DMCI to turn over 2nd Verdon Parc tower by Nov.

September 22, 2020 | 12:02 am

DMCI HOMES is set to turn over units at the second building of its Verdon Parc project in Ecoland Drive, Davao City by November.

The property developer said the Belvedere tower is 97% complete as of August, allowing owners to move in by November.

“Construction work on the building, which has 20 storeys of residential units, is down to the unit finishes and completion of building enhancements and upgrades,” DMCI Homes said.

The turnover date of Belvedere building was moved from March to November to be able to fulfill the company’s standard quality management processes and Office of the City Building Official requirements.

DMCI Homes is committed to the turnover of the two other towers, Trevans and Maurin buildings, by February 2021 and October 2021 respectively.

Tenet leads US box office while Mulan sales drop in China

September 22, 2020 | 12:01 am

FEWER US fans turned out in North American cinemas this weekend, with no big new movies opening, further complicating theaters’ efforts to recover from a five-month shutdown because of coronavirus disease 2019 (COVID-19).

Tenet remained the No. 1 movie in the US and Canadian theaters, researcher Comscore, Inc. said Sunday, even as ticket sales of $4.7 million slumped 26% from the previous week. The sci-fi thriller from AT&T Inc.’s Warner Bros. made the most sales from China, where it grossed $5.6 million this weekend.

Meanwhile, Walt Disney Co.’s Mulan made only $6.5 million in its second weekend in mainland China, a big drop-off from its already lackluster $23.2 million opening weekend sales. The movie debuted in Hong Kong, where it has faced a boycott, and Disney didn’t provide a sales number for the opening there.

While some of the North American shortfall is due to the continued closings of theaters in New York City and Los Angeles, the two largest markets, it also indicates audiences are wary of returning to theaters. Against that backdrop, studios have delayed their biggest releases, including most recently Warner Bros.’ decision to hold Wonder Woman 1984 until Christmas Day.

Los Angeles County health officials said this week it’s possible business restrictions may ease next month if COVID-19 trends continue to improve. New York Governor Andrew Cuomo said his state would hold off on any plans to let theaters reopen until the virus is under control.

About 3,500, or 58%, of North America’s 6,000 theaters are open, Comscore said.

The numbers add to an already difficult time for cinema chains. AMC Entertainment Holdings, Inc., the largest theater operator in the world, borrowed heavily to survive being closed for much of 2020. Representatives of the National Association of Theater Owners said at a Goldman Sachs Group, Inc. conference on Sept. 17 that the industry is still struggling to make people aware cinemas are open, partly because there are so few new releases.

“As more movies come out, more people are seeing the safety precautions that theaters are taking and they’re telling their friends who haven’t gone to the movies yet, and it builds from there,” said Phil Contrino, the group’s director of media and research. “And that’s incredibly crucial at this stage.”

Warner Bros. tried to buck the odds with the Sept. 3 theatrical release of Tenet, a $200 million production. But its path to financial success looks tenuous. The movie has taken in a total of $250 million worldwide, a sum the studio splits with theater owners, and Warner Bros. has also spent tens of millions of dollars marketing the picture.

The next big US movie release isn’t scheduled until Nov. 6, when Disney’s Marvel installment Black Widow is scheduled to premiere. It’s not clear whether that will go forward, and theater operators have repeatedly said they’re remaining flexible as the pandemic continues. The studio has experimented with new ways to get its films in front of audiences, releasing Mulan to Disney+ subscribers for $30. It didn’t provide data on how many customers bought the movie.

In Japan, the opening of Tenet made $1.15 million from 38 IMAX screens, the biggest ever for Warner Bros. and a Christopher Nolan film, despite theater capacity being restricted at 50%. Those IMAX screens accounted for 27% of the film’s gross in Japan. — Bloomberg

Money service firms linked to suspicious transactions

September 22, 2020 | 12:01 am

A NUMBER of local money service businesses were found to have allowed transactions from unknown customers to unverified entities even before the massive Bangladesh Bank heist in 2016, showing the country is an “attractive venue for financial crime,” a report found.

The Philippine Center of Investigative Journalism (PCIJ) looked into suspicious activity reports (SARs) submitted to the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) by the Bank of New York Mellon (BNYM) that involved Filipino subjects with amounts “too big to be left unnoticed by banks and regulators.”

“From the more than 2,100 SARs included in the FinCEN files, a total of 27 SARs, filed between 2010 and 2016, refer to Filipino individuals and companies as originators and beneficiaries of “suspicious” wires. These PDF reports contain narratives of more than 1,700 transactions worth at least $644 million,” PCIJ’s report said.

It noted actual figures could be higher as there are still transactions cited in prior SARs that were not included.

Based on the SARs involving activities of Philrem Service Corp. and Werquick, Inc., both local money service businesses, some of their transactions were flagged for reasons including the nondisclosure of the source of funds, unverifiable recipients, and large transactions done in between short periods of time.

“The findings of the reports once again emphasize the need to pursue intelligence-led changes for financial crime risk management — driven by meaningful improvements to public-private sector cooperation and cross-border information sharing, coupled with the use of technology — to enhance the global anti-financial crime framework,” International Institute of Finance President and Chief Executive Officer Tim Adams said in a statement.

About 70% of the estimated total $644 million were transacted by the money service businesses, of which $335 million was by Philrem while $124.1 million was from Werquick. The study also found 5,001 suspicious transfers worth $1.03 billion involving Philrem and Werquick from wires done from November 2012 to March 2016.

“In the SARs, it appears that Philrem and Werquick were able to send multimillion in dollars without identifying or verifying the source of the funds, the true beneficiary, as well as the purpose of the transactions,” PCIJ said.

Philrem is currently facing charges for four counts of money laundering for failing to report suspicious transactions in relation to the Bangladesh Bank heist in 2016.

A recent study by the Anti-Money Laundering Council (AMLC) also found that transactions related to sex exploitation of children during the lockdown were done mostly through money service businesses (60.2%), followed by banks where 35.2% of the money flowed through.

The AMLC, which serves as the Philippines financial intelligence unit and regulator, has a capacity that “has long been in question” given it has to deal with numerous suspicious transaction reports (STRs) with only 30 to 40 staff members in its financial intelligence analysis group, PCIJ said.

Earlier this month, AMLC Executive Director Mel Georgie B. Racela said they already received approximately 400,000 STRs so far this year, which was the total for 2019.

Suspicious transaction reports are filed with the AMLC when institutions see financial transactions that do not appear to be ordinary or could potentially be part of a dirty money scheme.

The Philippines is under an observation period until February 2021 and is expected to address the gaps in its anti-money laundering and terrorism financing rules to prevent being included in the gray list of countries deemed lax in enforcing measures against dirty money schemes. — Luz Wendy T. Noble

No identified fourth major telecommunications player — NTC

September 22, 2020 | 12:01 am

THE National Telecommunications Commission (NTC) has not identified a “fourth” major telecommunications player, an official said Monday.

“In terms of market capitalization, there are three major players such as PLDT group, Globe group, and DITO. There are other players, namely: Converge, InfiniVAN, NOW Telecom, and many others. This list is not in any hierarchy,” NTC Deputy Commissioner Edgardo V. Cabarios told BusinessWorld in a phone message on Monday, when asked to comment on NOW Corp.’s claim that its affiliate, NOW Telecom Co., Inc., is the country’s fourth telco player.

Mr. Cabarios added there are four entities that have been authorized to operate mobile networks: PLDT group, Globe group, DITO, and NOW Telecom.

In a statement e-mailed to reporters at the weekend, NOW Telecom said the NTC had “extended” its provisional authority to install, operate, and maintain a nationwide mobile telecommunications system.

“As the country’s fourth telco, NOW Telecom, an affiliate of publicly listed telecommunications, media, and technology firm NOW Corp., is currently setting the stage for its public listing as well as its 5G or fifth generation network rollout,” it added.

But industry observer and expert Eliseo M. Rio, Jr., a former undersecretary at the Department of Information and Communications Technology (DICT), said he does not know of any NTC nor DICT pronouncements declaring NOW as the fourth telco.

“They have been saying that… to boost their stocks. Today, their stocks dramatically shoot up,” he said in a phone message.

Shares in NOW Corp. on Monday closed 49.79% higher at P3.58 apiece.

NOW Corp. announced last year its affiliate’s collaboration with a Singapore-based company for a nationwide fiber rollout, which was seen to boost its ambition to become the fourth major telco player.

NOW was one of the candidates in the search for the country’s third telco service provider. The slot was given to Dito Telecommunity Corp., which is owned by Dennis A. Uy’s Udenna Corp. and Chelsea Logistics and Infrastructure Holdings Corp., and China’s China Telecommunications Corp. — Arjay L. Balinbin

KMC expands offerings amid ‘new normal’

September 22, 2020 | 12:01 am

KMC SOLUTIONS (KMC) expanded its offerings to cater to businesses that are adapting to the “new normal” amid the pandemic.

In a statement, KMC said it launched HOME, HUB, and HQ — “workforce distribution plan that allows businesses to split their operations and to provide their people with the option to work either from their home, near their homes or in their company headquarters.”

KMC said this would help address the operational challenges faced by business owners, as well as issues experienced by employees such as transportation restrictions, internet stability and data privacy.

“Through HOME, HUB, and HQ, we are partnering with our clients, enabling business continuity amid disruptions, providing clients with responsive and flexible real estate options to accommodate new ways of working,” Michael McCullough, CEO and co-founder of KMC, said.

To learn more about HOME, HUB, and HQ, and other services provided by KMC, visit https://kmc.solutions/.

PHL ranks 17th overall in total COVID-19 tests conducted

September 22, 2020 | 12:00 am

How PSEi member stocks performed — September 21, 2020

September 22, 2020 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Monday, September 21, 2020.

Peso climbs on local data, US central bank decision

September 21, 2020 | 9:00 pm

THE PESO strengthened against the dollar on Monday after the country’s current account deficit narrowed in the second quarter and the US Federal Reserve last week said it would keep rates near zero.

The local unit closed at P48.365 versus the dollar on Monday, three centavos higher than the P48.395 finish last Friday, data from the Bankers Association of the Philippines showed.

The peso started Monday’s session at P48.38 per dollar. It logged a low of P48.39 during the session while its intraday peak stood at P48.35 against the greenback.

Dollars traded sank to $662.83 million on Monday from Friday’s $832.54 million.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso was stronger following the Bangko Sentral ng Pilipinas’ (BSP) release of data on the country’s current account.

“The peso continued to strengthen versus the dollar for the second straight trading day after stronger-than-expected current account data despite the coronavirus pandemic. This is largely reflecting the year-on-year decline in imports that resulted in lower demand for dollars to pay for imports,” Mr. Ricafort said in a text message yesterday.

The country’s current account swung to a $4.4-billion surplus last quarter from a year earlier after the trade in goods deficit narrowed amid the coronavirus disease 2019 pandemic.

The surplus was a turnaround from the $931-million deficit in the second quarter of 2019 and higher than the $92-million surplus in the first quarter, data released by the BSP on Friday showed.

The central bank said the surplus was mainly driven by disruptions in the supply chain for imports and exports due to coronavirus restrictions.

The country’s current account includes transactions for trade in goods and services, investments and fund transfers.

Meanwhile, a trader said the peso appreciated as the US Federal Reserve kept policy rates steady last week.

The Fed on Wednesday vowed to keep interest rates near zero until inflation is on track to overshoot the US central bank’s 2% target, a bold new promise aimed at bringing millions of out-of-work Americans back to the labor market, Reuters reported.

But the new guidance also marked the start of a vigorous monetary policy debate as the Fed shifts from a crisis-era focus on keeping markets afloat during the coronavirus pandemic to managing what it now sees as a steady, multi-year recovery.

For today, Mr. Ricafort expects the peso to range from P48.30 to P48.95 per dollar while the trader sees the local unit moving from P48.15 to P48.65. — K.K.T. Jose with Reuters

PSE index almost unchanged on lack of firm leads

September 21, 2020 | 9:00 pm

By Denise A. Valdez, Senior Reporter

THE MAIN INDEX ended nearly unchanged on Monday as the lack of a strong catalyst kept investors on the sidelines.

The 30-member Philippine Stock Exchange index (PSEi) inched up 0.42 point or less than a percent to close at 5,909.32 at the start of the week. The broader all shares index trimmed 4.81 points or 0.13% to end at 3,548.77.

“Without any market-moving news, local market continued to move sideways on thin trade,” Aniceto K. Pangan, equity trader at Diversified Securities, Inc., said in a text message.

The PSEi opened Monday’s session at 5,913.6. It reached a peak of 5,925.31 minutes after the market opened then moved sideways for the rest of the session. It hit a low of 5,879.76 but picked up in the last hour of trading.

“Investors remain cautious despite improving economic activity,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an email.

Tepid trading was evident in Monday’s value turnover, which stood at P4.27 billion with 2.13 billion issues switching hands. This is down from last Friday’s P7.64 billion with 767.34 million issues.

What drove most of Monday’s trading was news on second-line telco firms, Mr. Mangun said.

Many investors flocked to Now Corp. after it said it got authority from regulators to operate a nationwide mobile telco system. Shares in Now Corp. closed as the most active stock of the day with a gain of 49.79%.

Shares in DITO CME Holdings Corp. came in as the second most active stock, climbing 9.57% at the end of session.

Among PSEi members, Sy-led firms led the gainers: SM Prime Holdings, Inc. went up 3.39%; BDO Unibank, Inc. grew 1.24%; and SM Investments Corp. climbed 0.86%. This offset the losses of Ayala-led companies: Bank of the Philippines Islands (-1.98%), Ayala Land, Inc. (-1.61%) and Ayala Corp. (-0.28%).

Most sectoral indices ended the session in red territory. Mining and oil dropped 45.97 points or 0.75% to 6,014.71; services lost 9.65 points or 0.65% to 1,453.85; industrials shed 25.16 points or 0.32% to 7,819.81; financials slid 3.33 points or 0.28% to 1,151.24; and holding firms dipped 1.04 points or 0.01% to 6,142.65.

The sole gainer was property, which added 18.95 points or 0.69% to close at 2,762.20 at the end of Monday’s session.

Decliners outnumbered advancers, 138 against 58, while 42 names ended Monday’s session unchanged.

Offshore investors became net sellers for the seventh straight day, tallying P551.85 million in net outflows on Monday, down from the last session’s P892.27 million.

Diversified Securities’ Mr. Pangan said market resistance may stay at 6,040 and support at 5,695.

House power squabble risks delay in 2021 budget approval

September 21, 2020 | 7:39 pm

By Charmaine A. Tadalan, Reporter
and Kyle Aristophere T. Atienza

A BREWING coup at the House of Representatives after some congressmen complained of an inequitable share in the P4.5-trillion national budget for next year threatens to delay the passage of the bill, some lawmakers said. “A power struggle in the House will affect our timeline, and I hope not because we’re still in the middle of the pandemic,” Senate Minority Leader Franklin M. Drilon told the ABS-CBN News Channel on Monday. “We have 10% unemployment and we’re expected to have a contraction in our economy, so a delay in the budget would be very critical,” he added.

Presidential Son and House Deputy Speaker Paolo Z. Duterte at the weekend threatened to stage a coup against Speaker Alan Peter Cayetano after some lawmakers complained of inequitable shares for their districts in the 2021 national budget.

Mr. Duterte on Sunday said he had sent a message to a group of lawmakers on Viber that he would ask the Mindanao bloc of congressmen on Monday to declare the positions of speaker and deputy speakers vacant. That threat had not yet materialized.

A similar conflict among congressmen over alleged budget insertions deferred House plenary debates on the 2019 spending plan, delaying its approval by four months.

Senate President Vicente C. Sotto III said in a mobile phone message it was possible for the budget to get delayed, because the budget itself was the source of concern.

Senator and Finance committee chairman Juan Edgardo M. Angara said the conflict should not get in the way of the budget, while Senator Panfilo M. Lacson blamed pork barrel insertions for the in-fighting.

“These are internal matters for them to collectively discuss and dispose of,” Mr. Angara said in a mobile phone message. “We just hope that the ability of Congress to pass a budget in a timely manner will not be affected.”

Mr. Lacson earlier flagged 5,913 re-appropriated budget items worth P135 billion, and about P396 billion in lump sum appropriations under the Public Works department that must be clarified.

“This early, we are already seeing the ugly effects of pork,” he said in a statement Monday. “More than the possible delay in the passage of the 2021 national budget, any ugly squabble in plenary over the distribution of earmarks a.k.a. pork is exactly that ugly.”

Party-list Rep. Eric G. Yap, who heads the House committee on appropriations, ruled out delays, saying they were on track with the budget.

The House would submit the budget bill to the Senate on Oct. 16, he said by telephone. “We target to finish the deliberation and the House version on or earlier than Oct. 14,” he said in mixed English and Filipino.

He also said the coup threat against Mr. Cayetano had nothing to do with pork.

Party-list Rep. Arlene D. Brosas said the House squabble exposed the persistence of pork barrel among some lawmakers, which jurisprudence has voided.

She said it stemmed from the almost P400-billion lump sum budget of the Public Works department that was sliced unevenly among districts and regions.

The lump sum would later be inserted in the still unprinted General Appropriations bill, she said in a statement on Monday.

Mr. Yap said he saw nothing wrong with these budgets for lawmakers’ districts “if it will be for the benefit of the people.”

COVID-19 infections top 290,000; death toll at almost 5,000

September 21, 2020 | 7:38 pm

THE DEPARTMENT of Health (DoH) reported 3,475 coronavirus infections on Monday, bringing the total to 290,190.

The death toll rose by 15 to 4,999, while recoveries increased by 400 to 230,233, it said in a bulletin.

There were 54,958 active cases, 86.6% of which were mild, 8.9% did not show symptoms, 1.4% were severe and 3.1% were critical.

Metro Manila reported the highest number of new cases with 1,543, followed by Batangas with 194, Rizal with 192, Cavite with 166 and Cebu with 165.

Of the new deaths, nine came from Metro Manila, three from Western Visayas, two from the Calabarzon region and one from Eastern Visayas.

More than 3.1 million people have been tested for the disease, DoH said.

The coronavirus disease 2019 (COVID-19) death rate was at 1.72%, lower than 3.07% globally, while the infection rate was at 10.47%, higher than the World Health Organization’s (WHO) less than 5% benchmark.

The reproduction rate of the disease was at 0.848, meaning a positive person can infect another. It takes 11.02 days for cases to double and 15.79 days for deaths to double, DoH said.

Meanwhile, DoH asked President Rodrigo R. Duterte to issue an order regulating the prices of testing kits for the coronavirus.

The law regulates certain medicines but diagnostic and professional fees are exempted, Health Undersecretary Maria Rosario S. Vergeire told reporters in a Viber group message.

Also on Monday, the Bureau of Immigration opened a quarantine facility for detained foreigners infected with the coronavirus.

In a statement, Immigration Warden Facility chief Remiecar Caguiron said the center would cater to foreigners with mild to moderate symptoms.

The facility, which has a capacity of 60, is inside the national penitentiary compound in Muntinlupa City.

The bureau will install CCTV cameras for remote monitoring of patients to lessen physical contact. Medical and detention personnel will also be assigned there, it said.

The bureau has been trying to decongest its detention facility since April to prevent the spread of the virus. More than a hundred foreigners have been deported, while those at risk of getting the virus were released on bail.

“Overcrowding in the facility is a health risk, and we want to ensure that we mitigate this risk and stop the spread of this disease through the help of this isolation facility,” Ms. Caguiron said.

In a related development, Trade Secretary Ramon M. Lopez asked the government to further relax the lockdown in Metro Manila so more sectors could reopen.

The capital region should shift to a modified general community quarantine

In a Laging Handa briefing on Monday, he said that Metro Manila, which is currently under general community quarantine (GCQ), should shift to the modified general community quarantine (MGCQ) applied to most areas in the country.

“I think after six months nung itong virus, ng pandemic, ng lockdown, ako po ay naniniwala na natututo rin tayo paano gumalaw, kumilos sa pag-manage ng virus. Sa akin pong paniwala – ito po ay sa akin lang – maari po nating i-push ang mas magaan na community quarantine,” he said.

Metro Manila, Bulacan, Batangas, Tacloban City, and Bacolod City are under GCQ until the end of September. The Inter-Agency Task Force (IATF) for the Management of Emerging Infectious Diseases has yet to make an announcement on the areas’ lockdown status for October.

The government has shifted to one month-long periods before announcing a new quarantine status, replacing the previous two-week cycles.

Mr. Lopez said that the shift to more eased lockdown measures should be paired with a commitment to health measures, including face mask-wearing, disinfection measures, and aggressive contact tracing, testing, and treatment.

“Sa ganun po ay mabuksan na natin ‘yung remaining part of the economy,” he said.

Under MGCQ, dine-in restaurants could operate at 75% capacity, while gyms, entertainment, and tourism businesses can operate at 50% capacity.

Metro Manila has the highest number of coronavirus disease 2019 (COVID-19) cases, recording over 1400 new cases on Sunday as the Philippine tally exceeded 286,000. — Vann Marlo M. Villegas and Jenina P. Ibañez

VP rejects attempts to revise nation’s martial law history

September 21, 2020 | 7:37 pm

VICE President Maria Leonor G. Robredo on Monday urged Filipinos to reject attempts to revise history as the country commemorated the 48^th year since the late dictator Ferdinand E. Marcos declared martial law.

In a statement, Ms. Robredo stated murder of dissenters and activists and rampant corruption did happen during the period.

“These truths know no political color, but come starkly in the black and white of our lived experience as a nation,” said the vice president, who joined the resistance against the Marcos dictatorship in the 1970s.

Ms. Robredo, who defeated the dictator’s son Ferdinand R. Marcos, Jr. in the 2016 vice-presidential race by a hair, urged Filipinos to resist political moves aimed at revising history and burying accounts of abuses under the strongman’s rule.

“Our task is to push back against these lies at every instant. To tell the stories of Martial Law and dictatorship over and over so that this generation, and the ones that come after, may be bound tighter through remembering,” she said.

“Hold firm to the truth of this painful chapter of our history, and through this, forge the determination to never again let our people fall into such despair,” Ms. Robredo said. “We must do this because, ultimately, our national aspirations can only be as strong as our national memory.”

Some quarters have been pushing for a revision of Philippine textbooks in favor of the dictatorial rule’s side of history.

Earlier this month Congress passed a measure declaring every Sept. 11^th as “President Ferdinand Edralin Marcos Day” in Ilocos Norte, the home province of the Marcos clan.

Opposition leaders and martial law victims said this was an insult to history. — Kyle Aristophere T. Atienza