PAL operator expects positive monthly cash flows

June 18, 2021 | 12:08 am

PAL-facebook — FACEBOOK.COM/PHILIPPINEAIRLINES

Optimism comes despite annual losses hitting P73B

By Arjay L. Balinbin, Senior Reporter

PAL Holdings, Inc., the listed operator of flag carrier Philippine Airlines, expects positive monthly operating cash flows this year after its net loss after tax widened to P73.08 billion in 2020 from P9.70 billion previously due to the “extraordinary impact” of the global health crisis on the company’s operations.

PAL Holdings’ net loss attributable to equity holders of the parent company reached P71.91 billion in 2020 from P10.31 billion in 2019, the listed company said in its annual report released on Thursday.

The company remains optimistic that it will be able to continue operations in the next 12 months.

It expects to generate “positive monthly operating cash flows” this year “as a result of the gradual recovery in the travel industry and the effect of the cost containment measures implemented in 2020 and early 2021.”

PAL Holdings’ total revenues for 2020 dropped 64.2% to P55.26 billion from P154.54 billion a year earlier.

The company noted that it was able to cut expenses by 46% last year compared with the figure in 2019, but this was offset by the decrease in revenues.

“The Philippine government halted all commercial flights in April, May and part of March 2020 as part of a nationwide community quarantine, while local and worldwide travel restrictions held airlines down to a limited number of flights for the rest of 2020,” it explained.

Passenger revenue declined 68.8% last year to P41.86 billion from P134.29 billion in 2019, while cargo revenue saw a slight improvement of 0.32% to P9.41 billion from P9.38 billion a year earlier.

Ancillary revenue dropped 62.8% to P3.98 billion from P10.70 billion in 2019.

“For 2021, PAL has increased its regular flights on most of its pre-pandemic routes, in addition to new all-cargo services and special repatriation flights on multiple routes to North America, the Middle East, Asia and throughout the Philippines,” PAL Holdings noted.

PAL Holdings’ attributable net loss for the first quarter of 2021 narrowed slightly to P8.60 billion from a loss of P9.38 billion in the same period a year ago, but total revenues dropped 74.1% to P8.30 billion from P32.07 billion.

Passenger revenue decreased P80.3% to P5.32 billion in the first quarter from P27.01 billion in the same quarter last year, while cargo revenue grew 31.2% to P2.48 billion from P1.89 billion previously.

Ancillary revenue dropped 84.3% to P494.94 million from P3.16 billion.

PAL Holdings expects to pay its obligations based on restructured debts, with the assumption that negotiations with its lessors and creditors will be successful and the rehabilitation plan will be approved by the court.

The company noted it has “not made principal and/or interest payments due in respect to its long-term obligations since April 2020, resulting in breach of certain loan covenants and default provisions in the lease and loan agreements.”

It said it expects a funding of up to $505 million from a “major stockholder,” and this may involve sourcing of the fund by the major stockholder from the government and private financial institutions, estimated to be around $250 million.

“This is on top of the funds initially committed and provided by the major stockholder amounting to $358.2 million in various dates from fourth quarter of 2019 to first quarter of 2021,” it added.

The company likewise expects an exit facility amounting to $125 million.

It is currently in the “final stages” of its comprehensive restructuring plan.

“We are confident that the restructuring will enable PAL to strengthen its capital structure, meet stakeholder obligations and position the company for long-term success,” PAL Holdings said.

Sales of imported cars surge

June 18, 2021 | 12:07 am

IMPORTED car sales almost quadrupled in May compared with the level in the same month last year as lockdown restrictions loosen, latest industry data show.

In a report on Thursday, the Association of Vehicle Importers and Distributors, Inc. (AVID) said vehicle sales of its 21 members carrying 26 global brands in May surged 293% to 4,864 units from 1,239 in the same month in 2020.

Restrictions during the start of the pandemic had dampened consumer activity, with some dealerships just starting to reopen in mid-May 2020 after lockdown rules were relaxed.

May 2021 sales also grew 8% compared with the April figure as companies sold more light commercial vehicles. Metro Manila and adjacent provinces were under a modified enhanced community quarantine (MECQ), a stricter lockdown measure, to curb a spike in coronavirus disease 2019 (COVID-19) infections until May 14.

Year-to-date sales rose 59% to 25,217 vehicles from 15,811 in the first five months of 2020.

Passenger car sales in May increased by 191% to 1,029 vehicles compared to last year, led by sales from Suzuki Philippines, Inc. The category’s year-to-date sales went up 29% to 6,357 units.

Light commercial vehicle sales surged 335% to 3,814 in May, with a bulk of sales going to Ford Group Philippines, Inc. Year-to-date sales went up 68% to 18,128 units.

AVID sold 21 commercial vehicles in May, or 133% more than the nine sold in the same month last year. But this figured dropped 93% from the 293 sold a month earlier. Year-to-date sales rose 625% to 732 units.

“We attribute the gradual improvement in AVID sales to our members’ tireless commitment to provide customers with quality vehicles and after sales service that will see them safely through life’s many journeys,” AVID President Ma. Fe Perez-Agudo said.

Another car industry group recorded a 360.8% sales surge to 22,062 units in May. Sales had jumped 23.6% from April, data from the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA) showed.

Imported car sales growth in 2021 is expected to come in at between zero and 20%, depending on the government’s final decision on safeguard duties, Ms. Perez-Agudo said in March. — Jenina P. Ibañez

Cebu Pacific ‘cautiously optimistic’ on 2022 recovery

June 18, 2021 | 12:06 am

BUDGET carrier Cebu Pacific, operated by Cebu Air, Inc., is sticking to its forecast of returning to pre-pandemic levels next year, saying it is “cautiously optimistic” given the current pace of vaccine rollout in the country.

“To be honest, initially, when it started rolling out and we were monitoring the inoculation rate, we were pleasantly surprised with the 130,000 a day. Now, with the A4 (priority) and private vaccinations, we’re cautiously optimistic,” Candice A. Iyog, Cebu Pacific vice-president for marketing and customer service, said at an online briefing on Thursday.

“We’d like to stick to what we’ve said before, the 2022, but again so many things can still happen,” she added.

Cebu Pacific currently operates flights to 32 domestic destinations.

To recall, the number of flights Cebu Pacific had in 2020 was 71% lower at 41,804. The number of passengers it carried last year also dropped 78% to five million.

Ms. Iyog said flights from Manila to Boracay will be five times daily starting June 21, while flights to Bohol will also operate daily.

As of June, it operates flights to Dubai, Hong Kong, Seoul, Tokyo, and Singapore.

“When demand comes back, there will be higher expectation from us to be more digital and to provide more contactless options for our passengers because we understand that ‘contactless’ is somehow part of safety,” Ms. Iyog noted.

“Yesterday (June 16), we successfully launched our new website and our iOS and Android booking channels,” she added.

The airline has partnered with GCash, GrabPay, and PayMaya for cashless payment options for new bookings.

The budget carrier will be implementing starting July this year a new policy for passengers who want to make voluntary changes to their flights.

“Starting July 1, the travel fund option for voluntary flight changes will only be available for passengers who pre-purchased the CEB Flexi add-on during initial booking as this new and improved product allows passengers to cancel their flights for free, up to two hours before departure, and store the value of the booking in a Travel Fund for as low as P499,” Cebu Pacific said in a statement on Wednesday.

“The amount in this virtual wallet is valid for two years and may be used to book new flights or purchase other add-ons such as seat selection, additional baggage allowance, or travel insurance,” it added.

As for passengers who want to change their bookings voluntarily without purchasing CEB Flexi, the budget carrier said: “They can make use of the Unlimited Rebooking option of CEB and rebook as many times as they want up to two hours before their scheduled time of departure.”

The low-cost carrier said it permanently removed change fees since March.

Cebu Air shares closed 1.66% lower at P53.25 apiece on Thursday. — Arjay L. Balinbin

The return of Puto

June 18, 2021 | 12:06 am

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THIRTY years after the release of the comedy-fantasy film Puto, its main character is returning, this time on television.

The 1987 comedy-fantasy film, Puto becomes a television series on TV5 with magical adventures, and new and a few original cast members.

The film followed the shy young Ivanhoe “Puto” Dela Cruz who was bullied by his classmates. The TV series is set 30 years later, Puto is now a father and tries to save his son Uno from the same fate he suffered as an unpopular kid in high school. The fantasy aspect of “comedy-fantasy” comes from the involvement of Filipino mythical creatures in Puto and Uno’s adventures.

TV5’s Puto stars Herbert Bautista, reprising his role as Puto (who gets his nickname since he sells puto or steamed rice cakes). “I think it is still as relevant as it was [from] 30 plus years ago…,” Mr. Bautista said in an online press conference on June 16 via Zoom. “I had to watch [the movie] again, so that I can relate myself as the father of Uno.”

The teenage Uno, played by dancer and actor McCoy De Leon (who previously starred in an episode of TV5’s Wanted: Ang Serye), finds himself struggling to find acceptance among his peers at school. “Mahilig ako sa mga lumang comedy. Iba ang atake ng comedy dati, tumatatak talaga (I am fond of old comedy. The comedy landed differently before),” Mr. De Leon said. “Ang sarap makagawa ng ganoong proyekto na may halong napapanahon na istorya. (It is good to create a project with a timely story).”

The comedy-fantasy series will show the dynamics of Filipino families.

In the TV5 reboot, directed by Raynier Brizuela, Puto and Uno embark on new adventures as their lives are intertwined with creatures of the duwende (dwarf) realm. Lassy Marquez, MC Calaquian, and Chad Kinis play The Mamitas, the three elves rescued by Puto in the movie who now take on human form and help care for Uno. The Mamitas serve as Uno’s mother figures growing up.

As the series unfolds, Uno will realize that he is half-duwende and is born with magical powers which could either lead to something good or bad.

Joining the new cast are Rafa Siguion-Reyna as Uno’s professor; Andrea Babierra and Bob Jbeili as Uno’s best friends; Carlyn Ocampo as Uno’s love interest; Andrew Muhlach as the school bully; Caleb Santos and TJ Valderrama play good duwendes; Billy Villeta plays the bad duwende; and Giovanni Respal plays the leader of the bad duwendes.

The series also brings back performers from the original movie: Janno Gibbs reprises his role as Puto’s best friend Juanito; Gelli de Belen as Puto’s former schoolmate Mindy who is now a cook in the school canteen; and Bing Loyzaga as Tere, now a life insurance agent and self-proclaimed plantita.

“Ang conversation naming original cast is more about buhay namin noong araw at kung ano yung buhay namin ngayon, and yung mga challenges bilang mga magulang (The conversation of the original cast revolves around our live then, and our lives now, and the challenges of being a parent),” Mr. Bautista said.

His character, Mr. Bautista said, remains the same. “He still lives by the principle of hard work,” Mr. Bautista said, adding that Puto has now expanded his business. “Hindi siya malayo sa nakaraan pero yung (It is not far from before), [but the] flavor is very different from 30 years ago.”

Puto will air on Saturdays, 6 p.m., on TV5 beginning June 19. Replays air on Sundays at 5 p.m. beginning June 20 on the Sari Sari Channel, available on Cignal Ch. 3 and SatLite Ch. 30. Viewers can also watch via TV5’s livestream on the Cignal Play app which is available for iOS and Android users. — Michelle Anne P. Soliman

Venture Securities’ Tanco declines PSE post on stocks issue

June 18, 2021 | 12:05 am

By Keren Concepcion G. Valmonte

EUSEBIO H. Tanco declined his nomination as director of the Philippine Stock Exchange, Inc. (PSE) following issues against his brokerage, Venture Securities, Inc. (VSI)

“Recent events which, unfortunately and unjustifiably, have besmirched the reputation of Venture Securities and its officers and employees compel me, out of delicadeza, to decline the nomination for membership in the board of the exchange,” he said in a letter to PSE Chairman Jose T. Pardo.

The PSE, also a listed company, will be electing its board on July 2. Mr. Tanco currently holds a position as director in the PSE, while sitting as chairman in the troubled brokerage.

On Tuesday, a Securities and Exchange Commission (SEC) panel revoked the license and imposed a P32-million penalty fee on Venture Securities and its key officers over a stocks fraud that led to the collapse of another brokerage, R&L Investments, Inc.

R&L Investments trading floor assistant and settlement clerk Marlo Moron stole client shares from 2012 to 2019 and transferred them into a Venture Securities account under Julieto Sulapas. The panel also canceled the license of R&L Investments and slapped a P25-million fine.

Meanwhile, the SEC Markets and Securities Regulation Department decision on Venture Securities only mentioned its president Wilfred Racadio, associated person Adora Aguilar, salesman Loreto Balabis, and settlement head Teresita Mosenabre. Mr. Tanco was not held liable by the SEC.

The decision said Venture Securities “indispensably contributed to, if they had not been the proximate cause of, the losses incurred by the clients of R&L.”

In his letter dated June 16, Mr. Tanco said they intend to contest the decision, adding that the investigation “has unnecessarily dragged” his brokerage and that it is “much a victim as the clients of R&L” by making it appear that Venture Securities was complicit in the stocks fraud.

“Had the Capital Markets Integrity Corp. (CMIC) bothered to look at R&L and its activities, the CMIC would have easily noticed what was happening as they are better equipped to detect this kind of transactions violative of the rules of the exchange,” Mr. Tanco said, explaining that the CMIC has also been auditing his brokerage for years.

CMIC responded and said: “Adopting effective internal/financial controls including compliance therewith and adherence to good corporate governance standards and practices are properly the responsibilities of the owners and management of a company, not its auditor.”

In a separate statement, the SEC affirmed CMIC’s findings against the Tanco-led brokerage: “VSI violated multiple trading rules in facilitating transactions that eventually wiped-out client shares in R&L Investments.”

“CMIC found that the associated person of VSI failed to properly supervise the activities of its employees, which resulted in the multiple violation of securities laws,” the corporate watchdog said.

The CMIC also reported that Venture Securities failed to record several transactions executed by and assigned to Mr. Sulapas. The brokerage also allowed him to trade beyond his declared financial capacity.

“CMIC’s audit findings of any trading participant (TP), Venture included, should not be construed as relieving any such TP of its accountabilities and its responsibility to answer for its violations of the pertinent securities laws, and for matters which were and are within its power, control or management,” CMIC said.

Mr. Tanco maintains that Venture Securities had every right to be protected by the CMIC and rely on its findings.

“It is truly incomprehensible that CMIC — for all of over seven years — was not able to discover the discrepancies/anomalies in R&L’s clients’ position vis-a-vis the balances in the PCD system, something which a standard auditing procedure called ‘confirmation’ would have easily shown,” Mr. Tanco said.

Miley Cyrus can use name as trademark in Europe after long-running row

June 18, 2021 | 12:05 am

BRUSSELS — US pop star Miley Cyrus has won the right to use her name as a trademark on a wide range of products in the European Union, after Europe’s top court on Wednesday annulled a decision by the EU patent office to limit the scope of her brand.

The case dates to 2014 when the 28-year-old “Wrecking Ball” singer’s company, Smiley Miley, Inc., sought to trade mark MILEY CYRUS with the EU Intellectual Property Office (EUIPO) for audio and video discs, mobile phone cases, e-books, electronic board games, calendars and other goods.

British Virgin Island-based Cyrus Trademarks Ltd., which had registered the mark CYRUS in 2010, however opposed the application for some of the products.

EUIPO backed part of its argument, citing the likelihood of confusion between the two trademarks. Smiley Miley appealed but failed to convince the patent office last year and subsequently took its case to the Luxembourg-based EU Court of Justice (CJEU).

The Court overruled EUIPO’s decision, dismissing its arguments that the brands could be confused and that the name Miley Cyrus had no conceptual meaning.

“The mark applied for, MILEY CYRUS, has a clear and specific semantic content for the relevant public given that it refers to a public figure of international reputation, known by most well-informed, reasonably observant and circumspect persons…,” the CJEU said. — Reuters

Vivant allots P5 billion for power projects until 2023

June 18, 2021 | 12:04 am

By Angelica Y. Yang, Reporter

VIVANT Corp. said on Thursday that it is allocating P5 billion in capital expenditures (capex) to finance its power projects until 2023, as the listed energy company detailed its plans to focus on renewable energy (RE).

“We’re allocating P5 billion in capex… for all power projects over the next three years so that’s until 2023,” Vivant Senior Vice-President for Power Emil Andre M. Garcia said during a press briefing on Thursday when the company held its annual stockholders meeting.

“We’re looking at all the types of generation for that,” he said.

However, he added that a “large” portion of the budget is dedicated to RE undertakings.

Mr. Garcia said that Vivant is allotting around P3 billion for power projects this year.

During the briefing, the official of the Cebu-based firm also detailed plans to focus on the solar rooftop sector.

“On the solar rooftop side, we’ll be ending the year with around 10 to 11 megawatts (MW) of installed capacity, and we have in the pipeline another 13 MW… Right now, we’re funding everything via equity so roughly its around $600[,000] to $800,000 per MW of the total project cost,” Mr. Garcia said.

Shem Jose W. Garcia, Vivant’s assistant vice-president for corporate communications and business development innovation, said the firm is planning to ramp up on RE projects in the coming years.

“What we have in the pipeline — we should be able to hit (or) increase our RE portfolio by 100 MW by 2023,” he said.

Vivant is hoping to add more renewables in its portfolio mix, which is currently made up of “95% conventional” power sources.

Vivant previously said its net income attributable to its parent firm decreased by 38% to P1.4 billion for the full-year 2020, as revenues declined.

Vivant shares at the local bourse shed 2.6% or 40 centavos to finish at P15 apiece on Thursday.

Harry Potter, Friends may fall victim to Hungary’s anti-LGBT law — broadcaster

June 18, 2021 | 12:04 am

mercedes-mehling-7J7x8HLXQKA-unsplash — MERCEDES MEHLING/UNSPLASH

BUDAPEST — The largest broadcasters in Hungary criticized a new law banning the “display and promotion of homosexuality” among under-18s as a threat to freedom of expression, and one said it could impact showings of some Harry Potter films and classic TV shows.

Prime Minister Viktor Orban’s nationalist government pushed the law through parliament on Tuesday despite criticism from rights groups and the European Union, which said it could result in a loss of development funds for Hungary.

Mr. Orban and his ruling Fidesz party, which faces a tight election race next April, have increasingly railed against LGBT+ people and immigrants as part of their self-styled illiberal regime, which has deeply divided Hungarians.

German media giant RTL’s Hungarian unit, the country’s top broadcaster by audience, issued a statement saying it “condemned homophobia… We worry that the bill gravely harms freedom of expression, human rights and basic freedoms.”

Other major broadcasters including HBO, SPI International, and A+E Networks joined RTL’s statement. An RTL spokesman said it would come up later with a strategy to deal with the new legislation.

The law says it aims to “defend the right of children to an identity that conforms to their birth gender,” and bans content for minors that “promotes or depicts gender change and homosexuality.” The same rules apply for advertisements.

RTL said Hungary’s new law could provide grounds for banning family favorites from prime-time TV because they touch on homosexuality in some manner. “Based on this, works like Billy Elliott, Philadelphia, Bridget Jones’ Diary, or even some Harry Potter films would only be shown late at night,” RTL said. “Series like Modern Family would be banned, as would some episodes of Friends.”

The law will cause significant harm to the media business and makes it more difficult for all Hungarians to access certain kinds of content, the broadcaster added.

The government and the Fidesz deputy who submitted the bill did not reply to Reuters’ requests for comment on the possible impact of the law on programming. — Reuters

Alliance Global: diverse portfolio helps in pandemic

June 18, 2021 | 12:03 am

ALLIANCE Global Group, Inc. (AGI) said global operations helped its diversified businesses cushion the impact of the coronavirus disease 2019 (COVID-19) pandemic.

“Our multiple sources of income have allowed our group to balance our portfolio. Together with our innovative offerings and digitalization strategy, AGI managed to mitigate the impact of the pandemic,” Andrew L. Tan, chairman of AGI, said during the company’s annual stockholders’ meeting on Thursday.

The listed conglomerate generated an attributable profit of P8.8 billion in 2020, while consolidated revenues amounted to P128.8 billion.

AGI Chief Executive Officer Kevin Andrew L. Tan said the pandemic allowed the company to “validate the soundness of [its] businesses, as well as the effectiveness of the group’s strategies.”

“To date, The Dalmore, Jura, and Tamnavulin have joined the list of the Top 25 Single Malt Brands, while all of Whyte and Mackay’s single malt whisky brands are growing in the UK, Europe, US, Canada, and Asia,” he said.

Spirits manufacturing segment Emperador, Inc. contributed 41% to AGI’s consolidated revenues in 2020, after it recorded growth in markets across several countries.

The company said it intends to expand Emperador Brandy’s global presence, which has distribution footprint in 61 countries through the same route to market established by Whyte and Mackay.

Meanwhile, real estate unit Megaworld Corp. through Megaworld International delivered robust property sales. Back home, Megaworld also saw an increase in the contribution of its residential projects in areas outside of Metro Manila.

“Our projects outside Metro Manila now account for more than 30% of our real estate sales,” the company’s CEO said, adding that provincial projects now serve as its primary source of reservation sales.

“We believe that this contribution will further grow as we launch more provincial projects in the future because we expect economic progress to spread outside Metro Manila with further improvements in our country’s infrastructure,” he added.

Popular Megaworld projects from last year include Arden Botanical Village in located in Tanza, Cavite; the Pinnacle from the Iloilo Business Park township; and Bacolod-based One Manhattan in its Upper East Township.

Megaworld is looking to create more township projects outside the capital region, with more than 4,300 hectares of developable land in its landbank.

Meanwhile, Travellers International Hotel Group, Inc. has upgraded its Garden Wing to complement its Grand Wing to give Resorts World Manila the capacity to serve its patrons under the “new normal.”

McDonald’s Philippines operator Golden Arches Development Corp. has introduced new products such as the Taste of Korea products and the BTS meal, riding on the popularity of K-pop megaband BTS.

For new McDonald’s stores this year, AGI said it is looking at creating standalone stores with drive-thru facilities and its own delivery system.

“It would be ideal if there are also provisions for outdoor open spaces for alfresco dining,” chief executive Mr. Tan said.

On Thursday, shares of AGI at the local bourse closed unchanged at P10.28 each. — Keren Concepcion G. Valmonte

After postponements, Bb. Pilipinas 2021 pageant pushes through in July

June 18, 2021 | 12:03 am

AFTER several postponements in the previous few months, the 57^th Binibining Pilipinas pageant will finally push through via online streaming on July 11 from the Smart Araneta Coliseum.

The final lineup has 34 candidates from the original 40. Three candidates have withdrawn from the competition having decided to pursue other interests, one dropped out due to age restrictions, and two candidates who competed in other pageants and placed, also dropped out — Rowena Lucero 4^th runner up in Miss Globe 2020 and Samantha Bernardo first runner up in 2020 Miss Grand International.

The remaining 34 candidates are: Samantha Panlilio (Cavite); Lois Anne Bandando (Marikina); Patricia Garcia (Manila); Arianne Desiree Viardo (San Fernando, Pampanga); Princess Kien Guanzon (Occidental Mindoro); Shanon Tampon (Caloocan); Meiji Cruz (Valenzuela); Patricia Denise Babista (Quezon Province); Shaira Rona (Mandaluyong); Maureen Montagne (Batangas); Vianca Louise Marcelo (Bocaue, Bulacan); Cinderella Faye Obenita (Cagayan de Oro); Alexandra Rosales (Laguna); Justine Felizarte (Davao del Sur); Karen Laurrie Mendoza (Iloilo); Kimberly Tiquestiques (Balagtas, Bulacan); Hannah Consencino Arnold (Masbate); Mary Ruth Erika Quin (Nueva Ecija); Gabrielle Basiano (Borongan, Eastern Samar); Lovely Mercado (Roxas, Isabela); Carina Cari?o (La Union); Czarina Guiao (Pampanga); Jasamin Dimaculangan (Albay); Ma. Francesca Taruc (Angeles, Pampanga); Honey Cartasano (Rizal); Noriza Mae Valerio (Pampanga); Graciella Lehmann (Oriental Mindoro); Danica Peralta Acuna (Romblon); Alexandra Faith Garcia (Olongapo); Mercedes Pair (Lapu-Lapu, Cebu); Nicca Rosal (Agoncillo, Batangas); Lesley Ann Ticaro (Tagum); Bellatrix Tan (Zamboanga); and Honey Bee Parreñas (Sultan Kudarat).

For the pageant’s 57^th edition, the activities will be streamed online.

“We are so excited that we can bring this year’s Binibining Pilipinas pageant closer to our fans,” Binibining Pilipinas Charities, Inc. (BPCI) head Gines Enriquez said in a statement. “By doing some parts of the competition online, fans will have a front row seat as their favorite candidates prove themselves worthy of the crown. They can also take part by voting, and, who knows, with their support, they can bring their favored candidates to the front of the pack.”

The national costume presentation was held on June 12 through Binibining Pilipinas’ YouTube and Facebook pages. Fans can support their bets by liking the post that features their favorite candidates on TikTok, and they can also vote for their favorite national costumes through the Binibining Pilipinas official website.

The 10 candidates with the most votes will be announced during the National Costume Fashion Show which will be streamed on YouTube and Facebook on June 27. Then, another round of voting will be opened to decide who among the Top 10 qualifiers will win Best in National Costume on the pageant’s grand coronation night.

Following the national costume presentation, fans will get to see the swimsuit presentation which will stream on the pageant’s Facebook and YouTube pages on June 18. The candidates will be joined by the 2019 Binibini queens and Miss Grand International 2020 First Runner-Up Samantha Bernardo.

The Binibining Pilipinas coronation night will be hosted by Miss Universe 2018 Catriona Gray and Miss Grand International 2016 first runner-up Nicole Cordoves.

During the coronation, four queens will be crowned with the titles: Binibining Pilipinas International, Binibining Pilipinas Grand International, Binibining Pilipinas Intercontinental, and Binibining Pilipinas Globe.

The Binibining Pilipinas 2021 Grand Coronation Night will be aired on A2Z and will be simultaneously livestreamed on YouTube at 9:45 p.m.

For more information about Binibining Pilipinas, visit the pageant’s webpage at https://www.bbpilipinas.com/. — MAPS

BSP to support the economy for ‘as long as necessary’ — Diokno

June 18, 2021 | 12:03 am

THE CENTRAL BANK chief has reiterated the regulator’s commitment to support the economy for “as long as necessary” while maintaining financial stability, but said it has room to address any risks that may result from the unwinding of easy policy in the United States.

“The BSP (Bangko Sentral ng Pilipinas) will continue to focus on keeping its monetary policy stance supportive of the government’s initiatives to address the effects of the pandemic, for as long as necessary, until the economic recovery gets underway,” BSP Governor Benjamin E. Diokno said at a virtual briefing on Thursday.

Mr. Diokno’s statement comes a week before the Monetary Board’s meeting on June 24 and after the US Federal Reserve hinted it could increase interest rates by 2023.

The BSP slashed benchmark rates by 200 basis points last year. Borrowing costs have been at record lows since November.

Mr. Diokno said earlier this month that the BSP would keep policy settings loose until the economy’s recovery becomes sustainable, which he noted could be in the second half of 2022.

Aside from keeping rates low, the central bank has also provided stimulus by freeing up liquidity via various easing measures. The BSP chief said its actions have released some P2.2 trillion into the financial system, which is equivalent to 12.1% of gross domestic product.

“The big bulk of that came from the BSP’s participation in the secondary government securities market, and then a big chunk also is the repurchase arrangement with the National Government — that’s about P540 billion — and another big chunk will be the interest rate cut and the cut to the reserve requirement,” Mr. Diokno said.

He said even as they aim to keep monetary policy supportive of growth, they remain committed to their mandate of financial stability, noting that a possible source of risk is how markets would react once the Fed cuts its bond purchases and, eventually, hikes borrowing costs.

In 2013, after years of easy policy following the global financial crisis, the Fed announced it would begin unwinding its massive quantitative easing program and spooked investors, leading to the so-called taper tantrum, which involved sharp outflows from emerging markets. This caused central banks to scramble to raise their own rates.

Due to the coronavirus pandemic, the Fed last year restarted its bond purchases as a form of economic stimulus.

But the Fed on Wednesday began closing the door on its pandemic-driven monetary policy as officials projected an accelerated timetable for interest rate increases, opened talks on how to end crisis-era bond-buying, and said the 15-month-old health emergency was no longer a core constraint on US commerce, Reuters reported.

Signaling that broad changes in policy may happen sooner than expected, US central bank officials moved their first projected rate increases from 2024 into 2023, with 13 of 18 policy makers foreseeing a “liftoff” in borrowing costs that year and 11 seeing two quarter-percentage-point rate increases.

Seven of the officials see rates moving higher next year, opening the possibility of even more aggressive action.

Fed Chair Jerome Powell, who spoke to reporters after the release of the central bank’s latest policy statement and economic projections, said there had also been initial discussions about when to pull back on the Fed’s $120 billion in monthly bond purchases, a conversation that would be completed in coming months as the economy continues to heal.

For his part, Mr. Diokno said he believes the Fed is unlikely to hike rates next year due to the upcoming midterm elections in the US and as uncertainties over the pandemic remain.

“In any event, an increase in interest rates in the US is not an immediate threat to the Philippines because we have a lot of tools that will address that concern,” he said. “Our GIR (gross international reserves) is healthy, and our interest rates at the moment is rock bottom. We can do a lot of measures to counteract any possible effect on the Philippines.”

Meanwhile, the central bank chief also reiterated the importance of fiscal measures as the government continues to respond to the pandemic.

“Fiscal policy, in particular, remains crucial in providing direct support to revive domestic demand and prevent long-term economic scarring from the pandemic, with the BSP remaining ready to implement further policy measures, if necessary,” Mr. Diokno said. — LWTN with Reuters

UnionBank to use AI to personalize its product offerings for customers

June 18, 2021 | 12:02 am

UNIONBANK of the Philippines, Inc. is looking to profile its customers using data science and artificial intelligence (AI) to help match them with the products that suit their needs.

“By harnessing AI, we have the ability to analyze data culled from various sources — customer profiles, and past interactions, for example — and provide tailor-fit recommendations on products and services that truly address our customers’ needs,” UnionBank Executive Vice-President and Head of Retail Banking Center Joyce Gonzalez said in a statement.

The algorithm will be used for the bank’s latest offering called “UnionBank for life,” which is a bancassurance product in partnership with Insular Life Assurance Co., Ltd.

It uses AI and data science to sort potential customers into profile archetypes such as a “mom saver” or “young spender,” among others. UnionBank will recommend insurance products relevant to them based on their archetype.

“UnionBank has always believed in the power of data science and AI to enable lasting positive impact not just on the lives of customers, but also on society as a whole. This is why we will continue to harness these and other emerging technologies in many of our products and services, including insurance,” UnionBank Senior Advisor for Data and Artificial Intelligence David Hardoon said.

The bank is also looking to use this technology for more complex processes to allow the personalization for its insurance offerings, UnionBank said.

UnionBank last month held a virtual groundbreaking ceremony for its Innovation Campus in Laguna. It will house hubs for research and development in areas such as data science, artificial intelligence, and blockchain.

The Aboitiz-led lender’s income climbed by 78% year on year to P4.7 billion in the first quarter on the back of a better risk profile and stronger capital buffers.

Its shares closed at P77.70 apiece on Thursday, gaining 70 centavos from its previous finish. — LWTN