordable internet,” the company said, adding that customers simply need to connect to a KonekTayoWiFi hotspot, buy a promo and surf all day.

Globe’s KonekTayo WiFi will be using Aboitiz InfraCapital’s existing pole network in the said areas. This offering is also present in some communities in Metro Manila, Cavite, Laguna, Cebu, Tacloban and Iloilo.

Ernest L. Cu, Globe president and chief executive officer, said: “KonekTayo WiFi promises the affordability, accessibility and ease of use that most low-income Filipino homes need.”

“This partnership with Aboitiz InfraCapital strongly complements our efforts to boost network capacity and coverage through infrastructure in a cost-efficient manner,” he added. — Arjay L. Balinbin

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