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GT Capital bares leadership changes at Federal Land, FNG

AN ARTIST’S PERSPECTIVE of Federal Land, Inc.’s Quantum Residences along Taft Avenue, Pasay City — BW FILE PHOTO

TY-LED GT Capital Holdings, Inc. announced leadership changes at its real estate unit Federal Land, Inc. and its joint venture Federal Land NRE Global, Inc. (FNG), as it charts its growth plans.

William Thomas F. Mirasol has been named Federal Land vice-chairman effective Jan. 1, 2025, concurrent with his role as FNG president, GT Capital said in an e-mailed statement on Monday.

Mr. Mirasol is the president of Federal Land.

FNG is a joint venture of Federal Land and Japan’s Nomura Real Estate Development Co. Ltd.

“Mr. Mirasol will continue to oversee Federal Land’s strategic international partnerships and joint ventures with leading global brands and corporations,” GT Capital said.

GT Capital also announced the appointment of Jose Mari H. Banzon as Federal Land president, succeeding Mr. Mirasol, effective Jan. 1, 2025.

Mr. Banzon serves as Federal Land’s finance director.

“GT Capital is looking forward to working closely with both Mr. Mirasol and Mr. Banzon,” the group said. “In their new leadership roles, they will define the next stage of growth for both Federal Land and FNG, and usher in a new generation of property development products and services that align with GT Capital’s mission of value creation to meet the evolving needs of its stakeholders.”

Mr. Mirasol joined Federal Land in 2019. He has more than three decades of real estate management experience.

Mr. Banzon served as Federal Land executive vice-president and general manager from January 2006 to 2013.

He then joined SM Prime Holdings, Inc. in 2013 and was appointed SM Development Corp. president in February 2020. He returned to Federal Land this year.

GT Capital has business interests in banking, automotive assembly, importation, dealership and financing, property development, life and general insurance and infrastructure.

Its core operating companies are Metropolitan Bank & Trust Co., Toyota Motor Philippines Corp., Federal Land, AXA Philippines Life and General Insurance Corp. and Metro Pacific Investments Corp. (MPIC).

MPIC is one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls.

GT Capital shares rose 5.42% or P33 to P642 each. — Revin Mikhael D. Ochave

Araneta City’s Christmas events

ARANETA CITY is hosting a series of holiday events until Dec. 25. Santa and his friends will be making special visits to the mall Christmas trees and the giant Christmas tree, with appearances at Gateway Mall 2 (UGB, Quantum Skyview) at 4 p.m., Gateway Mall 1 (Upper Ground Floor, Activity Area) at 5:30 p.m., Ali Mall (Lower Ground Floor, Activity Area) at 4 p.m., Farmers Plaza (Lower Ground Floor, Activity Area) at 5:30 p.m., and at the Giant Christmas Tree (Gen. Aguinaldo Ave., Green Gate, Smart Araneta Coliseum) at 6 p.m. There will be a mascot parade on Dec. 25, with appearances from Mr. and Mrs. Claus, Christmas Elves, the Snowman, and other characters. The parade will take place at Gateway Mall 1 and 2 at 4 and 5:30 p.m. Also, a grand fireworks display will illuminate the Quezon City skyline on Dec. 25 at 7 p.m. The best viewing areas will be near the giant Christmas tree and along Gen. Aguinaldo Ave.

SLIMTC bullish on PHL energy, banking sectors

SUN LIFE Investment Management and Trust Corp. said it is bullish on the Philippine economy. — BW FILE PHOTO

SUN LIFE Investment Management and Trust Corp. (SLIMTC) is looking to invest more in power, banking and infrastructure amid a bullish profit outlook for these sectors on the back of a supportive operating environment.

SLIMTC manages C$6.2 billion worth of assets as of Sept. 30. It is part of Sun Life of Canada’s businesses in the Philippines, along with life insurer Sun Life of Canada (Philippines), Inc. (Sun Life Philippines), Sun Life Asset Management Company, Inc., and bancassurance unit Sun Life Grepa Financial, Inc.

“We’re looking at outlets to fund, especially more on what the government needs. One is power. I think clearly there’s a lot of need for power, especially more on the transitioning to renewables,” SLIMTC President Michael Gerard D. Enriquez said in an interview at an event earlier this month.

“Transition financing is something that we are looking at. But mostly, we would like to partner more on the renewable side,” he added.

Benedict C. Sison, Sun Life Philippines chief executive officer and country head, said the firm is likewise looking at the infrastructure and banking sectors.

“The bottom line is we’re very optimistic about the Philippine economy,” Mr. Sison said.

A SLIMTC presentation to a visiting Canadian trade mission earlier this month showed that they see the banking, power, utilities, and transport sectors driving the Philippines’ growth momentum as these sectors are expected to remain profitable.

For banks, it said that the recent cut in reserve requirement ratios and double-digit loan growth are expected to temper the expected narrowing in their margins following cuts to benchmark interest rates.

“There is scope to boost growth further through the tapping of the consumer sector, though NPLs (nonperforming loans) should be watched,” it said.

Meanwhile, the energy sector’s profitability will be driven by “power demand growth, easing interest rates, and ongoing expansion plans,” SLIMTC said.

“Risks to the outlook may come in slower power demand on global growth slowdown contagion and project level execution risks.”

Jaime Antonio Lopez, investment research director at SLIMTC, said energy firms have a lot of “ammunition in terms of in-house equity.”

“They’re looking to expand together with the economy. So, there are a lot of opportunities out there.”

Meanwhile, SLIMTC has neutral outlooks for the profitability of the property, consumer and telecommunications sectors.

It added that the gaming sector is seeing slower growth in revenues amid the absence of large-scale junket operators.

“Mass market and slots segments have offset the loss, but traditional integrated resorts are struggling to grow total GGR (gross gaming revenues) in the absence of the once-swift VIP segment.”

Sun Life Philippines recorded total premiums of P41.93 billion and a new business annual premium equivalent of P6.48 billion at end-September, based on Insurance Commission data. Its net income in the first nine months stood at P7.16 billion. — A.R.A. Inosante

The quest for shared prosperity

PHILIPPINE STAR/EDD GUMBAN

Government documents often sparkle with noble ideas. For example, AmBisyon 2040, a government manifesto spearheaded by the National Economic and Development Authority (NEDA), portrays a life for Filipinos in 2040 that is matatag (resilient), maginhawa (comfortable), and panatag (peaceful). The manifesto’s 2040 goal is “a prosperous middle-class society where no one is poor.”

The Management Association of the Philippines (MAP) brought AmBisyon 2040 to the action phase. Its Shared Prosperity Committee, chaired by De La Salle University professor, Ben Teehankee, formulated a Covenant for Shared Prosperity and encouraged companies to sign the covenant and implement its provisions. The gathering of signatures is proceeding but not at the pace desired by the Committee. Organizations are keen on understanding first the ramifications of a commitment to the Covenant.

The Covenant’s prologue states, “We believe we can address inequality in our society and enhance the dignity of human beings, while building prosperous businesses.” The Covenant has attracted like-minded groups to its banner. One such group is the Diwa-Kapwa (D-K) Advocates for a Filipino management ethos. A basic tenet of D-K resonates with the covenant’s prologue. The tenet depicts an iterative three-step cycle that bolsters shared prosperity: the personal growth of employees leads to productive work which, in turn, leads to a profitable company.

The D-K Advocates is composed of former presidents and officers of the People Management Association of the Philippines (PMAP). Their shared view about the role of business and human capital in nation-building energizes the group’s projects, including the publication of three books on kapwa (fellowmen) and diwa (spirit), roundtable discussions for business owners, and a public conference that was attended by more than a hundred people at the Asian Institute of Management in Makati on Nov. 21.

The D-K Conference focused on a Filipino management ethos geared towards shared growth and prosperity. During the Conference, true-to-life experiences about the transformative power of spirit-led and people-first leadership were described in detail by the representatives of thriving companies, including Thousand Oaks Packaging, Piandre, Pandayan Bookshop, Human Nature, Glacier Megafridge, Globe Telecom, Unilab, and CDO Foodsphere.

“Spirit-led” and “people-first” are the two sides of the same coin. A spirit-centered leader builds on the ground of compassion, linking all members of an organization to reach group goals. This common ground emanates from the spirit or unifying essence shared by all people. A people-first leader prioritizes the dignity and sanctity of human life. Every decision must enrich the competencies, virtues, and well-being of people. By advancing group cohesion (spirit-centered) and individual improvement (people-first), the leader moves the entire company closer to its objectives.

The D-K management ethos can lead to a redesign of organizations and communities. Sonny Coloma, a leading light of the D-K Advocates and a former spokesperson of the Aquino Administration, explains the impact of diwa or spirit on organizations. Coloma says, “A spirit-led organization is designed to achieve continuous improvement, as well as enable paradigm shifts that expand the parameters of human achievement as exemplified by our D-K firms.”

The D-K emphasis on concrete experiences spurred deep thought on the part of Conference participants. One participant, a general manager, said, “I was deeply touched by the Diwa-Kapwa Conference. We do not have anything like that in our company, but I want to start. Before we even have social responsibility projects like tree planting, I want to do something like this. Mag-iisip ako kung ano ang gagawin namin (I will think about what we will do),” Another participant shared with her family over lunch how amazed she was with the presentations and what companies are doing.

Many Conference participants were struck by the living wage received by Human Nature employees; the hiring and development of people with little education and union organizing backgrounds by Thousand Oaks; the vision for workers of Pandayan Bookshop that enables them to own houses and send their children to good schools; the continuous release of salaries by Piandre despite being closed down by government authorities during the pandemic; and the unwavering support of CDO Foodsphere for employee welfare. The positive returns on the investment in people by these companies are evident in their growth and dynamism.

A Filipino management ethos is rooted in Philippine culture and indigenous Filipino psychology. It employs Tagalog terms that may need translation into other Filipino languages. Fortunately, the language problem may not be as big a stumbling block as we imagine. In another forum organized by the public sector for HR officers, Grace Abella Zata, a stalwart of the D-K Advocates, talked about Diwa-Kapwa leadership. She asked the audience if they could relate to Tagalog terms like kapwa, loob (interior), and diwa. A Department of Education superintendent from Marawi quickly responded and said that the gathering can relate because the people also feel the need for spiritual and moral renewal.

The MAP publicized the D-K Conference through the association’s social media channels. The MAP logo also appeared in the announcements released by the D-K Advocates. Secretary Rogelio “Babes” Singson, MAP’s Management Person of the Year for 2024, gave the keynote address for the Conference.

MAP’s endorsement for groups like D-K Advocates is an authentic act of patriotism. In MAP’s statement about its core values and principles, patriotism is expressed in this manner, “We affirm our deep love for our country, and our commitment to civic duty and concern for the common good, driven by our pride in our history and our heritage.”

 

Gerardo “Jun” V. Cabochan, Jr. is a member of the MAP Shared Prosperity Committee. He is the managing director of Pandayan Bookshop.

map@map.org.ph

jvc@pandayan.net

SEC approves City & Land’s P400-M debt sale

SEC.GOV.PH

THE SECURITIES and Exchange Commission (SEC) has approved City & Land Developers, Inc.’s plan to issue P400 million in debt, the property developer said in a stock exchange filing on Monday.

The SEC approved the permit on Dec. 20, it said. The issuance consists of P400 million in short-term commercial paper to be issued at face value and traded over the counter.

In September, the company’s board approved the application with the SEC for the debt issuance, the proceeds of which will be used to finance the company’s funding requirements.

City & Land, a unit of Cityland Development Corp., has business interests in acquiring and developing land for residential, office, commercial, institutional and industrial use.

Some of its projects include Pacific Regency in Malate, Manila; Grand Emerald Tower in Ortigas Center, Pasig; Manila Residences in Veterans Village, Quezon City; and One Taft Residences in Malate, Manila.

City & Land shares were unchanged at 67 centavos each.

Also on Monday, Cebu Landmasters, Inc. said its planned P5-billion sustainability-linked bond issuance received a “PRS Aa plus” credit rating with a stable outlook from Philippine Ratings Services Corp. (PhilRatings).

In a stock exchange filing, the property developer said obligations with a “PRS Aa” rating are deemed “high quality” and subject to very low credit risks, reflecting the company’s “capacity to meet financial commitments.”

A stable outlook means the rating is likely to be kept in the next 12 months.

The rating was given due to the company’s sustained earnings growth and its management and strategy, with a sustained competitive advantage in the Visayas and Mindanao markets, according to PhilRatings.

It added that Cebu Landmasters has sufficient interest coverage ratios despite a more leveraged capital position, but faces threats from a highly competitive market.

The proposed sustainability-linked bonds are the second tranche of its P15-billion debt program.

The issuance has a base offer of up to P3 billion and an oversubscription option of up to P2 billion, consisting of peso-denominated Series D Bonds due in 2028 and Series E Bonds due in 2030.

On Dec. 20, Cebu Landmasters filed with the Securities and Exchange Commission a registration statement with a preliminary prospectus, preliminary offer supplement and other documents for the planned debt sale.

The proceeds from the issuance will be used to refinance debt and for general corporate expenses.

Its net income grew 7% to P2.3 billion in the first nine months, led by its core business and recurring income streams.

Revenue increased 9.2% to P14.1 billion as property sales rose 8.7% to P13.8 billion on strong demand across residential, mid-market, and economic housing segments, along with commercial lot sales.

Cebu Landmasters shares gained 0.38% or a centavo to P2.67 each. — Revin Mikhael D. Ochave

Florence’s landmark passageway over Ponte Vecchio reopens to public

FACEBOOK.COM/UFFIZIGALLERIES

FLORENCE — A Renaissance-era raised passageway that connects Florence’s Uffizi Galleries to the Medici’s former residence, Palazzo Pitti, reopened to the public on Saturday, offering spectacular views of the historic Italian city.

The Vasari Corridor, named after Giorgio Vasari, the 16th-century architect, painter and art historian who designed it, snakes its way through central Florence, passing over the Arno river via the Ponte Vecchio bridge, one of the city’s landmarks.

The Uffizi museum, which manages the corridor and oversaw restoration and safety upgrades costing 11 million ($11.5 million), called it, in a statement, an “air tunnel” hovering over the heart of the city.

“The reopening is extremely important for us because … it is about returning to the public one of the most famous and fabled monuments of the Renaissance,” the head of the Uffizi Galleries, Simone Verde, told Reuters.

It was built in 1565, in just a few months, to allow Florence’s rulers to move freely between their home and Palazzo Vecchio, the seat of government, passing also through the Uffizi Galleries.

The corridor, which had been closed since 2016, will open to groups of up to 25 people at a time, who can walk through it from the Uffizi to the Pitti’s Boboli Gardens, crossing over the Arno from the right bank to the left.

In recent decades the passageway hosted the Uffizi’s vast number of self-portraits, but in its newly restored state its walls were stripped of all paintings and left bare as they were five centuries ago.

Tickets for a combined visit to the corridor and the Uffizi, whose outstanding collection includes works by Giotto, Leonardo da Vinci, Michelangelo, Titian and Botticelli, must be booked in advance and cost 43. — Reuters

Necessary cuts in the 2025 budget; Argentina’s fiscal reforms

The big public backlash against the proposed budget for 2025 was triggered by the big reductions made this month by the Bicameral Conference Committee from the proposed budget submitted last August: that of the Department of Social Welfare and Development (DSWD) was reduced by nearly P100 billion (its Ayuda sa Kapos Ang Kita Program or AKAP was cut by P12.8 billion, 4Ps by P50 billion, others by P33 billion), the Philippine Health Insurance Corp. or PhilHealth’s budget was cut by P74.4 billion, the Pension and gratuity fund by P36 billion, the Commission on Higher Education’s (CHED) was cut by P26.9 billion, the Department of Health (DoH) by P25.8 billion, the Department of Agriculture (DA) by P20 billion, and the Department of Labor and Employment (DoLE) by P18 billion, among others.

Then the Bicameral Committee significantly increased the budgets for the following: unprogrammed appropriations were increased by P373 billion, the Department of Public Works and Highways (DPWH) by P288.7 billion, Congress’ own budget was increased by P18.8 billion, and the allocation to local government units (ALGUs) went up by P10.6 billion, among others.

My quick reaction to the cuts in the budgets of the social agencies (DSWD, the Department of Education or DepEd, DoH, State Universities and Colleges, among others) is that this should have been done in 2022 or 2023, not 2025. There were big increases in their budgets in 2020 to 2021 because of lockdown, the virus crisis leading to an economic crisis, so the big increases were understandable.

But there was no more virus crisis and economic crisis in 2022 and beyond, but heavy welfare spending funded by heavy borrowing continued which should not have been done.

The DoH experienced a big jump in its budget, from P98 billion in 2019 to P177 billion in 2020, and P236 billion in 2021. The DSWD also experienced a big jump, from P139 billion in 2019 to P347 billion in 2020, and P230 billion in 2022. DepEd has had consistent increases in its budget. PhilHealth’s went up from P68 billion in 2019 to P80 billion in 2022 and P100 billion in 2023 (see Table 1).

Meanwhile, government revenues suffered heavy declines in 2020 due to the lockdown and the mandatory shutdown of taxpaying businesses and people. Revenues fell from P3.13 trillion in 2019 to only P2.86 trillion in 2020 and P3 trillion in 2021.

The budget deficit increased, from P660 billion in 2019 to P1.37 trillion in 2020, P1.67 trillion in 2021, and P1.61 trillion in 2022. Financing or borrowings increased from P876 billion to an average of P2.2 trillion yearly from 2020 to 2023. Interest payments from higher public borrowings jumped from P360 billion in 2019 to P503 billion in 2022 and are projected to reach P767 billion in 2024 (see Table 2).

I support the reduction in the budgets of many social agencies, but I do not support the increase in those of other sectors, particularly the DPWH and the unprogrammed appropriations.

There should be forced savings via the consistent reduction in the budget of many welfare agencies because high public debt, high interest rates, and high interest payments have big “diswelfare” effects on the poor themselves.

Last week I went to Buenos Aires, Argentina, to attend the Tholos Forum 2024. I was with fellow leaders of free market think tanks, institutes and taxpayers’ associations from many countries in South America, North America, and Europe. I was the only participant from Asia. The local sponsor of the Tholos Foundation was the Argentina Taxpayers Association.

Many of the speakers were high officials and legislators from La Libertad Avanza, the political party of Argentina’s new president, Javier Milei. Argentinians suffered from horrible high inflation for decades under previous administrations. There were huge, wasteful, and corrupt bureaucracies, the irresponsible printing of money, and a great deal of cronyism in business.

Milei cut the number of Ministries or Departments in government from 19 to nine. He abolished 10 Ministries, not just reduced the budgets of these agencies. He attained a fiscal surplus for Argentina within two months of his administration. This year is the first time in 123 years that Argentina will experience a budget surplus and economic recovery has been visible: inflation has been declining, there has been GDP growth and an escape from recession, business confidence is improving. He is now on another path to reduce the number of taxes and reduce tax rates.

The Philippines need not follow Argentina’s hard U-turn in public spending, but big reforms in social spending are possible because we are not in any crisis, viral or economic. We should do this before a real fiscal crisis occurs if the consistent increase in our public debt stock is not controlled.

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.

minimalgovernment@gmail.com

DoE sees about 300 participants in Renewable Energy Market

FREEPIK

ALMOST 300 entities are expected to participate in the Philippines’ Renewable Energy Market (REM), which is expected to become fully operational on Dec. 26, the Department of Energy (DoE) said on Monday.

“The full commercial operation of the REM is pivotal in advancing the country’s clean energy transition,” Energy Secretary Raphael P.M. Lotilla said in a statement. “It supports compliance with the RPS (renewable portfolio standards), fosters investment in renewable energy and ensures a robust framework for sustainable energy trading.”

Under Republic Act No. 9513 or the Renewable Energy Act of 2008, the DoE must establish REM for the trading of RE certificates, equivalent to one-megawatt-hour of RE generation.

The REM provides a platform for trading these certificates, allowing participants to meet their obligations under renewable portfolio standards.

The standards require distribution utilities, electric cooperatives and retail electricity suppliers to get a portion of their energy supply from eligible RE resources, contributing to the growth of the RE industry in the country.

In 2023, on-grid power suppliers were ordered to expand the share of RE in their output to 2.52% from 1%.

The REM launched its interim commercial operations in 2022.

Mr. Lotilla said the Energy Regulatory Commission, Independent Electricity Market Operator of the Philippines, Philippine Electricity Market Corp. and private stakeholders have worked with the DoE in ensuring the readiness and operationalization of the REM.

The Energy chief said the trading and usage of RE certificates are expected to become more frequent as renewable energy demand continues to grow.

“With the REM now fully operational, the country is poised to harness the power of renewable energy for a cleaner and greener future,” the DoE said.

The Philippine government seeks to increase the share of renewable energy in the country’s power generation mix to at least 35% by 2030 and 50% by 2040. — Sheldeen Joy Talavera

PHL digital fraud rates higher than global levels

TOWFIQU BARBHUIYA-UNSPLASH

DIGITAL FRAUD RATES in the Philippines during the Black Friday shopping weekend this year were higher than the global average, according to an analysis by TransUnion.

“For all attempted e-commerce transactions where the consumer was in the Philippines, 13.6% were suspected of digital fraud during the 2024 holiday shopping weekend — down from 14.3% in the same period from the Thursday before Black Friday to Cyber Monday 2023,” TransUnion Philippines said in a statement. “However, despite decreasing numbers within the country, the suspected retail digital fraud rate during the holiday shopping weekend in the Philippines is alarmingly 196% higher than the global rate of 4.6% — which dropped from 6.0 last year.”

“We are encouraged to see a gradual decline in digital fraud rates within the Philippines market. However, these rates still significantly exceed the global rate, which underscores the need for continued efforts from both public and private sectors to further address the prevalence of digital fraud in the country. With the increase in suspected fraudulent activities observed during the holiday shopping weekend, it is imperative for both businesses and consumers alike to remain vigilant as we navigate this busy festive season,” Yogesh Daware, chief commercial officer of TransUnion Philippines, said.

TransUnion said there was a higher suspected digital fraud rate during this year’s five-day Black Friday holiday shopping weekend (Nov. 28-Dec.2) versus the global level for attempted e-commerce transactions where the consumer was in the Philippines.

It found that 15% of all attempted e-commerce transactions on Black Friday, Nov. 29, where the consumer was in the Philippines during the time of transaction, were suspected to be digital fraud, higher than 4.5% globally.

“It was the highest suspected retail digital fraud rate in the Philippines out of all the days in the 2024 holiday shopping weekend,” it said.

“As most private sector employees in the Philippines are salaried under a bi-monthly pay cycle, many Filipino consumers received their salaries within the 2024 holiday shopping weekend on Nov. 29,” TransUnion said. “It is also possible for most consumers to have received their 13th month pay and any other Christmas bonuses they may be eligible for around this time of the year as well.”

For Nov. 28, the Philippines’ digital fraud rate was at 13.7% (versus 5.3% globally). This went down to 12.1% on Nov. 30 (4.2%), then up to 12.2% on Dec. 1 (4.6%) and to 14% on Dec. 2 or Cyber Monday (4.5%).

Fraudsters normally strike over the holidays as consumers ramp up spending, TransUnion added.

“In addition to the Philippines seeing a higher suspected retail digital fraud rate compared to the global rate during the holiday shopping weekend, its speed of decline also lagged behind,” it said.

“TransUnion observed a 5% decrease in the rate of suspected retail digital fraud during the holiday shopping weekend in the Philippines between 2023 and 2024. This is notably lower than the global decline rate of 23% during the same period,” it said.

The Philippines’ suspected e-commerce fraud rates have been consistently higher than the global average this year, TransUnion said.

“Beyond this year’s holiday shopping weekend, for the days in 2024 up to that period (Jan. 1 to Nov. 27, 2024), the Philippines continued to show higher suspected retail digital fraud rates than globally,” it added.

The percentage of suspected e-commerce fraud in the Philippines stood at 12.3% for the days leading up to this year’s Black Friday shopping weekend versus the 7.5% global average, TransUnion data showed.

This was slightly up from the 12.2% seen last year. Meanwhile, the global average for the same period dropped from 12.5% in 2023. — L.M.J.C. Jocson

Hollywood embraces God and the ‘cowboy curious’ to broaden audience

LOS ANGELES — The script for the biblical epic Mary, which tells the story of the Nativity from the perspective of Mary of Nazareth, languished in Hollywood for some 15 years before entering production.

As the independent film approached completion this September, it attracted interest from three major Hollywood studios and streaming giant Netflix, which emerged as the global distributor and released the movie this month.

Mary has ranked among Netflix’s top 10 English-language movies, attracting 24.6 million views.

“The marketplace has changed dramatically over the course of the past five years,” said director D.J. Caruso. “Particularly in the epic or the high-quality, faith-based genre. There’s a real desire or hunger out there now.”

Hollywood is turning to God, the American West and outdoor enthusiasts to capture a wider audience. Major film studios, wealthy investors, and streaming services are pouring money into faith-based movies, rodeos, and outdoor lifestyle programming as an alternative to superhero sagas or dramas heavy with sex and violence.

Studio executives, talent agents, and television showrunners told Reuters the industry has recognized it is missing broad swaths of the United States. Donald J. Trump’s election as president in November, buoyed by working-class voters, underscored the importance of programming to the whole country, not just cities on the coasts.

Hollywood has periodically mined the Bible for box office gold with films such as The Ten Commandments and Noah. The success of Angel Studios’ Sound of Freedom, a 2023 thriller loosely based on the story of a Homeland Security agent who rescues children from sex trafficking, won over religious and conservative audiences and sparked new interest in the genre.

FROM HORROR TO FAITH
Hollywood’s master of modern horror, Paranormal Activity filmmaker Jason Blum, joined Lionsgate and other investors in backing The Wonder Project, an independent studio that raised more than $75 million to produce faith-based films and series for Amazon Prime Video. Its series about a biblical king, House of David, will be released in February.

“There are an awful lot of people throughout the country that think this is exactly the type of programming they’d like to watch — particularly with their families,” said Lionsgate Vice-Chairman Michael Burns.

Lionsgate this year renewed its partnership with Kingdom Story Company, the production company behind Jesus Revolution.

Netflix, meanwhile, struck a multiyear deal with acclaimed filmmaker and actor Tyler Perry to produce faith-based films for the streaming service.

Some executives told Reuters the industry has recognized it is missing broad regions of the US with films and TV shows that garner critical acclaim but draw a narrow audience.

The disparity is exemplified by the commercial success of Paramount Network’s Yellowstone, the Western family melodrama that swept America’s heartland. Yellowstone attracted more than 11.4 million viewers in its fifth-season finale — nearly four times as many as the 2023 finale of the Emmy-winning HBO series Succession.

Thomas Tull, founder of superhero movie producer Legendary Entertainment, recognized the opportunity before many others. Together with TWG Global and Guggenheim Partners Chief Executive Officer (CEO) Mark Walter, he launched Teton Ridge in 2019, a Western sports, entertainment and lifestyle brand built around rodeos. The company, which is owned by TWG Global, attracted additional investment from venture capitalist Jim Breyer and the Lee Bass family office.

The live competitions — which include bull riding, steer wrestling and barrel racing — attract a global audience of 80 million people a year.

COWBOY HEROES
Teton Ridge saddled up, last month acquiring The Cowboy Channel and Cowgirl Channel, a deal that secured exclusive media rights to more than 600 Professional Rodeo Cowboys Association rodeos. That augments its collection of Western sports properties, which include the American Rodeo Contender Series, whose championship weekend is carried live on Fox Sports, and the Let’s Freakin’ Rodeo podcast, hosted by top-ranked tie-down roper Ty Harris and his cousin, filmmaker Cole Harris.

Meanwhile, Teton Ridge Entertainment is exploring Western stories in films, series, and documentaries, including adapting the late bestselling author Louis L’Amour’s novel Fallon, which is set in the Old West, appealing to an audience CEO Deirdre Lester describes as the “cowboy curious.”

“Our mission is to be making content for an underserved audience,” said Jillian Share, president of Teton Ridge Entertainment. “Making stuff where it appeals to a much larger part of our country than a lot of the stuff that we — myself included — have been focused on for the last 20 years of my career.”

She called the cowboy “the first true, great American hero.”

“You look at superheroes and you look at Marvel and DC, and you’re like, what’s more iconic than the cowboy?” Ms. Share said.

Veteran entertainment executive Peter Chernin’s investment fund The Chernin Group became the principal investor in MeatEater in 2018, a blossoming media brand built around outdoorsman Steven Rinella, a best-selling author, podcaster and host of a forthcoming History Channel series, Hunting History.

Some, however, feel sidelined by Hollywood’s pursuit of the American heartland. They worry that executives have become fearful of being branded “woke,” a label hurled at Walt Disney by Florida Governor and former Republican presidential candidate Ron DeSantis.

One television showrunner, who was in the final phase of negotiations for a streaming series featuring a diverse cast, learned a day after Mr. Trump’s election that the project would not go forward. The showrunner, who requested anonymity for fear of retaliation, saw a correlation between the programming decision and Mr. Trump’s victory.

Another development executive shared an e-mail from one network executive, who rejected a project as too “political.”

Earlier this year, the makers of The Apprentice, a biopic about Mr. Trump, struggled to find a distributor even after an enthusiastic reception at the Cannes Film Festival in May.

An attorney for Mr. Trump sent a cease-and-desist letter to the filmmakers. Briarcliff Entertainment released the movie in October, and stars Sebastian Stan and Jeremy Strong were nominated for Golden Globe awards.

This week, Disney said it had removed a transgender storyline from upcoming Pixar animation series Win or Lose. The character will remain in the show, but the few lines of dialogue that reference the character’s gender identity have been removed.

“When it comes to animated content for a younger audience, we recognize that many parents would prefer to discuss certain subjects with their children on their own terms and timeline,” a Disney spokesperson said. — Reuters

Rate cuts may spur demand for property loans

JCOMP-FREEPIK

By Beatriz Marie D. Cruz, Reporter

THE Monetary Board’s continued easing cycle would probably increase demand for real estate loans, according to construction and property developer JCV & Associates (JCVA).

“If there’s going to be another rate cut… that will spur more loans,” JCVA President and Chief Executive Officer Jason C. Valderrama told BusinessWorld on Thursday. “The demand for loans will be higher.”

Banks and trust entities’ exposure to the property sector eased to 20.17% at the end of December 2023 from 20.55% three months earlier, according to central bank data.

Investments and loans extended by Philippine banks to the property sector rose 4.3% to P3.15 trillion at end-2023.

“Definitely, there will be more developments,” Mr. Valderrama said.

Last week, Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. said the Monetary Board would continue to cut interest rates in 25-basis-point (bp) increments, though it might keep rates steady at its December meeting.

The BSP has lowered interest rates by 50 bps since it began its easing cycle in August, bringing the policy rate to 6%.

For 2025, JCVA expects growth in revenues and headcount, with over 60% of its projects coming from old clients.

“We’re projecting to grow 50-60% next year, we’re very bullish and optimistic,” Mr. Valderrama separately told a news briefing.

“We have a very robust pipeline of projects. I think we’ve secured half of our revenue target already for next year and that’s because 67% of our [projects] are from our repeat clients,” he added.

For next year, key growth drivers include logistics, healthcare and tourism, Mr. Valderrama said.

The firm has partnered with a major e-commerce player to build an 11-hectare sorting center in Cavite, he added. The sorting center, which will break ground next year, has a construction timeline of two to three years.

Mr. Valderrama also cited the robust growth potential in data centers, noting that JCVA is working on an eight-megawatt (MW) hyperscale data center in Quezon City.

“In terms of capacity, we’re at 500 MW and that’s going to be around 950 MW by 2028,” he said.

JCVA also has expansion projects with major hospitals and banks, Mr. Valderrama added.

It has also been integrating digital solutions to fast-track its construction process. The firm uses Building Information Modeling to create digital project models, which help teams identify potential issues before starting construction.

It also uses an artificial intelligence-powered platform that provides a 360-degree, real-time documentation of construction sites. The firm also uses drones to monitor larger projects.

Clients can monitor project progress without visiting the site through JCVA’s cloud-based platform Agile + Vault, which provides real-time updates on schedules, budgets and construction progress, as well as daily site photos and walkthrough videos.

More construction developers are also expected to be more compliant with “green” certifications, Mr. Valderrama said, particularly the WELL Building Standard, EDGE (Excellence in Design for Greater Efficiencies), LEED (Leadership in Energy and Environmental Design) and BERDE (Building for Ecologically Responsive Design Excellence).

“We’ve started progressively pursuing these certifications after the pandemic. It’s become more of a requirement for clients now,” he added.

Peso strengthens to over one-week high on BSP, Fed rate cut hopes

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THE PESO strengthened to an over one-week high against the dollar on Monday amid signals of further rate cuts from the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve.

The local unit closed at P58.45 per dollar on Monday, appreciating by 36 centavos from its P58.81 finish on Friday, Bankers Association of the Philippines data showed.

This was the peso’s best finish in over a week or since it closed at P58.24 against the greenback on Dec. 12.

The peso opened Monday’s session stronger at P58.70 against the dollar, which was already its worst showing for the day. Its intraday best was its closing level of P58.45.

Dollars exchanged went down to $1.18 billion on Monday from $1.33 billion on Friday.

The local currency was supported by the seasonal surge in overseas Filipino worker remittances ahead of the Christmas holiday, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The peso continued to strengthen following rate cut signals from BSP Governor Eli M. Remolona, Jr., Mr. Ricafort added.

On Friday, Mr. Remolona told Bloomberg that the Monetary Board could deliver another rate cut at their first policy meeting next year, noting that they are “neither more dovish nor less dovish.”

The Monetary Board on Thursday cut benchmark interest rates by 25 basis points (bps) for a third straight meeting to bring the policy rate to 5.75% from 6%. The BSP has reduced borrowing costs by 75 bps since the start of its easing cycle in August.

“The peso gained after Fed official Goolsbee commented that US policy rates would be reduced by a ‘fair amount’ next year, easing initial market concerns of a less aggressive cutting pace by the US central bank which prevailed after the latest Fed policy meeting last Thursday,” a trader said in a Viber message.

Chicago Federal Reserve President Austan Goolsbee said on Friday he now projects a shallower rate-cutting path in 2025 than he had previously, but added he still believes the US central bank’s policy rate will fall a “judicious amount” next year, Reuters reported.

“The uncertainty about policy makes it particularly hard to make estimates of what the neutral rate is and what the inflation rate is in particular,” Mr. Goolsbee told CNBC.

With the policy rate well above its eventual stopping point of around 3%, Mr. Goolsbee said, dropping inflation means the Fed will need to bring it down “a fair bit” over the next 12 to 18 months.

Mr. Goolsbee had previously indicated he felt rates would need to fall by 100 basis points next year, in line with the previous view of his fellow policy makers. Projections released last week after the Fed cut its policy rate by a quarter of a percentage point to the 4.25%-4.5% range show most US central bankers see just 50 bps of cuts next year.

For Thursday, the trader said the peso could appreciate amid continued inflows amid the holidays. The trader sees the peso moving between P58.30 and P58.55 per dollar, while Mr. Ricafort sees it trading from P58.25 to P58.65. — Luisa Maria Jacinta C. Jocson with Reuters