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Hidden Banksy mural officially uncovered in Notting Hill

LONDON — A Banksy mural, covered up by builders’ hoarding and scaffolding for the past few months, was uncovered on Monday in the heart of London’s Notting Hill area.

The work — known variously as the Graffiti Painter, The Painter, or Velazquez — shows an artist, thought to be Spanish painter Diego Velazquez, with an easel writing “Banksy” in large red letters.

Drawn on the corner of Acklam and Portbello Road in 2008, it was covered after developer Enstar Capital began refurbishing the property to make luxury flats.

“It is a lovely feature for the building and a lovely feature in Notting Hill which has retained its Londonness,” Enstar Capital Chief Executive Simon Lyons told Reuters.

“One of the reasons I bought the building was that there was a Banksy there — it gave it that iconic profile. So while I think the prices for Banksy are nonsensical, you could say I was a fan in some ways.”

Enstar originally wanted to move the Banksy but decided it would have been too risky so it remains in the same place and is covered by glass and is floodlit.

Luxury flats at the property are worth at least £950,000 ($1.2 million) for a one-bedroom, Lyons said.

“Would I love it if Banksy came and did it on the building where I live? Probably not,” Lyons said. — Reuters

D&L Industries posts lower bottom line in Q3

EARNINGS of D&L Industries, Inc. dropped by double digits in the third quarter as it continued taking a hit from government underspending due to the delayed passage of this year’s national budget.

The Lao-led manufacturing firm posted a 29% decline in net income to P617 million during the three-month period as revenues slipped 20% to P5.52 billion.

This brings the company’s net income for the nine months to September 15% lower at P2.03 billion. Total revenues in the nine months also fell 18% to P16.56 billion.

Its four main business segments all saw declines in the first three quarters, led by its plastics and chemicals businesses, which saw an 18% and 16% drop in profits, respectively. Its food ingredients and aerosols business each fell 2% during the period as well.

Exports accounted for 20% of D&L’s revenues in the nine-month period, down from 23% a year ago. The company said it was affected by the trade war and the protectionist stance in some countries which resulted to less volume of products sent abroad.

Despite this, the company believes it is bound for better results heading into 2020 as “it seems the worst is done,” D&L President and Chief Executive Officer Alvin D. Lao said at a briefing in Makati City.

Mr. Lao said the company is encouraged by the improved risk management of the company by focusing on high-margin specialty products, which now contribute 71% of the company’s total sales.

Another thing the company holds on to is the improving economic condition in the country, where inflation, interest rates and the reserve requirement ratio are all going down. The improving condition at the ports, lower crude prices and expected passage of the second tax reform package that may settle several business uncertainties are also factors the company believes will help its performance.

“The company has faced a challenging environment in 2019… However, we look forward to focusing our efforts, harnessing the recent gains in sales mix and high-margin products as a foundation for long-term growth,” Mr. Lao said.

D&L spent P1.66 billion for capital investments in the nine-month period, up from P873 million last year, as it focuses on expansion particularly for its 26-hectare facility in Batangas. The company sees its capital expenditures exceeding P2 billion by the end of the year. — Denise A. Valdez

Christie’s seeks relief from Donald Trump’s ‘punishing’ tariffs on art

CHRISTIE’S was among the first companies to file for relief from the latest round of President Donald Trump’s tariffs on Chinese imports, arguing the duties would hurt its business and punish the US art market.

The auction house is seeking exclusions from 15% duties on seven types of artworks and antiques, including paintings, drawings, original sculptures, engravings, prints, and antique furniture more than 100 years old, according to filings last Thursday. Christie’s said the tariffs would result in “a significant loss” to its US business by making it impossible to import the items.

“It also will severely impact the US art market as a whole, drying up any ability to purchase Chinese artworks outside of the United States,” Christie’s said in the filings. “Punishing the US art market in this manner flies in the face of an important American value of support for the art world.”

The Office of the US Trade Representative started accepting requests Thursday through Jan. 31 for exclusions from tariffs that took effect Sept. 1 on about $110 billion in Chinese imports as Trump seeks to negotiate a trade deal with China. Duties are also in effect on $250 billion in other Chinese goods, and a separate batch of about $160 billion in products — including laptops and mobile phones — is set to be hit with tariffs on Dec. 15 if a deal isn’t struck.

Trump is seeking to sign a “phase one” agreement with Chinese President Xi Jinping in November, though Chinese officials are casting doubts about reaching a comprehensive long-term trade deal.

Exclusion decisions are based on whether a product is available only from China, is strategically important or related to Chinese industrial programs, and whether duties will “cause severe economic harm” to the company or US interests.

While items produced by Chinese artists are available in other countries, the tariffs apply to all goods created in China, Christie’s said in the filings. Chinese art in the US isn’t sufficient to meet demand, and Christie’s said it sources one-of-a-kind Chinese items for its US-based clients because of the high demand.

“Rather than hurting China, this tariff will help the art market in China and elsewhere by incentivizing collectors to sell their Chinese artworks outside of the US,” Christie’s said.

Art dealers, collectors, and museums previously sought to have Chinese art and antiquities spared from duties. Critics said the tariffs would discourage private collectors and dealers from acquiring Chinese art and cultural items, and because museums rely on donations, they and the viewing public would suffer. They also questioned the effectiveness of trying to spur US production or change China’s trade behavior by targeting art.

China is the world’s No. 3 art market, accounting for 19% of sales by value, behind the US at 44% and the UK at 21%, according to the Art Market 2019 report from Art Basel and UBS Group AG. Sales in the global art market reached $67.4 billion in 2018, up 6% from the previous year, according to the report. — Bloomberg

RRHI income declines in 3rd quarter

ROBINSONS RETAIL Holdings, Inc. (RRHI) posted lower earnings in the third quarter despite a 24.2% growth in its net sales during the period.

In a statement yesterday, the Gokongwei-led retailer said its attributable net income fell 9% to P1.1 billion during the three-month period, failing to hold the increase in its net sales which stood at P38.95 billion.

In the nine months to September, the company’s attributable net income ended at P2.88 billion, slumping 25% from a year ago. This was amid a 26.5% improvement in net sales during the period to P116.16 billion.

The growth in net sales in the nine months was linked to the company’s 3.2% same-store sales growth (SSSG) — which falls within its SSSG target of 2-4% this year. SSSG is the company’s measure of its sales increase from existing stores.

The company’s SSSG from drugstores was at 10.7%, from supermarkets at 3.6%, from convenience stores at 2.7%, from do-it-yourself stores at 2.6% and from specialty stores at 1.3%.

However, RRHI noted last year’s SSSG was higher at 6.4%. Last year also saw the positive effects of higher consumer spending from the passage of the Tax Reform for Acceleration and Inclusion (TRAIN) law. Another factor that increased last year’s profits were the higher bulk sales because of Typhoon Ompong.

But other factors that pulled up RRHI’s revenues this year were sales from its new stores and the consolidation of Rustan Supercenters, Inc. to the company.

RRHI bought Rustan in November 2018, making its supermarket segment account for 55% of its business now from 47% before the acquisition.

RRHI ended the first three quarters with 1,918 stores in its portfolio, excluding franchised stores of The Generics Pharmacy. Of this, 258 are supermarkets, 50 are department stores, 215 are do-it-yourself stores, 509 are convenience stores, 517 are drugstores and 369 are specialty stores.

It spent P2.2 billion in capital expenditures in the period from its P3.5-5 billion budget this year.

Shares in RRHI went down 40 centavos or 0.53% to close at P75.70 each on Tuesday. — Denise A. Valdez

Prince Charles reportedly caught up in $136 Million fake art hoax

PRINCE CHARLES, heir apparent to the British throne, has become ensnared in a fraudulent art scandal that saw paintings worth £105 million ($136 million) returned to their owners, the Mail on Sunday reported.

One of the works, a supposed Monet worth £50 million, was instead painted by an American forger, according to the Mail. That along with two other artworks, thought to be by Picasso and Dali but now said to be counterfeit, have been removed from public view at Dumfries House, the headquarters of the Prince’s Foundation, the paper said.

“It is extremely regrettable that the authenticity of these particular paintings, which are no longer on display, now appears to be in doubt,” the paper quoted a spokesman for the Prince’s Foundation as saying. — Bloomberg

MacroAsia to acquire 30% of NKS shares in JASCO

MACROASIA Corp. will be buying 30% of Tokyo-based NKS Holding Co. Ltd.’s shares in Japan Airport Service Co. Ltd. (JASCO), the ground handling unit of Japan’s Konoike Transport Co. Ltd. at Narita Airport.

This comes after Konoike Transport and tycoon Lucio C. Tan’s MacroAsia signed a partnership deal in Manila on Tuesday where both parties agreed that the Philippine firm shall acquire 30% stake in JASCO.

JASCO’s parent company is NKS Holding, which is in turn a subsidiary of Konoike Transport.

Konoike Transport Executive Officer Akihiko Furukawa said during a news conference that his company, under the said partnership, shall acquire 20% stake of MacroAsia’s ground handling subsidiary MacroAsia Airport Services Corp. (MASCORP). He added that this transaction amounts to ¥2.344 billion.

As for the 30% of JASCO shares sold by Konoike Transport to MacroAsia, he said the amount is ¥1.825 billion.

“Although it took a long time for this partnership to be concluded, the discussions gave such wonderful results,” the Konoike Transport president said, adding that one of the motivations for the partnership is the lack of manpower due to Japan’s aging population.

He said JASCO is currently operating at the Narita Airport, and there are plans to expand its services to “other airports.”

MASCORP General Manager Emerson S. Bonoan, Jr. said the negotiation with Konoike Transport began in July 2018. “So it’s been one year and four months already since we started meeting with the Konoike group here in Manila and in Japan,” he said.

The other 10 subsidiaries of Konoike Transport are operating at Haneda, Kansai, Fukuoka, Itami, and Kobe airports.

As for the estimated number of jobs to be generated from the partnership, the Konoike Transport said that it is planning to accept around “100 trainees or employees” from MacroAsia “within the fiscal year.”

“We are looking into a five-year training program, so a total of 500 employees will be sent from MacroAsia to Konoike for internship,” the Japanese firm added. — Arjay L. Balinbin

China Bank income up 25% in Q3 as loans, deposits expand further

CHINA BANKING Corp.’s net profit climbed in the third quarter.

CHINA BANKING Corp.’s (China Bank) consolidated net income saw double-digit growth during the third quarter as its loan portfolio and deposits continued to expand.

In a disclosure to the Philippine Stock Exchange on Tuesday, China Bank said its net earnings climbed 25% year-on-year in the July-September quarter to P2.5 billion, taking its profit for the first nine months to P6.7 billion, up 21% from the P5.6 billion posted in the same period year ago.

This translated to a 9.92% return on equity and 0.99% return on assets.

The lender’s net interest income grew 9% to P18.7 billion from January to September, which comprised 78% of its P23.8-billion total operating income, while net interest margin stood at 3.29%.

Likewise, China Bank reported a 10% growth in its overall loan portfolio to P552.5 billion from sustained demand across market segments.

Despite the increase in loans, it said that the bank’s asset quality remained healthy as its non-performing loan ratio (NPL) stood at 1.4% as of September, while its NPL coverage grew by 122%.

On the funding side, the bank’s total deposits also went up 12% to P777.2 billion as of September.

“The bank successfully raised P30 billion via retail bond offer and P7.5 billion via the issuance of green bonds which helped improve funding flexibility,” the bank said in the statement.

As it continued to upgrade its systems, processes, infrastructure, and manpower, the bank saw its operating expenses increase by 19% to P15.6 billion.

As of end-September, the bank’s assets grew 17% to P953.9 billion, keeping it “on track” to reach its goal of becoming a P1-trillion bank by 2020.

Meanwhile, its income from non-interest sources jumped 43% to P5.2 billion “driven mainly by service charges, fees and commissions, as well as trading and securities gains.”

Its total capital funds inched up 8% to P92.9 billion, with a total capital adequacy ratio of 13.6% and common equity Tier 1 ratio of 12.7%.

In nine months to September, China Bank’s investment banking subsidiary completed various transactions amounting to P423.6 billion.

“The bank continues to support the growth of the capital market through China Bank Capital,” it said.

In July, it raised P30 billion via its maiden fixed-rate bond offering, upsized from the initial target of P5 billion, making it as “one of the biggest corporate bond issuances this year.”

Shares in China Bank closed at P25.40 apiece on Tuesday, gaining 10 centavos or 0.40% from the previous day’s finish. — Beatrice M. Laforga

Da Vinci-linked Horse and Rider flops at NY auction

HORSE AND RIDER — GUERNSEY’S

A BRONZE sculpture said to be linked to Leonardo da Vinci was expected to fetch as much as $50 million when it hit the auction block. But it took less than a minute for the price to drop below $10 million, and still no bids came.

Horse and Rider, an 11-inch statue depicting a nobleman on a bucking horse, failed to find a buyer among the 15 people who gathered Wednesday in a ballroom at the Pierre hotel in New York.

“This is life,” said a visibly disappointed Arlan Ettiniger, the president of Guernsey’s auction house, which had set a low estimate of $30 million for the piece. “The sculpture remains unsold, but it doesn’t detract from its potential importance.”

It was cast in 2012 with a mold taken from a beeswax model created more than five centuries ago, according to Guernsey’s. The original’s current whereabouts are a mystery, and Da Vinci scholars have disagreed about the work’s authenticity.

Carlo Pedretti, who wrote scores of books on the Italian Renaissance master, examined the mold in 1985, around the time it was made, and declared it to be genuine. But Martin Kemp, a Da Vinci authority and emeritus professor of art history at Oxford University, has said it lacks “the characteristics of understanding horse anatomy and Renaissance armor that you would expect from Leonardo.”

Scholarly disagreement is common whenever a work attributed to Da Vinci surfaces. There’s still debate over the exhaustive restoration of Salvator Mundi, which fetched $450 million at Christie’s in 2017, becoming the most expensive artwork ever sold.

Ettinger had said he struggled to put a price on Horse and Rider. Only four contemporary sculptures, three by Jeff Koons and one by Louise Bourgeois, fetched more than $30 million at auction, according to Artnet data.

Guernsey’s, which Ettinger helped found in 1975, specializes in collectibles. It has auctioned off items including the baseball Mark McGwire hit for his then-record-breaking 70th home run, Jerry Garcia’s guitars, and Princess Diana’s jewels.

The auction house offered the bronze without a reserve, meaning it could have sold at any price, but they opted to call it a night when it became clear there was no interest. Bloomberg

Arts & Culture (11/05/19)

Joe Bautista at Galleria Duemila

JOE BAUTISTA opens Vertical and Horizontal Dreams at Galleria Duemila on Nov. 9, 4 p.m. Inspired by the Japanese architect Tadao Ando, Bautista’s compositions are blueprint abstractions on canvas. His bold colors and use of aluminum L-bars defines his fascination with linear and angular heights. The paintings are a combination of geometric and organic forms, following the concept of “concrete nature” Ando has developed. The spirit of Bautista’s works rely on minute details such as the play on light and shadows, the playful doodles and the joy of seeing it in an all-encompassing plan. This is his first solo exhibition in 25 years. The exhibit runs until Dec. 28. Galleria Duemila located at 210 Loring St. 1300 Pasay City. The gallery is open from Monday to Saturday from 10 a.m. to 6 p.m.

Two exhibits opening at Kulay Diwa

KULAY DIWA will be opening several exhibits which will open on Nov. 7 and run until Dec. 7. Nil Capinianes and Rodney Yap will have a joint exhibit called Alternate Universe. There will also be an exhibit, Three Davao Artists, featuring the works of Arvin C. Cantalejo, Jr., Lawrence Tulio, and John Renzo Daquigan. Kulay Diwa is at 25 Lopez Ave., Lopez Village, Sucat, Parañaque City.

MSO’s Pas De Deux

THE Manila Symphony Orchestra (MSO) Foundation, Inc. features world class artists for its fourth gala concert, Pas De Deux. The Manila Symphony Orchestra will perform with Juilliard-trained violin virtuoso and MSO’s Concertmaster Diomedes Saraza, Jr., and Korean cellist Yeonjin Kim under the baton of Grammy nominee conductor Darrell Ang. Diomedes and Yeonjin will be performing Brahms’ Double Concerto with the MSO. One of the most popular ballet suites by Tchaikovsky, Swan Lake, will also be performed by the MSO. The concert will be on Nov. 16, 4 p.m., at the Meralco Theatre, Pasig City. Tickets are available at TicketWorld (call 8891-9999 for inquiries or reservations).

Nefelibata at Robinsons Galleria

This month, catch the artworks of Daryl Hannah “Nam” Intal and Lloyd Lusica in a two-man exhibit, Nefelibata, at Robinsons Galleria’s Level 3, Veranda. Their artworks were created to express the artists’ love for art and to feel the spark that doesn’t abide the conventional work of art. Nefelibata runs until Nov. 17.

Faith Gospel Singers presents Obra ng Maestro

THE Faith Gospel Singers presents its 9th anniversary concert titled Obra ng Maestro featuring the Ellinwood Chamber Orchestra on Nov. 9, 6 p.m, at the Central United Methodist Church, Kalaw Ave., Ermita, Manila. Divided into four segments, the concert is a unique blend of Gospel songs, Original Pilipino Music, Broadway and movie themes, and inspirational music. The evening’s repertoire includes “Purihin Si Yahweh” by National Artist for Music Lucrecia Kasilag, “Somewhere” from West Side Story, “Circle of Life” from The Lion King, “Go the Distance” from Hercules, and “When You Believe” from Prince of Egypt. The group will also cover OPM hits such as “Panaghoy,” Smokey Mountain’s “Paraiso,” Joey Ayala’s “Manong Pawikan,” and Gary Valenciano’s “Gaya ng Dati.” The Faith Gospel Singers will also interpret African-American contemporary gospel songs “O Sifuni Mungu” and “Baba Yetu” which will showcase its choral versatility. Based at the Faith Baptist Church in Quezon City, the Faith Gospel Singers is a fellowship of Christian singers which ministers through God-centered excellence and music. The choir is directed by Naomi Sison, head of the UST Conservatory of Music’s piano department and a faculty member of the voice department. The Ellinwood Chamber Orchestra, the string and wind ensemble of Ellinwood Malate Church, is conducted by George Bernard Supetran, former principal violist of the UST Symphony Orchestra who also orchestrated some of the pieces in the concert. Admission is free. For inquiries and ticket reservations, visit Faith Gospel Singers Facebook page or contact 0917-849-1409.

CNPF net profit grows 13% in Q3

CENTURY Pacific Food, Inc. (CNPF) said its net income grew 13% to P897.85 million in the third quarter as it was able to sustain the growth in sales of its branded food products.

In a regulatory filing yesterday, the listed canned goods manufacturer said its consolidated revenues during the quarter accelerated 10% to P10.75 billion. Costs during the period increased 5% to P8.01 billion.

Year to date, the company’s net income increased 9% to P2.59 billion as consolidated revenues grew 7% to P30.36 billion

CNPF traced the improvement in its performance to its branded business, which recorded a 12% growth in sales during the third quarter and the nine-month period. This segment, which represents 77% of the company’s revenues, are sales from CNPF’s marine, meat and milk products such as Century Tuna, Argentina and Birch Tree.

The company’s original equipment manufacturer exports, which comprise the remaining 23% of revenues, fell 6% during the nine months. The company said it was due to the subdued pricing of tuna and coconut commodities during the period.

Costs of the company during the nine-month period inched 5% to P22.96 billion. It said it benefited from the lower prices of tuna, which is a main raw material in its some of its branded products.

“We are pleased to see pickup in demand during the third quarter, in line with improving consumer sentiment across the Philippines,” CNPF Chief Finance Officer Oscar A. Pobre was quoted as saying in a statement.

“As we approach the end of 2019, we look forward to closing the year with double-digit growth, specifically in our branded business, and are now working hard to sustain the positive momentum into 2020,” he added.

CNPF handles brands such as Century Tuna, 555, Blue Bay, Fresca, Argentina, Swift, Wow, Lucky 7, Angel, Birch Tree, Kaffe de Oro and Home Pride. Mr. Pobre said the strong brand recall of its products, coupled with the company’s wide distribution network, helps CNPF benefit from the increasing consumer spending in the country.

“So far, we have benefitted from lower raw materials prices and subdued inflation, expanding operating margins across most of our portfolio,” he said. “[W]e have been building out a robust innovation pipeline, as well as strengthening our brands, to support growth moving forward.”

Shares in CNPF traded flat in the stock market on Tuesday, closing at P15.10 apiece. — Denise A. Valdez

Japan wants to go cashless, but elderly still reluctant to make the shift

TOKYO — Cash is king in Japan, and more so for the country’s fast-ageing population who are still deeply reluctant to give it up.

Prime Minister Shinzo Abe’s push to make more Japanese — the world’s most dedicated cash-hoarders — switch to using cashless payments is producing some success, but not nearly as much as desired. A growing rank of the nation’s elderly pensioners are resisting change, which could see Japan fall further behind its peers in adopting mobile app payments and electronic money.

Tokyo wants to double the ratio of cashless settlements to 40% by 2025 and to 80% eventually to spur labor productivity. Japan pales in comparison with other countries — 96% of transactions in South Korea and 66% in China are cashless, data by an industry lobby Payments Japan Association show.

The transition to digital transactions will help Japan cope with a shrinking population and a tight labor market. Cashless payments will also allow stores to automate sales estimates and banks to cut back on costly automated teller machine networks.

Shoppers were recently encouraged to ditch cash for e-money after the government sweetened the deal by introducing a rebate program to ease the pain of a sales tax hike on Oct. 1.

Funded by $2.57 billion earmarked for subsidies, shoppers get a refund in the form of points if they use cashless payments at small shops and convenience stores.

JUMPING ON THE BANDWAGON
Big tech firms have responded with aggressive campaigns to promote their e-money payment systems including SoftBank Group Corp., Yahoo Japan Corp., e-commerce company Mercari and messaging app operator LINE Corp.

Some have met with initial success. QR code payment app PayPay — owned jointly by SoftBank and Yahoo Japan — saw memberships jump 5 million since August to 15 million, thanks in part to the government’s campaign.

East Japan Railway Co. also saw membership for the railway’s electronic settlement system hit 11 million, up more than one million since September.

“Customers benefit from the convenience of electronic payment, while we receive fees and reduce costs by going ticketless,” said Tomoyuki Soyama, deputy general manager tasked with IT business development at East Japan Railway. “It’s a win-win situation.”

The direct cost involving cash transactions, including labor at checkout counters, amounts to about $73.60 billion a year, Mizuho Financial Group estimates, suggesting that going cashless will dramatically reduce such costs.

Satoshi Kumagai, senior vice president in charge of financial services and digital business at convenience store chain operator Lawson Inc., said the ratio of cashless payments of sales have increased to 25% from October versus 20% previously.

“It would be ideal to see all the transactions go cashless given labor shortages and the need to boost convenience for our customers,” Kumagai told Reuters.

“On the other hand, we’ll need to find a way to help those elderly who may find it hard to go shopping without cash.”

HOARDING CASH
Japanese households hold more than half of their assets in cash and deposits. That proportion rises with the elderly, some of whom stick to cash as a way to prevent wasteful spending.

“Everyone likes cash, don’t they?,” a 65-year-old woman in Tokyo said, while looking at a cashless payment app banner.

“I’m not interested in going cashless. I feel uncomfortable with it in case I lose my mobile phone. It’s also unclear how much I’ve spent compared with taking money out of my wallet.”

Many small businesses are also struggling to shift to cashless payments, or see little benefits in doing so.

Mom-and-pop shops rely on daily cash incomes to run their operations, so they cannot depend on receivables too much, said Yukio Kawano, chairman of Japan supermarkets industry lobby.

A low crime rate, ultra-low interest rates and a nationwide web of ATMs have long made cash appealing in Japan, giving people few incentives to shift to cashless payments.

The trend, however, could change gradually as commercial banks consolidate their ATMs, reducing consumers’ access to cash.

Still, convincing the elderly, who make up nearly one-third of the population, to change their practices won’t be easy.

In a bustling shopping district of Tokyo’s downtown Yanaka Ginza, many small stores have yet to embrace cashless transactions.

Mitsuo Kotake, 70-year-old owner of a small flower shop, said he started offering PayPay three months ago.

But entering pin codes and setting up apps are simply too confusing for his customers, most of whom are seniors coming to buy flowers for the graves of their beloved ones, he added.

“It’s easy to use for young people, but elderly people are not familiar with it,” he said. “I don’t use cashless myself. Cash is quickest.” — Reuters

How PSEi member stocks performed — November 5, 2019

Here’s a quick glance at how PSEi stocks fared on Tuesday, November 5, 2019.