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DoubleDragon income surges in April-June

DOUBLEDRAGON Properties Corp. reported a 240% increase in its attributable net income in the second quarter, driven by rising rental revenues from its office towers, warehouse hubs and community malls.

In a regulatory filing, the listed property developer said its attributable net income stood at P750.17 million in the April to June period, compared to P220.44 million it booked in the same period last year.

Revenues surged 75% to P3.15 billion in the second quarter, as rental revenues went up 21% to P907.77 million. Real estate sales rose 6% to P239.96 million, while an unrealized gain from a change in fair values of investment property increased by 215% to P1.71 billion.

For the first half, DoubleDragon’s attributable income doubled to P1.51 billion from P745 million during the same period a year ago.

Revenues jumped 54% to P5.6 billion during the six-month period, driven by a 32% rise in rental income to P1.53 billion and a 113% surge in unrealized gain from a change in fair values of investment property. Real estate sales fell by 10% to P418.96 million.

DoubleDragon noted its recurring revenues have grown 29.1% to P1.83 billion for the first half. Recurring revenues now account for 33% of total revenues. The company aims to grow the share of recurring revenues to 90%.

“DoubleDragon’s four pillars of growth in retail leasing, office leasing, industrial warehouse leasing and hotels will give the company a well-diversified real estate portfolio essential to successfully navigate the current fast-changing global business environment,” DoubleDragon Chairman Edgar “Injap” J. Sia II said in a statement. — VMPG

Moonshine

Moonrise
Directed by Frank Borzage
Criterion Channel and Criterion DVD

THE FILM starts out as a fevered dream: oddly warped feet walking across the screen, their steps spreading outwards like a malignancy; the camera shifts and we realize we’re looking at water reflections of three men’s legs crossing a concrete floor. For some reason your eye focus on the leading man’s hands: they hang down from limp heavily resigned arms. Why?

Things — as they do in noir — happen faster than our ability to understand: the feet walk past others gathered in what appears to be a standing crowd, mount a wooden scaffold; the camera reluctantly turns aside to gaze at the scaffold’s shadow (catching a glimpse along the way of the viewers — it is a crowd, all holding up umbrellas, a single grim expression on every face) in time to see a man being fitted with mask and noose round his neck; another man pushing a lever and…

Cut to the man’s shadow swinging from its rope and a baby shrieking. The camera moves in on the baby’s face, eyes averted, reflecting the camera’s reluctance to watch the horror; the camera pulls back and we realize it’s not the man but a doll, swinging over the baby’s crib.

The opening hits like a blow to the gut (A tug to the throat?) but what lingers is the mocking cruelty of that doll. Who does that to a child? What does that do to the child?

Frank Borzage’s adaptation of Theodore Strauss’ novel Moonrise sets out to answer the second question: a man — Danny Hawkins — does wrong and is relentlessly hunted, most relentlessly by his own conscience. The camera followed his father’s footsteps (hung for killing a man), would follow him through the school playground into adulthood with the obsessiveness of a bully — in this case Jerry Sykes, played with smiling sneering infuriating arrogance by Lloyd Bridges. At one point as children Jerry’s friends hold Danny still while Jerry smears mud (at least we hope it’s mud) all over Danny’s face, and you’re struck by the emotional tone of the gesture: if you’re familiar with Borzage’s films you’d know he often gets his characters dirty (they’re likely poor folk struggling to rise above their circumstances) but this dirt is applied with a will and viciousness rarely found in his films. Something has happened over the years and you can’t help but wonder what.

The production started as a $2 million prestige independent production with William Wellman directing and John Garfield as Danny; it ended up in Republic Pictures with less than half the budget ($849,452 — still “prestige,” only as defined by the habitually lowballing Republic) with Dane Clark as Danny and Borzage, his career waning, as director.

One wonders what Garfield, perhaps the most charismatic underdog in Hollywood, might have made of the role; I’ve read the opinion that Clark doesn’t measure up but I think it’s that sense of having been assigned leftovers, of filling star-sized shoes, that drives Clark’s performance — as Danny he’s been told and believes that thanks to his father he has “bad blood,” and that belief (in the form of Borzage’s camera and Jerry Sykes) has hounded him all his life. When he’s had his fill and finally strikes back he’s horrified (and at some level, you sense, satisfied) to learn that he and everyone else was right all along.

Borzage also had something to prove: he was a handsome man, and made an early career of acting; he was in his early 20s when he directed his first feature, in his early 30s when he did some of his best work (7th Heaven, Street Angel, A Farewell to Arms). You might say Borzage was born not long before silent cinema was born, and was appreciated most when his sensibility expressed silent cinema’s (and early sound cinema’s) idealistic romanticism.

All that changed with World War 2, and the cinematic expression of that darker tone was film noir — a genre obsessed with German Expressionist lighting, and a darker vision of man’s depravity. In noir’s view the hero is a mere rat caught in a vast trap; the rest of the film is him struggling — vainly — to escape.

Borzage resisted this pessimism the way he resisted encroaching Nazism in the 1930s and ’40s (Little Man, What Now?, The Mortal Storm); he fell out of step with then-current Hollywood and public sentiment, and his films struggled at the box office. Arguably Moonrise was his response to the sea-change, and grapples with the interpretation on its terms — Danny, like any proper noir protagonist, believes in man’s flawed nature and inevitable fall, and flees accordingly; through one extraordinary setpiece after another, Borzage plunges Danny deeper and deeper into the genre’s psychic quagmire.

Hence the coon hunt, the men in boots the baying hounds, ending in Danny scaling up a tree to go after the trapped animal. In a series of giant closeups we see Danny and raccoon facing each other, Danny identifying with the animal’s desperation, Danny looking yet not looking (the way the camera looks/doesn’t look in the film’s opening) while he shakes the doomed creature’s branch.

Much later Danny enters the tiny shack of deaf-mute Billy Scripture (Harry Morgan) in search of a pocketknife he had dropped while fighting Jerry Sykes, his fear and paranoia touching such a crescendo that he reaches out in the frenzied light of a swinging lamp to wrap his hands round Billy’s throat.

But here’s the crazy thing — no one’s chasing him, at least not at first. Perhaps the only one with any idea Danny might be involved in Jerry’s disappearance is Sheriff Otis (Allyn Joslyn). The sheriff’s suspicions are first aroused when he sees Danny riding a Ferris Wheel with Jeffrey Syke’s fiancé Gilly Johnson (Gail Russell). Danny looks down at Otis’ upturned face — the threat seems ominous if distant. But a Ferris Wheel turns, and Danny finds himself under the gaze of Otis’ increasingly curious stare, finds himself above the sheriff, high and exposed, finds himself spinning over and over with no end in sight. It’s not so much the scrutiny as the uncertainty (Does the sheriff know or doesn’t he?); Danny’s agitation escalates to the point where he has to do something and — spectacularly — he does.

The key to Borzage’s view of Danny’s predicament lies, I think, in a scene midway through the film, when Danny meets Gilly in an abandoned plantation house. They feel free here in these darkened rooms, lost among the Gothic bric-a-brac; Gail address a full-sized portrait of a Southern belle and turns the occasion into a ball; she invites him to waltz. While the lovers move to unheard music, the camera rises up past the chandelier, swoops down onto the lovers as they move together in darkened profile for a kiss. It’s as if Gilly had sussed out Danny’s self-manufactured desperation and herself fabricated an alternative scenario, gently mocking his gloom; Danny gives in, and for a moment forgets that he’s being hunted — or at least forgets the idea that he’s being hunted.

Two figures flank Danny like warning signs on his self-made road to perdition: Sheriff Otis, who possesses more empathy and compassion than any law enforcer has any right to have (“Sometimes murder is like love. It takes two to commit it: The man who hates and the man who’s hated”) — if he pursues Danny it’s the pursuit of a man who fully understands what the fugitive is going through, a disturbing yet strangely comforting thought. Then there’s Danny’s best friend Mose Jackson, perhaps the first to uncover Danny’s secret; early in the film he responds to Danny’s “bad blood” theory thusly: “Blood is red. It doesn’t tell you what you have to do.” Earlier than that Mose sums up his situation and philosophy: “What I did was resign from the human race — and I guess that’s about the worst crime there is.” The two point out to Danny the right way to go, the right thing to do; it’s up to Danny however to realize it.

Deutsche Bank chair searches for successor

DEUTSCHE BANK AG’s supervisory board chairman is looking for his successor. — REUTERS

DEUTSCHE BANK AG Supervisory Board Chairman Paul Achleitner is searching for his successor after overseeing a tumultuous period marked by multiple restructurings, top management changes and a slumping share price.

The search is partly in response to shareholder criticism about succession planning, though Achleitner intends to complete his term expiring in 2022, people with knowledge of the matter said, asking not to be identified discussing private matters.

Achleitner, 62, has drawn investor ire after overseeing a series of unsuccessful turnaround efforts that have caused the stock to lose three-quarters of its value under his watch. The Austrian, elected to the role with almost 99% of shareholder votes in 2012, has seen his backing slide to less than 72% at the last meeting in May, a low result by historic comparison.

“Mr. Achleitner’s term as chairman runs until 2022. Beyond that, there are clear rules governing succession issues on the supervisory board; the nomination committee prepares them,” a Deutsche Bank spokesman said by email. Achleitner, who heads that committee, declined to comment through a spokesman.

A Goldman Sachs Group Inc. alum and ex-finance chief at insurer Allianz SE, Achleitner took the job at a pivotal moment for the bank. An aggressive expansion into investment banking had saddled it with a slew of misconduct cases, while new regulations and negative interest rates sapped profitability. As chairman, he shook up the supervisory board and won key investors to stabilize the bank as it paid billions in fines and sought to strengthen internal controls.

But the former dealmaker, who advised Deutsche Bank on its Wall Street expansion in the 1990s, struggled to right-size the costly trading operations. Halfhearted cuts aimed at preserving the core of the securities unit left the bank in a downward spiral of declining revenue, rising funding costs and sticky expenses.

His latest appointee as CEO, Christian Sewing, in July unveiled the largest restructuring in the bank’s recent history, including an exit from almost all equities trading and some 18,000 job cuts, about a fifth of the workforce. But the lender’s share price has continued to slide since the restructuring announcement amid a worsening economic outlook.

At the supervisory board level, Deutsche Bank is said to be considering former UBS Group AG wealth management head Juerg Zeltner as a new member, according to people with knowledge of the matter. A former supervisory board member, Stefan Simon, has been appointed chief administrative officer of the lender and been replaced by Dagmar Valcarel, a legal expert and former Barclays executive. — Bloomberg

DTI seeking to add pension portability to anti-endo bill

THE TRADE DEPARTMENT is seeking to add provisions to the Security of Tenure (SoT) bill making workers’ pensions portable when they transfer jobs, Secretary Ramon M. Lopez said.

Mr. Lopez told BusinessWorld he will propose as part of the SoT Bill the portability of pensions should workers transfer jobs, keeping their built-up contributions intact even when they seek other employment.

“For example, mag-resign ka ngayon tapos ang retirement fund nandu’n pa rin kaya paglipat mo sa isang kompanya, itutuloy mo pa rin ‘yun (you can resign now then the retirement funds will still be there for you to continue contributing to even if you move to a different company),” he said.

Mr. Lopez added that providing workers’ security is not just prioritizing the regular status of workers but also addressing their retirement security as well.

The SoT Bill was vetoed by President Rodrigo R. Duterte on July 26, citing the bill’s failure to grant employers sufficient flexibility in determining which jobs can be outsourced to contract workers. Mr. Duterte added the bill should not sacrifice the viability of companies in order to safeguard investments.

The SoT bill was re-filed at the Senate and House recently while the Department of Labor and Employment (DoLE) is set to submit its own version to Congress by the end of this month. — Gillian M. Cortez

What to see this week

6 films to see on the week of August 16 — August 22, 2019

Dora and the Lost City of Gold

DORA AND THE LOST CITY OF GOLD

TEENAGE Dora the Explorer and her school friends embark on an adventure to save her parents and along the way, discover the lost city of gold. Directed by James Bobin, the film stars Isabela Moner, Eugenio Derbez, and Michael Peña. IndieWire’s Kate Erbland writes, “If only every big screen adaptation of a beloved existing property could feel this funny and fresh, there’d be less to fear about an industry besieged by recycled material that never takes a risk. That’s what Dora is all about.”

MTRCB Rating: PG

After the Wedding

BASED ON a Danish film of the same title, the story follows Isabela who has dedicated her life to working in an orphanage in Calcutta. Theresa, a multi-millionaire head of a media company, lives with her husband and kids in New York. When word comes out that the struggling orphanage received a huge donation, Isabela travels to New York to meet her benefactor — and learns that they have another connection. Directed by Bart Freundlich, the film stars Michelle Williams, Julianne Moore, and Billy Crudup. The New Yorker’s Anthony Lane writes, “What remains, in After the Wedding, is a kind of gulping embarrassment, as the protagonists try to reckon with the big reveal. Twist follows twist, until you don’t know whether to laugh or cry.” Rotten Tomatoes gives it a 47% rating.

MTRCB Rating: PG

47 Meters Down: Uncaged

FOUR teenage girls go diving and explore a submerged Mayan City. Once there, they discover that the ruins are a hunting ground for Great White Sharks. With their oxygen supply dwindling, they struggle to survive. Directed by Johannes Roberts, the film stars Sophie Nélisse, Sistine Stallone, Corinne Foxx, and Brianne Tju.

MTRCB Rating: PG

The Divine Fury

AN EXORCIST is helped by an MMA fighter to fight evil. Directed by Jason Kim, the film stars Seo-joon Park, Sung-Ki Ahn, and Do-Hwan Woo. “A few shadowy ghouls and moments of visual trickery aside, The Divine Fury fails to deliver the scares one would expect from a film dealing with exorcisms,” writes James Marsh of the South China Morning Post.

MTRCB Rating: R-13

Reside

ON a stormy night in an isolated mansion, six people in black, led by a mother, gather for a mysterious ritual which summons a spirit. Written and directed by Wisit Sasanatie, the film stars Ananda Everingham, Tarika Tidatid, and Natthaweeranuch Thongmee.

MTRCB Rating: R-13

And Ai, Thank You

AI AI DELAS ALAS portrays a famous actress, endorser, and concert performer who makes the most out of her career when she learns that she is dying. Directed by Joven Tan, the film also stars Rufa Mae Quinto, Kakai Bautista, Dennis Padilla and Joey Paras.

MTRCB Rating: PG

Seaoil PHL weighs impact of US-China trade war on expansion plans

SEAOIL Philippines, Inc. is weighing the impact of the trade war between the US and China and how it will affect the independent oil company’s expansion plans next year, company officials said.

“So far it’s inconclusive. The awareness is there and the uncertainty is certainly increasing, but the actual impact can’t still be quantified. So we’re keeping an eye on it,” Glenn L. Yu, Seaoil chief executive officer, told reporters on Thursday.

He said the company would want to continue expanding but at the same time it was studying what might happen as a result of the trade war. He added Seaoil would know the impact by the fourth quarter when next year’s capex is presented to the company’s board.

Last year, Seaoil had a capex of P811 million, up 54.8% from P524 million in 2017. He declined to disclose this year’s budget.

Jose Jaime V. dela Fuente, Seaoil vice-president for corporate and consumer marketing, agreed that the trade war is one of the factors affecting expansion plans.

“It’s safe to say there are plans to open [new retail outlets] but the industry is very volatile so we don’t really know whether they will push through or not,” he said.

Mr. Yu said the trade war is a concern that was nonexistent 18 months ago. Seaoil previously said that the pace of its expansion accelerated with the entry of a foreign partner.

In December 2017, the company and Caltex Australia Petroleum Pty Ltd. announced the latter’s acquisition of a 20% interest in Seaoil in a deal that was meant to be a long-term partnership.

Earlier this year, Seaoil said it expected to open three to five fuel retail stations a month in 2019.

Mr. Dela Fuente earlier said that before the capital infusion from Caltex Australia, Seaoil was averaging about one or two new fuel stations a month. He had said there was sort of a mutual agreement between the companies “on the plans to aggressively expand the retail business.”

Mr. Yu said the US-China trade war “is affecting not just both countries, but even those in the periphery because ultimately what happens to both of them, if they catch a cold, the Philippines might go to the ICU (intensive care unit).”

“I definitely think it’s playing in the minds of every player because we’re talking about the two largest countries that are the consumers of oil. If something happens in either of their economies obviously it will affect [us],” he said.

As a petroleum product retailer, Seaoil would be “greatly affected” by the trade war and its “trickle down” effect on the products that the Philippine exports to China, which the foreign country uses as components to export to the US that would have an impact on local demand.

Mr. Yu said if demand all of a sudden disappears, “then we have all these capex in the pipeline.” — Victor V. Saulon

Japan’s NYK Line sets up e-money service for seafarers

JAPANESE shipping firm NYK Line said it sets up an e-money platform targeted at Filipino seafarers along with a local partner.

Along with the local partner, Transnational Diversified Group (TDG), the venture hopes to offer secure transactions anywhere in the world, even while at sea.

NYK Line and TDG will call the e-money app MarCoPay, which stands for “Maritime Community Pay.” The online money platform was developed for seafarers to ease the conversion of their salaries into e-money. Its QR code-based system can also be used to make purchases while aboard ship.

TDG Assistant Vice-President and MarCoPay COO Areson I. Cuevas said the app will reduce the need for ships to carry cash on board to pay salaries, making the funds a target for pirates.

“It is very expensive to have a lot of cash onboard and we also don’t want the captain to have the responsibility” of disbursing funds, he said at a briefing on Thursday.

A 1984 Memorandum Circular issued by the Philippine Overseas Employment Administration (POEA) requires that 80% of a seafarer’s salary be remitted to a designated beneficiary in the Philippines.

The app allows seafarers to send money to their recipients in the Philippines at any time, as opposed to waiting until seafarer’s ship will dock to go to a bank or remittance center so they can send the money to their loved ones.

NYK Line Digitalization Manager and MarCoPay President Toshiaki Fujioka said Filipino seafarers make up over 70% of NYK Line’s seafarers

MarCoPay is set to launch in January 2020 with a beta version currently operating.

MarCoPay is also registered with the Securities and Exchange Commission hopes to receive a license from the Bangko Sentral ng Pilipinas later this year. — Gillian M. Cortez

Jobs boon at risk as RBA warns firms vs turning glum

SYDNEY — As the Sino-US trade war raise fears of a global recession, businesses run the risk of being caught in a self-fulfilling vicious cycle, a top Australian central banker warned on Thursday, threatening the country’s sturdy jobs market.

Reserve Bank of Australia (RBA) Deputy Governor Guy Debelle said the trade war was a “major risk” for the country’s A$1.9 trillion ($1.3 trillion) economy though it has not had a damaging effect so far.

Supporting that view, data out on Thursday showed Australia added a forecast-beating 41,100 net new jobs in July. Still, that wasn’t enough to budge the employment rate from a disappointingly high 5.2%

Analysts and policymakers have raised doubts over whether jobs growth can extend further as trade war-related uncertainties lead companies to downgrade their future hiring intentions.

“Businesses are waiting to see how the uncertainty resolves rather than invest,” Debelle said in a speech in Sydney.

“The longer businesses hold off, the weaker demand will be, which will further confirm the decision to wait. That runs the risk of a self-fulfilling downturn.”

Debelle also cautioned that the dispute over technology could prove even more damaging in the long run, forcing firms to choose between East or West rather than selling into a global market.

The warning comes as fears of a possible global recession hammered financial markets around the world. The protracted Sino-US trade war has been a major worry for policymakers, with many central banks switching gears in recent months to deliver rate cuts to support growth.

US stocks slid 3% overnight while yields on 10-year Treasuries fell below those on two-year paper. That inversion of the curve has been a reliable predictor of recessions in the past.

Debelle was not yet considering the inversion as a harbinger of an economic recession.

“The yield going inverted, I’m not sure how much of a signal that is at the moment,” he said in response to questions following the speech.

“At the moment, the US economy is actually growing above trend so they’ve got a fair way to slow from here.”

Australia’s economy has dodged a recession since the early 1990s thanks to insatiable appetite from China for its key commodities but growth has now slowed to the weakest since the global financial crisis.

MORE CUTS
Domestically, Debelle said the other key risk was sluggish household consumption given unusually slow growth in incomes and wages.

This was one reason the RBA cut interest rates by a quarter point in both June and July, taking them to a record low of 1%.

Financial markets are fully pricing in two more rate cuts by early next year.

Earlier in the day, Commonwealth Bank of Australia said it sees the RBA cash rate at 0.5% by February as leading indicators of labor demand weaken and on risks to global growth.

The RBA has singled out the labor market as the touchstone for whether it needs to cut rates again. It has set an aspirational goal of reaching a jobless rate of 4.5%, a tough ask given it has been stuck above 5% since February.

“We do not expect much of an increase in wages growth although employment growth is expected to be reasonable,” said Debelle.

Most economists expect the unemployment rate to rise further to around 5.5% this year led by an increase in working age population entering the labor force.

“Even now, the ratio of unemployed job applicants to job advertisements remains elevated at 4.5x. This arguably needs to fall in order for wages growth to accelerate,” Citi economist Josh Williamson said.

“The prospect of ongoing labor market spare capacity and what this means for ongoing soft wages and domestic inflation should therefore push the RBA into more policy stimulus,” Williamson added.

“We continue to expect a 25 bps rate cut at the November RBA Board meeting and don’t rule out a further move next year.” — Reuters

ABS-CBN to provide video content for LRT, MRT trains

ABS-CBN Corp. will soon air some of its news updates and short entertainment clips on video screens inside trains at the Metro Rail Transit Line 3 (MRT-3), Light Rail Transit Line 1 (LRT-1) and Line 2 (LRT-2).

The Lopez-led media giant signed an agreement yesterday with international marketing firm PHAR Partnership, Inc. to provide its video content to be streamed on Tube.

Tube is the in-train television network of PHAR, which are small screens mounted on the walls inside MRT and LRT trains.

“The partnership is consistent with the company’s continuing efforts to venture into groundbreaking new channels for convenient media consumption of Filipinos across the country,” ABS-CBN said in a statement yesterday.

It noted there are now more than 1,000 Tube screens distributed across the three train lines, which will display news, weather reminders, traffic updates and entertainment clips of ABS-CBN to about 1.3 million commuters daily.

In the first half of the year, ABS-CBN posted an attributable net income of P1.55 billion, up 83% on the back of strong returns from advertising sales. — Denise A. Valdez

Gap in Chinese bond rates hides risks as defaults rise

AS CHINA moves toward a more market-based approach to determining the cost of money in its economy, one metric suggests corporate debt is going in the opposite direction.

Some 17% of company bonds in the first half were sold at yields at least 50 basis points below rates in the secondary market, according to data from China Chengxin International Credit Rating Co. That’s a jump from 9.9% in the second half of 2018. Globally, only the most in-demand issuers can raise funds in line with where their existing debt is trading; almost everyone pays a premium.

Analysts interviewed by Bloomberg said the trend shows the distorted credit risk pricing as cash-strapped firms turn to opaque ways to raise funds. One phenomenon is related to a practice known as structured issuance, where companies subscribe to their own offerings to inflate demand. It’s storing up more mispriced debt in China’s financial system, cutting against efforts to foster markets where funding costs correspond with a company’s prospects.

“A big yield divergence suggests the coupon rate of the new bond does not reflect the fair market value it is supposed to indicate, nor the actual risk of the debt,” Yang Hao, a fixed-income analyst at Nanjing Securities Co., said in an interview.

Regulators have been seeking to curb structured sales. Pan Gongsheng, deputy governor of People’s Bank of China, said China should improve its credit rating and risk pricing mechanisms to make hidden debt issuance cost more explicit, according to a Caixin report on Aug. 9.

The yawning gap can be seen in China Wanda Group Co. In July, the tire maker sold a three-year note with a coupon at 6.8%, according to bond issuance document on the Shenzhen stock exchange. Its three-year bond due July 2021 traded at about 15.5% that same day, showing a yield gap of more than 800 basis points, Bloomberg-compiled prices show.

Oceanwide Holdings Co., which printed a note at 7.5% last month, saw its similar bonds trading at a yield higher than 20%. Officers responsible for securities information disclosure at China Wanda and Oceanwide Holdings declined to comment when contacted by Bloomberg.

BAOSHANG EFFECT
Another contributor to the trend may have been secondary market distortions caused by the collapse of Baoshang Bank Co. The shock seizure sparked a wave of risk aversion as bond defaults in China hit a four-month high, marring refinancing prospects at weaker firms.

Secondary market bond yields of some of these companies jumped higher than their new issuance cost as investors cut their risk tolerance, said Mei Dongya, executive director at Shanghai Maodian Asset Management Co. “Some institutions were selling off bonds in need of cash after the bank seizure triggered a liquidity crunch,” Dongya said.

To be sure, structured debt issuance is just one method that troubled companies adopt to sell debt. “Many investors buying bonds not only pursue gains, but also out of some non-economic concerns,” said Shen Chen, a partner at Shanghai Maoliang Investment Management.

For Lu Lingge, an analyst at China Chengxin, such companies may find it hard to keep financing sustainable. “To fix the distortion not only needs a long-term debt pricing mechanism, but more importantly the information disclosure transparency”, she said, adding that it will improve market efficiency and boost pricing discovery. — Bloomberg

Which is better — Team or individual performance evaluation?

We are in a bind in introducing a new performance appraisal system for our employees. Some managers think it’s best to focus on team performance, while others believe we should prioritize measuring individual accomplishments. In your opinion, what should be the best approach and priority in assessing performance – team or individual? – Serviam.

In one of his famous speeches, former US president Ronald Reagan told a story about a shoemaker who made a new pair of shoes for him when he was a teenager. The cobbler asked if Reagan wanted a round or square toe. Reagan was unsure, so the cobbler told him to return in a day or two and let him know.

A few days later, the cobbler saw the young Reagan on the street and asked what he had decided. Reagan was still undecided. The cobbler said the shoes would be ready in two days. When Reagan picked up the shoes, he was surprised to discover that one had a round toe and one had a square toe.

Taking it as a lesson, he told himself: “If you don’t make your own decisions, somebody else makes them for you.” Indeed, you have to make your own decision based on the total circumstances of your situation. Besides, I’m not privy to all possible elements that could make or unmake your decision. Be that as it may, allow me to give you some basic and generic guidelines that could help you arrive at an intelligent decision:

One, reconcile the best of both the individual and team performance assessment. It’s not a zero-sum game or one over the other. Each one has its own pros and cons. For one, if you focus on individual contributions you could destroy team spirit. On the other hand, if you focus on team contributions, you allow deadwood to ride on the achievements of the team.

Two, create an objective performance measurement tool for individual and team. Set guidelines on how teams and its individual members would define their target, standards, resources to be used, and timelines to be observed, among others. It’s also necessary that the pertinent policy and forms to be used are made corporate-wide for consistency and uniformity of application.

Three, divide the responsibility of assessing team and individual performance. Top management should be responsible for evaluating team achievements, while the team should handle measuring the individual performance. In doing the latter, all team members may conduct secret assessments of their colleagues using an objectively-designed form. The result is analyzed by top management.

Four, conduct team and individual performance appraisals once every quarter. Once a year or even once every six months is too long. Many of us are focused on the short-term, rather than the long-term horizons. Therefore, make it a quarterly assessment. Frequent assessments allow those concerned to immediately identify their weaknesses and correct them accordingly. Then level up by doing the appraisal once every two to three months.

Five, commend high-performing teams and individuals in public. And castigate tailenders in private. Take the time to do the job right. In doing this, be sure to evaluate employees based on their contributions against the mutually-accepted objectives. People have different strengths and abilities, and should be rewarded based on their accomplishments.

Six, evaluate the total performance of both individuals and teams. The key word is “total.” This means you don’t have to fall into the trap of rating people based on their single outstanding achievements or failures. By the same approach, avoid rating them based on their most recent performance or initial accomplishments.

Last, ask both individuals and their teams for their performance plan. Establish a culture of co-ownership. This approach helps establish rapport with everyone and create two-way communication process with top management. Otherwise, they may think of the whole situation as nothing but a pure lecture session and think negatively about it all the way.

Whatever happens, you must consider the fact that bringing employees to their maximum potential doesn’t start and end with the performance evaluation process. It’s imperative that to provide continuous feedback on everyone’s performance throughout the year, even outside of the performance evaluation period.

However, the extent to which your top management will do this depends on the specific needs of everyone. In any event, you only have to be constructive in giving the necessary guidance, without necessarily micro-managing everyone.

ELBONOMICS: The purpose of performance appraisal is to prepare future leaders.

 

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

Your Weekend Guide (August 16, 2019)

Dancing Lessons

TWIN Bill Theater presents Mark St. Germain’s Dancing Lessons on Aug. 16 to 24 at Power Mac Center Spotlight in Circuit Makati. Directed by Francis G. Matheu, the play follows Ever Montgomery, a young science professor with special needs who decides to take dancing lessons to get through an upcoming awards dinner he will host. However, his instructor, Senga, is recovering from an injury that may prevent her from dancing permanently. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).

Mabining Mandirigma, A Steampunk Musical

TANGHALANG Pilipino restages Mabining Mandirigma, A Steampunk Musical about the life of hero and “sublime paralytic” Apolinario Mabini at the Main Theater of the Cultural Center of the Philippines until Sept. 1. The 2019 run stars Monique Wilson as Mabini. Arman Ferrer will be reprising his role as Emilio Aguinaldo, alternating with David Ezra. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).

Dani Girl

THE Sandbox Collective restages Michael Kooman and Christopher Dimond’s Dani Girl at the Carlos P. Romulo Auditorium, RCBC Plaza in Makati City until Sept. 1. Directed by Toff de Venecia, the musical centers on nine-year-old Dani who sets off on a quest to find her hair and figure out the answer to the question, “Why is cancer?” She journeys with fellow warrior and best friend Marty, through lightsaber duels, game shows, and blasting off to outer space. The play stars Rebecca Coates as Dani alternating with Kyle Napuli. Luigi Quesada returns as Marty, alternating with Daniel Drilon. For inquiries, call 0956-200-4909, 586-7105 or sab@thesandboxco.com.

Rak of Aegis

THE hit Pinoy jukebox musical Rak of Aegis returns to the PETA Theater Center, with ongoing performances until Sept. 29. The show uses the songs of the Aegis band such as “Halik,” “Sinta,” and “Basang-Basa sa Ulan,” to tell the tale of a perennially flooded barangay. This latest production features a mix of original cast members including Aicelle Santos and Kim Molina, Isay Alvarez-Seña and Sweet Plantado-Tiongson, Robert Seña and Renz Verano, and Kakai Bautista and Neomi Gonzales. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).

MaArte oPen House

THERE will be fashion and food finds at the MaArte oPen House bazaar this weekend.

FROM Aug. 16 to 18, 10 a.m. to 8 p.m., the spirit of the Syquia apartments’ open house parties lives again in the Peninsula Manila with MaArte oPen House. The MaArte fair will see 41 guest rooms of the hotel closed off for about 60 exhibitors, recalling the parties of the past. Among the items one will find there are Aranaz bags, ceramics by Bangay, jewelry by DSV Studio, watches by Ibarra, jewelry by Natalya Lagdameo, and scents by Oscar Mejia. New fashion brands that are participating include FDCP members Joel Escober, Lally Dizon, Maco Custodio for Pinoy ManCave, Coco and Tres, Pika Pika + Pinta, Vesti, and Evangeline Austria. This year’s fair will also feature food items by Auro Chocolates, Green Babes, and Felicisimo Gourmet Homecooking. Alongside its annual fundraiser, the Museum Foundation of the Philippines, Inc. will also hold MaArte Talks, conversations with Joey de Castro (Aug. 16), Tweetie de Leon-Gonzalez of TdLG (Aug. 17), and Nico Moreno of Ibarra Watches (Aug. 18), at 2:30 p.m., at The Peninsula Lounge Area, 2F Ayala Wing.

Rustans.com launch

RUSTAN’S will hold an online shopping party on Aug. 17, 6 p.m. to midnight, to launch Rustans.com. The upscale department store’s new online store features a curated selection of Rustan’s brands and products. To demonstrate how easy it is to shop at Rustans.com, the online store is having a digital party hosted by lifestyle and travel blogger Nicole Andersson, style purveyor Tessa Prieto-Valdes, Rica de Jesus of Heart2Heart, and Jaja Chiongbian-Rama. The Live Shopping Party will also feature discounts and drops throughout the night which shoppers can follow on @rustansph Facebook and Instagram accounts. They can also sign-up for the event newsletter at rustans.com ahead of the event. Special offers and discounts of up to 60% will be available for one night only. Over 140 brands are now available online.

Cine Argentino

CINE ARGENTINO returns to Shangri-La Plaza mall at the Red Carpet from Aug. 14 to 18, for its fifth year with a lineup of diverse films. In partnership with the Embassy of Argentina and the Film Development Institute of the Philippines, the Shang is screening five feature films produced by Argentinian filmmakers that showcase different perspectives of their country’s culture. The five films are: biographical crime film El Clan (The Clan) starring Guillermo Francella and Peter Lanzani, and directed by Pablo Trapero; Academy Award nominee for Best Foreign Language Film and Cannes Film Festival Palme d’Or-nominated Relatos Salvajes (Wild Tales), written and directed by Damián Szifron; Dos Mas Dos (Two Plus Two), directed by Diego Caplan; Ariel Winograd’s Mamá Se Fue De Viaje (10 Days Without Mom); and, La Luz Incidente (Incident Light) directed by Ariel Rotter.

OPPO Reno Sunset Rose X M·A·C workshop

OPPO is collaborating with cosmetics brand M·A·C for a beauty workshop to be integrated into the Reno Collective Pop-Up Art Exhibit on Aug. 17-18 at SM Mega Fashion Hall. This will be the third leg of the pop-up exhibit featuring immersive art installations, with activities and interactive spaces especially dedicated to the Reno Sunset Rose colorway. Celebrity makeup artists RB Chanco and Sylvina Lopez will doll up several girls from the Reno Collective with M·A·C, creating looks inspired by the limited edition OPPO Reno in Sunset Rose. This interactive workshop will allow participants to learn the creative process behind applying makeup from professional artists and use the same techniques to recreate the OPPO Reno in Sunset Rose look using M·A·C products. The workshop — on Aug. 17 and 19, 2 p.m., at the SM Mega Fashion Hall — will be open to the public with a limit of 20 slots on a first come, first served basis. Exclusive special treats also await the first five in line. Interested parties may proceed to the dedicated OPPO X M·A·C booth as soon as the exhibit opens. Workshop participants will also experience a magazine-quality portrait shoot with Miguel Alomajan. The limited edition OPPO Reno in Sunset Rose retails at P26,990 and is available in 55 select OPPO concept stores nationwide.

National Book Store’s Thank You Sale

NATIONAL Book Store is holding a Thank You Sale with discounts of up to 50% on books, school and office supplies, imported brands, and more in all 240 branches across the country. Colored stickers highlight the discounts — blue for 10% off, white for 20% off, yellow for 30% off, and orange for 50% off. The sale runs from Aug. 15 to Sept. 1.