GCash to offer Singlife products

July 14, 2020 | 12:02 am

MOBILE WALLET firm GCash and digital insurance company Singapore Life (Singlife) Philippines have teamed up to launch an online marketplace to sell life insurance products.

In a press release on Monday, Globe Telecom, Inc.’s GCash said it partnered with Singlife Philippines so users can buy life insurance products through its electronic wallet (e-wallet) platform.

The insurance products will add to the current lineup of the GCash services such as savings, on-demand credit and investments.

“After offering customers a new, more customer-friendly way to do banking transactions, partnering with Singlife Philippines will allow us to also offer our clients access to a number of meaningful life insurance products that cater to their financial well-being,” GCash President and Chief Executive Officer Martha Sazon was quoted as saying.

Singlife Philippines secured its license from the Insurance Commission in February to become the first fully digital life insurance company in the country.

“Partnering with GCash, the biggest e-wallet platform in the Philippines, makes perfect sense as our goals are aligned. We offer simple and flexible products at affordable prices to a large base of customers,” Singlife Philippines CEO Rien Hermans said in the same statement.

Mr. Hermans had said they were eyeing to launch their initial products by April but pushed this back due to the coronavirus pandemic.

“We believe that everyone should have access to financial products that support them to manage their financial lives efficiently. By using digital technology, we can simplify products, make them affordable for a larger market, and design them to be customer centric. Our products adjust to your needs and give you the best value for your money,” Mr. Hermans said.

Officials from Singlife Philippines did not respond when asked for more details on the partnership.

GCash said the recent tie-up will be “one of many partnerships” the e-wallet company will make as it “continues to work with local industry leaders to offer the best insurance options to the people in the market.” — Beatrice M. Laforga

NLEX seeks toll hike as it completes Harbor Link C3-R10 section

July 14, 2020 | 12:02 am

NLEX CORP. has asked the Toll Regulatory Board (TRB) to allow it to raise toll rates following the completion of the 2.6-kilometer NLEX Harbor Link section between the new Caloocan Interchange, C3 Road/5^th Avenue and the new Navotas Interchange in R10/Mel Lopez Boulevard.

In a bulletin published in newspapers on Monday, NLEX Corp. said: “As indicated in the investment proposal, the construction of the C3-R10 Section Project involves a P6.5-billion investment. Thus, in order to allow NLEX Corp. to recoup the costs arising from the C3-R10 Section project, it was proposed that the investment recovery shall involve two components.”

Such components are the additional P2 to the existing open toll system toll rate (per entry) and the extension of the 2008 TRB-approved authorized toll rate formula for the entire Manila North Expressway Project until 2037.

NLEX Corp. is seeking to implement the following toll rates: P51.33 (from P49.07) for class 1 vehicles (cars), P128.34 (from P122.68) for class 2 vehicles (mini vans and buses), and P154 (from P147.21) for class 3 vehicles (large truck and trailers).

“The petition will start the regulatory review process by TRB. Upon approval, the additional toll will be applied to the existing toll rate charged on entry in Balintawak, Mindanao Ave., Karuhatan, Paso de Blas, Meycauayan, Marilao and Bocaue SB toll barrier,” the company said in a statement e-mailed to BusinessWorld on Monday.

The new NLEX Harbor Link section, which features the new Caloocan interchange with on and off ramps along Grace Park; the new Malabon Exit with off ramp on Dagat-Dagatan Avenue; and the new Navotas Interchange with on and off ramps on North Bay Boulevard South, has addressed the worsening traffic conditions and offered an alternative route for commuters and truckers, currently affected by traffic choke points along Quezon Avenue, EDSA, and A. Bonifacio in Manila, NLEX Corp. said.

“The new section has also improved travel time between the Mindanao Toll Plaza and the Port Area in Manila to just 15 to 20 minutes,” it added.

NLEX Corp. is under Metro Pacific Tollways Corp., the tollways unit of Metro Pacific Investments Corp., one of 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 stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

Katharine Hepburn’s love letters to Howard Hughes up for auction

July 14, 2020 | 12:02 am

LOS ANGELES — She signed off as “Country Mouse” and called him “My most excellent boss.”

She was Hollywood star Katharine Hepburn and he was eccentric entrepreneur Howard Hughes. Many of her letters to him are going up for auction in Los Angeles for the first time on July 23.

The emerald and diamond engagement ring Hughes gave to Hepburn in 1938 is also for sale, and is expected to fetch between $20,000 — $30,000 at the Profiles in History auction.

Brian Chanes, head of consignment relations at Profiles in History, said the items were rare because of their personal nature.

“Very little has really eked out because he (Hughes) was such a private individual,” Chanes said. “We have over 55 hand-written letters, love notes, bedside notes from Katharine Hepburn. They were lovers for about a year, a year and a half, from 1937 to ‘38 and they’re very, very juicy.”

Hughes and Hepburn never married but their romance, which was chronicled in the 2004 movie The Aviator, was a huge celebrity story at the time.

The letters are expected to fetch up to $15,000 at the auction.

Hepburn used pet names and pseudonyms like C. Mouse and Mrs. H.R. Country when signing the letters, which showered the movie mogul and millionaire businessman with praise.

“My most excellent Boss” begins one. In another, The Philadelphia Story actress called him “brilliant as Einstein,” and “graceful as a gazelle.”

The letters and engagement ring are part of a wider collection of Hughes’ documents and personal belongings that were acquired from the family of the late Vernon C. Olson, who was private accountant to Hughes.

Other items include the two-tone jacket Hughes wore while piloting his huge Spruce Goose flying boat, his trademark fedora hat and contracts for multiple movies. — Reuters

Mandatory masks, Mickey at a distance as Walt Disney World reopens

July 14, 2020 | 12:01 am

MICKEY waved from a distance and visitors wore colorful face masks with mouse ears on Saturday as Florida’s Walt Disney World opened to the public for the first time in four months amid a surge of coronavirus cases in the state.

Walt Disney Co. welcomed a limited number of guests to its two most popular parks at the sprawling Orlando complex, the world’s most-visited theme park resort, with a host of safety measures designed to reassure visitors and reduce the chances of catching the sometimes deadly virus.

Executives felt confident they had a responsible plan for reopening in phases during the pandemic, said Josh D’Amaro, chairman of Disney’s parks, experiences and products division.

“This is the new world that we’re operating in, and I don’t see that changing anytime soon,” D’Amaro said in an interview on Saturday after he greeted guests and workers at the park.

Disney’s reopening of parks in Asia helped provide assurance about moving ahead in Florida, he added. Disneyland Shanghai opened in May, followed by the Disneyland parks in Hong Kong and Tokyo in June and July, respectively.

“I feel really good about our environment,” D’Amaro said. “We’re taking this seriously.”

Disney did not say how many people entered Walt Disney World on Saturday, but D’Amaro said he saw “really good demand” for reservations in the short term and into 2021.

At the Magic Kingdom and Animal Kingdom, the two parks that reopened Saturday, guests and employees wore face masks, underwent temperature screenings, and were told to social distance everywhere from streets to rides. Plexiglass separated rows in lines, and ground markings indicated where people should stand.

Epcot and Disney’s Hollywood Studios, the two other Walt Disney World parks, are scheduled to reopen on Wednesday.

The resort suspended parades, fireworks and other activities that draw crowds, as well as up-close encounters with Mickey Mouse, Cinderella and other characters. Instead, characters appeared on floats or on horseback.

‘SO HAPPY TO BE BACK’
Some pictures online showed people close together waiting to get in. Disney employees, called cast members, began enforcing distancing requirements after about 30 minutes, Carlye Wisel, a journalist who writes about theme parks, said on Twitter.

Other videos showed people inside staying apart, cheering, taking selfies and enjoying the park without long lines. “I’m so happy to be back!” a fan who calls herself That Crazy Disney Lady said in a video posted on YouTube.

Florida has emerged as an epicenter of COVID-19 (coronavirus disease 2019) infections. Over the past two weeks, the state reported 109,000 new coronavirus cases, more than any other US state.

Still, many Disney fans and workers were eager for Disney World to open its gates. The resort employs 77,000 people.

Disney said it had trained employees to nudge guests who become lax about the rules. Plentiful signs and audio announcements every 10 minutes reminded visitors of the new measures.

“There is a shared responsibility here so guests are going to have to do their part,” D’Amaro said.

Coronavirus shutdowns have devastated Disney’s film, TV and theme park businesses. Having guests back at Walt Disney World is key to the company’s financial recovery. About 75% of the parks unit’s operating income comes from Orlando, Imperial Capital analyst David Miller estimates.

Florida’s governor, Ron DeSantis, approved Disney World’s reopening plans in late May, before the current surge.

About 750 stage performers were absent because of a dispute over coronavirus testing. The Actors Equity union wants Disney to provide regular testing of members who must perform without masks.

Disney has said it is following health experts’ recommendations to focus on other safeguards. If employees seek tests on their own, Disney’s health insurance will cover it, according to a source familiar with the matter.

Seven other unions reached agreements with Disney on conditions for returning to work.

Shanghai Disneyland has increased capacity from its original limit of 20%, or about 16,000 people a day, when it re-opened in May. Guest surveys showed “exceptionally strong” satisfaction with the Shanghai experience and the safety measures, D’Amaro said. — Reuters

Work on Sonora Garden Residences resumes

July 14, 2020 | 12:01 am

WORK on Sonora Garden Residences, the joint venture project of Robinsons Land Corp. (RLC) and DMCI Homes in Las Piñas, has restarted after lockdown measures eased in Metro Manila.

“Construction of Sonora Garden Residences is moving forward, taking into consideration the national and local governments’ guidelines and requirements in preventing the spread of COVID-19,” RLC DMCI Property Ventures, Inc. said in a statement.

The three-building condominium development is located within the Robinsons Mall Las Piñas Complex, near Alabang-Zapote Road. Construction started late last year.

The resort-inspired condominium development is seeking to attract professionals and startup families, with units ranging from 28 to 83.5 square meters with balcony.

Seventy percent of the property’s land area will be devoted to open spaces, gardens, and amenities.

Units at Sonora Garden Residences are now pre-selling at P4.07 million upwards.

Bill allowing sale of bad loans to asset management firms filed in Senate

July 14, 2020 | 12:01 am

A measure allowing financial institutions to sell bad loans to asset management companies has been filed in the Senate as banks anticipate a rise in nonperforming assets.

Under Senate Bill No. 1594, the “Financial Institutions Strategic Transfer Act,” Senator Imee R. Marcos provided for the transfer of bad loans to free up banking systems and pave way to more lending activities.

“There is a need for the State to enact measures for banks and other financial institutions to offload their NPAs,” Ms. Marcos, who chairs the economic affairs committee, said in the explanatory note of the bill.

Citing the Bankers Association of the Philippines, she said nonperforming asset ratios can rise to 20% in a matter of months from the expected 5% today.

“High NPA ratios affect the ability of banks to provide financial intermediation services through both capital losses and management/administration losses,” she said.

The proposal is among the measures the Department of Finance had submitted initially as an amendment to the Bayanihan 2 bill. Senator Juan Edgardo M. Angara, finance committee chair, however recommended tackling it in a separate bill.

The House of Representatives, for its part, approved its version under House Bill No. 6816 on final reading ahead of the June 5 adjournment.

The measure is similar to the Special Purpose Vehicle Law enacted in 2002 in the wake of the Asian financial crisis.

“The financial relief strategy back then was able to lower the ratio of bad loans to total loans from 14.6% in 2001 to 5.1% in 2005. Liquidity was created in the hundreds of billions,” Ms. Marcos said in a statement.

“Greater liquidity means banks and other financial institutions will be able to lend more to keep businesses in operation.”

Under the bill, financial institutions can sell their nonperforming assets, which may be nonperforming loans or real and other properties acquired, to Financial Institution Strategic Transfer Corporations.

The corporation may, in the case of nonperforming loans, restructure or condone debt, among other restructuring activities.

The bill also provides that transfers of NPAs are exempt from documentary stamp tax, capital gains tax, value-added tax and creditable withholding income tax. — Charmaine A. Tadalan

First Gen unit fined for ‘distorted’ supply pricing

July 14, 2020 | 12:01 am

THE Energy Regulatory Commission (ERC) has imposed a P1-million fine on a power generation unit of Lopez-led First Gen Corp. for supposedly offering its supply at an “anti-competitive” price.

The listed energy company apprised the stock exchange on Monday that its wholly owned subsidiary Prime Meridian PowerGen Corp. (PMPC) was served with a notice of violation of Section 45 or the anti-competitive behavior clause of Republic Act No. 9136, also known as the Electric Power Industry Reform Act.

On Aug. 16, 2017, the second unit of PMPC’s 97-megawatt (MW) Avion natural gas power plant in Batangas City deviated from its usual offer price, raising it to P32 per kilowatt-hour (kWh) at one interval from the average price of P5.35/kWh for previous intervals.

Avion had done so to prevent its final 1-MW block of registered capacity from getting dispatched, as it refrained from offering less than the 50.3-MW real-time dispatch schedule it was given in two separate intervals that day. The Wholesale Electricity Spot Market (WESM) rules state that a generating plant cannot shy away from its real-time dispatch schedule by more than -3%, or by 1 MW, whichever is higher.

“By trying to withhold its 1-MW capacity, Avion not only undermined the competition in the market, but also distorted the market price by setting the price at a level that was not reflective of the marginal cost of satisfying the demand in the market,” the ERC said in a 10-page decision signed on July 10.

According to the power generator, due to high ambient temperature during two dispatch intervals, the second plant unit’s maximum generation was at 49.08 MW and 48.85 MW, which do not fall within the prescribed limit set by WESM.

The ERC said that Avion cannot justify its action by claiming its compliance with the market rules, pointing out that it could have dispatched supply within the allowable limit without raising its price, based on the plant’s data.

Its alleged intent not to be dispatched, the ERC noted, goes against the kind of competition it seeks to harness via the spot market. “This particular behavior caused a distortion in the market price which Avion profited from,” it added.

Moreover, the regulator said the supply offer is deemed a market manipulation when Avion allegedly made it appear that it had produced to the extent of its plant’s registered capacity, “when in fact, it has not.”

“PMPC is in the process of reviewing the decision,” First Gen said.

On Monday, shares in First Gen fell 5.01% to close at P23.70 each. — Adam J. Ang

Online learning, permanent work-from-home schemes garner strong interest

July 14, 2020 | 12:00 am

How PSEi member stocks performed — July 13, 2020

July 14, 2020 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Monday, July 13, 2020.

Peso strengthens on positive sentiment

July 13, 2020 | 9:00 pm

THE PESO appreciated against the greenback on Monday, supported by positive market sentiment after progress in the clinical trial of an anti-viral drug for patients of the coronavirus disease 2019 (COVID-19).

The local unit closed at P49.45 versus the dollar on Monday, gaining 3.5 centavos from its P49.485 finish on Friday, data from the Bankers Association of the Philippines showed.

The peso opened the session at P49.455 per dollar, which was also its weakest showing for the day. Meanwhile, its intraday best was at P49.375.

Dollars traded slipped to $667.15 million from the $684.9 million on Friday.

A trader said the peso’s strength came after news of progress in an anti-viral drug for COVID-19.

“The peso appreciated after the clinical trials on the antiviral drug remdesivir indicated reduced risk of death from the COVID-19 pandemic,” the trader said in an e-mail.

South Korean health authorities said one in three seriously-ill COVID-19 patients showed signs of recovery after being administered with the antiviral drug of Gilead Sciences, Inc. Earlier, remdesivir also shorted hospital recovery for a US clinical trial.

Authorities said more research was needed to shed light on whether improvement was attributable to the drug or to factors such as patients’ immunity and other therapies.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the peso’s climb to market sentiment on the upcoming retail Treasury bond (RTB) offer.

“Upcoming RTB issuance also partly supported sentiment on the peso as this may entail some foreign buyers,” he said in a text message.

The Bureau of the Treasury said the government is looking to raise at least P30 billion through the five-year RTBs which will be offered on July 16 to Aug. 7.

The offer will be the second for the year following the P310.8 billion raised from RTBs in February.

For Tuesday, the trader expects the peso to move within the P49.40 to P49.60 levels versus the dollar, while Mr. Ricafort gave a forecast range of P49.35 to P49.55. — L.W.T. Noble with Reuters

Stocks decline as market looks for fresh leads

July 13, 2020 | 9:00 pm

By Denise A. Valdez, Reporter

THE LOCAL bellwether posted losses on Monday as investors waited for a stronger catalyst other than the growing number of coronavirus disease 2019 (COVID-19) cases in the country.

The benchmark Philippine Stock Exchange index (PSEi) shed 24.81 points or 0.4% to close at 6,172.57, while the broader all shares index trimmed 18.85 points or 0.51% to end at 3,633.75.

“The market skipped out on most of the region’s upward move today, as investors chose to stay on the sidelines in advance of the second-quarter earnings reports scheduled to come out in the coming weeks,” Timson Securities, Inc. Trader Darren T. Pangan said in a text message on Monday.

Most Asian markets were posting gains when the PSE ended trading on Monday. Japan’s Nikkei 225 and Topix indices closed 2.22% and 2.46% higher, respectively, and South Korea’s Kospi index climbed 1.67%.

“Here at the PSE, the main index remains a laggard and continues to move in the opposite direction. A spike in COVID-19 fatalities over the weekend has stomped out any optimism that investors might have,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.

The Department of Health has been reporting thousands of new COVID-19 cases daily for the past 10 days. Total confirmed cases ballooned to 56,259 as of Sunday, while the death toll reached 1,534, based on data reported early Monday. A total of 38,679 are active COVID-19 cases.

Mr. Mangun said the growing number of cases will continue worrying investors until the situation in Cebu City improves. The urbanized area in the Visayas is the only region in the Philippines still under a strict lockdown because of its 6,113 cases — the highest in a single city.

Sectoral indices were divided equally among gainers and losers at the end of Monday’s trading. Mining and oil rose 67.43 points or 1.26% to 5,401.49; services increased 8.35 points or 0.58% to 1,443.82; and industrials climbed 28.35 points or 0.37% to 7,689.89.

On the other hand, financials dropped 12.05 points or 0.98% to 1,209.69; property fell 23.98 points or 0.8% to 2,957.21; and holding firms slipped 46.06 points or 0.7% to 6,483.20 at the end of session.

Value turnover stood at P4.64 billion with 907.56 million issues switching hands, down from Friday’s value turnover of P5.17 billion with 2.26 billion issues.

Decliners outnumbered advancers, 136 against 69, while 34 names ended unchanged at the session’s close.

Net foreign selling went down to P849.32 million on Monday from P1.41 billion in the previous session.

“The PSEi continues to stay above the 6,100 support area, and we may have to see if this holds this week,” Mr. Pangan said.

Hotspots face strict lockdown as COVID-19 cases top 57,000

July 13, 2020 | 8:16 pm

By Vann Marlo M. Villegas, Reporter

SOME AREAS of the country might revert to a stricter lockdown this week after coronavirus infections topped 57,000 on Monday, while Manila and nearby cities would probably remain under a general lockdown, the government said on Monday.

Metro Manila mayors wanted the capital region to be kept under a general community quarantine, Carlito G. Galvez, Jr., chief enforcer of anti-COVID-19 measures, said at an online news briefing.

“We met with Metro Manila mayors twice and they are really recommending that we maintain the quarantine,” he said in Filipino.

Mr. Galvez said the mayors’ “hybrid” recommendation sought to balance economic activities and stricter health protocols in the capital region. He added that an inter-agency task force made up of Cabinet officials would discuss the proposals at its next meeting.

President Rodrigo Duterte would announce his decision on the various lockdown levels nationwide on Wednesday, Mr. Galvez said.

He said the government would use a targeted approach to the lockdown and won’t use a sweeping strict quarantine for the entire metro to protect the economy.

Mr. Duterte locked down the entire Luzon island in mid-March, suspending work, classes and public transportation to contain the pandemic. People should stay home except to buy food and other basic goods, he said.

He extended the so-called enhanced community quarantine for the island twice and thrice for Metro Manila. The lockdown in the capital region has since been eased, with many businesses allowed to reopen with a skeletal workforce. Mass gatherings remained banned.

The Department of Health (DoH) reported 836 new coronavirus infections on Monday afternoon, bringing the total to 57,006. The death toll rose to 1,599 after 65 more patients died, while recoveries increased by 4,325 to 20,371, it said in a bulletin.

Of the new cases, 749 were reported in the past three days, while 87 were reported late. The agency said 89 duplicates had been removed from the tally.

Health Undersecretary Maria Rosario S. Vergeire told an online news briefing on Monday afternoon 978,884 tests have been conducted on 908,779 people. She added that 71,103 people have tested positive or an infection rate of 7.8%.

“This is higher than the World Health Organization benchmark of less than 5%,” she said. It takes 8 days for infections to double, she added.

The agency failed to report new cases on Sunday due to “significant volume of data,” announcing new numbers instead on Monday morning.

Ms. Vergeire told a separate morning briefing “robust surveillance has led to an increased number of reconciled data on recoveries.” She also traced the increase to better coordination with local governments.

“We expect more COVID-19 recoveries that we can add to our official count,” she said.

Meanwhile, St. Luke’s Medical Center said its hospitals in Quezon City and Bonifacio Global City had reached the full capacity of allocated COVID-19 (coronavirus disease 2019) intensive care unit beds.

“We request the public to consider bringing critically ill COVID-19 suspects to alternative hospitals so they will receive immediate and utmost care,” it said on its Facebook page.

Both hospitals would still admit non-coronavirus patients for treatment, including out-patient procedures, it said.

The Chinese General Hospital and Medical Center earlier said its ward for coronavirus patients had been running at full capacity.

The coronavirus has sickened 13.1 million and killed about 572,000 people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization. About 7.6 million people have gotten well, it said.