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Banks tighten lending standards amid lockdown

Most businesses were shuttered during the enhanced community quarantine (ECQ) in Metro Manila. Photo shows a near-empty intersection in Bonifacio Global City, Metro Manila on March 16 when the ECQ started. — BLOOMBERG

MOST BANKS imposed more stringent overall lending standards in the second quarter when most parts of the country were under a strict lockdown, a survey by the central bank showed.

“We have observed a slowdown in bank lending during the quarter. There has been a tightening of bank lending standards. This is due to the less favorable economic outlook and to banks’ reduced tolerance for risk,” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said in a pre-recorded speech during a briefing on Monday.

The latest Senior Bank Loan Officers’ Survey released by the BSP showed most respondent banks tightened their credit standards for both enterprises and households during the April to June period.

“This is the first time that the majority of respondent banks reported tighter credit standards following 44 consecutive quarters of broadly unchanged credit standards,” Lara Romina E. Ganapin, acting deputy director of the BSP Department of Economic Research, said during the briefing.

The trend of tightening credit standards reported by banks appear to be similar to what was observed during the global financial crisis in the first quarter of 2009, Ms. Ganapin said.

The survey looks to gauge banks’ lending decisions. Only 51 out of 64 banks sent their response to the survey between June 1 to July 7.

Majority of the banks (69.4%) reported tighter loan standards for all enterprises — from top companies to microenterprises, compared to 24% in the first quarter.

The diffusion index (DI) approach likewise showed net tightening in overall credit criteria.

“Respondent banks attributed the tightening of credit standards largely to less favorable economic outlook, deterioration in the profiles of borrowers, and banks’ reduced tolerance for risk, among other factors,” the BSP said.

Meanwhile, 60.6% of respondent banks said they implemented stricter credit standards for consumers during the quarter, up from the 22% that reported tighter credit standards in the prior quarter. This covered all types of consumer loans, such as housing, credit card, auto, and personal/salary loans.

During the quarter, banks reduced credit line sizes, imposed more rigorous collateral requirements and loan agreements, and increased the use of interest rate floors.

Majority of the respondent banks expect tougher loan criteria for both enterprises and households in the next quarter, amid the worsening economic outlook and lower-risk tolerance of lenders.

Meanwhile, banks surveyed saw lower overall demand for loans from enterprises and households in the second quarter.

The slower loan demand from businesses was attributed to the “deterioration in clients’ business prospects amid the lockdown, decline in customer inventory financing needs and working capital requirements.”

Lower household consumption and housing investments were cited as the main reason for the decline in household loan demand during the period. — Luz Wendy T. Noble

J-Trec group bids for subway train sets

By Arjay L. Balinbin, Reporter

ONLY the joint venture of Sumitomo Corp. and Japan Transport Engineering Co. (J-Trec) submitted on Monday a bid proposal to provide train sets for the Metro Manila Subway Project Phase 1, the Transportation department said.

“One JV submitted bid: J-Trec and Sumitomo Corp.,” Transportation Assistant Secretary Goddes Hope O. Libiran said in a phone message to BusinessWorld, speaking for Transportation Undersecretary for Railways Timothy John R. Batan.

To recall, the J-Trec-Sumitomo JV was awarded in July last year the contract for the rolling stock package of the North-South Commuter Railway Project (Malolos to Tutuban) in the total amount of P739.48 million and ¥23.84 billion, according to a copy of the notice of award posted on the official website of the Department of Transportation (DoTr).

Sumitomo is also one of the maintenance service providers of Metro Rail Transit Line 3 (MRT-3), along with Mitsubishi Heavy Industries Engineering, Ltd. and TES Philippines, Inc.

The submission of bids for the train sets was initially scheduled for March 17 but was moved to July 27 amid the ongoing coronavirus pandemic.

Bids for the train sets should be submitted along with a ¥600-million bid security at the Procurement Service of the Department of Budget and Management (DBM-PS) in Manila.

The DoTr announced in December last year its invitation to Japanese firms and Japanese-led joint ventures to bid to provide train sets, as well as electrical and mechanical (E&M) systems and rail track works as part of the first phase of the Metro Manila Subway Project, one of the current administration’s flagship developments funded by Japan official development assistance (ODA).

The department sought bids from Japanese firms “for the design, execution and completion of 30 train sets consisting of eight electric multiple units” or a total of 240 train cars.

In February, the department said Hitachi Ltd., Sumitomo, and Mitsubishi Corp. bought bid documents for the rolling stock package of the project.

Sumitomo, Mitsubishi, Mitsui & Co. Ltd., and Marubeni Corp. also purchased bidding documents for the contract to provide E&M systems and track works. Two Philippine-based firms — construction giant D.M. Consunji, Inc. and KDDI Philippines Corp. — also bought bidding documents for this package.

The deadline for submission of bids for E&M and track works was originally set on March 24, with an ¥800-million bid security. It was moved to Aug. 17, according to a bid bulletin published on July 7.

The subway will have 17 stations, namely: East Valenzuela, Quirino Highway, Tandang Sora, North Avenue, Quezon Avenue, East Avenue, Anonas, Katipunan, Ortigas, Shaw, Kalayaan Avenue, Bonifacio Global City, Lawton, Senate, FTI, NAIA Terminal 3, and Bicutan.

The first phase covers the first three underground stations, tunnels and depot construction, depot equipment and buildings.

The government broke ground for the first three stations in February last year after the Transportation department signed a P51-billion deal with the Shimizu joint venture, which consists of Shimizu Corp., Fujita Corp., Takenaka Civil Engineering Co. Ltd., and EEI Corp.

The Philippines and Japan signed in March 2018 the first tranche of the P355.6-billion loan for the project.

Based on the special terms for economic partnership of Japanese ODA loans, the primary contractor should be from Japan, while subcontractors can be from other countries.

The government unveiled in February parts of the Japanese-supplied tunnel boring machines which will be used to build the country’s first subway line.

The Transportation department targets to begin tunneling works within the year.

While the public will have to wait until 2025 for full operations of the 17-station subway, the government targets partial operations — covering the first three stations — by 2022.

FDCP’s Diño out of MMFF committee

FILM DEVELOPMENT Council Chairman and CEO, Mary Liza B. Diño, has been removed from the Executive Committee (Execom) of the Metro Manila Film Festival (MMFF) after the festival’s Chairman Danilo D. Lim accused her of trying to take the festival away from the Metro Manila Development Authority (MMDA) and bringing it under the management of the FDCP (Film Development Council of the Philippines).

In a letter dated July 21, Mr. Lim, who is also chairman of the MMDA, claimed that Ms. Diño has “already made efforts… as early as 2016” to transfer management of the MMFF to FDCP.

“You even wrote a letter to Malacañang asking for the extension of [the] festival period for MMFF and to transfer chairmanship of MMFF from the undersigned to you,” Mr. Lim said before adding that Ms. Diño “directly accused” MMFF of being “involved in controversies.”

“We honestly believe that your membership in the Executive Committee is no longer tenable as your actions are inimical to MMFF and reek of conflict of interest. We regret not your removal from MMFF but rather that it has come this far,” the letter said, before adding that Mr. Lim is withdrawing Ms. Diño’s appointment as a member of the Execom.

The MMFF, arguably the country’s largest film festival, is organized by the MMDA. The festival runs from Dec. 25 until the first week of January, and during that period only Filipino films are screened in theaters nationwide. The festival traces its roots to 1966 when Antonio Villegas, then the mayor of Manila City, created a Manila Film Festival. In 1975, the Metro Manila Film Festival was born. The festival’s recent grosses have reached P1 billion and its success led to the establishment of a second MMFF in the summer which was suspended because of the ongoing COVID-19 (coronavirus disease 2019) pandemic.

The Execom is the overseer and implementer of the festival and includes the MMDA, film directors, the FDCP, and other industry stakeholders.

In response, Ms. Diño said in a July 24 statement that they “reached out to MMDA for further clarification on their statements reflected in their letter,” as this was the “first official communication that was received from the chairman about this matter.”

A few days earlier, MMDA spokesperson Celine Pialago posted images on her Facebook account of a copy of an FDCP proposal to Malacañang which suggested extending the festival and switching management from the MMDA to the FDCP.

“We’ve been talking about this every year, Chair Diño. The MMFF belongs to the MMDA. Here is a piece of advice for you: Work on fixing the Pista ng Pelikulang Pilipino (PPP) first before showing interest in the MMFF,” Ms. Pialago said in her post.

The PPP is an annual Filipino film festival held in September which has been organized by the FDCP since 2017.

Ms. Diño said that the proposal Ms. Pialago posted was a 2017 position paper. She said they asked the MMDA the day after the July 20 post for a clarification.

“FDCP explained that (a.) the document was a 2017 position paper of FDCP which was forwarded to the MMFF for comments and position, (b.) in a meeting in October 2017, the MMFF [Execom] discussed the document as one of the agenda, and (c.) since then up to this date, no further actions were made by any parties of the matter,” Ms. Diño said before adding that she had been part of the Execom even after the MMFF received the 2017 position paper since the MMDA invited her to be part of it.

In a separate statement, the Cinema Exhibitors Association of the Philippines (CEAP) on July 22 expressed its support for the MMDA.

“Unlike some film festivals, CEAP recognizes and appreciates the efforts of the MMDA in encouraging transparency and collaboration within the MMFF [Execom] members by involving all relevant stakeholders,” it said.

The Prodyuser ng mga Pelikulang Pilipino sa Asya, Inc. also accused the FDCP of “interference” and “intervention” in a statement dated July 20.

“We believe that the FDCP has attempted to go beyond its mandate and has intruded into duties and responsibilities that belong to other offices and agencies in the government,” the organization said. — Zsarlene B. Chua

Meralco core profit down 14% in first half

MANILA ELECTRIC CO. (Meralco) saw its core net income dropped 14% to P10.6 billion in the first six months of the year with lower revenues and sales.

Its consolidated revenues dwindled 14% to P142.3 billion in the period “as a result of the combined effect of the 7% decline in sales volume and lower pass-through generation charges as fuel prices remained low,” said Meralco’s Chief Financial Officer Betty C. Siy-Yap during the company’s first-half earnings briefing, Monday.

The company’s electricity revenue, forming 97% of the total, dropped 14% to P138.6 billion, mainly due to lower volumes and pass-through charges.

Revenues from generation and other pass-through charges also decreased by 18.3% to P105.27 billion. Lower generation cost with the implementation of new power contracts and the utility’s force majeure claim from power suppliers, among others, led to the lower revenue share of this component.

Further, distribution charges increased by 2.8% to P33.37 billion.

Meralco’s reported net income is gloomier, down 43% to P6.8 billion due to its share in the P2.7-billion investment impairment of Singapore-based PacificLight Power Pte Ltd. in the first quarter.

In a separate statement, Meralco Chairman Manuel V Pangilinan claimed that “Meralco performed quite well,” despite the challenges it faced in the period, such as the limitations caused by the pandemic-induced lockdown.

He noted the uncertainty caused by the coronavirus disease 2019 (COVID-19), albeit, highlighting also “some encouragement” from the company’s first-half results.

From January to June, Meralco sold a total of 21,139 gigawatts per hour (GWh) of electricity, which is 7% lower compared to a year ago.

Only its residential sale expanded by 14%, making up the bulk of its total sales volume at 38%, as customers use more electricity while kept indoors due to quarantine restrictions.

Its commercial and industrial sales volumes were both down 17%. The former is expected to rise with more businesses opening at limited capacity, while there is an observed increase with the latter as export-oriented companies also run at half to full capacity.

“Meralco recognizes its critical role in enabling industries, and now more so, as business restart and transition to the ‘new normal’,” Mr. Pangilinan said.

The utility noted a 3% growth in its customer base, an additional 200 million, to nearly 7 million, which were brought in before the lockdown months.

Meanwhile, the company utilized about 51% or P4.7 billion out of its P9.34-billion capital expenditure budget in the first half. A bulk of this, or P2.42 billion, was spent on new connections.

“Out of this amount, close to P80 million was utilized for the quick energization of COVID-19 quarantine and treatment facilities all over our franchise [areas],” said Meralco Networks Head Ronnie L. Aperocho.

Mr. Pangilinan said the company is “moving with caution” though it is still optimistic for a near-term recovery.

The company expects its core profit to stand around P21 billion by end-2020, according to Mr. Pangilinan.

On Monday, shares in Meralco slipped by 1.15% to P258 each.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Adam J. Ang

Pryce net income declines on LPG, crude price slump

PRYCE CORP. saw its after-tax income dropped in the first semester, pulled down by inventory losses from the slump in the prices of crude and liquefied petroleum gas (LPG) in the second quarter caused by the global coronavirus pandemic.

The company posted a 15.2% decrease in net income to P759.25 million from January to June.

“The big drop in global crude and LPG prices, which started in the middle of March, was reflected in our April and May operations thereby resulting in appreciable inventory losses,” the listed firm told the stock exchange, Monday.

“This is the main reason why the second-quarter financial results were weaker than the first quarter’s,” it added.

To recall, the company’s net income in the January-March period rose by 9.4% to P396.36 million, driven by its LPG sales.

Its lower first-half income came despite posting a 10.9% increase in total revenues to P5.9 billion.

The company sold 118,290 metric tons (MT) of LPG in the first six months of 2020, an increase of 15.6% compared to the same period a year ago. LPG and other related products accounted for 95% of the company’s total revenues.

The average LPG contract price in the period went down 13.2% to $415.58 per MT.

Pryce’s other business units generated combined revenue of P288.82 million, 9.9% lower than P320.55 million previously recorded, attributed to the sales decline in industrial gases and real estate products which were impacted by the pandemic.

Though it expected that the ongoing pandemic will “adversely” affect its quarterly financials, the company hopes that “this disrupting phenomenon will be resolved soon.”

The company primarily imports and distributes LPG through Pryce Gas, Inc. It is also engaged in the sale of industrial gases, real estate and generic drugs.

On Monday, shares in Pryce rose 1.67% to close at P4.25 each. — Adam J. Ang

Hollywood’s lost summer is beginning to look like a lost year

HOLLYWOOD’S summer blockbuster season is a bust. And the rest of the year isn’t looking much better.

After months of incrementally delaying the release of big-budget movies, studios are now pulling them off the schedule altogether — or pushing them well into 2021. That’s put the already-shaky reopening plans of US cinema chains in doubt.

In the latest steps, Sony Corp.’s Sony Pictures and ViacomCBS, Inc.’s Paramount Pictures late Thursday delayed their next Spider-Man and Top Gun films, which had already been pushed out of summer. That came hours after Walt Disney Co. slapped an open-ended postponement on one of the last potential August tentpoles, the live-action remake of Mulan.

Wall Street has taken notice. Disney, a former high-flier, fell as much as 2.2% in New York trading Friday and is down 19% for the year. That compares with a 48% gain for Netflix, Inc., which has benefited from captive quarantine audiences.

Imax Corp., the big-screen movie company, tumbled as much as 8.1% on Friday after Wedbush warned of long-term risks from the pandemic.

Sony is pushing back the release of the third Tom Holland-led Spider-Man by one month to Dec. 17 next year in the US, Variety reports. International release dates are still to be confirmed.

Paramount Pictures is delaying the Top Gun sequel, Top Gun Maverick from Dec. 23 to July 1, 2021. A Quiet Place Part II, starring Emily Blunt, has been pushed back from Sept. 4 to April 23 next year according to the Hollywood Reporter.

The postponement of film releases has created a ripple effect that will last years. With the 2021 slate getting too crowded, Disney delayed the first of several planned Avatar sequels a year from its December 2021 target date. It also shoved the next Star Wars movie from December 2022 to the following year.

Just as studios depend on robust box-office grosses to make profits on movies that can cost more than $200 million, theater chains need the crowds that those movies draw to survive in what’s a barely profitable business at the best of times.

With film slates waning, AMC Entertainment Holdings, Inc., the world’s largest cinema chain, this week delayed the reopening of its US locations to mid-to-late August from July 30. After the Mulan cancellation — which followed the indefinite delay of Tenet, from AT&T, Inc.’s Warner Bros. — the chains might well scuttle their returns yet again.

The exhibitors have suffered even more than studios, with AMC down 44% this year, Cinemark Holdings, Inc. down 64% and Regal parent Cineworld Group Plc down 79%. — Bloomberg

Lazada seller onboarding triples during lockdown

E-COMMERCE company Lazada Philippines has been adding three times more sellers daily into its platform during the lockdown compared to with the preceding months.

Lazada Philippines Chief Executive Officer Ray Alimurung said that the company welcomes thousands of new sellers a day, many of them small businesses.

“In July, we are onboarding three times what we were onboarding in February. So now hindi na tayo hundreds — we are actually in thousands everyday,” he said in a webinar organized by the Trade department on Friday.

Lazada added more than 500 brands into its online shopping mall for branded products LazMall during the lockdown, or between March and July.

The company early in the lockdown focused its selling on essential products, and found that sale of the products increased by 15 times.

There has been a spike in consumer complaints on online transactions during the lockdown, the Department of Trade and Industry reported.

The department received 9,044 complaints about online transactions in the five months to May, compared with 2,457 complaints in the same period last year. Around 8,000 of the complaints this year came in between April and May.

From the total number of complaints, 30.81% were against Lazada and Shopee, lower than its previous tally of 45%.

Mr. Alimurung in June said that sellers and online platforms should share liability risks to deter scams, saying that removing responsibility from the seller would encourage scammers. He said that inspecting all goods sold on the platform would raise Lazada’s operating costs.

He said in the webinar that if a seller is unresponsive to complaints on the website, consumers may raise their concerns to the Lazada customer care chat. The company uses artificial intelligence tools to assess possible “erring behavior.” — Jenina P. Ibañez

The record label behind Winehouse, Marley, and Queen comes to PHL

ISLAND RECORDS, the record label behind Amy Winehouse, Ariana Grande, Bob Marley, and even Queen, has opened its first Asian outpost in the Philippines, in a bid to strengthen its Asian influence and help local talents “achieve local success whilst reaching new audiences worldwide.”

“We are excited to launch Island Records here in the Philippines and to build our own family of local artists that can further extend the huge legacy of Island within the region and beyond,” said Enzo Valdez, managing director of Universal Music Philippines, in a statement. “In the coming years, we will look to establish Island as a home to some of the most impactful and important artists from the Philippines, whilst introducing them to new audiences around the world through [Universal Music Group’s] unrivalled global network of companies around the world.”

Island Records, a subsidiary of Universal Music Group (UMG), was established in 1966 by businessman Chris Blackwell. The label was credited to have introduced Jamaican reggae music to the world via Bob Marley.

“Island Records actually celebrates artistry, individuality, style… and edgy,” Mr. Valdez said during a digital conference on July 24 via Zoom.

The label’s initial Philippine roster includes pop singers Lala Vinzon and Zach Tabudio, blues and soul band Juan Karlos, electronic pop outfit One Click Straight, alternative rock band Over October, and “cool indie pop artist” Fern.

The introduction of Island Records Philippines follows the launch of Def Jam Philippines in 2019 (another UMG subsidiary) which focuses on promoting and signing hip-hop and rap artists.

Coinciding with the launch of the new label is the release of Juan Karlos’ song “Bless U” which will be followed by “Nangangamba” by Zach Tabudio, to be released on July 31.

And because live shows and concerts are not allowed currently due to the health and safety restrictions imposed to stem the spread of COVID-19 (coronavirus disease 2019), Mr. Valdez said that they plan to hold online live shows by the new Island Records artists to promote their music.

“We want to be creative. We have a couple of digital concerts down the line. But we have to make it exciting for the fans,” he said before adding that the label is “trying different ways of tying up with brands and so on.”

“[We are trying] as much as possible to make sure that they can still be artists once the pandemic is done,” Mr. Valdez said, admitting that the absence of live shows and concerts is a big blow to artists as it is where they make money. — Zsarlene B. Chua

Explore overseas projects, construction firms told

CONSTRUCTION COMPANIES are being encouraged to explore overseas and outsourcing projects as they try to recover from the decline in projects during the lockdown.

While the industry is expected to rebound after the pandemic, a construction executive said that companies can work on foreign projects while they wait.

“When the pandemic came in and we were on lockdown, the procedures that we were discussing for over a year were suddenly simplified. We were forced to look at new construction techniques and methods because of the need to survive,” EEI Corp. Executive Vice-President Norman K. Macapagal said in a press release from the Trade department.

Mr. Macapagal said that companies can set up a temporary or permanent foreign branch, or work with a local partner. He added that companies must study overseas taxation and labor regulations.

The construction industry needs help from the government, he said, because overseas projects are both time-consuming and expensive.

Fitch Solutions Country Risk & Industry Research in June downgraded its forecast for the industry as it anticipated delays to the government infrastructure program due to the budget for infrastructure being redirected to coronavirus disease 2019 (COVID-19) containment. Fitch Solutions earlier said that it expected a slowdown in the industry caused by halted construction operations that are usually concentrated in areas affected by the stricter lockdown.

Construction starts, as measured by approved building permits, also fell 22.4% in the first quarter.

Department of Trade and Industry Undersecretary Abdulgani M. Macatoman said overseas construction is a major revenue generator.

“Despite a major decrease in the number of Philippine construction services exporters from over a hundred in the 1980s to 37 at present, the overseas construction industry still contributed its share to the economy: a total amount of $116.08 million,” he said.

Civil engineering firm ESCA, Inc. sees engineering service outsourcing as a high-value service.

Philippine engineering service outsourcing is valued at $250 million, representing one percent of the country’s total outsourcing sector. It also accounts for 0.5% of global engineering service outsourcing, the Trade department said.

“The challenge is to move from voice to non-voice (services), in particular, to go into the high value-added activities under KPO [knowledge process outsourcing] and link these services embedded to manufacturing, such as finance, design and engineering,” ESCA, Inc. President Dr. Ernesto De Castro said.

Mr. De Castro said Filipino engineers should be trained to build intelligent models for use in construction, with several countries like Singapore, Malaysia and Thailand requiring this knowledge for their projects. — Jenina P. Ibañez

Gone with the Wind actress Olivia de Havilland, 104

DAME OLIVIA Mary de Havilland, aged 104, died on July 25 in Paris. Entertainment Weekly cites that the last surviving cast member of Hollywood epic Gone with the Wind “died peacefully in her sleep.”

In February this year, Hollywood actor Kirk Douglas, another Hollywood centenarian, died. Only a handful of witnesses of the Golden Age of Hollywood live today, headed by 105-year-old actor Norman Lloyd (whose last film credit was in 2015 for Trainwreck).

De Havilland was born to English parents in Tokyo on July 1, 1916: to actress Lilian Ruse (later Fontaine) and academic (and later patent attorney) Walter de Havilland. Her father was an uncle of aviation pioneers Sir Geoffrey de Havilland and Hereward de Havilland, making the De Havilland company founders her cousins. Her sister, another famous actress, Joan Fontaine, was born in 1917. The sisters would go down in history as the only pair of sisters so far to have won Academy Awards in acting: the younger sister won first, getting the Academy Award for Best Actress in 1942 for her work in Suspicion. Both sisters were nominated for the same award that year, De Havilland having been nominated for her role in Hold Back the Dawn. De Havilland, for her part, won the Best Actress award in 1946 for To Each His Own. She won a second one for period drama The Heiress in 1949. De Havilland was nominated, but did not receive the award, for Best Supporting Actress in what was arguably her most famous role, playing the gentle Melanie Wilkes next to Vivian Leigh’s volatile Scarlett O’Hara in 1939’s Gone with the Wind. She lost out to co-star Hattie McDaniel (playing Mammy), who became the first African-American to win an Academy Award.

The sisters had reportedly gone through an on-and-off feud throughout their shared childhood and career, but had become completely estranged in the late 1970s, after their mother died in 1975. In 1978, while promoting her autobiography No Bed of Roses, Ms. Fontaine told People magazine, responding to a question about how she wanted to die: “At age 108, flying around the stage in Peter Pan, as a result of my sister cutting the wires,” she said. “Olivia has always said I was first at everything — I got married first, got an Academy Award first, had a child first. If I die, she’ll be furious, because again I’ll have got there first!” Ms. Fontaine died in 2013 at the age of 96, almost seven years before her sister. At her sister’s death, De Havilland said in a statement, “I was shocked and saddened to learn of the passing of my sister, Joan Fontaine, and my niece, Deborah, and I appreciate the many kind expressions of sympathy that we have received.”

While slowing down in the 1950s due to her marriage to Paris Match editor Pierre Galante in 1955, De Havilland continued appearing in films and in television up until 1988 — even winning a Golden Globe for Best Supporting Actress in a Series, Miniseries, or Television Film for her role as the Dowager Empress of Russia in the 1986 miniseries Anastasia: The Mystery of Anna.  As recently as 2009, De Havilland served as narrator for the documentary I Remember Better When I Paint. In 2010, she became a Chevalier of the Légion d’honneur, and in 2017, she was created Dame Commander of the Order of the British Empire, the oldest woman to receive the honor.

She was married twice: first to author Marcus Goodrich, with whom she had a son, Benjamin (who died in 1991). Her second marriage to Pierre Galante, which ended in divorce in 1979, produced daughter Gisèle Galante.

De Havilland, in a 2016 interview with Vanity Fair, said that her secret to her long life were “the three L’s — love, laughter, and light.” — Joseph L. Garcia

Gov’t makes full award of T-bills as rates decline

THE GOVERNMENT made a full award of the Treasury bills (T-bills) auctioned off on Monday as rates slipped across-the- board amid strong demand.

The Bureau of the Treasury (BTr) on Monday borrowed P20 billion as planned via the T-bills, with total bids reaching P64.398 billion or more than three times as much as the offer.

It also opened the tap facility to offer another P5 billion in one-year securities to accommodate the excess demand and raise more funds at low rates.

The BTr raised P5 billion as planned via the 91-day debt papers out of tenders worth P21.791 billion. The three-month papers fetched an average rate of 1.335%, 11.9 basis points (bps) lower than the 1.454% logged in the auction last week.

It also made a full P5-billion award of 182-day T-bills out of P16.65 billion in bids. The average rate of the six-month papers slipped by 2 bps to 1.605% from 1.625% previously.

For the 364-day securities, the BTr borrowed the programmed P10 billion from P25.957 billion in tenders at an average rate of 1.758%, down 1.2 bps from the 1.77% previously.

T-bill rates dropped on strong demand as market participants awaited the fifth State of the Nation Address (SONA) of President Rodrigo R. Duterte set on Monday afternoon, National Treasurer Rosalia V. de Leon told reporters via Viber after the auction.

Ms. De Leon said investors were awaiting details on government plans to address the coronavirus outbreak in the country, as well as its economic recovery plan.

Several business groups and government officials expected Mr. Duterte to discuss the government’s economic recovery plan, with this year’s gross domestic product (GDP) seen to contract after more than two decades of growth and with millions of Filipinos here and abroad without jobs.

The strong demand for T-bills was due to robust liquidity in the market, said Kevin Palma, peso sovereign debt trader at Robinsons Bank Corp.

“Investors continue to flock short-term debt papers amid the persistent high liquidity in the financial system. Echoing [Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E.] Diokno’s remarks, the BSP noted that some banks may have lowered their risk tolerance and tightened loan standards,” Mr. Palma said via Viber on Monday.

The BSP has rolled out easing measures to boost liquidity in the market as the coronavirus pandemic continues.

Last week, the central bank slashed the RRR of smaller banks by one percentage point to three percent for thrift banks and two percent for rural and cooperative lenders. The reduction will take effect on Friday, July 31, and is expected to release some P10 billion into the financial system.

The BSP in April reduced the RRR of universal and commercial banks by two percentage points to 12%.

It has also slashed benchmark interest rates by 175 bps this year to help boost economic activity.

“With those factors at play, some market players may have opted to park their funds and seek safety with government securities for the meantime,” Mr. Palma added.

The BTr has raised P165.5 billion via government securities this month as of Monday: P135.5 billion in T-bills and P30 billion in Treasury bonds (T-bonds).

The government has set a P205-billion borrowing program for July: P145 billion in T-bills via weekly auctions and P60 billion in T-bonds auctioned off fortnightly.

The BTr canceled the auction for 35-day papers scheduled on Tuesday to give way to the ongoing offer of five-year retail Treasury bonds (RTBs), which is now in its second week.

The Treasury has canceled three scheduled auctions to give way to the public offer of RTBs set to run until Aug. 7.

Ms. De Leon has said the amount raised so far has already breached the record P310 billion in three-year retail bonds sold in February.

The government borrows from local and foreign lenders to plug its budget deficit seen to hit 8.4-9% of gross domestic product this year. — B.M. Laforga

Emperador earnings jump 24% on international demand

DESPITE a local liquor ban, brandy and whisky manufacturer Emperador, Inc. posted a 24% growth in profits during the second quarter due to the continued demand for its products overseas.

In a statement on Monday, the listed company said its attributable net income during the April-to-June period stood at P1.9 billion, lifting core earnings for the year-to-date period up 2% to P3.3 billion.

Its revenues climbed 4% to nearly P11 billion during the second quarter, bringing first-half revenues to P21.5 billion.

Its higher turnout during the three months was “better than expected,” as the bulk of the duration of the coronavirus-related lockdown was during the months of April and May.

The Philippine government implemented a liquor ban to match the strict lockdown.

“Indeed, this is a very positive development during a complex year where external factors put huge pressure on some aspects of our business and open opportunity for others,” Emperador President and CEO Winston S. Co said in the statement.

He said apart from the liquor ban, the consumption of spirits was stunted in countries where bars, restaurants and hotels had closed. But in other countries where regulations were more lax, customers were able to get Emperador products through e-commerce channels.

“By taking advantage of the buoyant grocery and convenience markets, our international business has delivered better-than-expected performance,” Mr. Co said.

Part of Emperador’s strategy is to keep its international expansion while managing costs to cushion its bottom line. “Emperador remains strong and resilient, and our global footprint will allow us to emerge stronger and better from this experience,” Mr. Co said.

Emperador is under Alliance Global Group, Inc., the holding firm of tycoon Andrew L. Tan, which also has interests in real estate, hotel and casino, and McDonald’s Philippines.

It owns Emperador Distillers, Inc.; Scotch whisky maker Whyte and Mackay Group; and Spain-based Bodegas Fundador.

Shares in Emperador at the stock exchange picked up five centavos or 0.55% to close at P9.09 each on Monday. — Denise A. Valdez

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