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Your computer can help scientists seeking potential Covid-19 treatment

Anyone in the world with a computer and an internet connection can help scientists seeking chemical compounds that might be effective against the current pandemic through a project called OpenPandemics – COVID-19.

The project, designed and led by Scripps Research, will be hosted on IBM’s World Community Grid, a trusted, crowdsourced computing resource provided at no charge for scientists.

Volunteers can help by downloading an app that identifies when their devices are otherwise idle or in light use. Utilizing the unused processing power of these devices, the app will allow scientists to perform small, virtual experiments to identify chemical compounds, including those in existing medicines, that could potentially be used as treatment candidates for Covid-19.

IBM’s World Community Grid crowdsourcing power will enable the project to perform hundreds of millions of calculations needed for simulations. This could potentially help scientists accelerate the drug discovery or drug repurposing process, traditionally performed more slowly in a traditional, “wet” laboratory.

Operating on the IBM cloud, the process is automatic and volunteers need not have any special technical expertise to participate. Personal information is never shared, and the software cannot access personal or business files.

Giving volunteers a sense of empowerment

To date, more than 770,000 people and 450 organizations have contributed nearly two million years of computing power to support 30 research projects, including studies on cancer, Ebola, Zika, malaria, and AIDS, as well as projects for developing better water filtration systems and solar energy collection.

Data from World Community Grid projects are always shared with the world, and so far more than 50 peer-reviewed scientific articles have been published. The computing power is provided free of charge on the basis of crowdsourcing, allowing researchers to scale up research, pursue new research approaches, and accelerate processes.

“IBM’s World Community Grid is a resource that not only empowers scientists to accelerate vital work on a large scale, but also gives volunteers a sense of empowerment, joining with others all over the globe to make a difference,” said Guillermo Miranda, VP and head of corporate social responsibility at IBM. “During a time of social distancing and isolation, this sense of purpose and interconnectedness is as important as ever.”

For more information about Scripps Research’s project on World Community Grid, please click here.  To sign up as an OpenPandemics – Covid 19 volunteer, please click here.

BSP cuts policy rate to record low

THE BANGKO SENTRAL ng Pilipinas (BSP) fired off another 50-basis-point (bp) cut in policy rates in an off-cycle meeting to bring borrowing costs to record lows in a bid to boost lending to support the economy in the middle of the coronavirus disease 2019 (COVID-19) crisis.

“BSP cut key policy rate by 50 bps,” BSP Governor Benjamin E. Diokno told reporters in a Viber message on Thursday. The reduction will take effect today (April 17).

“This is to strongly encourage lending to various sectors, especially to the most vulnerable, amid the COVID-19 pandemic,” he said on Twitter.

This brought the key rate or the overnight reverse repurchase rate to 2.75%. Accordingly, interest rates for the central bank’s overnight deposit and lending facility have been trimmed to 3.25% and 2.25%, respectively.

These rates are the lowest on record and also since the BSP shifted to an interest rate corridor in 2016.

The cut came less than a month after the 50-bp reduction in a scheduled Monetary Board meeting on March 19, which took effect on March 20.

The Monetary Board meets every six weeks to review its policy settings. But with the latest rate cut, Mr. Diokno said they “see no reason to have another policy meeting on the next scheduled date (May 21).”

“Monetary policy works with a lag and it is the sense of the MB that a cut of 125 bps for the first half of the year is appropriate. We continue to monitor domestic and international developments, however,” he said.

For this year alone, the central bank has slashed rates by a total of 125 bps after a 25-bp cut on Feb. 6. This followed 75 bps in cuts implemented in 2019. This means the BSP has completely unwound the 150 bps in hikes done in 2018.

The central bank chief hinted earlier this week that the COVID-19 crisis could warrant a “deeper cut” in rates to ensure a “soft landing” for the economy, and said the key rate could drop below its 3% level back in 2018, which was before the BSP tightened its stance to arrest rising inflation.

Mr. Diokno said a slower inflation outlook amid falling oil prices is supportive of this dovish stance.

Headline inflation in March eased to 2.5% from the 2.6% seen in February and the 3.3% in March 2019. This brought the year-to-date inflation average to 2.7%, which is within the 2-4% target for 2020 and also above the 2.2% expected by the BSP for the year.

RIGHT TIME
The rate cut, although off-cycle, came at the right time given dimming economic prospects due to the pandemic, analysts said.

“There is no better time to aggressively cut local policy rates than now as monetary easing measures are really intended for times such as this COVID-19 pandemic that has huge economic fallout,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message.

Jonathan L. Ravelas, chief market strategist at BDO Unibank, Inc., said the move is part of the government’s strategy to soften the economic impact of the outbreak.

“I think the idea of the rate cut is that this is still part and parcel of the measures done by the government to eventually mitigate the impact of COVID-19…to soften the blow,” Mr. Ravelas said in a phone call.

Both analysts said another 25-bp cut is forthcoming within a month as inflation remains manageable.

ING Bank N.V.-Manila Senior Economist Nicholas Antonio T. Mapa likewise said another rate cut is possible, along with a fresh 200-bp reduction in banks’ reserve requirement ratio (RRR).

“Investors will continue to monitor the size and scope of the fiscal COVID-19 recovery plan now that the lockdown has been extended to the end of the month with government officials flagging a worst case scenario technical recession by the Q3 of the year,” Mr. Mapa said in an e-mail.

ANZ Research also said in a note that it is not ruling out additional easing. “Another 200 bps reduction in the RRR is imminent. Another extension of the lockdown in Luzon into May could warrant additional fiscal and monetary aid,” it said.

The RRR of universal and commercial banks was reduced by 200 bps to 12% effective earlier this month to boost liquidity in the financial system. Mr. Diokno was authorized by the Monetary Board to trim RRR by up to 400 bps this year.

Meanwhile, the reserve ratios of thrift and rural banks stand at four percent and three percent, respectively. However, the central bank slashed the minimum liquidity ratio of stand-alone thrift, rural and cooperative banks by 400 bps last week to 16% until end-2020 to boost their buffers amid the disruptions caused by the pandemic.

Despite the key rate being lower than its 2018 level, the BSP still has space to help cushion the economy from the negative impact of this health crisis, said UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion.

“This doesn’t mean that the space is smaller or there is no more space. There are still other tools like the RRR cuts or even a wartime strategy of printing more money,” Mr. Asuncion said in a text message.

Finance Secretary Carlos G. Dominguez III has said gross domestic product (GDP) will likely be flat or even contract by as much as one percent this year as the lockdown has temporarily shut down businesses in Luzon, which accounts for 70% of economic output.

This compares to the 5.9% GDP expansion logged last year and the 6.5 to 7.5% growth goal set by the government for this year before the outbreak. — L.W.T. Noble

Shipping time bomb ticks as thousands of Filipino sailors get stuck

By Genshen L. Espedido

VENCITO U. OPEN, 31, is one of about 50 Filipino seamen who have been stranded in a cramped dormitory in San Andres — Manila’s second-most densely populated district — jobless and about to become penniless after his flight to Saudi Arabia was canceled when the government locked down the main Philippine island of Luzon to contain a novel coronavirus pandemic.

The building owner had threatened to close the two-story dorm after many of them missed their daily rent of P80 and for fear that the virus could spread among the transients, the messman from Cagayan de Oro province said.

“We badly need electric fans because it’s hot and humid inside,” Mr. Open, who shares a room with five other seafarers, said by telephone. “The water pressure is low and life gets harder each day. Village officials asked for our names, but we have yet to receive any help.”

The Philippines is one of the world’s biggest suppliers of sailors on international ships, and apart from the jobless seamen stuck at home, thousands more have been stranded on cargo and cruise ships amid global travel curbs.

Industry groups have been lobbying to lift travel restrictions on seafarers to defuse a shipping sector time bomb.

The pandemic that has sickened two million and killed more than 130,000 people worldwide is expected to hit the global shipping industry, said George N. Manzano, dean of the University of Asia and the Pacific’s School of Economics.

“This would put a drag on the employment of seafarers,” he said in an e-mailed reply to questions. “Filipinos make up a significant portion of the global seafaring community, and many of them have started to feel the impact of the health crisis.”

Of the $30.1-billion cash remittances sent home by Filipino workers overseas last year, 22% or $6.5 billion came from seamen, who make up a quarter of the Philippines’ more than two million workers abroad, according to data from the central bank.

MODERN HEROES
Personal remittances — whether in cash or in kind and capital transfers between households — hit a record $33.5 billion last year, a 3.9% increase from a year earlier and accounting for almost a tenth of the Philippine economy, data showed.

The data only counted money sent home by the country’s modern heroes through official channels such as banks and remittance centers.

“Remittances provide a steady stream of foreign exchange to help offset the widening trade gap and limit the current account deficit,” Nicholas Antonio T. Mapa, a senior economist at ING Bank N.V.-Manila, said in a note.

“Together with business process outsourcing receipts, overseas Filipino remittance flows augment domestic wages, translating into potent purchasing power to fund household consumption, and even capital formation,” he added.

But the coronavirus pandemic poses a risk to remittances this year, as travel restrictions and the closure of some companies mean fewer Filipino workers being deployed overseas.

“The outbreak also forces people to go into quarantine or affects consumption patterns which could have an adverse impact on the service industry, where most overseas Filipinos are employed,” Mr. Mapa said.

“The recent plight of cruise ships around the world will likely put pressure on cruise liners and the hospitality industry as a whole, making it difficult for Filipinos to send home remittances should their salaries be curtailed or they lose their jobs altogether,” he added.

The government has repatriated more than 14,000 Filipino workers during the health crisis, mostly seafarers displaced by the pandemic, according to the Foreign Affairs department.

Overseas Filipinos’ failure to send money home to their families “may have adverse effects on the Philippine economy in the short and medium terms,” De La Salle University (DLSU) Economist Tereso S. Tullao, Jr. said.

Cabinet Secretary Karlo Alexei B. Nograles earlier said the coronavirus disease 2019 (COVID-19) would probably shave 0.8 percentage point off the growth in personal remittances this year, with the total amount expected at $34.2 billion.

Cedric V. Caguioa, a marine operations superintendent at Maersk Tankers, cited “massive disruptions” in the shipping industry caused by the COVID-19 pandemic.

“We could no longer berth and do cargo operations or what used to be routine husbandry — crew changes, supplies and provisions — at some ports that are now considered a no go,” he said in an e-mail.

“It led to a freeze in the businesses of some shipping lines, while also affecting port employees who are now out of work due to the halt in port operations,” he added.

Mr. Caguioa said crew morale is “very low,” many of them in constant fear of getting infected with the coronavirus for which there is still no vaccine.

“There are very limited ports that accept crew changes and, more importantly, seafarers are affected by the thought that they are not with their families in these trying times,” he said.

WAITING GAME
The spread of the coronavirus has resulted in many countries closing their borders and restricting port entry, Guy Platten, secretary-general of the International Chamber of Shipping, said in a statement on the group’s website.

“Limitations on crew change (the replacement of one of the ship’s crew members with another one) have the potential to cause serious disruptions to the flow of trade,” he added, noting that about 90% of goods that people use are transported by sea.

DLSU’s Mr. Tullao said the global recession could be extended if the travel restrictions on seafarers continue.

“Countries recovering from the COVID-19 pandemic may find it difficult to import or export goods because the manpower for maritime services is restricted,” he said. “This will further lengthen the global recession.”

The container throughput index fell by 10.9 points to 102.5 in February from 113.4 in January, according to the Leibniz Institute for Economic Research and the Institute for Shipping Economics and Logistics.

The index, which is an indicator of global economic activity, includes information on container throughput in 89 international ports, which account for about 60% of global container throughput.

“The halt of industrial production due to the COVID-19 pandemia and the related drop of imports and exports is likely to show its full effect in March only,” the institute said on its website.

Back home, the Maritime Industry Authority (Marina) said about a third of shipping operations had been affected by the Luzon-wide lockdown.

Mr. Open, the messman from Cagayan de Oro, said he couldn’t do anything but wait for his job agency to reopen once the lockdown is lifted.

“Most of us have signed our contracts. We’ve lost communication with our employment agencies in Manila because they’ve been closed,” he said in Filipino. “All we can do now is play the waiting game.”

Extending lockdown beyond April could be ‘difficult’ — Pernia

REUTERS

By Beatrice M. Laforga and Jenina P. Ibañez
Reporters

EXTENDING the enhanced community quarantine (ECQ) beyond April 30 would be “difficult,” according to Socioeconomic Planning Secretary Ernesto M. Pernia, who is backing a gradual lifting of the Luzon-wide lockdown which would allow malls and public transportation to resume partial operations.

“I guess there will be some lockdown and probably it will be more localized, not like now which is the whole of Luzon, and some loosening up in some areas, that have low risk of COVID-19 contagion will be opened up, will be unquarantined,” Mr. Pernia told BusinessWorld Wednesday when asked for his recommendations after the ECQ ends on April 30.

However, Mr. Pernia said in a radio interview with DZMM it would be hard to extend the Luzon-wide lockdown, as many business groups have been calling for a “partial reopening” with safety measures in place.

Shopping malls, he said, could be allowed to resume operations at 50% capacity or implement a “calibrated opening” if measures such as physical distancing will be strictly observed.

The National Economic and Development Authority (NEDA) chief noted more businesses that address “other needs of people like haircuts, laundry, housecleaning” may be allowed to open.

Mr. Pernia also said restrictions on public transportation can also be eased provided that commuters will observe proper distancing measures.

However, he acknowledged that this may not be possible in congested Metro Manila, so companies that are allowed to resume operations should provide shuttle services for employees.

“Physical distancing can be better achieved [if the] big companies that have workers ay may mga shuttle buses silang sarili para mabawasan ’yung (have shuttle busses of their own to lessen) public commuting… So that the more general public can take public transportation with physical distancing,” Mr. Pernia said.

The Philippine Chamber of Commerce and Industry (PCCI) on Sunday recommended the inclusion of the public transport sector in the list of “essential industries” allowed to operate in the event of a partial lifting of the ECQ.

“Premised on the (future) decision of the Inter-Agency Task Force (IATF) to partially lift the Luzon ECQ, PCCI recommends the partial lifting of the public transport sector in support of the slow but steady journey towards economic normalcy while strictly enforcing social distancing policy,” it said.

Mr. Pernia also thumbed down suggestions that the severely battered tourism industry resume operations, saying it “can be done later” as it is still “risky” to allow people to travel.

While infrastructure works for some projects have already been exempted from quarantine protocols, Mr. Pernia said the government wants to resume the “Build, Build, Build” program soon.

“All these things have to be accompanied by rapid testing,” he said.

As of Thursday, the Health department reported COVID-19 deaths reached 362, while infections have increased to 5,660. Total recoveries stood at 435.

Mr. Pernia warned that a second wave of infections may happen if safety measures are not observed after the lockdown is lifted.

“This has happened already in China, in Wuhan because when they lifted the lockdown there were some relapses. Even Singapore also is suffering some relapse and [South] Korea, so we have to be careful in opening, lifting the quarantine in some areas, to be very careful in having precautions to avoid a relapse,” he said.

For Finance Secretary Carlos G. Dominguez III, any recommendation for the gradual resumption of economic activities “should include a clear analysis of the tradeoffs involved.”

IMPROVED TESTING NEEDED
Meanwhile, business groups reiterated the need for improved testing for COVID-19 and targeted quarantine measures if the lockdown is gradually lifted.

“Many (businesses) are looking for much more testing and strengthening of public health infrastructure,” Joint Foreign Chambers of Commerce of the Philippines (JFC) Senior Adviser John Forbes said in a mobile message.

He said companies are also seeking easier movement of cargoes and essential workers, continued quarantine where needed, and the gradual return of public transport and infrastructure construction projects under health protocols.

Mr. Forbes also recommended the successful implementation of support programs for small and medium-sized enterprises, and continued work from home measures with better commerce. He said mass gatherings should still be banned.

Semiconductors and Electronics Industries in the Philippines, Inc. (SEIPI) President Danilo C. Lachica in a mobile message said companies that can demonstrate safe practices should be allowed to increase the level of operations.

Philexport President Sergio R. Ortiz-Luis, Jr. said in a phone interview that there should be improved mass testing and isolation measures in quarantine centers.

He said the distribution of cash aid should be simplified, adding that infrastructure projects as well as some malls and restaurant operations should be allowed.

“Test and isolate. That’s the name of the game. And let the rest of the economy and the rest of the people do their own thing, to work,” Mr. Ortiz-Luis said in Filipino. “Those who can work, let them come to work.”

SEC drafts rules to empower minority investors

By Denise A. Valdez, Reporter

THE Securities and Exchange Commission (SEC) is drafting rules to allow minority investors of listed companies to call for meetings and add items to meeting agendas.

The corporate regulator issued a draft memorandum circular on Wednesday seeking to grant additional powers to shareholders that represent five to 10% of a listed company’s outstanding capital stock.

Under the draft rules, shareholders, who represent at least 10% of a company’s capital stock, will have the right to call for a special stockholders’ meeting as they may deem necessary.

The meeting will be guided by provisions in Republic Act No. 11232 or the Revised Corporation Code of the Philippines, which says all stockholders must be notified of special meetings at least one week prior through a written notice.

Another proposed change is to allow shareholders to include items in the agenda of regular and special meetings. This would apply to shareholders that represent at least 5% of the company’s outstanding capital stock.

The draft rules state any officer or agent of a company that would not allow minority shareholders to exercise these rights may face administrative sanctions as indicated in the Revised Corporation Code. These include a P2-million fine, a cease and desist order, suspension or revocation of a company’s certificate of incorporation, and dissolution of the corporation and forfeiture of its assets.

The SEC said these proposals are in line with its goal to “promote good corporate governance and the protection of minority investors.”

Comments on the draft memo are now being sought from the public, which may be submitted to the SEC until April 22.

For Philstocks Financial, Inc. Research Associate Piper Chaucer E. Tan, the proposal will give more protection to minority shareholders, especially in cases where companies plan to delist from the stock exchange.

“I think this is in line with the strengthening of investors’ protection following the delisting of several publicly listed companies which are not in favor with minority shareholders,” he said via text.

Mr. Tan said if measures like this are in place, companies would be compelled to listen to minority shareholders’ views on plans such as delisting.

“This adds fairness to the shareholders who invest money (in a listed company) on the assumption that these investors believe in the company’s potential and growth,” he added.

The recent delistings of Melco Resorts and Entertainment (Philippines) Corp. and Travellers International Hotel Group, Inc. drew unfavorable reaction from minority investors as companies bought their shares at a much lower price than when they had bought it.

This eventually pushed the bourse operator Philippine Stock Exchange, Inc. to work on rules that would change the required approvals and tender offer price for voluntary delistings.

Relaxed power supply contracts ‘disastrous’ to plant operations

PIPPA says mandating power generators to force majeure claims disrupts the power supply chain

By Adam J. Ang

POWER producers said they cannot relax their supply contracts with distribution utilities (DU) and electric cooperatives (EC) to lower generation costs as this move would disrupt the energy supply chain.

Their stand is a response to the appeal by a consumer group that called on them to cut generation costs being passed on to consumers as demand for electricity during the enhanced community quarantine (ECQ) continues to drop.

Philippine Independent Power Producers Association Inc. (PIPPA) on Thursday said that relieving their contracts would affect their ability to pay for fuel, operating costs, as well as loans, making it difficult for them to continue their operations.

“Mandating generation companies to FM (force majeure) claims by DUs/ECs not only disrupts the power supply chain, [but] it is also tantamount to one sector taking advantage of the other,” PIPPA President and Executive Director Anne E. Montelibano said.

In late March, Laban Konsyumer Inc. (LKI) demanded power producers to declare a force majeure claim on their power supply agreements (PSA) to reduce the costs of electricity that they pass on to consumers whose livelihoods are affected by measures to contain the coronavirus disease 2019 (COVID-19) pandemic.

“[I]t is a difficult situation nowadays for the Filipino consumer, especially when it comes to making money since most people are not able to work any longer. Because of this, our group is calling on the owners of the power plants to find a way to lower the power generation costs that they will be passing on to consumers,” LKI President Victorio Mario A. Dimagiba said in a letter to PIPPA.

But Ms. Montelibano warned that bringing down costs upon invoking a force majeure provision on their contracts would have “disastrous consequences if it remains unchecked.”

“It will be each industry player acting solely on the basis of its own commercial interests,” she added.

A force majeure event is an uncontrollable event that makes it impossible for power plant operators to fulfill their obligations. The falling demand for electricity due to the COVID-19 crisis can be treated as such an event, Laban Konsyumer claimed.

Manila Electric Co. (Meralco) recently declared a force majeure provision on its supply contracts, which effectively cut its generation costs.

However, despite a lowered generation charge of P4.6385 per kilowatt-hour (kWH) from P4.6632 per kWh in March, this did not help its overall electricity rate in April to go down.

Typical Metro Manila households consuming 200 kWh could see a P21 rate hike on their bills this month as rates rose by P0.1050/kWh to P8.9951/kWh from March’s P8.8901/kWh.

“The generation charge actually registered a downward adjustment however the normalization of the universal charges following an ERC (Energy Regulatory Commission)-mandated refund last month caused a slight overall uptick in rates,” Meralco Spokesperson Joe R. Zaldarriaga told BusinessWorld.

Asked about their position to the appeal to reduce electricity rates, he said that Meralco has “always kept in mind consumer welfare in our sourcing strategy.”

PIPPA also called on the government to protect the energy supply chain from any possible disruption that could negatively affect the delivery of essential services, such as medical and government operations, during the ECQ.

It said that power must be treated as an essential service and commodity, especially during this time of a state of public health emergency.

“[A]ssistance meant for vulnerable power consumers must form part of similar assistance given to vulnerable communities for food, water, and other basic supplies,” Ms. Montelibano said.

The field offices of the Department of Energy earlier reported reduced electricity demands of up to 30% in Luzon, Visayas and Mindanao grids, as businesses temporarily shuttered due to the ECQ.

“As PIPPA strives to ensure electricity supply, it is aware of its critical role in supporting the return of the economy and people’s livelihood to health. Thus, it will actively engage stakeholders in keeping the power industry resilient,” the group of power generation firms said in a separate statement.

“We call on all stakeholders and parties of the energy industry to unite and work together towards an equitable solution that will be not only responsive to the present situation, but more importantly, sustainable to the industry as a whole,” it added.

RUNNING ON REDUCED CAPACITY
Asked about its operations, Lopez-led First Gen Corp. said its power plants are currently running at a reduced capacity as it manages its production to avoid creating excess power supply.

“Our plants are running normally although at reduced capacity,” First Gen Vice-President Ramon A. Carandang said.

Meanwhile, Aboitiz Power Corp. said its power demand remained above the minimum demand it can cater to while it observed the must-offer rule in selling their power plant’s maximum generating capacities in the spot market.

“We are offering all of the capacity that’s available in compliance with the must offer rule. If the demand is less than the supply and we don’t get dispatched, we have to ramp down and operate our facilities at a level directed by WESM (Wholesale Electricity Spot Market),” AboitizPower President and Chief Executive Officer Emmanuel V. Rubio said.

“But so far, the level of our demand for our bilateral contracts and our contestable customers is above our Pmin (plant minimum stable load) requirements,” he added.

The Aboitiz energy unit also built a facility quarantine for its on-site operations and maintenance teams.

Andrea Bocelli’s lone Easter Sunday concert scores YouTube record

LOS ANGELES — Andrea Bocelli’s solo Easter concert in a deserted Milan cathedral has scored a record as the most watched classical music concert on YouTube.

The 25-minute livestreamed Music for Hope concert by the Italian tenor reached more than 2.8 million concurrent peak viewers in the largest simultaneous audience for a classical live stream in YouTube history, YouTube said on Wednesday.

The video received more than 28 million views from across the globe in its first 24 hours, and as of Wednesday morning it had topped 35 million views.

Bocelli, who performed a selection of religious songs, opera arias, and a version of “Amazing Grace,” said he wanted the concert to bring together people isolated during the coronavirus lockdown.

The concert, in which Bocelli sang in an empty cathedral with only an organist, was preceded by drone footage of deserted streets and piazzas in Milan and outside the city’s Duomo which dates from the 14th century. — Reuters

SEC warns about resellers’ schemes

By Denise A. Valdez, Reporter

OPERATORS of unauthorized investment schemes posing as resellers have sprung up recently, calling the attention of the Securities and Exchange Commission (SEC) to warn the public against investing in these.

The corporate regulator issued advisories on its website against groups named JOCALS688 Beauty and Wellness Products Trading, Inc.; TBCMMP Masa Mart, Inc; and CashCowRobot Computer Solutions.

It said these groups use reseller business models in trying to get investors, but do not have the license from the SEC to solicit investments and sell securities in the form of investment contracts.

In the case of JOCALS688, the SEC said the company secured a registration for incorporation last year, but did not get the secondary license required to be allowed to offer securities.

JOCALS688 operates by offering products such as juice, coffee and food supplements. The investment-taking happens through an investment offer of P10,000-100,000 with a promise of a 30% monthly return. Investors can also join as members for P3,980 to get one box of each of the products aside from the 30% monthly return.

“Further study of JOCALS688’s marketing plan shows that even if there are products involved, the scheme relies heavily on inviting people for a promise of high monetary rewards that can only be achieved through recruitment of more people to participate in the scheme,” the SEC said. “The public is hereby informed that JOCALS688 is not authorized to solicit investments…”

TBCMMP Masa Mart employs a similar scheme, offering the public a P5,888 investment package that includes products worth 75% of the entry and free annual subscription and investment.

Like JOCALS688, the SEC said TBCMMP Masa Mart is registered as a corporation since July 2018. But the company does not have the secondary license required to operate investment schemes. “[S]uch registration merely grants juridical personality to the corporation but does not authorize TBCMMP Masa Mart to issue, sell or offer for sale securities to the public…,” it said.

CashCowRobot, on the other hand, is not registered with the SEC at all, nor does it have a registration to solicit investments and sell securities to the public.

The SEC gathered that CashCowRobot operates by inviting the public to pay a P1,000 lifetime membership fee in exchange for an P8,000 daily income by completing tasks and selling digital products.

“The public is hereby warned that such investment schemes are considered as securities subject to the regulatory authority of this commission. The offering and selling of securities to the public without a permit or license is a violation of… the Securities Regulation Code,” it said.

The people behind these companies may be fined up to P5 million, imprisoned for up to 21 years, or both. The SEC also noted the Bayanihan to Heal as One Act, which gave additional powers to the President in light of the coronavirus disease 2019 (COVID-19) situation, spells penalties for individuals found engaging in cyber incidents such as scams that exploit the situation.

People are paying real money to get into virtual Zoom nightclubs

IT’S ONLY 5 p.m. on a Saturday in Los Angeles, but the Zone — a 16-room virtual club on the videoconferencing app Zoom — is already in full swing.

“You’re late!” admonishes a bouncer with a glowing Celtic symbol on her forehead, peering through a pixelated window at a gaggle of new guests tuning in from their homes, making sure they are properly outfitted, both with drinks and in looks. She clicks them into different “dance floor” chat rooms, where revelers in colorful costumes shimmy to a live-streamed DJ set while two fluffy puppets maneuvered by an invisible hand waltz in each other’s arms. In an additional networked room, a man in a pink wig leads a spirited conversation about sustainable farming. At the end of the night, the party’s host invites everyone to the “hot tub” room — swimming attire required. Shirts are peeled off and snorkels pulled on as guests gamely play along.

“Someone has handed Zoom to us, and we’re just playing around,” observes one guest, dressed in a Santa hat, who claims to be the son of a pig farmer turned crypto-investor. “This is the cutting-edge, and I’m confident it will bloom into something else.”

Welcome to the new era of clubbing under quarantine. Somewhere on the internet, a virtual party is always going down.

As in Asia earlier during the outbreak, live streaming has emerged as an ad hoc emergency support system for the flailing entertainment industry across Europe and the US. Musicians across every genre are broadcasting sets from their bedrooms on platforms such as Instagram Live alongside donation links to their PayPal, Venmo, or Patreon accounts. Such brands as Beatport and Amazon Music have partnered with Twitch to launch marathon sessions featuring prominent DJs like Diplo and A-Trak, with the former raising $180,000 for the AFEM (Association for Electronic Music) and the World Health Organization’s COVID-19 funds on March 27 and 28.

E-BUSKING
The coronavirus crisis has hit the music and nightlife industry hard: With event cancellations stretching through the lucrative summer festival season, an economic model increasingly reliant on touring and live shows has imploded, leaving musicians and event organizers scrambling for alternative financial streams. Even after the lockdowns are lifted, a probable long-term contraction of the live music industry, which was projected to be worth $27.9 billion in 2019, has underscored how badly the current economic model is broken. It is unsustainable for working musicians — many of them gig workers without employer-based safety nets.

Some artists doubt that livestreaming is inherently emancipatory, or even financially viable. “I resent the idea that musicians have to invent an awkward new medium of performance — and busk for tips — when people could just buy their record,” says artist and tech researcher Mat Dryhurst, who coined the term “e-busking” to describe this practice. “The tech isn’t there to make it more engaging than, say, radio,” he continues. “Even in this charitable climate, it isn’t producing impressive financial results.”

Beatport’s fundraising success seems an outlier so far. On the lower end, smaller underground DJs may pull in $50 a stream, while bigger artists such as Erykah Badu, who broadcast a concert March 23 from her home in Dallas, Texas, pulled in around 10,000 people paying $1 each. While far from what a traditional concert would earn, it was enough for her to do a second one, charging $2, to support herself and her band.

Yet simple, one-directional livestreams only scratch the surface of the rapidly expanding virtual-clubbing landscape. As nightlife appropriates technologies built for corporate conferencing and gaming, new party experiences are emerging to encourage interactivity and community, making the audience active participants rather than passive consumers. (Even this year’s just-cancelled Burning Man plans to go virtual.)

In addition to providing moments of social connection, could virtual clubs emerge as a new model for live shows — and be sustained by brand sponsors, advertisers, and paying subscribers?

MODELS AND BOTTLES
At a Zoom party called Club Quarantee, all the usual trappings of a bottle-service club remain — except for the buckets of Champagne. Guests purchase tickets for $10, or can pay $80 for a private room to party alongside Instagram-famous DJs and burlesque dancers. There is ostensibly a dress code. On a recent weekend, the party is full of European models and bearded men in fedoras, dancing along to “Macarena.”

“A bottle-service club is a symbol of exclusivity and high-quality entertainment. Of course, we can’t sell bottles, but we try to deliver this vibe,” says Club Quarantee’s founder, a promoter who goes by the name Cristian. He worked at such New York celebrity hangouts as 1Oak and estimates that he’s lost about $10,000 in income since the city shut down.

Working with a network of 20 promoters, Cristian says his first virtual party drew around 300 people, covering half his costs, which included hiring talent, a videographer, and staffers to check tickets and run security. In the party’s second edition, he broke even. “The main objective is to create a space where promoters can maintain important relationships with our clients and keep them entertained during this time,” Cristian notes. “People are longing for social interactions, and we can offer an important part of the club experience: the emotional connection.”

ACCESSING YOUTH CULTURE
Creating a safe space for the LGBTQ community to connect with each other is critical to a virtual party called Club Q, which recently earned the title of hottest club on Zoom and has amassed almost 40,000 followers on Instagram.

Run by a crew of four Toronto-based friends, the nightly party is a glittering spectacle of drag queens, queer club kids, and guest DJ sets from such celebrities as Charli XCX, Tinashe, Kim Petras, and HANA. Keeping the club accessible is essential to its ethos. “We have access to people who can’t attend clubs because they have children, social anxiety, disabilities, or live in places that don’t have clubs,” says one of the party’s founders, Andrés Sierra. “We want to maintain this equality, with no elitism.” Thus, the party does not charge a cover and has, so far, through voluntary audience donations and a one-time Red Bull Canada sponsorship, covered its expenses (including a professional Zoom subscription to boost capacity to 1,000 people, as well as DJ fees) that can run from $500 to upwards of $3,000 a night.

As the party grows, brands have started to eye the popular platform as a new way to access youth culture.

“Companies don’t have a lot of branding opportunities right now, and no one wants to see an influencer advertising, like, hair gummies,” says co-founder Brad Allen. So far, Club Q has collaborated with Paper magazine on a few nights, which helped pull in more celebrity DJs, and is waiting to see if additional partnerships emerge, says Allen. “Without knowing how long the quarantine will be, brands don’t know if they should throw money and commit to this as something for the future.”

It’s clear that virtual clubs are giving us a chance to reconsider how we experience music in a live setting, but it remains to be seen if the freedom, playfulness, and democratizing potential of digital spaces translate to new economic models — and if both brands and audiences are ready to pay to access these experiences.

“There’s a learning process. At first, people were not willing to spend money on Netflix; they were used to streaming movies illegally,” says Club Quarantee’s Cristian. “It takes a while to be accepted and for people to understand it’s not a scam.”

HACKING THE PLATFORM
In some senses, if you’ve been to one Zoom club, you’ve been to them all. The platform’s layout is always the same: A featured musician performs a set underneath a carousel of small windows with voyeuristic views into people dancing or lounging in their homes. Channeling the true spirit of nightlife, it’s up to the crowd to create the party’s vibe via active participation — turning down the lights, throwing on a costume, talking to each other in the group chat. These social interactions can feel new and awkward, but we’re hungry for it.

What we’re really paying for is this community, along with a sense of discovery and participation.

“Parties are at the heart of most of what is good in human life: love, friendship, fun, escape, spiritual exploration, etc.” writes London-based Ted Cooke of the Co-Reality Collective in a blog post. “It’s obviously therefore of great importance that we continue partying despite physical distancing.” But how? “It’s not like anyone was attending online parties before the lockdown.”

Virtual parties like the Zone sought to mimic the magic of moving through a club’s different rooms and stumbling into unexpected moments of both dance floor ecstasy and intimate conversations. Cooke’s co-op raised about $1,000 in donations for artists during its first outing with some 250 paying guests, writing an online party manifesto in the process. Just as a choose-your-own-adventure book hacks the static nature of a novel, these parties are hacking corporate technology for new purposes; Club Quarantee, which has become an essential lifeline for the LGBTQ community, is effectively “queering” Zoom.

Meanwhile, a subscription model has been fueling Club Matryoshka, a members-only club accessed via a private Minecraft server in Manila. Founded in 2019, the lo-fi virtual game space runs on PayPal donations and a growing subscriber base on Patreon; members are required to fill out a questionnaire in order to gain admission. It will host a 24-hour virtual music festival on April 26.

Club Matryoshka’s co-founder, a musician named Jorge Juan B. Wieneke V, was surprised at the financial support he’s gotten. “In Manila, most people don’t even like paying entrance for shows, but even without a call-to-action, people have been donating regularly,” he says, adding that he doesn’t see virtual clubs as a substitute for real-life versions but rather as a testing ground for them.

“I’ve been organizing shows for eight years, and this makes it easier to test out an artist’s marketability before flying them in,” he says. “I’ve lost a lot of money bringing artists into Manila, only to realize no one’s down to pay for the show.”

“Some people just treat us like a meme,” he adds, “but I really believe in its potential as a new model for gigging.” — Bloomberg

Atok-Bid Wedge keeps Forum stake

ONGPIN-LED mining firm Atok-Big Wedge Co., Inc. (AB) has paid approximately $500,000 to United Kingdom-based Forum Energy Ltd. to maintain its 20% stake in the company.

In a disclosure to the stock exchange on Thursday, the mining firm said its wholly owned subsidiary Tidemark Holdings Ltd. fully paid $499,999.80 (about P25.34 million) to Forum.

The payment is for Tidemark Holdings’ subscription to 1.67 million previously unissued ordinary shares in Forum, which were bought at $0.30 each. The shares represent 1.85% of Forum’s total outstanding shares.

“This new subscription will result in the company maintaining its 20% ownership of Forum,” AB said in the disclosure.

Forum is a gas and oil exploration and production company where Tidemark Holdings, a Hong Kong-based firm, maintains a 20% stake. In this respect, Forum is an associate company of AB.

The company said Forum holds the license to Service Contract 72, an 8,800-square kilometer area near Palawan (Recto Bank) estimated to contain prospective resources of natural gas and oil.

In a regulatory filing, AB said drilling plans for this contract are currently on hold due to territorial disputes around the West Philippine Sea.

The company booked a net loss of P2.17 million in the nine months ending September 2019, larger than the P1.32 net loss it recorded in the same period a year ago.

Shares in AB at the stock exchange slipped eight centavos or 0.73% to P10.86 each on Thursday. — Denise A. Valdez

Araneta City offers online activities

FROM now until April 21, Araneta City — via its Facebook page — is hosting several activities including an online fitness session and an online concert.

“This initiative aims to help Filipinos attain healing and fight fatigue brought by the extended enhanced community quarantine,” said a company release.

On April 17, Macki Pineda, a teacher/choreographer at the Addlib Dance Studio, will hold an online dance workout session at 4 p.m.

And on April 14, folk-pop musician Alex Corner will have an online concert at 5 p.m. Mr. Corner is known for songs such as “Ampalaya” (2020) and “Tagay” (2017).

“Araneta City fans and followers will be serenaded with Corner’s soothing and romantic voice as he performs acoustic songs and a couple of his original compositions. Fans can also get a chance to request their favorite songs online,” said the statement.

Finally, on April 21, Araneta City together with Slimmer’s World will conduct an online Zumba Fitness session with Lara Delariman at 5 p.m.

“This activity will provide netizens a dose of slimming and toning exercises with Zumba exercises that are effective calorie burners, cardiovascular system enhancers, and stress relievers,” the company said.

The shows are viewable on the Araneta City Facebook page.

Sy, Villar, Aboitiz, Ang pour more aid to virus fight

THE National Grid Corporation of the Philippines (NGCP) chipped in P5 million to the multi-sectoral initiative to feed poor households in Metro Manila who are affected by the measures to contain the coronavirus disease 2019 (COVID-19) pandemic.

The privately owned firm on Thursday said it turned over 10,000 grocery vouchers to the Project Ugnayan, an initiative mounted by the Philippine Disaster Resilience Foundation along with some of the country’s biggest business groups.

The project, which started in March, seeks to reach over a million poor families around the National Capital Region whose livelihoods are affected by the enhanced community quarantine.

This latest donation came on top of NGCP’s P1-billion worth of assistance it earlier pledged to the government to aid in its COVID-19 relief efforts. It includes donations of medical equipment, protective gear, as well as food packs.

NGCP is led by majority shareholders Henry T. Sy, Jr. and Robert G. Coyiuto, Jr.

Separately, the Villar group said the Bataan General Hospital and the PICC quarantine facility had received and installed the disinfecting apparatus from companies led by Manuel B. Villar, Jr. as cleared by the Department of Health.

This followed nine other hospitals that received the disinfecting apparatus donated by Mr. Villar and his group, namely: Research Institute for Tropical Medicine (RITM) in Alabang; Las Piñas General Hospital, and Don Jose N. Rodriguez Memorial Hospital in Caloocan; Rizal Medical Center in Pasig; Quirino Medical Center, Philippine Heart Center and Lung Center of the Philippines in Quezon City; and San Lazaro Hospital and Santa Ana Hospital in Manila

The conversion of the PICC forum halls into COVID-19 monitoring and treatment facility that will cater to patients with mild to moderate cases was facilitated by Mr. Villar’s group, Department of Public Works and Highways, and EEI Corp.

The PICC quarantine facility was turned over to the Philippine National Police medical corps, which will manage the health service operation.

Meanwhile, the Aboitiz group reported that it donated P216.4 million so far to various efforts to assist those in the frontline of the fight against COVID-19, which has sickened over 5,000 Filipinos as of late.

A huge chunk of the Aboitiz’s donations, or P100 million, was delivered to Project Ugnayan.

Also on Thursday, San Miguel Corp. (SMC) said it continues to look for more opportunities to help as its donation to COVID-19 efforts reaches almost P1 billion.

It said more areas outside Metro Manila are benefiting from SMC’s assistance to COVID-19 initiatives, which it placed at P947.7 million, as the company continues to find ways to bring relief to the hardest hit communities and provinces.

Ramon S. Ang, SMC president and chief operating officer, said the company has responded to calls for assistance from local government units outside the National Capital Region, including the provinces of Iloilo and Leyte.

“Our people are working hard to be able to extend our assistance to more provinces and communities and to support our national government’s efforts. Our goal is to help keep our countrymen away from hunger and illness, and somehow, in our own way, give them hope during this difficult time,” Mr. Ang said.