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After convincing win, options abound for Pacquiao’s next fight — Gibbons

By Michael Angelo S. Murillo
Senior Reporter

International matchmaker Sean Gibbons — ALVIN S. GO

SUCCESSFULLY and convincingly overcoming the latest challenge in his Hall-of-Fame boxing career, Manny “Pacman” Pacquiao is not short in options for his next fight.

This according to Sean Gibbons, president of Manny Pacquiao (MP) Promotions.

Meeting members of sports media for the first time at the Philippine Sportswriters Association Forum on Tuesday at the Amelie Hotel-Manila, Mr. Gibbons said their camp is weighing various options to take coming on the heels of the conquest of the Filipino legend of American champion Keith Thurman and his WBA super welterweight title in July.

A “convincing” split decision winner. 40-year-old Pacquiao, the MP Promotions president said, proved he is still a force to be reckoned with and ready to take on any opponent when he returns to the ring early next year.

American Gibbons mentioned champion fighters Danny Garcia, Mikey Garcia and Shawn Porter as possible next opponents for Pacman even as he expressed reservation over a rematch with Mr. Thurman.

“Danny Garcia, Mikey Garcia, there’s other guys out there to fight. Shawn Porter,” said Mr. Gibbons at the PSA Forum, presented by San Miguel Corp., Braska Restaurant, Amelie Hotel-Manila, and the Philippine Amusement and Gaming Corp.

Danny Garcia, the former holder of the World Boxing Council welterweight title, was initially considered as an opponent for Mr. Pacquiao prior to the Thurman fight while Mikey Garcia is a former lightweight and junior welterweight title holder.

Mr. Porter, meanwhile, was a former sparring partner of Mr. Pacquiao and current WBC champion who’s scheduled for a unification match against Errol Spence this September at the Staples Center in Los Angeles, California.

Mr. Gibbons went on to say that they are not so high in having a rematch with Mr. Thurman, especially after how Mr. Pacquiao convincingly beat the former.

“He (Thurman) had his opportunity, he had his shot. If there’s a real demand for it like the (Juan Manuel) Marquez, the (Marco Antonio) Barrera, the (Erik) Morales, those type of fights. If the public have a huge demand to do it again, if there’s an outcry for it. But he (Pacquiao) beat him clean,” the veteran international matchmaker said.

Against Mr. Thurman, Mr. Pacquiao showed firmer command for the most part of the scheduled 12-rounder and took everything that his opponent threw at him on his way to the 115-112, 113-114 and 115-112 split decision win; an outcome Mr. Gibbons insisted should have been a unanimous decision.

Just the same, split decision or not, Mr. Gibbons said it was a convincing victory.

As to a possible rematch with undefeated retired fighter Floyd Mayweather, Mr. Gibbons said they are very open to it but as of the moment there is nothing definite yet on that front.

Sale makes strikeout history

CLEVELAND — Jackie Bradley Jr. hit a tiebreaking home run in the top of the 10th inning as the visiting Boston Red Sox overcame blowing a five-run lead to beat the Cleveland Indians 7-6 Tuesday night.

After the Indians tied the score on Francisco Lindor’s RBI double in the bottom of the ninth, Bradley’s one-out homer off Nick Wittgren (4-1) in the 10th restored the Red Sox’s lead.

Earlier in the game, Red Sox starter Chris Sale made major league history by becoming the fastest pitcher to reach 2,000 career strikeouts when he whiffed Oscar Mercado to end the third inning. Sale accomplished the feat in 1,626 innings, besting Hall of Famer Pedro Martinez’s mark of 1,711 1/3 innings.

Sale gave up five runs (three earned) on five hits and two walks in 6 2/3 innings, recording 12 strikeouts. Rafael Devers had four doubles among a career-high six hits, and he also drove in three runs to lead the Boston offense. Carlos Santana and Franmil Reyes homered for the Indians. — Reuters

Teenager Gauff, former champ Stosur get US Open wild cards

NEW YORK — American teenager Cori “Coco” Gauff and former champion Samantha Stosur were among players to be given wild cards into the main draw of the US Open starting later this month, organizers said on Tuesday.

Gauff, 15, stunned players and fans alike when she made her debut in the main draw of a Grand Slam at this year’s Wimbledon, reaching the fourth round where she was beaten by eventual champion Simona Halep.

Gauff, the youngest finalist in the girls’ singles event at the US Open in 2017 aged 13, is one of five teenagers given wild cards at Flushing Meadows.

Americans Cathy McNally, Whitney Osuigwe and Katie Volynets (all 17) and France’s 16-year-old Diane Parry, who became the youngest player this decade to win a main-draw match in the French Open in May, also received them.

Australia’s Stosur, US Open champion in 2011, will be making her 15th appearance in the main draw. The 35-year-old, who last reached a Grand Slam singles semifinal in 2016 at Roland Garros, was also a doubles champion in New York in 2005.

“Parry and Stosur earn their entry via the USTA’s reciprocal wildcard arrangement with the French Tennis Federation and Tennis Australia,” organizers said in a statement.

American Jack Sock headlines the men’s singles wildcards.

The 26-year-old, who was sidelined for six months after sustaining a thumb injury at the Australian Open, is looking to maintain his streak of playing in every US Open main draw since 2010. — Reuters

Philippine national women’s football team begins campaign at 2019 AFF Women’s Championship

THE Philippine national women’s football team plunges into action in the 2019 AFF Women’s Championship in Thailand today with an eye on making a run for a podium finish this time around.

Failed to go deep in recent iterations of the tournament organized by the ASEAN Football Federation, the Malditas are angling for a better finish in this edition of the championship while also looking to kick their Southeast Asian Games preparations into a higher gear.

Happening in Chonburi, the Philippine team is bracketed in Group A of the competition along with host Thailand, Malaysia, Singapore and Timor-Leste.

The Malditas, whose campaign is being supported by the Philippine Sports Commission and MVP Sports Foundation, will play Malaysia first today at IPE Chonburi Field 1 followed by Timor-Leste on Aug. 17.

They then play Thailand on Aug. 21 before finishing their group play assignment two days later.

Tournament format calls for the top two teams in the two groupings advancing to the knockout stage.

Group B has Myanmar, Vietnam, Cambodia and Indonesia.

For the 2019 AFF Women’s Championship, the Philippine Football Federation (PFF) formed a 23-player squad culled from the various University Athletic Association of the Philippines teams and PFF Women’s League clubs.

The players are Mari Caparros, Stacey Cavill, Inna Palacios, Mea Bernal, Alesa Dolino, Chelo Hodges, Mary Lam, Claire Lim, Hali Long, Tara Shelton, Calah Simarago and Sara Castañeda.

Also part of the team are Eloiza Fagsao, Patrice Impelido (captain), Kyla Inquig, Charisa Lemoran, Hazel Lustan, Rocelle Mendano, Irish Navaja, Kathleen Rodriguez, Dionesa Tolentin, Alisha Del Campo and Quinly Quezada.

The team started preparation for the tournament in late June that saw them play tune-up matches along the way.

The bad weather in the recent weeks made practicing outdoor tough but the team made up for it by training indoors.

“We’re ready for the tournament. We had some challenges during training because of the heavy rain in the last couple of weeks which forced us to cancel some training sessions. But we also did indoor training to make up for some of the lost time,” said Malditas coach Let Dimzon at the team’s send-off last weekend, as she spoke of the preparation they had.

“We had a number of tune-up games, including one against Macau, which we used as gauge of where we are,” she added.

Ms. Dimzon went on to say that key for them is polishing their attacking and sticking to their game plan.

For Ms. Impelido, the team being together for a long time now is something they are banking on.

“This team has been together for a time now. We have team chemistry which is good for the team heading into the tournament. We are excited and confident to make a run at a podium finish,” said the Malditas captain.

“The Philippine Women’s National Team has continuously set the bar in the recent times,” said PFF general secretary Atty. Edwin Gastanes of the Malditas, who vied for the first time for a World Cup berth in the 2018 AFC Women’s Asian Cup.

“We wish them luck as they look for a podium finish in the AFF Women’s Championship 2019 which serves as preview for the upcoming 30th Southeast Asian Games,” he added.

The 30th SEA Games happens this Nov. 30 to Dec. 11 here in the country.

ARANETA IS OLYMPIC CDM
Meanwhile, PFF president Mariano Araneta Jr. was appointed chef de mission (CDM) of the Philippine delegation for the Tokyo 2020 Olympics.

The appointment of Mr. Araneta, who is at the helm of the PFF since 2010, was announced at the Philippine Olympic Committee general assembly on Tuesday.

“It is a great honor to represent the country and our national athletes as the Chef de Mission for the Tokyo 2020 Olympics. We look forward to this upcoming campaign as we yearn for our first-ever Olympic gold medal,” said Mr. Araneta of his appointment.

Hunan International Open

Hunan Belt and Road International Open
Hunan, China
July 29-August 6, 2019

Final Top Standings

1. GM Surya Shekhar Ganguly IND 2638, 7.0/9

2-3. GM Yu Yangyi CHN 2736, GM Bassem Amin EGY 2707, 6.5/9

4-9. GM Ivan Cheparinov GEO 2666, GM Wang Hao CHN 2725, GM David Anton Guijarro ESP 2678, GM Francisco Vallejo Pons ESP 2687, GM Wei Yi CHN 2737, GM Maxim Matlakov RUS 2701, 6.0/9

10-14. GM Nguyen Ngoc Truong Son VIE 2636, GM Yu Ruiyuan CHN 2464, GM Zhou Jianchao CHN 2608, GM Bogdan-Daniel Deac ROU 2621, GM Ju Wenjun CHN 2595, 5.5/9

Total Number of Participants: 73 players, out of which there are 43 International Grandmasters (GM), 21 International Masters and 2 FIDE Masters.

Time Control: 90 minutes with 30-second increment from move 1

The Belt and Road China Hunan International Chess Open had a lot of 2700+ GMs taking part because of its huge cash prizes:

$50,000 for 1st place

$25,000 for 2nd place

$15,000 for 3rd place, etc.

There was a no prize-sharing policy in place. If, for example, two players tied for first place normally each of them will receive $37,500 ($50,000 1st place plus $25,000 2nd place then divided by two). In Hunan whoever finishes first after tie-breaks are applied receives the 50,000.

In addition to the large prize fund this policy may have contributed to the fighting atmosphere in the tournament and a large number of bloodthirsty chess was played.

Do you remember the Indian GM Parimarjan Negi? Born Feb. 9, 1983 in New Delhi, he achieved the grandmaster title at the age of 13 years, four months and 22 days. At that time he was the second youngest ever GM ever in history behind Sergey Karjakin (12 years seven months), but that record has slipped down to 6th because of the recent wave of new child prodigies. No. 2 now is Gukesh of India (12 years, 7 months, 17 days), no. 3 Javokhir Sindarov (Uzbekistan) at 12 years, 10 months, 5 days, no. 4 Praggnanandhaa Rameshbabu (India) 12 years, 10 months, 13 days, and no. 5 Nodirbek Abdusattorov (Uzbekistan) at 13 years, 1 month and 11 days.

Negi became champion of India in 2010, the Asian champion in 2012, then played top board for his country in the 2014 Chess Olympiad in Tromso (Norway) where they made history by winning the bronze medal.

Then, at the very height of his career, he retired from chess to go to the USA and study in Stanford University where he graduated as a Mathematics Major in 2018. Negi is currently a research student (PhD) in Computer Science and Artificial Intelligence at the Massachusetts Institute of Technology.

Anyway, in order to finance his schooling in Stanford he wrote a series of awesome opening books for Quality Chess. Since he did not have any more plans to compete there was no reason not to reveal his opening secrets and special theoretical studies. In “1.e4 versus the French, Caro-Kann and Philidor” he recommended a theoretical novelty against a certain line in the Winawer French which we are going to see on the board in the following game.

Lagno, Kateryna (2549) — Ganguly, Surya Shekhar (2638) [C18]
Hunan Belt and Road Open Changsha CHN (2.4), 30.07.2019

Over the years there have been many claims of refutations of the French Winawer. I remember in the 80s Yasser Seirawan’s “Inside Chess” magazine even had a series on its untimely demise. But for every refutation a counter is always found, and the fight goes on up to today. GM Ganguly is one of the opening’s loyalists, and he is proven right once again in the following game.

1.e4 e6 2.d4 d5 3.Nc3 Bb4 4.e5 c5 5.a3 Bxc3+ 6.bxc3 Ne7 7.Qg4 cxd4 8.Bd3 Qa5

The main line is 8…Qc7. The text move also become popular because of GM Alexander Rustemov (more well-known as the former second of Alexander Morozevich) who scored many good wins with this move.

9.Ne2 0–0 10.Bg5 Ng6 11.Qg3!

Negi’s novelty, instead of the standard 11.f4. The idea is to “prepare a quick h4–h5 while crucially safeguarding the queen from the …Nd7/…f5 plan which has been solving all of Black’s problems.” (Negi).

11…Nd7

Keeping f6 guarded as well as threatening …Nc5 to get rid of the dangerous d3–bishop. 11…Nxe5 12.Bh6! Ng6 13.h4 gxh6 14.h5 Nc6 15.hxg6 fxg6 16.Bxg6 Rf6! 17.Be8+ Kf8 18.Bxc6 bxc6 19.Rh4 “White intends Rg4 with an ongoing attack” (Negi).

12.h4 dxc3

Alternatives:

12…Nc5 13.h5 Nxd3+ 14.cxd3 dxc3 15.hxg6 fxg6 16.Qh4 h6 17.Nf4 White has a winning attack;

12…Ngxe5 13.Bh6 g6 14.Bxf8 Nxf8 15.h5 White has an extra exchange and the initiative to boot (Negi).

13.f4 h5!

Since White has sufficiently fortified his e5–pawn Black must prevent h4–h5 by any means. 13…f6 14.exf6 Nxf6 15.h5 Nh8 16.h6 g6 17.Qh4 Nd7 18.Be7 Re8 19.Bb4 Qd8 20.Qg3 There is no solution in sight for the h8–knight, and the bishop will soon become a lot more powerful from c3 (Negi).

14.Qe3!

The queen moves away from g3 to make way for the pawn on g2. g4 is a big threat now. IM John Watson: “White’s coming attack is dangerous, and he even has the better of it when the queens are exchanged. But you have to do a thorough analysis to understand this!”

14…Qb6 15.Nd4 Nc5!?

Now this is Ganguly’s idea. Negi only took up 15…Nb8 with the idea of …Nc6 to put pressure on the d4–knight. There is a long analysis after this but in the end the conclusion is that White has the better chances in the ensuing endgame.

16.g4 Nxd3+ 17.Qxd3 Bd7!

A really deep move. This clears the way for the a8–rook to come to e8. Why would it want to go to e8? You will see later on.

18.gxh5 <D>

POSITION AFTER 18.GXH5

It looks like Black is being overrun but he has a way out …

18…f6! 19.exf6

Best. Other moves don’t work.

19.hxg6 fxg5 20.hxg5 Rxf4 21.Qh3 Re4+ 22.Ne2 Kf8 23.Qh8+ (23.Rf1+ Ke7 24.Rf7+ Kd8 everything is still complicated) 23…Ke7 24.Qxg7+ Kd8 25.Qf8+ Kc7 26.g7 Rxe5 27.g8Q Qe3 and, shockingly, Black is the one who wins;

19.Qxg6 Qxd4 20.exf6 Qe3+ 21.Kf1 Qf3+ 22.Kg1 Qg3+ 23.Kf1 Bb5+ wins. Another reason why the bishop had to go to d7.

19…Nxf4!

Unbelievable move and the point of Black’s defense.

20.Bxf4 e5!

Now you see why Black wants his a8–rook to go to e5.

21.Bg5?

A mistake, but Lagno couldn’t believe that she is not winning. After 21.Bxe5 Rae8! 22.0–0 Rxe5 Black is at the very least equal.

21…Qxd4 22.Qxd4 exd4 23.0–0–0 gxf6 24.Bf4 Bf5 25.Rxd4 Be4

After all those complications Ganguly emerges a pawn up in a superior endgame, and he plays efficiently to convert.

26.Rg1+ Kh7 27.Rg3 Rac8 28.Rd1 Rg8 29.Rdg1 Rxg3 30.Rxg3 d4 31.h6 Re8 32.Rg7+ Kh8 33.Rd7 Bd5! 34.Kb1 Re1+ 35.Bc1 Ba2+ 36.Kxa2 Rxc1 37.Rxd4 Rxc2+ 38.Kb3 Rd2 39.Rc4 c2 40.Kb2 Rd6 41.Rxc2 Rb6+ 42.Ka2 Kh7 43.Rc5 Kxh6 44.a4 Rb4 45.Ka3 Rxh4 46.Rc7 Rh3+ 47.Kb2 Kg6 48.Rxb7 Rh7 49.Rb8 Rc7 50.Kb3 f5 51.a5 f4 52.Kb4 f3 53.Rg8+ Kf5 54.Rf8+ Ke4 0–1

GM Ivan Cheparinov (born Nov. 26, 1986 in Bulgaria but now representing Georgia), was in the leading group for much of the event but the following game cost him dearly.

Amin, Bassem (2707) — Cheparinov, Ivan (2666) [C55]
Hunan Belt and Road Open (8.3), 05.08.2019

Egypt’s GM Bassem Amin (born Sept. 9, 1988) is the only African player who is rated 2700+. He is one of the very few GMs in the world who is a medical physician. Offhand I can think of only three others: Alex Sherzer (USA), Daniel Fridman (GER) and Wong Meng Kong (Singapore).

1.e4 e5 2.Nf3 Nc6 3.Bc4 Nf6 4.d3

You’d think that most people would go for 4.Ng5 and the fun lines which come with it, but FUN FACT: in Megabase, which is supposed to contain the majority of all tournament games ever played, 4.d3 outnumbers 4.Ng5 by a 6:1 ratio.

4…h6 5.0–0 d6 6.c3 g5

A surprise move. However, if you think about it, in the Italian Game (1.e4 e5 2.Nf3 Nc6 3.Bc4 Bc5) the incidence of …g7–g5 is going up, so why not in this similar position?

7.Bb3 Bg7 8.Nbd2 a6 9.Nc4 Be6 10.Re1 g4 11.Nfd2 Qd7 12.a4 h5 13.a5 h4

Threatening the standard 14…g3 15.fxg3 hxg3 16.h3 0–0–0 17.Qf3 Nh5 18.Nf1 d5 which, no matter how hackneyed, is quite strong. White needs to bolster his defenses.

14.Nf1 0–0–0 15.Ba4 g3 16.fxg3 h3 17.gxh3 Rxh3

Black has mistimed his pawn advance and White’s defensive line is quite solid. It is now the first player’s turn to go on the attack.

18.b4 Qe7 19.Nce3 d5?

Opens himself up for White’s two bishops. He should have played something like 19…Bh6 and exchange itself for the knight — anyway his bishop is not doing anything.

20.Ba3! Qe8 21.b5 axb5 22.Bxb5 dxe4 23.a6 b6 24.Qa4 Bd7 25.Nf5 Bxf5 26.a7 Kb7 27.Be7!! Bd7

[27…Ra8 28.Qa6#]

28.Bxd8 1–0

 

Bobby Ang is a founding member of the National Chess Federation of the Philippines (NCFP) and its first Executive Director. A Certified Public Accountant (CPA), he taught accounting in the University of Santo Tomas for 25 years and is currently Chief Audit Executive of the Equicom Group of Companies.

bobby@cpamd.net

Twitter game

Phil Mickelson hasn’t been consistently good for a while now. Arguably, he started the year on a high; he claimed a bridesmaid finish at the Desert Classic in January and then a victory at the AT&T Pebble Beach Pro-Am three weeks later. Yet, even then, there were signs that he would have trouble staying sharp; for instance, his competitive stints sandwiched a missed cut at the Waste Management Phoenix Open, where he had previously won thrice. He would wind up tinkering with his swing off the tee and stroke on the greens as he negotiated his 2019 campaign, and his results underscored both the causes and effects of his efforts to find comfort in his mechanics.

Following a 32nd-place showing at The Northern Trust, Mickelson dropped four spots to 36th in world rankings. It reflected his continuing — and so far futile — search for peace inside the ropes. Every week, he would start a tournament with promise, and, every week, he would end it with disappointment; his win at the Monterey Peninsula was the last time he handed a scorecard good enough to be in the Top 10. Meanwhile, he would accumulate seven MCs in 15 events, with a tie for 18th at the Masters his best standing of all the stops in which he managed to stay for the weekend.

Mickelson isn’t about to give up anytime soon, though. In fact, he remains optimistic about his chances with a club in his hand, his confidence borne as much of a rightful recognition of his outstanding short game as of his contentment in his life outside the sport. He’s not the people’s champion for nothing, and his public persona — which may or may not be genuine depending on the quarter assessing it — has thrived precisely because of the warmth he conveys. In fact, he understands the value of spreading good cheer, and how to do so with aplomb.

By the standards of household names, Mickelson has a modest following on Twitter. Considering that his account isn’t even a year old, however, 414,000 is nothing to scoff at. And, regardless, it has become well worth the constant lookup. The other day, for instance, he posted a video in which he recounts the final round of — what else? — the AT&T Pebble Beach Pro-Am in 2012, by his reckoning one of only three times he beat Tiger Woods on the course. It was a humorous take that guest-starred former Cowboys quarterback Tony Romo and a digital photo frame of his longtime rival. Lots of needling, self-deprecation, and, most importantly, insights in a span of two minutes and change.

Under the circumstances, Mickelson doesn’t have to be told that his Twitter game is much, much better than his actual one. If anything’s a sure thing, though, it’s that he will strive to be at his finest in both. And fans of his golf and his unique brand of comedy and candor can’t ask for anything more.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

Go Motion: Led by vision, backed by technology

Many businesses have become successful through the guidance of their vision and the help of proper tools and technologies. This is true for Go Motion, a production house based in Makati City, founded in 2012 by six people who shared a grand goal.

“We had a vision for what a 21st-century production house could be — full of creative talent that works on groundbreaking work. We wanted to be the change we wanted to see in our industry,” said EJ Angeles, co-founder of Go Motion.

From its humble beginnings as a corporate media supplier, Go Motion expanded its services one step at a time. In 2015, it started producing television commercials for top brands in the Philippines and abroad. Soon after, they included creative and strategic planning in their wide range of services

Go Motion has also started producing films and shows. Notably, in 2017, it created Playhouse Studio, an innovation unit tasked to break new grounds in video design, technology, and consumption.

As much as Go Motion expanded its services, it has catered to many local and international brands and even pitched content for many streaming services. Its great work through time earned them prestigious awards inside and outside the country.

This profound growth of Go Motion into an integrated video agency was possible through the vision they carried with them. For Mr. Angeles, Go Motion’s vision was not only their starting point. It has been their guiding star.

Along with the vision, technology has served as Go Motion’s tool in building up and growing their business. Technology has helped them not only in terms of production but also in terms of task management.

“Technology has enabled us to take out menial tasks from some of our employees such as traffic managers, production managers, producers, film directors, editors in post production, all the way to staff in support services,” Mr. Angeles explained. “Technology helps us both ways: make our work easier, better, more time-efficient; and at the same time create things we have never thought of creating three to five years ago.”

As Go Motion has successfully reached where they are now, they still aim for greater heights.

“We envision our work to be on every screen — may it be television, your laptop, mobile phone, out of home billboards, movie theaters, everywhere. That’s where we know we have made it,” Mr. Angeles said.

“When we have made it, we want to pave the way for our employees to have ownership on our company so that it continues — even without its founding members — to grow and have high impact work not only in the Philippines but in the ASEAN market,” he added.

Indeed, a great vision and workable technology can work together to make a business grow. This is possible with Globe myBusiness, which equips micro, small and medium businesses for the future, with best value products and solutions.

As the SME arm of Globe, it is the goal of Globe myBusiness to help every enterprise reach its full potential through industry-specific tips, lessons from experts in the field, and business solutions tailored to answer every business owner’s needs. Globe myBusiness salutes Filipino SMEs for the important role they play in nation-building. #SaludoSMEs

For more information, visit Globe myBusiness website.

May FDI net inflow smallest in 4 years

By Mark T. Amoguis
Senior Researcher

MAY was marked by a net inflow of foreign direct investments (FDI) that was nevertheless the smallest in more than four years, the central bank reported on Tuesday.

FDI net inflows dropped 85.1% to $242 million in May from $1.625 billion in the same month last year, preliminary central bank data showed.

It was the smallest net inflow since March 2015’s $200 million.

The Bangko Sentral ng Pilipinas (BSP) noted that net investments in debt instruments contracted by 88.6% to $149 million in May “due mainly to higher prepayments and repayments of debt owed by local affiliates to their foreign counterparts, coupled with a decline in their borrowings from their foreign affiliates.

The BSP also noted “moderate” net inflows of equity capital, which plunged 99.6% to a mere $1 million that month, as placements declined 71% to $74 million while withdrawals surged nearly fivefold to $73 million.

The central bank said equity capital placements in May came mainly from the United States, Japan, China, Hong Kong.

In May, these capital infusions went largely to real estate; manufacturing; financial and insurance; construction; as well as human health and social work industries.

Reinvested earnings, meanwhile, went up 15.9% to $92 million.

YEAR-TO-DATE DROP
Year-to-date, FDI net inflows reached $3.145 billion in the five months to May, dropping 37.1% from the past year’s $5.002 billion.

This was mainly due to a 76% year-on-year drop in net equity capital investments to $336 million from $1.4 billion in the same comparative five month periods, as placements contracted by 48.9% to $787 million from $1.539 billion while withdrawals jumped more than threefold to $451 million from $139 million.

Net investments in debt instruments similarly decreased 26% year-on-year to $2.391 billion from $3.232 billion.

In the first five months, equity capital placements came from Japan, the US, China, Singapore, and South Korea and were largely channeled to the financial and insurance sector, real estate, manufacturing, transportation and storage, as well as administrative and support services.

FDIs are a source of capital for the Philippine economy, spurring domestic activity by funding business expansion and generating more jobs.

From a record high of $10.256 billion in 2017, FDI net inflows dropped 4.4% to settle at $9.802 billion last year.

The central bank projects net foreign direct investments to reach about $10.2 billion this year.

Grab gets more time to address concerns

THE STATE antitrust watchdog has extended its monitoring of Grab Philippines, citing “lingering competition concerns” a year after the company got conditional clearance for its acquisition of Uber’s operation in the country.

In a statement on Tuesday, the Philippine Competition Commission (PCC) said it has extended the effectivity of Grab’s voluntary commitments to Oct. 20 to allow for talks on new or amended commitments that will be effective for another period still to be agreed on.

“Exactly a year after PCC rendered a Commitment Decision on Grab’s acquisition of rival Uber on August 10, 2018, the competition authority finds that the dominance of the merged firms remains unchallenged and competition has not improved in the ride-hailing market,” the watchdog said in its statement.

After raising competition concerns when Grab bought Uber’s Southeast Asia business last year, the PCC gave the merger a conditional clearance, subject to a year-long monitoring of Grab’s voluntary performance commitments involving improvement of service quality, fare transparency, maintaining pricing comparable to the level before its acquisition of Uber’s Southeast Asia business, removal of a “see destination” feature for drivers, driver and operator non-exclusivity, incentives monitoring and an improvement plan.

“These commitments are designed to maintain conditions in the market as if Uber or another competitor were present to set a competitive constraint on Grab,” PCC said in its statement.

“The commitments were also meant to prevent Grab from making it difficult for new players to enter and grow in the ride-hailing market.”

The one-year monitoring period lapsed last Saturday, but PCC Chairman Arsenio M. Balisacan cited a need for a new set of commitments that is “fair and reasonable and that protects consumers from Grab’s currently unchallenged dominance in the market.”

The watchdog said the new commitments may be similar to the old ones, but with adjusted metrics.

“We… hope to raise the level of competitive intensity in the market and bring about market conditions conducive to new entrants,” the statement quoted Mr. Balisacan as saying.

Grab Legal Counsel Erasto Miguel G. Aguila told reporters in a Viber message that the company is “discussing with the PCC… how to proceed moving forward.”

The PCC said should it fail to finish talks with Grab on new commitments by Oct. 20, it will reevaluate the conditional clearance it gave the company for its acquisition of Uber’s business in the country.

“On one hand, the commitments can keep Grab in check from exercising its market power as a virtual monopolist. On the other hand, we also advocate for allowing smaller players to grow or formidable new competitors to enter the market which will be more beneficial to the riding public,” Mr. Balisacan said. — Denise A. Valdez

DBCC to check assumptions anew

THE INTERAGENCY Development Budget Coordination Committee (DBCC) plans to meet again on Aug. 27 to consider “new” macroeconomic assumptions like inflation, the central bank chief said on Tuesday.

“… [M]ay meeting ang DBCC… sa Aug. 27… tentative… to look at new assumptions. Baka maga-adjust na naman ng inflation doon (Inflation assumptions may be adjusted again in that meeting),” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno told reporters on the sidelines of an event in Quezon City, adding that the meeting will focus on 2020 and 2021 assumptions.

The DBCC last met on July 18, during which it cut inflation and international trade assumptions but kept overall economic growth targets intact.

On Aug. 6, however, the government announced July inflation at a 31-month-low 2.4% and two days later reported that second-quarter economic growth clocked in at 5.5%, the slowest in four years.

Asked if latest economic growth data will be factored in at the next meeting, Mr. Diokno replied: “Hindi na ‘yan eh. Sa tingin ko blip lang ‘yan eh… (It won’t, I think it was just a blip.) It won’t happen again.”

The DBCC, which is composed of the Department of Budget and Management, the Department of Finance, the National Economic and Development Authority, the Office of the President and the BSP, sets macroeconomic and fiscal assumptions of the government.

Asked about factors that could affect assumptions in the upcoming meeting, Mr. Diokno said: “Possible slowdown, in fact, some predicted recession in the US… this is for 2020-2021. Tapos ’yung oil prices ngayon bagsak na naman. Tapos ’yung likely outcome US-China trade war. Tapos isasama mo na rin diyan ‘yung what’s happening in Hong Kong (Oil prices have gone down again. Then the likely outcome of the US-China trade war and what’s happening in Hong Kong).”

In its 176th meeting last July 18, the DBCC slashed inflation rate assumption to 2.7-3.5% from 3-4% previously amid a cooling general increase in prices of widely used goods and services after multi-year highs seen last year. Inflation assumptions for 2020 up to 2022, when President Rodrigo R. Duterte ends his six-year term, were maintained.

The interagency body revised upward its peso-dollar outlook to P51-53 against the greenback this year from P52-55 previously.

Merchandise export growth assumption was trimmed to two percent this year from six percent previously due to slowing global demand, but maintained at six percent from 2020 to 2022.

Likewise, goods import growth was slashed to seven percent this year from nine percent previously but kept it at eight percent from 2020 to 2022.

Growth of service export assumption was reduced to nine percent for this year from 10% and set also at nine percent from 11% previously for 2020 to 2022, while service import growth was trimmed to three percent this year from five percent, to four percent for 2020 from six percent, and to five percent for 2021 to 2022 from seven percent previously.

The assumption for dollar price of Dubai crude oil — used as a benchmark for local fuel products — was maintained at $60-75 per barrel for 2019-2022.

At the same time, gross domestic growth targets were maintained at 6-7% for this year, at 6.5-7.5% in 2020 and at 7-8% in 2021-2022.

The DBCC also maintained projected revenues at P3.15 trillion for this year, equivalent to 16.4% of GDP, while disbursements are targeted at P3.77 trillion (down slightly from P3.78 trillion as of March projections), or 19.6% of GDP.

For next year, state revenues are seen to increase to P3.54 trillion (down from P3.676 trillion in the previous projection), equivalent to 16.7% of GDP, while disbursements are programmed at P4.21 trillion (down from P4.313 trillion), equivalent to 19.9% of GDP.

Given this fiscal picture, the budget deficit ceiling will be kept at equivalent to 3.2% of GDP this year, and slightly raised to that level from 2020 to 2022 from three percent as of March projections. — Mark T. Amoguis

BSP to ‘pre-announce’ action on banks’ reserve requirement

THE BANGKO SENTRAL ng Pilipinas (BSP) will “pre-announce on a quarterly basis” its intention on banks’ reserve requirement ratio (RRR) in order to prepare markets, BSP Governor Benjamin E. Diokno said on Tuesday.

“The consensus of Monetary Board (MB) members is we will pre-announce on a quarterly basis,” Mr. Diokno said on the sidelines of an event in Quezon City when asked on succeeding reductions in banks’ RRR.

“Hindi naman ‘yung sasabihin ko na for the next three years eto ’yung five percent [cut] every quarter. Walang ganon. Quarterly… We will pre-announce kung anong gusto namin (We will not say that we will cut the RRR by five percent every quarter for the next three years. It’s not like that. We will pre-announce quarterly what we intend to do)” he said.

“We will pre-announce it para hindi nagugulat. Na-appreciate naman nila ‘yun, ‘di ba? Para mawala na rin ‘yung… everyday na lang nag-e-speculate (We will pre-announce it so that the market will not be caught off-guard. They appreciate that, don’t they? So that we can minimize market speculation),” said the central bank chief, who sits as the chairman of the policy-setting Monetary Board.

“Meron pa kaming six weeks eh. Puwede ring hindi, puwedeng at the end, puedeng hindi at the end. Depende (We still have six weeks until the Monetary Board’s Sept. 26 policy review. We might not cut the RRR, we might do so at the end of the six weeks, we might not cut at the end. It depends).”

In non-interest rate-setting meetings last May, the MB implemented a multi-phased 200 basis point reduction in RRR to 16% for big banks and to six percent for thrift banks by the end of July.

The central bank chief has committed to paring the RRR down to single-digit level when he ends his term — the remainder of the six-year term of the late BSP Governor Nestor A. Espenilla, Jr., who died last Feb. 23 — in July 2023.

Mr. Diokno said that RRR reduction is a “live issue” in MB meetings “in the sense that we can take it up anytime.”

“’Di ba kakatapos lang ng July, may August pa tayo (July has just ended, we still have August), so… we just look at how it (freed-up funds) was used… liquidity constraints and then we’ll consider other proposals,” he said.

The timing of RRR cut, Mr. Diokno has said, will still depend on liquidity, as the BSP watches if reductions earlier this year — which are estimated to have released more than P200 billion into the system — spurred lending to productive economic activities.

The central bank announced on July 31 that money supply growth steadied at 6.4% year-on-year to about P11.78 trillion in June — and edged up by about 0.3% month-on-month — even as it trimmed lenders’ RRR, the last phase of which took effect on July 26.

Mr. Diokno said late last week that another RRR cut could take place “next month”, adding that it could be decided in any of the Monetary Board’s weekly meetings.

He had also said that another 25 bp cut in benchmark interest rates could be on the table during the Sept. 26 policy review, which will be the sixth for this year. — Mark T. Amoguis

Ayala group profit surges to P38B in six months

By Arra B. Francia, Senior Reporter

EARNINGS of Ayala Corp. (AC) more than doubled in the first half of 2019, boosted by divestment gains from its education and energy businesses.

In a regulatory filing, the listed conglomerate said net income attributable to the parent grew 135% to P37.84 billion in the six-month period. Revenues also went up 8% to P160.38 billion. The company did not disclose second-quarter figures.

AC attributed its performance to the twofold increase in equity earnings from its business units to P41.7 billion. This includes divestment gains from AC Education, Inc.’s merger with Yuchengco-led iPeople, Inc., as well as its partial divestment from AC Energy, Inc.’s thermal assets.

AC Energy in June agreed to transfer its assets in the 552-megawatt GNPower Kauswagan’s (GNPK) coal-fired power project to its partner, Power Partners Ltd. Co. The deal will be implemented in tranches, subject to certain closing conditions and approval from the Philippine Competition Commission.

“Our first-half results reflect the strength of our core holdings in real estate, banking, and telecommunications. This was complemented by the value realization initiatives in our energy business,” AC President and Chief Operating Officer Fernando Zobel de Ayala said in a statement.

AC’s business units include Ayala Land, Inc. (ALI), Bank of the Philippine Islands (BPI), Globe Telecom, Inc., Manila Water Co., Inc., AC Energy, and AC Industrial Technology Holdings, Inc.

For the property segment, ALI’s net income climbed 12% to P15.2 billion after a 4% increase in revenues to P83.2 billion. The listed company benefited from higher office sales and the double-digit growth of its commercial leasing segment.

ALI faced delays in securing permits for real estate projects during the semester, leading to only P19.5 billion worth of launches against its P130-billion target for the entire year. The company is optimistic it can unveil about P111 billion worth of projects in the second half to ramp up its inventory.

Meanwhile, BPI’s net income grew 25% to P13.7 billion. Revenues went up 23% to P45.9 billion, thanks to margin expansion and the growth of its fee-income business.

Earnings of Globe Telecom went up 21% to P12 billion for the same period, following continued demand for data-related services. Service revenues were up 13% to P72.9 billion, driven by data revenues which accounted for 70%. Its prepaid segment also pushed mobile revenues 11% higher to P54.6 billion.

Manila Water’s profit fell 18% to P2.9 billion due to supply challenges during the semester. The east zone concessionaire said the water shortage led to higher operating expenses and lower billed volume, offsetting the 7% increase in revenues to P10.5 billion.

AC Energy’s net profit stood at P23.2 billion, primarily driven by the partial sale of the GNPK project.

On the other hand, AC Industrials recognized a net loss of P510 million for the period, dragged by the global slowdown in the automotive industry, geopolitical risks in the United Kingdom and China, as well as weaker sales from its Honda, Isuzu, and Volkswagen brands.

Shares in AC rose 0.21% or P2 to close at P940 apiece on Tuesday.

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