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Duterte locks down Luzon

By Norman P. Aquino Special Reports Editor
and Gillian M. Cortez Reporter

PRESIDENT Rodrigo R. Duterte on Monday ordered the lockdown of the entire Luzon island to contain a rapid novel coronavirus outbreak, suspending work and public transportation and regulating food and health services, according to his spokesman.

The President ordered that Luzon be placed under “enhanced community quarantine” to stop the outbreak that has killed at least 12 people and sickened 128 more in the Philippines, presidential spokesman Salvador S. Panelo told reporters in a Viber message.

“It is effective immediately,” he later told CNN Philippines. Mr. Duterte was scheduled to detail his order in a speech later.

The spokesman announced the wider lockdown — initially limited to Manila, the capital and nearby cities — while Mr. Duterte was meeting with an interagency task force made up of Cabinet members against the coronavirus disease 2019 (COVID-19).

The virus that the World Health Organization has called a pandemic has killed more than 6,500 people and sickened about 170,000 more worldwide, mostly in China.

“Please tell people: ‘Don’t panic,’” Trade Secretary Ramon M. Lopez told reporters in a Viber message. “There will be food and necessities, more than enough.”

He added that supermarkets, drugstores and banks would remain open, while cargo transporting basic goods would be allowed to cross the checkpoints unhampered.

Police earlier deployed 1,600 cops and set up 56 checkpoints in Metro Manila to monitor the movement of people under the month-long metro lockdown that started on March 15.

Checkpoints were set up in the cities of Caloocan, Malabon, Valenzuela, Muntinlupa, Las Piñas, Parañaque, Marikina and Pasig, Brigadier General Debold M. Sinas, chief of the National Capital Region Police Office (NCRPO), told a news briefing on Sunday.

The presidential palace had not clarified Mr. Duterte’s latest order as of press time, but it had issued a memo over the weekend detailing general and enhanced quarantine procedures — so-called social distancing measures — for the metro.

The memo that also extended class suspensions until April 15 banned mass gatherings including movie screenings, concerts, sporting events and other entertainment activities, community assemblies and nonessential company gatherings.

Religious gatherings and essential company meetings were allowed as long as people maintained a one-meter distance from each other.

A “general community quarantine” was imposed on the entire Metro Manila that police were to enforce.

Under a general quarantine, the movement of people will be limited to accessing basic goods and work, while police and quarantine officers will be present at border points, according to the weekend memo signed by Executive Secretary Salvador C. Medialdea.

Police will restrict the nonessential entry and exit of people to and from Metro Manila, especially people who are at high risk of being infected such as senior citizens and pregnant women.

Health workers, authorized government officials, those traveling for medical or humanitarian reasons and people on their way to the airport for travel overseas will be exempted from the restrictions. People providing basic services and public utilities and essential skeletal work force also won’t be covered.

Aside from suspending transportation and regulating food and health services, home quarantine will also be enforced in all households under a stricter “enhanced community quarantine,” according to the memo.

Company revenues are expected to fall by as much as 15% because of the Luzon lockdown, George T. Barcelon, director of the Philippine Chamber of Commerce and Industry, said by telephone.

Factories in Luzon would probably shut down and customers from the other two main islands — Visayas and Mindanao — would be affected, he said.

Mr. Barcelon said the government should ensure that people, especially the poor are given grocery items, not just money, during the lockdown period.

He said the slowdown was not limited to the Philippines but was also being experienced by the entire world.

“We have no choice,” he said of Mr. Duterte’s latest order. “We will abide by whatever the government pronounced.”

“I wish it would be shorter,” Mr. Barcelon said, noting that the daily wage earner would be the most affected. “We don’t want them to suffer.”

Mr. Duterte on Thursday ordered the lockdown and suspended work in the Executive branch for a month.

Companies should allow work-from-home and other flexible arrangements to prevent the spread of the virus, he said. Government agencies can form “skeleton workforces” to ensure unimpeded delivery of services, Mr. Duterte said earlier.

Mr. Duterte said the highest alert level — code red sublevel 2 — was up, which means there have been community transmissions and increased infection cases beyond the government’s responding capacity.

Cotabato City and Mr. Duterte’s hometown of Davao City had been placed under quarantine to prevent the virus from spreading in southern Philippines. The provinces of Cebu and Negros Occidental also closed their borders from the rest of the country for 30 days.

Earlier on Monday, Mr. Panelo told a news briefing that the quarantine was “a matter of national survival.” “We have to be resigned to that fact. This is a matter of life and death. The only way to stop this is for us to help ourselves.” — with Jenina P. Ibañez

200317Covid_Counts_NEW

PHL companies gauge coronavirus impact

THE country’s top companies are beginning to assess the impact of the coronavirus disease 2019 (COVID-19) outbreak on their businesses, warning of lower consumer demand and continued operational disruption in the coming weeks.

Malacañang on Monday said that President Rodrigo R. Duterte will impose “enhanced community quarantine” in the main island of Luzon, expanding the lockdown of Metro Manila which began a day earlier.

Diversified conglomerate San Miguel Corp. (SMC) told the stock exchange it is seeing lower demand for its food and beverage products from restaurants, bars, hotels and other public establishments amid the decline in tourism activities and ban on public gatherings.

“However, we expect that there will be a corresponding increase in in-house consumption of our food and beverage products,” SMC said.

Petron Corp., a unit of SMC, is similarly expecting a drop in demand for gasoline, diesel and aviation fuel, amid a decrease in the use of public and private transportation. This will also mean lower volume of vehicles on SMC’s tollroads.

“The company does not expect the present situation will cause delays in the delivery of the supply of raw materials for use in our products. Nor do we expect delays in the progress of the construction of our infrastructure projects, unless there is a restriction in the free movement of workers and the delivery of supplies and raw materials,” SMC, whose infrastructure projects include the Metro Rail Transit Line 7 and the Skyway Stage 3, said.

Ayala Corp. (AC) said the increasing number of COVID-19 cases has “raised concerns on its effect on the Philippine economy, which can subsequently impact the outlook for Ayala’s various business interests.”

With the coronavirus outbreak, Ayala Land, Inc. (ALI) said its malls have seen lower foot traffic, while hotels and resorts recorded a decline in bookings. It likewise expects lower sales from residential properties as buyers set aside big purchases to prioritize personal health.

Metro Pacific Investments Corp. (MPIC) said Manila Electric Co. sees strong demand in the residential segment as more people work from home, although there is a drop in demand from industrial and commercial sectors.

Its unit Metro Pacific Tollways Corp. expects a “substantial traffic decline” on the North Luzon Expressway and the Cavite Expressway due to the Metro Manila quarantine. Light Rail Manila Corp. said it has seen a 19% decline in average daily ridership at the Light Rail Transit Line 1 due to school closures and increase number of people working from home.

However, MPIC said the COVID-19 outbreak may not have any substantial impact on its water and logistics segments.

Sy-led SM Investments Corp. (SMIC) is expecting to take a hit from the outbreak, although it is assessing the impact of the closure of malls which began on Monday.

“In Retail, it is reasonable to expect a slowing of growth in the non-essential categories whilst the Food Group is business as usual including planned expansion. Quarter 1 is typically a lean quarter, and the full impact of the COVID-19 crisis remains to be seen as we progress through the year,” SMIC said.

SMIC said the impact of the coronavirus outbreak has been “limited” for banks, as BDO Unibank, Inc. recorded normal loan and deposit growth.

“However, the longer-term impact is uncertain and will depend on the COVID-19’s duration, depth and scale. With its robust business franchise and solid balance sheet, we believe it will remain resilient in the face of this current challenge,” SMIC said.

Lucio C. Tan’s LT Group, Inc. said Asia Brewery, Inc. is observing a spike in demand for its bottled water products, as consumers stockpile essential goods. Tanduay Distillers, Inc. said the COVID-19 outbreak may reduce demand for liquor, while the community quarantine may cut consumers’ spending power as workers stay at home.

“Even before the COVID-19 outbreak, demand for liquor products have already been significantly affected by higher selling prices resulting from the high increase in excise taxes,” Tanduay said.

Jollibee Foods Corp. (JFC), which operates restaurants locally and overseas such as China and the US, said the COVID-19 impact on operations varies in different countries.

“Generally, as of the week of March 9, 2020 — the adverse impact on the restaurant operations was severe in China (including Hong Kong and Macau), less severe in Vietnam and moderate in the Philippines and the United States,” JFC said.

JFC flagged the possibility of raw material shortage due to the lockdown, and the delivery service is helping keep businesses afloat.

Gotianun-led Filinvest Development Corp. and property unit Filinvest Land, Inc. (FLI) are also seeing a drop in sales, particularly in its hospitality and real estate segments. FLI said it is preparing for delayed projects, and in the worst case scenario, canceled and terminated lease deals.

STILL ASSESSING RISKS
The Gokongwei’s JG Summit Holdings, Inc. said it is still assessing the risks although restrictions both locally and abroad “have the potential to change the risk dynamics of the businesses of (its) subsidiaries.”

Ty-led GT Capital Holdings, Inc. said the impact of the virus is “yet to be fully ascertained due to the yet unfolding events of the situation.” All its business units remain operational for now.

Andrew Tan’s Alliance Global Group, Inc. likewise did not specify on the effects of the virus to its various business segments, as it said it is still assessing the material impact of the lower foot traffic in retail and restaurant sales, and overall, to the company’s financial performance.

The wave of announcements yesterday from listed companies led to a 7.92% drop in the Philippine Stock Exchange index to 5,335.37. Trading hours were also cut to 9 a.m. to 1 p.m. until April 14.

Philstocks Financial, Inc. Research Associate Piper Chaucer E. Tan said the community quarantine in Metro Manila is heavily disrupting work schedules and public transport, “putting havoc…on almost all of the commerce of man.” “I think this is a no brainer that this will affect the economy, but the question right now is by what scale and how much?” he said. — Denise A. Valdez

Jan. remittance growth fastest in nearly 2 years

MONEY sent home by overseas Filipino workers (OFW) climbed at its quickest pace in nearly two years in January as diversified deployments helped boost inflows amid global uncertainties.

Analysts, however, warned that the coronavirus disease 2019 (COVID-19) outbreak could dent remittances — which provide a boost to household spending that contributes about 70% to national output — in the coming months.

Cash remittances climbed 6.6% to $2.648 billion in January from $2.484 billion in the same month a year ago, data released by the Bangko Sentral ng Pilipinas (BSP) on Monday showed.

This was the fastest year-on-year growth in remittances since the 7.1% logged in February 2018.

However, inflows were 8.75% lower compared to the $2.902 billion seen in December, which was boosted by seasonal flows.

The BSP targets 3% growth in cash remittances this year.

Meanwhile, personal remittances grew 7.3% to $2.944 billion in January from $2.745 billion a year ago.

The central bank said the United States accounted for the highest share in overall remittances at 38.6%, followed by Japan, Singapore, Saudi Arabia, United Kingdom, United Arab Emirates, Qatar, Canada, Hong Kong and Korea, which together accounted for almost 80% of money sent home by OFWs.

The BSP said cash remittances from land-based workers rose 7.4% to $2.1 billion, while those from sea-based workers went up 3.8% to $550 million.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the quicker growth in cash remittances was supported by the peso’s strength versus the dollar early in the year or before COVID-19 affected investor sentiment.

“The relatively faster growth in OFW remittances may be partly attributed to the stronger peso exchange rate recently, that prompted some OFWs to remit more dollars,” Mr. Ricafort said in an e-mail.

BSP data showed the peso averaged at P50.8386 against the dollar in January.

Likewise, he said that the diverse locations of Filipinos across the world shielded remittances from fears of a global economic slowdown due to COVID-19.

“Increased deployment of OFWs to more countries around the world and improved business relations of the government with countries, somewhat defying the adverse effects of the global economic slowdown…and the lingering US-China trade war,” he added.

Meanwhile, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said remittance inflows in January are “historically high and comparable to December numbers” or when OFWs send home more money for the holidays.

ING Bank NV-Manila Senior Economist Nicholas Antonio T. Mapa noted that cash remittances served as the country’s shield from economic downturns in the past, including the Asian and global financial crises.

“Unfortunately, remittances have the odds stacked against them, as the virus has spread across the globe, limiting the natural hedge of Filipino deployment in almost every corner of the globe,” Mr. Mapa said in an e-mail.

Lockdowns will not favor Filipinos, particularly those employed in the services sector, he added.

“Filipinos who are in the services sector will also be hardpressed to send home funds should their businesses be negated by social distancing or community lockdowns hinder business as usual,” Mr. Mapa said.

“In past crises episodes, Filipinos simply took on more jobs or ‘sidelines’ to make ends meet and send home more money but the nature of the virus will likely hinder this as well,” he added.

Security Bank Corp. Chief Economist Robert Dan J. Roces also has dimmer prospects for remittances in the coming months due to deployment ban in some areas where OFWs are employed.

“We think that remittance growth may slow this year due to temporary deployment ban on workers to China, Hong Kong, Taiwan and Macau. A larger slowdown could evolve relative to the duration of the outbreak,” Mr. Roces said in an e-mail.

COVID-19 has infected above 170,000 people around the world and resulted in the death of more than 6,000.

The Philippines had 140 confirmed COVID-19 cases and 12 mortalities as of March 15. — Luz Wendy T. Noble

BSP may consider 50-bp rate cut on Thursday

By Luz Wendy T. Noble
Reporter

BANGKO SENTRAL ng Pilipinas (BSP) Governor Benjamin E. Diokno on Monday said they may consider a 50-basis point (bp) policy rate cut at its meeting on Thursday, after the US Federal Reserve’s emergency rate cut triggered policy easing by other central banks as they try to soften the blow of the coronavirus disease 2019 (COVID-19) to the global economy.

“In light of the synchronized global monetary easing, collapse of the world oil prices, worsening COVID-19 breakout, slowing global economy, muted inflation and inflation expectation, BSP might consider a deeper cut, say 50 bps,” he said in a text message on Monday.

The overnight reverse repurchase rate of the central bank is currently at 3.75% while overnight lending and deposit rates are at 4.25% and 3.25%, respectively.

However, Mr. Diokno ruled out the possibility of an “off-cycle meeting” just like what some analysts have earlier expected after the Fed did two rounds of emergency rate easing in March.

“There will be no off-cycle meeting. The MB will meet as scheduled on Thursday,” he said.

A BusinessWorld poll held last week saw 12 out of thirteen economists expecting at least a 25-bp rate reduction at this Thursday’s meeting. Of the 12, three economists did not rule out the possibility of a 50-bp cut, while two said they see 50-bp cut.

However, following Fed’s decision to cut rates, some economists have priced in 50 bps worth of cuts from the BSP as well as some additional liquidity measures in the form of reduction in reserve requirement ratio (RRR) for banks.

“In light of the Fed move, we expect Diokno to front load his policy action and we revise our expectation for Thursday’s meeting for at least a 50 bps rate cut and a possible announcement for additional liquidity via a reduction in reserve requirement or a lowering of the volume for its term deposit facilities,” ING Bank NV-Manila Senior Economist Nicholas Antonio T. Mapa said.

Security Bank Corp. Chief Economist Robert Dan J. Roces is also of the view that the BSP will go for a 50-bp rate cut and the probability of about 100 bps worth of RRR reduction.

Currently, RRR for big banks, thrift, and rural lenders are at 14%, four percent, and three percent, respectively.

“The Philippines has ample monetary space to do this, but a policy mix that’s heavier on fiscal policies should do the trick in containing any economic fallout,” he said in a note sent to reporters on Monday.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion is also pushing for a fiscal response as a way to shield the economy from the impact of the COVID-19 outbreak.

“The P108-billion fiscal stimulus proposal authored by [Marikina] Representative Stella [Luz A.] Quimbo is very much needed. Coordinated efforts by appropriate institutions is very critical and crucial at this time,” he said in an e-mailed response.

Ms. Quimbo filed a bill on Thursday which looks to set aside a P108 billion for a stimulus package amid the economic damages of the outbreak.

Under the bill, P43 billion will be used to assist the tourism sector, P15 billion for displaced workers “including but not limited to emergency employment assistance and transportation vouchers,” and P50 billion will go to assistance to businesses, including loan packages and subsidies.

With the virus triggering a lockdown and hurting sectors including tourism and trade among others, some analysts have pointed out that the country’s growth prospects of 6.5% to 7.5% this year could be out of reach.

ABS-CBN, GMA adapt to lockdown by stopping teleserye tapings

TV NETWORKS GMA and ABS-CBN have both halted production of their entertainment shows after the declaration of a community quarantine in Metro Manila.

“In accordance, however, with the government’s declaration of a community quarantine in Metro Manila and as part of the measures that the network is doing to ensure the safety and well-being of its talents, production teams, employees, their families as well as the general public, GMA will be temporarily suspending the production of network-produced entertainment programs,” GMA said in a March 14 statement.

The quarantine is scheduled to run from March 15 to April 14 and restricts movement of people in and out of Metro Manila (with exemptions), and promotes social distancing.

The network similarly advised its blocktimers and co-producers “to comply with the community quarantine guidelines.”

There are still pre-taped episodes of some shows and after they run out, GMA is to introduce a new programming line-up.

Last week, long-running GMA noontime show and blocktimer Eat Bulaga announced that it will telecast without a live audience temporarily because of the declaration of the state of public health emergency. This is to “help prevent the spread of the virus and to help ensure the health and safety of its talent, staff, crew, and members of its audience,” it said in a statement.

ABS-CBN similarly put out a statement on March 13 saying that it is suspending its live entertainment shows and the production of teleseryes (soap operas) starting Sunday, March 15, the first day of the Metro-wide community quarantine.

“The company is taking this initiative for the safety and health of our artists, crew, production teams, their families, and the general public,” the network said in a statement.

In the meantime, the network will be re-airing “well-loved shows to help provide inspiration, hope, and upliftment,” it said.

The adjusted programming will include having the show 100 Days to Heaven replacing Pamilya Ko, May Bukas Pa replacing FPJ’s Ang Probinsyano, On the Wings of Love replacing Make it with You, and I am U replacing A Soldier’s Heart.

“We assure our viewers that the changes are only temporary. We will resume our regular programming when conditions improve and safety and welfare of our people will not be compromised,” ABS-CBN said in a statement.

The Film Development Council of the Philippines (FDCP) in a memorandum dated March 15, reiterated its order to suspend “production of film, television, and other audio-visual contents for the duration of the community quarantine in [the National Capital Region].”

This memorandum follows the first memorandum, dated March 13, after the council received reports that that “some professionals are still being required to report in person to workplaces, including editors and post-house workers.”

The council said that the reports will be handed over to the Department of Labor and Employment “for appropriate investigation and sanctions.”

“At this crucial time of the government’s efforts to contain the further spread of the virus, we once again urge private companies and organizations to place the community and the workers’ safety above business interests and comply with the recommendations of the government to adopt flexible work arrangements and allow workers to work from home as much as possible while still securing services,” the memo said. — Zsarlene B. Chua

Musicians give free online concerts to beat coronavirus

BERLIN — Bans on mass gatherings introduced to slow the spread of the coronavirus pandemic might have been expected to deal a death blow to musical life, but have instead prompted a boom in free online concerts.

One musician to step up to the plate is Russian-German pianist Igor Levit, who took to Twitter on Thursday evening to stream an impromptu rendition of Beethoven’s Waldstein Sonata Op. 53 from his Berlin flat to entertain audiences penned at home by the virus.

Across Europe and the world, authorities are shuttering schools, museums, bars, and concert halls in an effort to prevent the kind of close physical contact that fosters the transmission of a virus that has killed more than 4,000 people worldwide.

Germany has so far reported 2,369 confirmed coronavirus cases and five deaths. Berlin, among other German cities and regions, has announced plans to gradually close schools and reduce public transport over the coming week.

“It’s a sad time, it’s a weird time, but acting is better than doing nothing,” Levit told viewers of his stream, before sitting down at his Steinway to trill the piece’s swooping opening bars.

“Let’s bring the house concert into the 21st century!”

Across Germany, opera houses and concert halls had the same idea. Berlin’s Staatsoper, rather than calling off a performance of George Bizet’s Carmen, opted to stream the story of the bewitching gypsy girl online for audiences worldwide.

Moments after that ended, the baton passed across town to conductor Simon Rattle who led the Berlin Philarmonic in a performance of Luciano Berio’s Sinfonia and Bela Bartok’s Concerto for Orchestra.

“The Philharmonie Berlin will be closed until 19 April — as a measure to counteract the spread of the coronavirus,” the orchestra said on its streaming platform, adding that it had decided to give the concert anyway, “without an audience”.

Nor was the generosity confined to the high-brow: earlier last week English crooner James Blunt’s concert in Hamburg’s empty Elbphilarmonie also took place before an invisible audience of millions.

After Levit’s 25-minute concert was retweeted 1,500 times and garnered almost 6,000 likes, the pianist seemed to have acquired a taste for the new genre.

“Overwhelmed. Thank you. See you tomorrow, same time. 7 p.m. CET,” Levit tweeted. — Reuters

Airlines try to stay afloat ahead of ‘travel surge’

By Arjay L. Balinbin, Reporter

JUVY P. CASTILLON, a 54-year-old grade school English teacher in Bangkok, Thailand, is scheduled to return to General Santos City via Ninoy Aquino International Airport in Pasay City on March 21.

She resigned from her job, and her work visa will expire on May 13.

She needs to be home as soon as possible because she’s worried that Thailand’s Prime Minister Prayut Chan-o-cha would also declare a lockdown in the capital to contain the spread of the new coronavirus disease.

“If that happens, I might be forced to overstay my visa and pay 500 baht per day for the penalty,” she said.

In the Philippines, President Rodrigo R. Duterte ordered a one-month halt to land, domestic air and sea travels to and from Metro Manila from March 15 to April 14.

The alert level was raised to code red sublevel 2, which means there have been community transmissions and increased infection cases in the country.

“I don’t know what will happen to my flight. I am still waiting for an update from the agent who booked my ticket, and I can no longer avail of the free rebooking because I had the schedule changed from April 16 to March 21 before the President made his announcement last Thursday,” Ms. Castillon said by phone on Sunday.

“I had to borrow money from a friend for my ticket. If I need to get a new one to reroute my domestic flight from Manila to Clark or maybe Cebu just to get to Gensan (General Santos City), I will have to wait for my last salary. But I don’t want to stay longer here because the situation might get worse in the coming days,” she added.

Ms. Castillon is among Filipinos, at home and overseas, whose travel plans have been affected as transportation companies adjust to meet government directives while trying to stay afloat until the situation returns to what it was before the pandemic.

Philippine Airlines (PAL), Cebu Pacific, and Philippines AirAsia have announced the cancellation of their domestic flights to and from the capital in view of Mr. Duterte’s order.

This was followed by the cancellation of their selected flights to Mactan Cebu Airport in line with the directives from the provincial government of Cebu prohibiting the entry of passengers into the province via air from Clark, Legazpi, Dumaguete and Cagayan de Oro.

PAL Spokesperson Cielo C. Villaluna said in a phone interview on Sunday that the flag carrier operates 125 domestic flights out of its hubs daily. “Of this number, 66 flights originate in our Manila hub.”

PAL, operated by PAL Holdings, Inc., also operates 57 international flights daily. Of those flights, 52 originate in Manila.

“To stay afloat, we are carrying out cost-control measures. We started with phase 1 which is business restructuring by implementing the voluntary and the involuntary retirement program,” Ms. Villaluna said.

PAL recently cut about 300 jobs as a way to recover from its 2019 losses, which worsened in the first two months of 2020 due to the impact of the new virus on its operations.

“We will carry out more cost-control measures, which will be taking affect soon, to cushion the impact of the virus to keep the company afloat and to allow us to continue serving our passengers,” Ms. Villaluna added.

She also lauded the government’s action deferring the collection of take-off, landing and parking fees from Philippine carriers as a form of relief from the pandemic.

In the nine months ending September 2019, the attributable net loss of the listed operator of PAL widened 116.2% to P8.5 billion from the previous year’s P3.92 billion, as expenses and financing charges increased.

Revenues rose 5.6% to P117.92 billion, primarily as passenger and ancillary revenues increased due to additional frequencies and new routes which contributed to the growth in passenger volume. Passenger revenues grew 5.76% to P102.7 billion.

Cebu Pacific Director for Corporate Communications Charo L. Lagamon told BusinessWorld in a phone message that “more or less 200 [domestic] flights per day” are affected.

Cebu Pacific said that as of September 2019, the budget carrier had a total of 2,727 scheduled weekly flights. Ms. Lagamon said 70% of those flights are domestic.

The budget carrier announced recently that its senior management officials had decided to take a pay cut as the new virus continues to affect its operations.

In a disclosure to the stock exchange on Monday, the budget carrier’s listed operator Cebu Air, Inc. (CEB) said it expects a “significant revenue impact” during the 30-day quarantine period with the suspension of its flights.

“As a material portion of its operating expenses are based on flights and flight hours, CEB anticipates its expenses to likewise reduce significantly. This includes lower fuel consumption, landing, take off and air navigation fees, and flight-based repair and maintenance expenses. Lower fuel price adds a cost benefit with lower fuel consumption, but CEB also faces increase in refund and rebooking requests,” it said.

As of September 2019, CEB reported its passenger revenues jumped 18% to P46.59 billion.

The company attributed its growth to the 10.4% increase in passenger volume to 16.7 million from 15.1 million for 2018 as it added bigger A321 aircraft to its fleet.

PAL, Cebu Pacific, AirAsia have cancelled flights between China, Hong Kong, Macau, and parts of South Korea amid travel restrictions because of the virus.

AirAsia, a unit of Malaysia’s Airasia Group Bhd., said 102 daily domestic flights in and out of Manila are affected.

David F. de Castro, its head of communications, said in a phone message on Saturday that the low-cost carrier has 1,104 domestic flights and 104 international flights in a week.

In an e-mailed reply to questions on Sunday, Avelino D.L. Zapanta, aviation expert and former president of PAL, said: “Since Manila is the true origin and true destination of more than half of domestic travels, the impact will obviously be huge, particularly to local airlines that fly only the domestic routes.”

“For PAL with a big international network, the impact will not be much because their international flights will continue to operate. Many will most likely postpone international travels particularly foreign tourists, but business travels will likely continue depending on the status of destinations e.g. being locked down or not,” he added.

Generally, the airlines would lose much in the period of flight suspension, he said.

Mr.

Continue

Disney releases Frozen 2 on streaming early

PARENTS, get ready to hear a lot of singing.

Walt Disney Co. is making its blockbuster movie Frozen 2 available on its streaming service Disney+ three months ahead of schedule as the coronavirus outbreak forces employees around the world to work from home.

The Burbank, California-headquartered group will stream the movie beginning March 15 in the US to provide “families with some fun and joy during this challenging period,” according to a company statement.

The decision comes during a difficult time for Disney: the number of confirmed coronavirus cases is rising from Italy to the US, forcing mass closures of major entertainment venues including theme parks to curtail infections.

Disney has struggled to find the right programming for Disney+, its most important new business initiative in years. While subscribers of the five-month old streaming service jumped to 28.6 million by early February, it has seen a number of high-profile projects fizzle, including a Muppets series with Josh Gad and halting the production of the Lizzie McGuire show.

Disney+ saw a big jump in social media and other conversations after its launch, according to Engagement Labs, a market research firm that tracks such data. Weekly impressions for the service have trailed a bit since then and remain only a third of what Netflix generates. The Star Wars-spin off The Mandalorian has been the service’s biggest hit.

“For the shows, we only have data for The Mandalorian for Disney+, which means it’s the only original show they have that has enough consumer conversations that can be measured in our platform,” Engagement Labs said.

Frozen 2 may help. The film opened to record worldwide sales for an animated picture last year after netting $358.4 million globally, and will be released on the platform in the US on Sunday, as companies around the world told staff to work from home in a bid to reduce the spread of the coronavirus among employees.

The movie’s messages of “perseverance and the importance of family” are “incredibly relevant during this time,” Chief Executive Bob Chapek said in the statement.

The firm will roll out Frozen 2 in Canada, the Netherlands, Australia, and New Zealand on Tuesday, March 17. — Bloomberg

‘Millionaire’s playground’ set to rise in northern Luzon

THE Widus Group, owner and developer of Widus Hotel & Casino and the Marriott hotel chain in Clark, Pampanga, recently introduced a luxury lifestyle brand which will bring the idea of a “millionaire’s playground” to life.

Under the new brand Hann Resorts are two equally premium sub-brands of luxury integrated resort destinations: the Hann Casino Resort in Clark and Hann Lux Lifestyle Resort in New Clark City (NCC), Tarlac. These sub-brands aim to elevate leisure experience by combining activities and experiences in gaming, golf, nature and outdoors, entertainment, and hospitality.

Daesik Han, president and chief executive officer of Hann Development Corp. (a member of the Widus Consortium), said that Hann Resorts seeks to establish itself not only as an international destination brand for tourists, but also as a “powerful master brand” that has gathered world-class luxury brands so guests can “live bold and play bold.”

“We are very certain that we can deliver it with quality,” Mr. Han told reporters after the brand’s launch on Feb. 25 at Clark Marriott Hotel.

As part of the new brand, Widus Group’s current development in Clark will be transformed into Hann Casino Resort. Aside from the existing Clark Marriott Hotel, the resort will include the Hann Casino and Swissôtel Hotels & Resorts, which is expected to open by the last quarter of the year. The Widus Hotel & Casino shall be converted to the Mercure Hotel after its renovation is completed by 2022.

“It (Hann Casino Resort) is going to be a genuine, truly first integrated resort outside Metro Manila with Marriott, with Swissotel, with Mercure, and a lot of entertainment and F&B (food & beverage),” Mr. Han said.

The Widus Group, on the other hand, expects to start the major construction of the Hann Lux Lifestyle Resort in a 450-hectare property within NCC by October this year.

The integrated resort will feature three 18-hole championship golf courses, designed by renowned professional golfers and course designers Nicklaus Design, KJ Choi, and Nick Faldo. Mr. Han said that the group expects the completion of the first golf course by 2022, followed by the second and third golf courses in 2023 and 2024, respectively.

“There are so many nice integrated resorts in Manila but I can have something they cannot offer to the market which is nature [and] golf,” Mr. Han said.

With golf courses as part of Hann Lux Lifestyle Resort’s master plan, he is optimistic that the resort will stand out among its competitors and can attract a wider market.

“Even those big, big integrated resorts in Macau, there’s no casino having this world-class golf course. So if you’re a gambler, and you want to enjoy, you love this entertainment, yet you want to enjoy nature and golf, then this is the place. I can expand my market not only limited in the Philippines, but this region in Asia,” Mr. Han said.

Hann Lux Lifestyle Resort will also see the opening of Banyan Tree Hotel and the Angsana Hotel. The group, according to Mr. Han, targets to finish these projects by 2023.

For the next phase of the development, Hann Lux Lifestyle Resort will also see the construction of the Westin Hotel and The Luxury Collection by Marriott International.

Among others, the integrated resort will also feature outdoor recreation facilities, a clubhouse, a mixed-use commercial center, and a 10-hectare public park.

The Widus Group has committed a total investment of P12 billion for the development of the Hann Lux Lifestyle Resort, but Mr. Han said that this might at least be doubled or tripled.

“Clark is already drawing a lot of tourists and investors to the area. We hope that an integrated lifestyle and leisure resort brand will further attract people and turn both Clark and New Clark City into a bustling center for recreation and development,” Mr. Han said. — Mark Louis F. Ferrolino

Gov’t makes partial T-bills award on uncertainties over COVID-19

THE GOVERNMENT partially awarded the P20 billion in Treasury bills (T-bills) it offered on Monday, with the market veering away from the three-month papers as they opt to hold cash due to heightened fears over the escalation of the coronavirus disease 2019 (COVID-19) outbreak in the Philippines and its impact on the economy.

The Bureau of the Treasury accepted bids worth just P14 billion against its P20 billion plan, even as total tenders hit P42.28 billion.

Broken down, the Treasury rejected all bids for the 91-day T-bills, with total bids reaching just P4.97 billion for the P6-billion offer. Last week, rates for the tenor averaged 3.024%, inching only by one basis point (bp) from the 3.013% seen in the preceding auction.

For 182-day T-bills, the BTr fully awarded its P6 billion offer, which was met with tenders worth P11.25 billion. Average rate for the papers clocked in at 3.398%, inching down by 8.6 bps from the 3.312% seen a week ago.

For the 364-day papers, the government also made a full award of its P8-billion offer as bids totaled P26.06 billion. The one-year securities were quoted at an average rate of 3.557%, lower by 3.1 bps compared to the 3.588% seen in the previous week.

National Treasurer Rosalia V. de Leon said they opted to reject all bids for the 91-day T-bills due to lack of interest from investors as they worry about the economic impact of COVID-19.

“Bids were 57 bps higher than previous auctions. Practically no interest with undersubscription,” Ms. De Leon said in a Viber message after the auction.

Asked whether the said trend could be a result of worries due to the impact of the virus, Ms. De Leon said: “Yes. Preference to hold cash.”

A bond trader noted that yields for this week’s auction saw lesser appetite for the three and six-month bills, that had yields which moved sideways last week.

“This T-bills auction saw even less appetite for those tenors especially when it comes to the three-month bills as this tenor was undersubscribed and apparently the bids were at yields deemed too high by the BTr,” the bond trader said in a text message.

“Looks like investors are rushing to cash since the coronavirus will heavily affect the economy,” the trader added.

Metro Manila was placed under enhanced community quarantine on Monday, which will suspend transportation and implement a strict home quarantine for households.

After a below-target 5.9% gross domestic product (GDP) expansion in 2019, the government is aiming for a 6.5% to 7.5% economic growth in 2020.

But with risks from the COVID-19 plaguing the economy, the National Economic and Development Authority said earlier this month they expect GDP growth to come in at just 5.5% to 6.5%, as the economy starts feeling the impact of the outbreak, specifically on tourism and trade.

Analysts have warned of the potential impact of the lockdown in Metro Manila to the economy, given that the region contributes about 40% to the GDP and is home to most financial institutions in the country.

Infected patients of the virus in the country have reached 140, with deaths recorded at 12 as of press time.

Across the world, the virus has infected more than 140,000 and has caused the death of more than 3,000 people. — L.W.T. Noble

Universal Music CEO Lucian Grainge tests positive for COVID-19

LUCIAN GRAINGE, chairman and chief executive officer of Universal Music Group Inc., has been hospitalized after testing positive for Covid-19, according to a person familiar with the matter.

Grainge, 60, is receiving care at UCLA Medical Center, said the person, who asked not to be identified because the situation hasn’t been publicly disclosed.

Variety previously reported on Grainge’s diagnosis and noted that Apple Inc. Head Tim Cook, Apple services Chief Eddy Cue, and Music Executive Irving Azoff attended the Universal Music CEO’s 60th birthday party two weeks ago.

A representative for Universal Music didn’t immediately respond to a request for comment. Apple declined to comment.

Grainge joined Universal more than 30 years ago and has been chairman and CEO since 2011. He is widely considered the most powerful record executive in the industry.

Universal’s parent company, Vivendi SA, is in the early stages of planning an initial public offering for the music business.

Universal has benefitted from a music-industry resurgence, fueled by the growth of streaming. It also has churned out hits from Billie Eilish, Post Malone, Taylor Swift, and Ariana Grande. — Bloomberg

Siglo Suites generates P448M in rental income

CENTURY PROPERTIES Group, Inc. (CPG) said it has helped its condominium unit owners generate over P448 million in rental income last year through its professional asset and leasing management service.

The listed property developer said it had established Siglo Suites after seeing the need of its condominium owners for a service to help them lease their units and handle day-to-day maintenance.

“Century Properties’ commitment to its clients doesn’t end after the turnover of units. It is a long-term service that works to preserve the value of their homes and give good returns through Siglo Suites,” Jaime Navarro, Siglo Suites’ head of sales, unit management and marketing, said in a statement.

Mr. Navarro said Siglo Suites generated and remitted P448 million in rental income to condominium unit owners, 23% higher than the P365 million posted in 2018.

Broken down, P78 million came from short and mid-term leases of units and P370 million was generated through long-term lease of units (12 months and up).

Siglo Suites can take over the unit from the point of turnover, including furnishing the unit, managing bills and handling maintenance work. It helps craft marketing strategies for short-term, medium-term and long-term serviced stays for unit owners.

At present, Siglo Suites handles over 1,500 units in Makati City (The Milano Residences, The Gramercy Residences, The Knightsbridge Residences); Mandaluyong City (Acqua Private Residences); Parañaque City (Azure Urban Resort Residences); and Quezon City (The Residences at Commonwealth).

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