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Coronavirus dampens seasonal cheer in China’s Christmas production hub

YIWU/SHANGHAI — At the Yiwu Fuye Christmas factory in eastern China, workers are stitching and testing out Santa Claus toys, checking they play a Christmas tune at the press of a button.

But the jingles are the only seasonal cheer in the factory in the city of Yiwu, which produces 80% of Christmas consumer goods exported globally, according to state broadcaster CCTV.

“There is no way to save this year,” Luo Jingjing, the company’s co-owner, told Reuters after losing almost half her clients because of the coronavirus pandemic.

“Let’s see if the virus will return when weather becomes cold and if it does, my next year’s business is also finished,” she added.

Yiwu is a city dedicated to Christmas all year round, filled with factories, showrooms, and stores that deliver decorations and toys to destinations all around the world.

The city last year exported around 1.92 billion yuan ($278.02 million) worth of Christmas products between January and October, up 23.9% from the previous year, according to government data.

Data for this year has not yet been released, but the anecdotal evidence is bleak after the global pandemic all but halted international business travel when many countries placed entry bans on foreigners.

Christmas shops in the city’s markets are piled high with samples of reindeer toys, faux Christmas trees, singing-and-dancing Santa Claus figurines and other baubles. The displays are designed to attract clients from as far afield as the United States and Brazil, who usually descend on Yiwu in the summer months to make bulk orders in preparation for the holiday season.

“It’s not comparable if we talk about the flow of customers inside the commodities market this year,” said Liu Jufang, surrounded by dozens of Christmas trees in her showroom in a gigantic mall. “There is no flow here at all. Foreigners cannot come (into China) at all. It’s an empty market. That’s it.”

Yiwu would normally have been in high production mode in recent months, preparing to send products abroad by October. Even without the usual ramp-up in production this year, many sellers will be left holding excess stock.

Finding alternate buyers has been difficult. There’s little interest from domestic e-commerce platforms given Christmas is not traditionally celebrated in China. Sales to cross-border sites such as Amazon or AliExpress were not feasible because of the large quantities needed to justify the shipping costs.

Wholesale prices for the decorations are modest, usually a few US dollars each for smaller pieces. Even Fuye’s life-size singing Santa Claus costs no more than 200 yuan ($30).

In another showroom, Yue Yuanyuan spends much of her time trying to arrange online video meetings with previous customers, employing a translator to help show them her samples to try entice a sale.

“We have to work much harder for much fewer orders this year,” she told Reuters. — Reuters

Remittance boom is turning into a bust for Asia emerging markets

Migrant workers from Asia’s developing countries have managed to send home record amounts of money in recent months, defying pandemic expectations and propping up home economies at a critical time.

Remittance doomsayers see something else in the bigger-than-usual transfers: a coming crash, triggered by a bleak job market, particularly in the Middle East. As they see opportunity drying up along with demand for oil, workers are sending money home in advance of their own return.

The Philippine government, for example, expects almost 300,000 overseas Filipinos to come home this year, with potentially severe consequences: Remittances make up about 10% of the economy and have pushed the peso to a three-year high against the dollar.

“People are returning home,” said Thomas Isaac, the finance minister for the southern Indian state of Kerala, which accounts for the country’s largest share of remittances. “Therefore, they bring back all their savings.” India is the world’s top recipient of transfers and a leading supplier of labor to the gulf; it took in $83 billion last year, exceeding the $51 billion it took in as foreign direct investment.

Overall, remittances to the Asia-Pacific region will drop 12% in the second half of 2020 compared with the same period last year, Fitch Ratings said this month. “That will drive a decline in remittances as the temporary supporting factors fade,” said Jeremy Zook, a director at Fitch Ratings based in Hong Kong.

Unlike Latin American countries, which continue to benefit from a tentative US recovery, Asian countries are vulnerable to economic austerity in Saudi Arabia and elsewhere in the Middle East. More than 60% of remittances to India, Bangladesh, and Pakistan come from Gulf Cooperation Council countries, said Khurram Schehzad, chief executive officer at Karachi-based advisory Alpha Beta Core Solutions Pvt. The region is also the top destination for workers from the Philippines, one of the world’s largest suppliers of overseas labor.

UNEMPLOYMENT TRAP

Saudi Arabia has already raised taxes and import fees to make up for falling oil revenue. Job cuts in the kingdom appear to target foreigners first, with Riyadh-based Jadwa Investment estimating more than a million foreign workers will leave the labor market this year.

After eight years of sending money to family in Karachi, Abdul Hanan Abro is one of the workers who will follow his money home. He was laid off from his accounting job in Dubai in May and hasn’t found a new gig—and he’s not the only one. “No one is getting anything,” said Mr. Abro. “Two to three of my friends have already moved back to Lahore. People are selling their cars and stuff, doing their final settlements.”

For Mr. Abro, coming home means starting over. He wants to use the savings he accumulated overseas to start a business. “It’s high time to just focus on what I was planning for two to three years now,” Mr. Abro said. “It’s better than wasting more time in finding a job in this market.”

In April, the World Bank predicted overseas workers would send home 20% less this year, the biggest drop since at least 1980. The lender hasn’t updated its forecast to reflect the recent resilience, but a decline is still coming, said Dilip Ratha, lead economist on migration and remittances at the World Bank based in Washington D.C. “High unemployment rates among foreign-born workers in major host countries and associated financial difficulties are expected to dampen the flow of remittances,” he said. — Bloomberg

Local gov’t units face fiscal stress

LOCAL GOVERNMENT UNITS (LGUs) will likely face substantial fiscal stress over the short to medium term, as tax collections continue to decline due to the coronavirus disease 2019 (COVID-19) pandemic, the Development Budget Coordination Committee (DBCC) said.

In its Financial Risks Statement report for 2021, the DBCC said the collection target of local treasurers has been slashed to P171.85 billion this year, 44% less than its pre-crisis goal of P307.08 billion “due to the financial hardship and economic impact brought about by the COVID-19 pandemic.”

“The COVID-19 pandemic has caused sudden economic shock…. The fiscal stress to LGUs is expected to be very substantial as they are at the frontline of the pandemic’s response and mitigation efforts,” it said. Fiscal stress is the gap between projected revenues and expenditures.

If another wave of coronavirus infections occurs, the interagency body warned the impact on revenues and an increase in spending would mean another P115 billion in quarterly funding requirements for LGUs and another round of budget realignments.

The DBCC said the impact on local tax revenues will likely be more pronounced in 2021 since local tax assessments will be based on this year’s weak collections and the reduced capacity of taxpayers who are affected by the economic slowdown.

The DBCC has set a P144.89-billion collection target for LGUs in 2021, 16% less than this year’s already-revised goal.

“Anticipating improvements in the economy, local revenue collection would still grow conservatively with a projected increase of 10% annually and reach P159.38 billion to P192.85 billion from FY 2022 to FY 2024. These projections would be adjusted once the Q2 FY 2020 data becomes available,” it said.

The DBCC also flagged the “conservative” borrowing performance of LGUs that could have been used to fund their projects. The total outstanding balance of LGU borrowings are at P108.07 billion or 0.58% of the nominal gross domestic product (GDP).

By 2022, LGU budgets are expected to grow because of a Supreme Court ruling increasing their share of National Government revenue. However, this is also seen to be affected by the lingering impact of the pandemic, the DBCC said.

The DBCC is considering shifting the implementation of programs, activities and projects worth P404.5 billion, currently handled by the National Government (NG), to LGUs in response to the ruling on the Mandanas-Garcia petition.

It estimated P234.4 billion (equivalent to 0.92% of GDP) will be needed once the ruling takes effect in 2022.

“The Executive is currently considering three measures to mitigate the impact of the SC ruling: (i) submit a legislative proposal to Congress lowering the LGU share from 40% to 30% of national taxes; (ii) declare an ‘unmanageable fiscal deficit’ to bring down the LGU share from 40% to 30%; and (iii) gradually devolve services to LGUs,” the DBCC said.

The  pandemic will also affect the 2023 tax allocation transfers of internal revenue allotment (IRA) to LGUs as these will be based on the weak tax collections this year.

“The anticipated increase in the LGUs’ adjusted IRA in consideration of the SC ruling on the Mandanas case in FY 2022 will therefore be short-lived and may continue in FY 2024 if collections for FY 2021 of NG will not significantly recover,” it added.

Economic managers also suggested revisiting the current formula in computing IRA.

“In light of the SC ruling on IRA, it is imperative that a review of the IRA formula be considered to address the fiscal imbalance on intergovernmental transfers, the effect on the limited fiscal space of the NG, the growing surplus of LGUs, and inadequacy of its design to address development constraints in rural and low-income LGUs,” it said.

The National Economic and Development Authority, the Budget department and the Department of Interior Local Government are now drafting an executive order for the preparation of devolution transition plans.

“Engagements with development partners to discuss the organizational implications of devolving functions and services, clarify functional assignments at different LGU levels, and analyze the economic impact of the SC ruling are also ongoing,” the DBCC added.

To mitigate the impact on the fiscal standing of LGUs, the economic team said they can redirect funds, use savings, adopt austerity measures, and tap other sources of financing.

“Adequate fiscal resiliency measures should be adopted to allow gradual recovery of local business, through grant of short-term relief and incentives, phased implementation of increased tax rates or fees and charges, and adopt local stimulus programs for productive sectors of agriculture, transportation, tourism, and other services that will revitalize local economy,” it added.

The pandemic also had a huge impact on GOCCs’ financial position, economic managers said.

“The Governance Commission continues with the streamlining of the GOCC Sector by recommending 6 GOCCs for abolition and/or privatization and merger of 3 GOCCs to the Office of the President by the end of 2017. From 157 in 2011, only 119 GOCCs remain to be going concerns for the Governance Commission in 2020,” it said.

GOCCs remitted P150 billion to the government in the seven months to July through dividends, feed and return of unused subsidies to help boost its war chest against the pandemic. — Beatrice M. Laforga

BSP may remain accommodative for at least two years

THE central bank may maintain the low interest rate environment in the next two years to provide support to the economy amid uncertainty caused by the coronavirus disease 2019 (COVID-19) pandemic.

“Given that there’s a lot of uncertainty still in the air, we are committed to a long-term low inflation regime…. To me, that is what we intend to do. What we have done will be on the table for the next, maybe, another two years,” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said in an interview with ANC News Channel when asked about the country’s interest rate environment by 2023 after the Federal Reserve’s recent signal that US interest rates should be kept at near-zero for at least three years.

Mr. Diokno said central banks have been working on a “disengagement strategy’’ to give signals that “should not be early nor too late.”

“[B]ecause otherwise it may create more hazard issues where corporations which should not have been supported will continue to rely on the support of the government…,” he said.

The overnight reverse repurchase, lending, and deposit facility are at record lows of 2.25%, 2.75%, and 1.75% after the central bank slashed rates by a total of 175 basis points this year.

Mr. Diokno’s latest statement provides the market with a time-based forward guidance on the BSP’s accommodative policy, said ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa.

“The two-year timeline also highlights the outlook for economic growth with BSP likely expecting the economy to be in need of stimulus all throughout the next two years. We may not be in for a quick recovery.” Mr. Mapa said in an e-mail.

The economy has plunged into recession, with a record 16.5% contraction in the second quarter due to the lockdown.

As the pandemic stretches on, the government expects the GDP to contract this year by 4.5-6.6% before bouncing back with a 6.5% to 7.5% growth next year.

“It is prudent to assume some slow growth in the meantime until a vaccine has been developed, and until the central bank has been successful in restoring confidence — which means we cannot be caught off-guard if situation worsens and I think the BSP has so far been successful in that front,” Security Bank Corp. Chief Economist Robert Dan J. Roces said in a text message.

Mr. Diokno said they have taken a deliberate pause in order to gauge how the market took in the liquidity support from the BSP which is estimated to have reached about P1.4 trillion or equivalent to 7.3% of the country’s gross domestic product (GDP).

The BSP’s Monetary Board will have its next policy-setting meeting on Oct. 1 following the Aug. 20 review where they kept policy rates unchanged.

Also on Monday, Mr. Diokno said the central bank is ready to deploy unconventional tools to support the economy and the government amid the crisis.

“This [unconventional tools] is a one-off or whenever there is a need for it…. But as I keep saying we still have a lot of tools in our arsenal,” Mr. Diokno said.

Mr. Diokno’s statement comes after the enactment of the Bayanihan to Recover as One Act (Bayanihan II) which increases the allowed repurchase agreement of the BSP with the National Government to about P810 billion from the initial ceiling of P540 billion.

“Armed with the access to a war chest with the BSP and soothed by a pickup in revenue collection, we hope the National Government will use these funds to finally bankroll a COVID-19 response that addresses other glaring weaknesses in the economy given that BSP appears to have covered the banking sector pretty well after the flurry of its policy moves,” Mr. Mapa said. — Luz Wendy T. Noble

ASEAN+3 recovery may look like Nike swoosh, says AMRO

The Philippine economy’s recovery may depend on how well it can stave off future waves of the coronavirus pandemic. — PHILIPPINE STAR/MICHAEL VARCAS

THE ASEAN+3 Macroeconomic Research Office (AMRO) expects to see a “Nike swoosh” or V-shaped recovery for the region after the coronavirus crisis, although the pace of recovery will vary depending on each economy’s pandemic response.

In an analytical note released on Monday, the think tank noted the negative growth rates of the regional economies amid the ongoing crisis have already exceeded those seen in the Asian financial crisis and global financial crisis.

“While AMRO staff are now projecting a ‘Nike swoosh’ -type V-shaped recovery in (year-over-year) growth, the trajectory will depend on whether further, sustained, waves of the pandemic can be staved off, as failure to do so may result in protracted U- or even W-shaped growth profiles,” it said in the note titled “Another ‘unprecedented’ crisis? This, too, shall pass.”

Based on the latest quarter-on-quarter figures, all regional economies are in technical recession, except for China and Indonesia. ASEAN+3 includes the members of the regional bloc plus China, Japan and South Korea.

Philippine gross domestic product (GDP) fell by a record 16.5% in the second quarter, when the lockdown brought economic activity to a near halt.

In its latest analysis, AMRO forecast the Philippine GDP to shrink by 7.5% in the third quarter and by 5.7% in the fourth quarter. This would bring its Philippine economic outlook to -7.6% for full-year 2020, lower than the -6.6% forecast it gave in August.

For 2021, AMRO sees a 0.1% uptick for the Philippine economy in the first quarter, 16.4% in the second quarter, 5.1% in the third quarter and 5% in the fourth quarter. This would mean a 6.65% GDP forecast for the entire 2021, which is higher than the 6.5% it gave in June and lower than the 7.4% estimated in April.

The projections were based on AMRO’s study of recovery paths of selected ASEAN+3 economies after the Asian financial crisis (AFC) and the Global financial crisis (GFC).

“The current pandemic — we will call it the ‘COVID crisis’ — is unprecedented in that the lockdowns brought global economic activity to virtual standstill never before seen, and is now expected to cause the worst recession since the Great Depression, far worse than the GFC,” it said.

While Southeast Asia was the epicenter of the Asian financial crisis, AMRO said the region remained resilient during the GFC.

“The recovery in growth from the AFC was largely U-shaped. Many economies were mired in negative year-over-year growth for 5–6 quarters; the Philippines and Singapore posted 3 quarters of contraction, while Korea recorded 4 quarters of decline. Indonesia, Malaysia, and Thailand each posted at least one quarter of double-digit contraction. Although China did not experience a recession, it grew at its weakest pace during this period,” AMRO said.

The GFC’s impact on the region’s economies was “relatively light,” with most seeing V-shaped growth recoveries after three to four quarters of contraction, it said. China, the Philippines and Indonesia posted positive growth throughout the GFC.

However, AMRO warned the “apparent rebound in growth following each crisis can be deceptive.”

“In part, the strong growth numbers that tend to follow a recession are attributable to the low base effect. What is usually less obvious is the damage wrought on an economy during a severe crisis. Some economies may take a long time to recover their previous growth potential, while others suffer permanent impairment to GDP levels,” it said.

Even if an effective COVID-19 vaccine is discovered, AMRO said the pandemic “will likely have permanently changed the structure of each economy.”

“The lockdowns and necessity for social distancing have revealed the vulnerabilities and stress points; however, they have also motivated new — and potentially more efficient — ways of conducting economic activity. Some economies may never fully recover their pre-pandemic levels of activity, and others will have shifted onto different paths,” it added. — B.M.Laforga

MacroAsia, China firm miss Sangley filing anew

By Arjay L. Balinbin, Senior Reporter

MACROASIA CORP. and its partner Chinese firm are again asking the Cavite government to give them more time to complete the final requirements for the $10-billion Sangley Point International Airport after they missed the deadline, the provincial governor said.

“They are waiting for a two-week extension,” Cavite Gov. Juanito Victor “Jonvic” C. Remulla told BusinessWorld in a phone message on Monday, when asked if the consortium was able to submit the post-qualification documents on Sept. 9.

Lucio C. Tan-led MacroAsia and its partner China Communications Construction Co. Ltd. (CCCC) were given until Sept. 9 to submit the lacking documents in view of the ongoing coronavirus pandemic.

Asked if he is inclined to extend the deadline again, Mr. Remulla said: “I will talk to the Board.”

The Cavite government had initially given the consortium until the second week of June to process and submit the documents before a joint venture development agreement can be signed.

Cavite’s Public-Private Partnership Selection Committee Legal Officer Jesse R. Grepo said on June 15 that the consortium was able to make a partial submission, but it had asked for a 90-day extension to complete the remaining requirements.

The post-qualification documents were supposed to be completed and submitted 60 days after the group received the notice of award on Feb. 14.

The groundbreaking for the first phase of the airport project was initially expected to take place in the second quarter of the year.

The first phase of the project, which will cost $4 billion, includes the construction of the Sangley connector road and bridge to connect the Kawit segment of the Manila-Cavite Expressway to the international airport.

Phase 1 also involves the construction of the airport’s first runway. The airport is rated at 25 million passengers yearly, and is intended to help decongest the Ninoy Aquino International Airport.

The airport is expected to be fully operational by 2023, with partial operations to start a year earlier. The fourth runway will be opened after six years.

The same consortium will work on the other two phases of the project, but there may be contract renegotiations, according to the Cavite government.

The second phase, which will cost about $6 billion, involves the construction of two more runways, giving the airport an annual capacity of 75 million passengers.

The last phase is the expansion to four runways, bringing capacity to 130 million passengers.

Phinma divests in BPO research, consultancy unit

PHINMA CORP. has sold its research and consultancy unit to focus on businesses in the education and construction materials sectors.

In a disclosure to the exchange on Monday, Phinma said it sold 100% or 10,000 shares in Integrative Competitive Intelligence Asia, Inc. (ICI Asia) to the latter’s president and CEO Roderick Y. Barro.

The shares are priced at P50 each, resulting in a total transaction value of P500,000. It is estimated to result in a P15-million loss on the deconsolidation of ICI Asia.

“The divestment from ICI Asia will enable Phinma to focus on growing its core businesses, namely construction materials and education,” it said.

The sale of ICI Asia was concluded on Sept. 18. Except for Mr. Barro, the rest of the directors and officers of the company resigned as a condition to the deal.

“The buyer shall continue as president and CEO of ICI Asia and will be responsible for the completion of the company’s projects and payment of outstanding liabilities,” Phinma said.

Phinma took a controlling interest in ICI Asia in 2011 to increase its business process outsourcing portfolio. The company is a knowledge process outsourcing provider in Manila that serves clients from the environment, markets, health, governance, and education sectors.

In the six months ending June, ICI Asia recorded a P13.9 million net loss, reversing its net income of P3 million a year ago.

The Phinma group, likewise, swung to a P38.28-million net loss during the period from a net income of P27.84 million last year. Its businesses include education, construction materials, property, steel products, and hospitality.

On Monday, shares in Phinma at the stock exchange picked up 26 centavos or 3.06% to close at P8.75 each. — Denise A. Valdez

Watchmen, Schitt’s Creek rule at virtual Emmys with pandemic and political twists

LOS ANGELES — Media family saga Succession, dystopian drama Watchmen, and feel-good comedy Schitt’s Creek dominated the Emmy Awards on Sunday in a show sprinkled with jokes about the coronavirus pandemic, political jibes and appeals for racial justice.

“Hello, and welcome to the PandEmmys!,” said host Jimmy Kimmel, opening the show, where most celebrities took part remotely from their sofas and backyards dressed in a variety of gowns, hoodies and sleepwear.

“It seems frivolous and unnecessary to do this during a global pandemic,” Mr. Kimmel said as he opened the live show from Los Angeles.

“What’s happening tonight is not important. It’s not going to stop COVID. It’s not going to put out the fires, but it’s fun. And right now we need fun. … This has been a miserable year. It’s been a year of division, injustice (and) disease,” he added.

HBO’s Succession, the wickedly juicy tale of a fractious media family, was named best drama series, while Jeremy Strong won best actor for his role as a downtrodden son. Succession’s seven-Emmy haul included writing and directing.

In one of the most pointed acceptance speeches of the night, Succession creator Jesse Armstrong made a series of what he called “un-thank yous.”

“Un-thank you to the virus for keeping us all apart this year. Un-thank you to President Trump for his crummy and uncoordinated response. Un-thank you to (British Prime Minister) Boris Johnson and his government for doing the same in my country. Un-thank you to all the nationalist and sort of quasi-nationalist governments in the world who are exactly the opposite of what we need right now,” said Mr. Armstrong.

HBO’s alternative-reality show Watchmen, infused with racial themes, won for best limited series, while actress Regina King won for her lead performance as the show’s kick-ass police detective.

Watchmen was the night’s biggest winner with a total of 11 Emmys, including technical awards handed out last week. HBO was the biggest overall winner, with 30 Emmys, followed by Netflix with 21.

Watchmen creator Damon Lindelof dedicated his Emmy to the victims and survivors of the 1921 massacre of the Black community in Tulsa, Oklahoma, which partly inspired the series.

BLACK LIVES
Several celebrities, including King, presenter Sterling K. Brown, and Mrs. America supporting actress winner Uzo Aduba, wore Black Lives Matter-themed T-shirts or urged viewers to vote in the Nov. 3 US elections.

Schitt’s Creek, a sleeper hit on the small Pop TV network about a wealthy family forced to live in a rundown motel, won a total of nine Emmys, including best comedy series as well as acting awards for Canadian stars Catherine O’Hara, Eugene Levy, his son Daniel Levy, and Annie Murphy.

The coronavirus pandemic meant no red carpet and no physical audience. Instead, producers sent camera kits and microphones to all the nominees, scattered in 125 places around the world, who chose how and where they wanted to be seen.

The Schitt’s Creek winners got their trophies delivered to them in a restaurant-style setup in Ontario, Canada, by a person dressed in a custom hazmat suit, designed to resemble a tuxedo.

The biggest shock of the night came when former Disney Channel actress Zendaya, 24, was named best drama actress for playing a teen drug addict in HBO’s Euphoria, beating presumed favorites Laura Linney (Ozark) and Jennifer Aniston (The Morning Show).

Last Week Tonight with John Oliver was named best variety talk series for the fifth successive year, and the British comedian accepted wearing a red Liverpool soccer shirt in honor of his favorite British team. — Reuters

Megawide-led group bags Malolos-Clark railway project contract

MEGAWIDE Construction Corp. and its Korean partners Hyundai Engineering & Construction Co., Ltd. and Dong-ah Geological Engineering Company Ltd. have bagged the Malolos-Clark Railway Project package 1 contract, which covers the construction of a 17-kilometer viaduct structure and elevated station buildings in Calumpit, Bulacan and Apalit, Pampanga.

“The Notification of Award was issued on 18 September 2020,” Megawide said in a disclosure to the stock exchange on Monday.

Megawide said the project has an estimated cost of P28 billion, or equivalent to more than half of its current order book of P48 billion.

The company expects the project to boost its construction segment revenue in the “next three to four years.”

It said further that the project will benefit the company’s business units and support its expansion plans in the area.

The flagship Malolos-Clark railway project is part of the 163-kilometer North South Commuter Railway  project.

“Not only will this project, once totally completed, spur growth in Central Luzon, it will also increase connectivity and unlock exciting commercial opportunities between Metro Manila and Clark. This is also a strong testament to how public and private sector cooperation — foreign and local alike — can effectively propel the country towards a First-World Philippines,” Megawide Chairman and Chief Executive Officer Edgar B. Saavedra said.

Megawide noted the project is critical in jumpstarting the Philippine economy.

“Infrastructure spending is believed to have a very high multiplier effect on the economy, and the government’s direction to push this segment is very much welcome,” it added.

The listed company previously said it suffered its first loss in the first semester, shedding P349 million, as its construction and airport businesses posted lower profits due to the coronavirus pandemic.

It reported a 21% slump in its total revenues to P6.44 billion, while overall earnings before interest, taxes, depreciation, and amortization stood at P1.45 billion. — Arjay L. Balinbin

Key winners of the 2020 Emmy Awards

THE annual Emmy Awards, celebrating the best in television, were handed out on Sunday in a virtual ceremony hosted by Jimmy Kimmel from Los Angeles.

Following is a list of winners in key categories:

BEST DRAMA SERIES: Succession (HBO)

BEST COMEDY SERIES: Schitt’s Creek (Pop TV)

BEST LIMITED SERIES: Watchmen (HBO)

BEST COMEDY ACTOR: Eugene Levy, Schitt’s Creek

BEST COMEDY ACTRESS: Catherine O’Hara, Schitt’s Creek

BEST DRAMA ACTOR: Jeremy Strong, Succession

BEST DRAMA ACTRESS: Zendaya, Euphoria

BEST ACTRESS, LIMITED SERIES OR MOVIE: Regina King, Watchmen

BEST ACTOR, LIMITED SERIES OR MOVIE: Mark Ruffalo, I Know This Much is True

BEST SUPPORTING ACTRESS, DRAMA SERIES: Julia Garner, Ozark

BEST SUPPORTING ACTOR, DRAMA SERIES: Billy Crudup, The Morning Show

BEST SUPPORTING ACTRESS, COMEDY SERIES: Annie Murphy, Schitt’s Creek

BEST SUPPORTING ACTOR, COMEDY SERIES: Daniel Levy, Schitt’s Creek

— Reuters

Amid lockdown, home buyers see appeal of integrated communities

TOWERING condominiums in Manila are silhouetted by the rising sun in this March 29 photo. — MIGUEL DE GUZMAN/ PHILSTAR

By Arjay L. Balinbin, Senior Reporter

RESIDENTIAL PROJECTS within integrated communities are likely to be most appealing to buyers post-pandemic, property consultancy firms said.

“Colliers recommends that developers highlight projects that are within integrated communities. In our opinion, the pandemic has further emphasized the need to be in an integrated community where unit owners can easily access essential goods and services,” Joey Roi H. Bondoc, senior research manager at Colliers Philippines, said in an e-mail interview last week.

The recent lockdowns to curb the spread of the coronavirus disease 2019 (COVID-19) has made more people aware of the importance of living within communities that also have office, commercial and recreational components.

Mr. Bondoc said developers should highlight features such as sanitation and property management procedures of their residential projects, as these are likely to be among the major considerations of buyers.

He said these efforts will help improve the sustainability of property projects in Metro Manila and boost the Philippine capital’s ranking in the Global Smart City Index.

Manila dropped 10 spots in the Global Smart City Index released by the Switzerland-based Institute for Management Development. The survey showed Manila residents expressed concern over traffic jams, corruption and air pollution.

“An improved ranking should make Metro Manila a viable property investment destination. This is important especially if the government wants to stoke property demand once the pandemic wanes and lockdowns are relaxed,” Mr. Bondoc said.

Claro dG. Cordero, Jr., director and head of research at Cushman & Wakefield, said the ideal cities in the future will need to offer opportunities for “innovations that enhance the quality of living (right balance of sustainable and cosmopolitan lifestyle); working (uncongested spaces and presence of job opportunities); playing (availability of recreational and cultural centers), and learning (talent enhancement and R&D centers).”

Mr. Cordero said cities also need to better utilize technology to make lives better for its residents.

“Investors will increasingly view the role of technology as another factor to consider when investing in a country, urban center or development,” he said via e-mail.

“Technology will have an overarching influence on how cities provide infrastructure support, talent enhancement, culture and diversity, and sustainability and resilience to its citizens. These indicators enhanced by effectiveness and innovation brought about by technology will assist the investors and businesses as they make their choices on where to settle,” he added.

Xurpas to buy US firm by end-2020

TECHNOLOGY FIRM Xupas, Inc. will be completing its P170.7-million acquisition of venture capital firm Wavemaker Partners US before the end of the year.

In disclosures to the exchange on Monday, Xurpas said its board of directors had approved the transaction with Wavemaker US on Sept. 20. Stockholders will need to approve the decision in a meeting scheduled in November.

“The purchase price will be paid upon completion of the closing conditions, which shall be on a date no later than December 31, 2020,” it said.

Xurpas first announced in November 2019 its plan to buy Wavemaker US, a Los Angeles-based technology fund that has more than $210 million assets under management.

Under the agreement, Xurpas will issue 1.7 billion new common shares that Wavemaker will subscribe to at 10 centavos each. This is equivalent to a 48% stake in Xurpas.

The company said it wants Wavemaker US to be a strategic partner that will help it in long-term plans.

“Equity ownership in the holding company that will consolidate all of the General Partners rights in Wavemaker Partners US will give Xurpas access to high-value, emerging, innovative, and disruptive technologies and platforms for its enterprise business and shareholders,” the company said.

The deal will not cover Wavemaker’s unit in Southeast Asia, which is independent and wholly owned by its management.

In a statement Monday, Xurpas said Wavemaker US has invested in more than 230 tech companies since its formation in 2003. Most of these focus on enterprise software, data and intelligence platforms and digital media.

“This acquisition significantly expands Xurpas’ technology base and gives Filipino shareholders and investors access to an entire portfolio of promising venture-backed early-stage companies in the US,” Xurpas Chairman Nico Jose S. Nolledo said in the statement.

“Through Wavemaker US, Xurpas shareholders can now participate in the significant potential upside from investments in the early-stage technology space,” he added.

Xurpas booked an attributable net loss of P43.75 million in the six months to June, slimmer from the previous year’s P118.28 million. — Denise A. Valdez

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