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Treasury fully awards reissued bonds despite surge in yields

THE GOVERNMENT made a full award of the reissued Treasury bonds (T-bonds) it offered on Tuesday even as yields surged as investors preferred to keep their cash amid an uncertain economic outlook.

The Bureau of the Treasury (BTr) raised P30 billion as planned via the reissued 10-year T-bonds it auctioned off on Tuesday. The offer was nearly two times oversubscribed as bids reached P53.92 billion, but this was lower than the P63 billion in tenders seen when the notes were last offered on Feb. 2.

The 10-year bonds, which have a remaining life of nine years and three months, fetched an average rate of 4.614%, surging by 154.8 basis points (bps) from the 3.066% seen in the previous offering.

The 10-year tenor was quoted at 4.473% at the secondary market on Monday, based on PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

National Treasurer Rosalia V. de Leon said the Treasury made a full award of the 10-year papers despite the higher rate as the average yield fetched was still aligned with prices at the secondary market.

“Pension and insurance funds need long-term assets to match their portfolio,” Ms. De Leon told reporters in a Viber message after the auction.

A bond trader said investors are holding on to their cash in the meantime as economic prospects remain murky.

“People are not willing to hold long bonds. Cash is king. At the same time, we see that the government needs to borrow more due to lower revenues,” the trader said.

The Health department reported that the daily count of virus cases surged to a fresh record high of 8,019 on Monday, bringing the tally to 671,792.

Travel restrictions in Metro Manila and nearby areas have been tightened anew for two weeks until April 4 due to rising coronavirus cases in the country.

Economic managers backed localized lockdowns as they find these less disruptive for the broader economy. However, they admitted that the recent spike in cases and tighter restrictions could further delay the economy’s recovery.

The government has set a 6.5-7.5% economic growth target for this year. Gross domestic product (GDP) dropped by a record 9.5% in 2020.

The BTr plans to borrow P160 billion from the local debt market this month: P100 billion via weekly auctions of Treasury bills and P60 billion from fortnightly T-bond offerings.

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

Phoenix plans asset sale, transfer to manage debts

THE board of directors of Dennis A. Uy-led Phoenix Petroleum Philippines, Inc. has given management the go signal to unload certain corporate assets for its debt management activities.

In a disclosure to the exchange on Tuesday, the company said transactions will cover the “transfer, sale, mortgage or disposition of certain corporate properties, assets, or investments” that may be relevant to the success of the company’s financial management program.

Phoenix Petroleum’s management has been authorized to enter negotiations “under reasonable and acceptable terms and conditions advantageous to the corporation” with any interested entity.

The board decision comes a day after the company told the stock exchange that the company or any of its subsidiaries “is open to consider any investor willing to invest and believes in the operations [of Phoenix Petroleum] and can further add value to its business activities.”

It said that such offers are nothing new to the company and that it had been open to investors who believe in its core business and can bring in value to its operations, finances, and to its shareholders.

“We see these as opportunities for growth,” it said.

But Phoenix Petroleum said that the dilution of its shareholdings had not been a subject of any discussion at any level in the company.

Last week, Davao-based businessman Mr. Uy sold off the entire stake of Chelsea Logistics and Infrastructure Holdings Corp. in 2GO Group, Inc. worth around 31.73% of shares to SM Investments Corp. at P8.50 apiece.

The transaction will make 2GO a subsidiary of SMIC, as the Sy-led company already has an existing 30.49% stake in 2GO.

Chelsea is the shipping and logistics firm of Uy-led Udenna Group. Chelsea said it would use the 2GO sale proceeds to pay for the loan it acquired to buy 2GO shares in 2017.

In January, an official of the Department of Energy (DoE) said that the agency had to cancel the “notice to proceed” issued to Mr. Uy’s $2-billion import terminal project under Tanglawan Philippine LNG, Inc.

“We were constrained to cancel their notice to proceed as, in fact, they essentially withdrew their plans as they were not able to reach financial close,” Assistant Secretary Leonido J. Pulido III said in a Senate hearing. “They are no longer pursuing their project.”

He added that the withdrawal was caused by a “commercial issue.” Tanglawan is controlled by Phoenix Petroleum.

Phoenix Petroleum shares declined by 2.38% or P0.28 on Tuesday to close at P11.50 apiece. — Keren Concepcion G. Valmonte

An arts buffet online

THE Cultural Center of the Philippines (CCP)’s open house festival,Pasinaya,” was the first event canceled last year following the outbreak of COVID-19 in February. This year, the open house arts festival has been revived and, in a way, expanded as it is being held in virtual theaters and galleries, making it open to a much wider audience than just those who could visit the CCP’s various performance and exhibit spaces over one weekend.

The festival has been renamed for the year as “Tuloy Po Kayo: Palihan. Palabas. Palitan.” Kicked off last weekend, it is ongoing on the online platforms of the CCP, its second batch of activities and shows to be held from Mar. 26 to 28.

The festival’s concept comes “from the tenet of Philippine psychology that touches on the Filipino’s desire to welcome his kapwa or fellow man into his home,” said a CCP press release. It “embraces the idea that no pandemic can stop artists from creating great works, finding new means of expressions, and sharing their ingenuity with others…”

“We felt that it’s time to reinvent ourselves according to the available platform using the same formula asPasinaya” but growing bigger virtually, and engaging the other regions,”

“Tuloy Po Kayo’s” deputy festival director Ariel Yonzon told BusinessWorld in a Zoom interview on Mar. 18.

The artists and groups welcome the audience into their homes, ateliers, salons, performance spaces, and venues virtually, to be part of the creative process. For the first time this year, the festival includes artist groups from Hong Kong and Taiwan.

The online multi-arts festival consists of a three-part program — “Palihan,” “Palabas,” and “Palitan.” On Mar. 26, “Palihan” will feature workshops; on Mar. 27 and 28, “Palabas” focuses on performances by the CCP resident companies, regional groups, and other participants. “Palitan” focuses on talks with international and local festival organizers, art programmers, and creative stakeholders.

The festival website (www.tuloypokayo.com/) brings the participant to the CCP lobby and there they can choose the venue to explore — from the virtual Tanghalang Nicanor Abelardo to Bulwagang Juan Luna.

Once inside the venue, they can choose which activity to participate in or which show to watch. Each workshop, performance, or artistic activity is 15 minutes long. The activities run from 9 a.m. to 7 p.m. There are also film screenings via the CCP Vimeo Channel (https://vimeo.com/culturalcenterphils).

This weekend, one can watch winning films from the 16th Cinemalaya Philippine Independent Film Festival; attend a meet-and-greet with the screenwriter/director and actors of the award-winning Cinemalaya film John Denver Trending in live sessions on Mar. 27 after the film’s 11:30 a.m. screening; watch Kolab Co’s Mourning Gurlz, a reinterpretation of  Wilfrido Ma. Guerrero’s play Eye of A Needle  on Mar. 28, 1 p.m., at virtual Little Theater, and a performance of Artist Playground’s Geegee at Waterina, a play about the friendship between a gay town councilor and an aging drag queen and former “comfort gay,” on Mar. 28, 5:30 p.m., at the virtual CCP Main Theater.

Among the events on Mar. 26 at the online Palihan are: a talk about choral singing from the Philippine Madrigal Singers with Madz artistic director Mark Anthony Carpio at 11 a.m. and noon; playwright, actor and director Dennis Marasigan talking about Theater Elements, live at noon; a workshop on Dagit-Dagit with the Samahang Tagapagtaguyod ng Katutubong Sayaw ng Pilipinas and the Philippine Folk Dance Society at 2 p.m.; Young at Art Exclusive Preview with Karl Jingco at 2 p.m.; and a PumaPodcast talk about the Power of the Audio Experience on film at 3 p.m.

On Mar. 27, experience the rich culture of Mindanao through the 15-minute taste of Popong Landero and Kuntaw Mindanaw, highlighting folk and neo-ethnic music from Davao, at 10 a.m.; attend Xavier Stage of Cagayan de Oro’s latest production, Nang Lumuha Ang Tala, 9:30 a.m., at the virtual Tanghalang Nicanor Abelardo stage; visit the dance studio of Gawad CCP Awardee Agnes Locsin and watch performances of Dasal and Bathala at 2 p.m., at the virtual Tanghalang Huseng Batute.

On Mar. 28, Lea Salonga talks about her Broadway theater experiences and sings Broadway songs from the musicals she starred in at 4:30 p.m.; opera singers Arthur Espiritu and Camille Lopez Molina will annotate excerpts from the opera Lucia Di Lammermoor at 4 p.m., preceded by the opening of Act III of the opera classic; a Behind-the-Scenes cut video of Jerrold Tarog’s short film Ang Kabaligtaran ng Gunaw, will be shown at 5 p.m.

Over at Museum Mile (https://www.tuloypokayo.com/museum-mile/),, guests can also go on Virtual Tours of more than 40 museums and galleries from Luzon, Visayas, and Mindanao. There are also more than 50 online art exhibits featuring Filipino artists in their studios and creative spaces.

“More than any other time in history, we’re now reaching numbers, unimaginable in a physical space, because the physical space can only give you maximum occupancy loads, but the virtual space, that’s limitless,” said Mr. Yonzon, who is the Associate Artistic Director of the Production and Exhibition Department of the CCP.

In a “better” normal and post-pandemic situation, Mr. Yonzon said that the return of live events will coexist with the virtual content.

“If there’s anything that we learned from last year, we now realize that even when we get back to the new and better normal, we now must have, as part of our programming,  virtual iterations of our live content,” Mr. Yonzon said. “That means, many of our programs will now be built for a live audience, and one that’s developed for online and broadcast streaming.”

For the full schedule activities, visit the CCP official social media accounts on Facebook (www.facebook.com/CulturalCenterofthePhilippines), Twitter www.twitter.com/theCCPOfficial, and Instagram www.instagram.com/CulturalCenterPH, and the CCP website (www.culturalcenter.gov.ph). — Michelle Anne P. Soliman

The African roots of Swiss design

DESIGN remains a largely white profession, with Black people still vastly underrepresented — making up just 3% of the design industry, according to a 2019 survey.

This dilemma isn’t new. For decades, the field’s whiteness has been recognized as a problem, and was being openly discussed as far back as the late 1980s, when the few Black graphic design students preparing to enter the profession spoke of feeling isolated and rudderless.

Part of the lack of representation might have had to do with the fact that prevailing tenets of design seemed to hew closely to Western traditions, with purported origins in Ancient Greece and the schools out of Germany, Russia, and the Netherlands deemed paragons of the field. A “Black aesthetic” has seemed to be altogether absent.

But what if a uniquely African aesthetic has been deeply embedded in Western design all along?

Through my research collaboration with design scholar Ron Eglash, author of African Fractals, I discovered that the design style that undergirds much of the graphic design profession today — the Swiss design tradition that uses the golden ratio — may have roots in African culture.

The golden ratio refers to the mathematical expression of “1: phi,” where phi is an irrational number, roughly 1.618.

Visually, this ratio can be represented as the “golden rectangle,” with the ratio of side “a” to side “b” the same as the ratio of the sides “a”-plus-“b” to “a.”

Create a square on one side of the golden rectangle, and the remaining space will form another golden rectangle. Repeat that process in each new golden rectangle, subdividing in the same direction, and you’ll get a golden spiral, arguably the more popular and recognizable representation of the golden ratio.

This ratio is called “golden” or “divine” because it’s visually pleasing, and some scholars argue that the human eye can more readily interpret images that incorporate it.

For these reasons, you’ll see the golden ratio, rectangle and spiral incorporated into the design of public spaces and emulated in the artwork in museum halls and hanging on gallery walls. It’s also reflected in nature, architecture, and design — and it forms a key component of modern Swiss design.

The Swiss design style emerged in the 19th century from an amalgamation of Russian, Dutch, and German aesthetics. It’s been called one of the most important movements in the history of graphic design and provided the foundation for the rise of modernist graphic design in North America.

The Helvetica font, which originated in Switzerland, and Swiss graphic compositions — from ads to book covers, web pages and posters — are often organized according to the golden rectangle. Swiss architect Le Corbusier famously centered his design philosophy on the golden ratio, which he described as “[resounding] in man by an organic inevitability.”

Graphic design scholars — represented particularly by Greek architecture scholar Marcus Vitruvius Pollo — have tended to credit early Greek culture for incorporating the golden rectangle into design. They’ll point to the Parthenon as a notable example of a building that implemented the ratio in its construction.

But empirical measurements don’t support the Parthenon’s purported golden proportions, since its actual ratio is 4:9 — two whole numbers. As I’ve pointed out, the Greeks, notably the mathematician Euclid, were aware of the golden ratio, but it was mentioned only in the context of the relationship between two lines. No Greek sources mention a golden rectangle.

In fact, ancient Greek writings on architecture almost always stress the importance of whole number ratios, not the golden ratio. To the Greeks, whole number ratios represented Platonic concepts of perfection, so it’s far more likely that the Parthenon would be built in accordance with these ideals.

If not from the ancient Greeks, where, then, did the golden rectangle originate?

In Africa, design practices tend to focus on bottom-up growth and organic, fractal forms. They are created in a sort of feedback loop, what computer scientists call “recursion.” You start with a basic shape and then divide it into smaller versions of itself, so that the subdivisions are embedded in the original shape. What emerges is called a “self-similar” pattern, because the whole can be found in the parts.

Consider the palace of the chief in Logone-Birni, Cameroon. Its rooms are laid out using a fractal grid characterized by the repetition of similar shapes at ever-diminishing scales. As Ron Eglash notes in African Fractals, the path that a palace visitor would take to navigate the space approximates a golden spiral.

The recursive construction of the palace — from tiny rectangles to larger and larger rectangles — naturally lends itself to the golden rectangle construction for the overall form, even though the match along any one wall is far from perfect.

This method of organically growing architecture is typical of building layouts in Africa; indeed, many of its design patterns include this organic scaling, probably because it links to concepts of fecundity, fertility and generational kinship that are commonplace in African art and culture.

Scholar and spiritualist Kwame Adapa shows such a scaling pattern in Kente cloth from Ghana. The black stripes are on a white background, with rows formed as follows: 1, 1, 2, 3, 5 — what we now call the Fibonacci sequence, from which the golden ratio can be derived.

Robert Bringhurst, author of the canonical work The Elements of Typographic Style, subtly hints at the golden ratio’s African origins:

“If we look for a numerical approximation to this ratio, 1: phi, we will find it in something called the Fibonacci series, named for the 13th century mathematician Leonardo Fibonacci. Though he died two centuries before Gutenberg, Mr. Fibonacci is important in the history of European typography as well as mathematics. He was born in Pisa but studied in North Africa.”

These scaling patterns can be seen in ancient Egyptian design, and archaeological evidence shows that African cultural influences traveled down the Nile river. For instance, Egyptologist Alexander Badaway found the Fibonacci Series’ use in the layout of the Temple of Karnak. It is arranged in the same way African villages grow: starting with a sacred altar or “seed shape” before accumulating larger spaces that spiral outward.

Given that Mr. Fibonacci specifically traveled to North Africa to learn about mathematics, it is not unreasonable to speculate that Mr. Fibonacci brought the sequence from North Africa. Its first appearance in Europe is not in ancient Greece, but in Liber Abaci, Mr. Fibonacci’s book of math published in Italy in 1202.

Why does all of this matter?

Well, in many ways, it doesn’t. We care about “who was first” only because we live in a system obsessed with proclaiming some people winners — the intellectual property owners that history should remember. That same system declares some people losers, removed from history and, subsequently, their lands, undeserving of any due reparations.

Yet as many strive to live in a just, equitable and peaceful world, it is important to restore a more multicultural sense of intellectual history, particularly within graphic design’s canon. And once Black graphic design students see the influences of their predecessors, perhaps they will be inspired and motivated anew to recover that history — and continue to build upon its legacy. — Reuters

 

Audrey G. Bennett is a Program Director and Professor at the Stamps School of Art & Design of the University of Michigan.

Tanco Group ventures into cloud computing

TANCO GROUP, owner of the STI network of schools, is now engaged in the business of cloud computing through Stitch Tech Solutions, its new information technology (IT) firm.

“We got into this so that we could help others recover as well. With our companies, we are very technologically driven. We’d like to help others,” Jaeger L. Tanco, Stitch chief executive officer (CEO), said at a virtual media briefing on Tuesday.

Stitch Chairman Eusebio H. Tanco said in a statement that the Tanco Group is hoping to advance further its existing technology-related endeavors through the new IT company.

He added the group wants to create an ecosystem “that empowers even more people in the digital age.”

“Integrating our businesses into having one IT backbone aided by data science and cloud computing is important because it enables us to become more efficient in our operations and provide the best customer experience possible. We have seen it work in one of our businesses,” the chairman explained.

The group wants to partner with micro, small, and medium enterprises (MSMEs) for its cloud computing services.

“Aside from COVID-19, we understand that many businesses in and around Metro Manila have also been watching the movements of Taal Volcano and Mount Pinatubo given their grim histories, as well as ‘The Big One’ since these are expected to cripple business operations. With cloud computing, enterprises can continue to function amid these events as if they didn’t happen,” Stitch Chief Operating Officer Alex Aquino said.

The new firm also offers SAP (systems, applications, and products) consultation and IT services like website and app development and management, as well as IT support.

“Our financial health as a country suffered this pandemic given that MSMEs function as our main economic lifeline. Through cloud computing, we want to give these businesses a shot in the arm, so they can get back on their feet the soonest and not just survive, but thrive,” Stitch’s CEO Mr. Tanco added. — Arjay L. Balinbin

Fitch warns of stability risks of central banks’ asset purchases

ASSET PURCHASES may remain a staple in central banks’ policy toolkit going forward, but these could become risky in case global financial measures tighten, Fitch Ratings said.

The debt watcher said while asset purchases are not directly involved in its ratings assessment, it could pose a downside risk to sovereigns’ grades, particularly in policy indicators.

“A weakening of the credibility of policy frameworks is a negative rating sensitivity for a number of emerging markets, including some of those that began asset purchases last year,” Fitch Ratings said in a note on Tuesday.

In May 2020, Fitch affirmed its “BBB” rating for the Philippines but downgraded its outlook to “stable” from “positive” as it factored in the impact of the pandemic on the economy. A stable outlook means the rating is likely to be maintained within the next 18 to 24 months.

The Bangko Sentral ng Pilipinas (BSP) started its asset purchases at the onset of the pandemic in March 2020 when it bought P300 billion in short-term securities from the Bureau of the Treasury (BTr).

In October, the central bank granted another P540-billion zero-interest loan to the National Government that was paid in full in December. The BSP lent another P540 billion in January for the government’s pandemic response.

Republic Act (RA) 11494 or the Bayanihan to Recover as One Act allowed the BSP to lend 30% of its average revenue to the government, an increase from the 20% limit under RA 7653 or The New Central Bank Act. This allowed the BSP to lend up to P850 billion from the previous cap of P540 billion.

“Indonesia and Philippines were the only sovereigns outside of the ‘B’ category that implemented primary market purchases in 2020, and in both they were targeted and transparent, with the authorities emphasizing their temporary nature amid exceptional pandemic-related conditions,” Fitch said.

The ratings agency said primary market purchases appear to be a greater threat to institutional credibility compared with buying from the secondary market.

For now, however, Fitch said macroeconomic risks from quantitative easing of central banks have not materialized.

“However, it may lead to fiscal dominance and has a record of reinforcing macroeconomic instability,” it said.

BSP Governor Benjamin E. Diokno has said they will carefully assess the timing of unwinding the policy measures it rolled out during the crisis to safeguard financial stability. — L.W.T. Noble

Yellen sees post-pandemic growth, possible full employment in 2022

WASHINGTON — Treasury Secretary Janet Yellen will paint an optimistic picture for the US economy as it emerges from the coronavirus pandemic, telling US lawmakers on Tuesday that she sees both growth and possibly full employment next year — due to President Joseph R. Biden’s coronavirus stimulus package.

Ms. Yellen, in written testimony prepared for delivery to the US House of Representatives Financial Services Committee, said that with passage of the $1.9-trillion American Rescue Plan Act, “I am confident that people will reach the other side of this pandemic with the foundations of their lives intact. And I believe they will be met there by a growing economy. In fact, I think we may see a return to full employment next year.”

Ms. Yellen said the Treasury, tasked with implementing much of the Biden stimulus plan and distributing the funds, was working to expedite relief to the areas of greatest need, including the smallest of small businesses, which are disproportionately owned by women and people of color.

The Treasury also is reducing some documentation requirements for struggling Americans to receive funds to help them make housing rental and mortgage payments in an effort to speed the implementation of a $30-billion housing aid plan.

“We’re cutting through the red tape for them, while still taking reasonable steps to prevent fraud and abuse,” Ms. Yellen said.

Treasury is also working closely with state, local, tribal and territorial governments to implement $350 billion in aid to them, she said.

Treasury officials said last week that the state and local government aid program, which is still setting rules on the use of funds, would start distributing money within about 60 days. — Reuters

Moody’s affirms PSALM rating, outlook

MOODY’s Investors Service has affirmed the long-term debt rating of Power Sector Assets and Liabilities Management Corp. (PSALM), citing its strategic importance as a state-led entity that carries out a mandated role for the country’s power sector.

In rating action dated March 22, Moody’s also maintained its “stable” outlook on PSALM, which it expects to continue receiving strong support from the government. A stable outlook means that the grade can be retained over the next 12 to 18 months.

“PSALM’s credit profile is underpinned by its strategic importance as a state-owned enterprise that carries out a mandated policy role for the Philippine power sector,” Moody’s Vice President and Senior Analyst Spencer Ng was quoted as saying.

“Supporting the ratings is the Government of Philippines’ (Baa2 stable) strong commitment to the company, which underpins the very high likelihood of support for PSALM, to prevent a default in times of stress,” Mr. Ng added.

In its rating action, Moody’s noted that PSALM’s financial position and liquidity were “heavily influenced” by the government, as seen from the presence of government officials in the company’s board of directors, and the entity’s reliance on funding from the Malampaya-gas-to-power project fund under the Murang Kuryente Act (MKA).

The MKA, which was signed two years ago, allocates P208 billion from the Malampaya project’s fund to PSALM over the next three or four years. In return, PSALM will not collect new tariffs to pay for future stranded costs and stranded debts until the allocation is used up.

While the MKA provides more details on how PSALM will be reimbursed for stranded costs, it will also increase PSALM’s dependence on the government, Moody’s said.

“If annual funding allocated under the MKA falls short of the requirement, PSALM might need to raise additional debt to meet its operating requirements,” Moody’s said.

It added that it expects the Philippine government to continue to support the company’s funding requirements, as the former has “unconditionally and irrevocably” guaranteed all of PSALM’s outstanding external debt and has provided loans to the firm.

“In Moody’s view, PSALM’s close financial and operational links with the government make its credit profile inseparable from the government’s own credit profile. As such, PSALM’s rating is derived solely based on support and is assigned without a baseline credit assessment,” it said.

Moody’s said that PSALM’s ratings can be upgraded if the country’s sovereign rating is also upgraded.

The state-led company’s ratings can also be downgraded if the Philippines’ sovereign experiences the same, Moody’s said. A rating downgrade can also happen “if evidence emerges of a weakening in government support for PSALM or any change in PSALM’s policy role.”

PSALM is in charge of privatizing the country’s power assets to settle maturing obligations assumed from the National Power Corporation.

Two months ago, PSALM said that it was able to reduce its principal financial obligations by 9.5% by end-2020 compared with the level at the start of the year. It added that it had paid all interests and borrowing costs that matured last year totaling P11.56 billion. — Angelica Y. Yang

NYC art show uses fractals to immerse viewers in a kaleidoscope-like world

NEW YORK —  A breathtaking new art exhibit,Geometric Properties: An Immersive Audio-Visual Journey Through Fractal Dimensions,” drenches viewers in an otherworldly experience at New York City’s (NYC) Chelsea Market.

The installation uses fractals — mathematical equations represented as infinitely repeating patterns. Dutch artist Julius Horsthuis ran the equations through computer software, which then manifested into the art.

“Julius came across fractals while doing research for a separate project and instantly felt a connection with them,” said ARTECHOUSE marketing and communications manager Andrew Albigese. “He was fascinated by how through mathematics, you could take someone on a journey through almost an entirely new world.”

Spectators have said it feels like being inside a kaleidoscope, or “like stepping into a sci-fi world or even being transmitted to a totally new dimension,” said Mr. Albigese.

Mr. Albigese said he was “overwhelmed” by the exhibit himself.

“After over a year of pandemic and for a lot of people being isolated, we need something like this more than ever,” said Mr. Albigese. “Art, for a lot of people, can be an escape or refuge.”

“Geometric Properties” runs through Sept. 6. — Reuters

Manila Water says Balagtas water deal terminated

EAST ZONE water concessionaire Manila Water Co., Inc. said that its water concession deal in Balagtas, Bulacan had been revoked and terminated.

In a disclosure to the stock exchange on Tuesday, the listed water provider said it accepted the decision of Balagtas Water District (BWD) to revoke and terminate the notice of award for the water project.

In April 2018, Manila Water and its wholly owned subsidiary Manila Water Philippine Ventures, Inc., (MWPV) disclosed that it received a notice of award from BWD for a 25-year concession that will implement water and used water projects in Balagtas worth P400 million.

As part of the concession deal, Manila Water was mandated to create a joint venture company together with BWD and MWPV for the project.

The joint venture was supposed to design, construct, rehabilitate, operate, maintain, finance, expand, and manage the water supply system and its water and sanitation services.

According to Manila Water’s previous statement, the water project aimed to provide 22 million liters of water per day to BWD’s customers.

Sought for comment, BWD’s official Facebook page confirmed in a message to BusinessWorld that the project’s notice of award had been terminated.

However, BWD did not specify the reason behind its decision and said it would issue an official statement in the coming days regarding the revocation and termination of Manila Water’s notice of award.

In 2020, Manila Water posted an attributable net income of P4.50 billion, an 18.2% decline year on year, due to lower contribution from its domestic subsidiaries as a result of the pandemic.

The company said its consolidated operating revenues for 2020 dropped 2.4% year on year to P21.13 billion caused by weaker contributions from Estate Water and Boracay Water.

On Tuesday, shares of Manila Water at the stock exchange dropped 0.85% or 12 centavos to close at P14.06 apiece. — Revin Mikhael D. Ochave

Singapore joins Wall Street in planning for post-COVID-19 office life for banks

WALL STREET is unveiling plans to bring more bankers back in the coming months. — LOLO/UNSPLASH

LESS-CROWDED trading floors, facial recognition systems and split work areas could all become routine for bankers in Singapore as the Southeast Asian financial hub readies for office life in a post-COVID world.

Financial institutions in the city should use more no-touch technology, allow more space for each employee and adopt split teams on trading floors once staff return after the pandemic, according to recommendations from a study commissioned by the city’s banking association and the Monetary Authority of Singapore (MAS) that was published on Tuesday.

Lenders are also being encouraged to use hot-desking, motion detectors, temperature and face-mask detection screening and improved ventilation to avoid potential contamination, according to the report. Staff should be allowed to work from satellite offices or branches in addition to the main headquarters, it said.

Such measures “are imperative to strike a balance between workplace safety and minimizing disruption to business operations,” said the study, which was carried out by real estate consultancy Cushman & Wakefield Plc and some of Singapore’s biggest banks.

CAUTIOUS APPROACH
With more than 200 financial institutions operating in Singapore, the city is among global banking centers looking at how to get staff back to the office after they’ve spent more than a year juggling working from home and family life. The city-state has taken a cautious approach to returning staff to offices even as infection rates remain low.

Wall Street has also been unveiling plans to bring more bankers back in the coming months, while employees in Shanghai have been back in the office for months after the Chinese city was the world’s first major center to reopen last year after taming the virus.

The latest recommendations from Singapore envision a workplace that’s geared to switch quickly to a “pandemic-on” mode so that companies can react to future pandemics.

“MAS encourages our financial institutions to consider the recommended strategies in the Playbook to enhance safety and resiliency in the workplace,” MAS Deputy Managing Director Ong Chong Tee said in a statement. “This will be helpful to be well prepared for any situations in future that may require safe distancing and work-from-home arrangements.”

The report also compares Singapore’s approach in managing the pandemic with other major financial hubs like Hong Kong, Shanghai, London, New York and Sydney. It found that the density of its offices is comparable to Sydney, with an average 80 to 120 square feet per seat. That’s more spacious than Hong Kong, where it’s 40 to 100 square feet.

RESHAPING HUBS
How financial institutions adapt to a post-COVID world has the potential to reshape business districts in hubs around the world. Already some global banks have said that an embrace of more flexible working will allow them to significantly reduce their property footprint.

HSBC Holdings Plc is predicting a 40% reduction in its property footprint over the long term and Lloyds Banking Group Plc is projecting a 20% cut in office space by 2023. Others are less excited about the idea with David Solomon, chief executive officer of Goldman Sachs Group, Inc. calling remote work “an aberration that we are going to correct as quickly as possible.”

In Singapore, DBS Group Holdings Ltd. is allowing all staff to work up to 40% of their time remotely and has started precautionary measures such as frequent air purging. United Overseas Bank Ltd. will allow about 65% of its 26,000-strong workforce to work remotely two days a week once COVID-19 restrictions are lifted. — Bloomberg

Greek archaeologists unearth bronze bull idol in ancient Olympia

ATHENS —  Greek archaeologists have unearthed by chance a more than 2,500-year-old bronze bull idol at the archaeological site of Olympia, the culture ministry said on Friday.

An observant archaeologist came across the mini-statue during work at the site, one of the most celebrated sanctuaries in ancient Greece, the ministry said in a statement.

With one of its horns sticking out of the ground after heavy rainfall, the statuette was found intact, close to the temple of ancient Greek god Zeus at Olympia, the birthplace of the ancient Olympic Games.

It was transferred to a laboratory for conservation.

Archaeologists believe that it was part of thousands of gifts offered to Zeus in the 1,050-700 B.C. period. Bulls and horses played an important role in the lives of ancient Greeks and so were frequently dedicated to the gods. — Reuters