Eton taps start-up as lockdown eases

June 3, 2020 | 12:02 am

ETON Properties Philippines, Inc. is teaming up with on-demand services platform MyKuya as part of safety efforts during the coronavirus disease 2019 (COVID-19) pandemic.

In a statement Tuesday, the Lucio C. Tan-led company said it had partnered with the mobile application operator to bridge customers to its stores while reducing human contact.

“As the public is still encouraged to stay home when they can, Eton Properties has partnered with an on-demand services app MyKuya for its users to have their meals and errands delivered,” it said.

Users may request through the MyKuya app for assistance in buying meals, paying bills and shopping for grocery. The service is available in Eton Centris and Eton Cyberpod Corinthian in Quezon City, and Eton Tower Makati and Eton WestEnd Square in Makati City.

The company is also implementing safety protocols in its properties as quarantine rules are relaxed. All Eton buildings will be regularly sanitized and will require temperature checks and wearing of face masks for all visitors.

For its hotels, employees such as front desk staff, security and housekeeping will be asked to wear personal protective equipment while on duty.

For malls and condominium units, there will be floor markings to direct the movement of people in such a way that will maintain physical distancing. Elevators will also be limited to 50% of its usual capacity.

Vatican Museums reopen

June 3, 2020 | 12:02 am

VATICAN CITY — If you’ve ever dreamed of being in the Sistine Chapel without feeling like you are craning your neck in a packed open-top tourist bus, now is your chance. The Vatican Museums reopened to the public on Monday after being closed for nearly three months because of the coronavirus lockdown. The Museums, which house some of the world’s greatest Renaissance masterpieces as well as ancient Roman and Egyptian artefacts, can now be visited only by making online reservations in order to control the number of people attending at one time. Visitors have their temperatures checked by remote thermal scanners and have to wear masks. Still, that was a small inconvenience in exchange for being one of only about 25 people at a time on Monday in the Sistine Chapel, with its famous ceiling and Last Judgement panel painted by Michelangelo in the 16^th century. The Museums received some 7 million visitors last year and are the Holy See’s most reliable source of income, previously generating an estimated $100 million annually. That number probably will not be seen again for some time because of the pandemic’s effect on the travel and hotel industries. During the closure, art lovers could visit the Museums via virtual tours online, but most would agree there’s nothing like the real thing. — Reuters

Phoenix employees to work remotely until yearend

June 3, 2020 | 12:01 am

PHOENIX Petroleum Philippines, Inc. on Tuesday said over 70% of its employees will continue working from home until the end of the year despite the easing of lockdown measures in the country.

“While quarantine measures have been loosened, the threat of the virus continues, and we likewise continue to do our part to help flatten the curve. Hence, we have decided to let employees who need not be in the office or any operational facility to work in the safety of their homes,” said Phoenix President and Chief Operating Officer Henry Albert R. Fadullon said in a statement.

The listed oil company said there are still no reported cases of coronavirus disease 2019 (COVID-19) infection among its workers.

In March, Phoenix released some portion of the advanced 13^th-month pay and Christmas bonus of its regular employees. It also provided those needing Internet connection with connectivity allowance.

Meanwhile, some critical on-site employees were allowed to report to their respective workplaces. They were given protective personal equipment (PPE), vitamin supplements, food subsidies, and additional financial assistance.

In an internal survey, 93% of Phoenix employees who have gone working from home said they approve of their set-up.

“We have zero reported confirmed COVID-19 cases within the company, and we intend to keep it that way by adopting flexible work arrangements and continuous health monitoring, among other methods to protect our employees and our community,” Mr. Fadullon said. — Adam J. Ang

NYC’s Met Opera closed till Dec. 31

June 3, 2020 | 12:01 am

NEW YORK’S Metropolitan Opera will keep its curtains closed until a New Year’s Eve opening gala, it said on Monday, as it announced a season shortened by the coronavirus epidemic. “Social distancing and grand opera simply don’t go together,” General Manager Peter Gelb said in a video message. The 2020-2021 season had been due to open in September at the 137-year-old company’s 3,800-seat home in Lincoln Center. Four new productions will be postponed, according to the Met’s website. The Met is among the latest cultural institutions to extend its closure due to the pandemic, which has hit live theater especially hard. The company, known for spectacular stagings of operas such as Georges Bizet’s Carmen and Giacomo Puccini’s La Boheme, furloughed its orchestra, chorus and stagehands in March. Broadway theaters have extended their closure from mid-March until at least Sept. 6, while two major musicals in London — revivals of Hello Dolly and Joseph and the Amazing Technicolor Dreamcoat — were postponed last week until 2021. “As long as social distancing is required, we can’t put on performances here,” Gelb said. He held out hope that by December “there will be a medical solution” to the coronavirus crisis that would allow the Met Opera to resume its shows on Dec. 31. London’s Royal Opera House and Milan’s La Scala, which also suspended performances several months ago, have yet to announce their plans for the 2020-2021 season. — Reuters

ATRAM Mutual Funds postpones 2020 shareholders meeting

June 3, 2020 | 12:01 am

ATRAM Alpha Opportunity, Fund, Inc.
ATRAM Asiaplus Equity Fund, Inc.
ATRAM Philippine Balanced Fund, Inc.
ATRAM Philippine Equity Opportunity Fund, Inc.
ATRAM Total Return Dollar Bond Fund, Inc.

To safeguard the health and safety of the shareholders due to the continuing adverse effect of the COVID 19 pandemic, and in compliance with quarantine measures imposed by the National Government, your Board of Directors is postponing the scheduled annual shareholders meeting on June 25, 2020 (Per Bylaws last Thursday June) to AUGUST 20, 2020, or such later date as may be determined by the Board of Directors, in the event that there are continuing health and safety concerns due to the COVID 19 disease. Shareholders will be advised accordingly on the details of the meeting on a later date.

(Sgd.) MA. ALICIA G. PICAZO-SAN JUAN
Corporate Secretary

Treasury raises P15B from 35-day papers

June 3, 2020 | 12:01 am

THE GOVERNMENT fully awarded the 35-day Treasury bills (T-bills) it auctioned off on Tuesday as rates moved sideways.

The Bureau of the Treasury (BTr) raised P15 billion as planned via 35-day T-bills yesterday out of total tenders worth P34.39 billion or more than two times the amount on offer.

The 35-day papers fetched an average rate of 2.065%, up by 4.1 basis points (bps) from the 2.024% yield in the previous auction on May 19.

National Treasurer Rosalia V. de Leon said rates of government securities have gone down to settle within the area of the headline inflation rate as seen in previous auctions, with investors starting to look at the “intermediate part of the curve.”

“Rates to be within vicinity of inflation. We see now appetite for intermediate part of curve,” Ms. De Leon told reporters via Viber.

A bond trader said lower demand during yesterday’s auction compared to bids for longer tenors was expected as market participants are in search of higher yields.

On Monday, total bids for the offer of three-month, six-month and one-year T-bills hit P83.995 billion, making it more than four times oversubscribed.

The bond trader added that demand for the 35-day papers are lower since rates have started settling within the projected headline inflation rate.

“As we expected, the demand for this is lower compared to its longer counterparts first because of the yield, then second is the yield compared to the expected inflation number,” the trader said via Viber.

The Bangko Sentral ng Pilipinas (BSP) last week forecasted that headline inflation in May likely settled between 1.9% and 2.7%, giving a point projection of 2.3%.

The estimate range is still well within the BSP’s 2-4% target for 2020.

If realized, a 2.3% projection for May will be faster than the 2.2% logged the month prior but slower than the 3.2% recorded in the same month last year.

Latest inflation data will be reported on June 5.

On Monday, the BTr raised P26 billion in T-bills and another P10 billion in one-year securities via the tap facility.

The government plans to borrow P170 billion from the local market in June: P110 billion via weekly T-bill auctions and the remaining P60 billion in Treasury bonds to be offered fortnightly. — B.M. Laforga

Philippines slips in business environment resilience ranking

June 3, 2020 | 12:00 am

How PSEi member stocks performed — June 2, 2020

June 3, 2020 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Tuesday, June 2, 2020.

Retreat from global trade seen after pandemic — WB

June 2, 2020 | 10:00 pm

THE World Bank (WB) said the less immediately obvious consequences of the pandemic include the erosion of human capital as millions lose their jobs as well as the contraction of supply chains as troubled firms withdraw from participating in the global economy.

In a chapter of its Global Economic Prospects report called Lasting Scars of the COVID-19 Pandemic, the World Bank said emerging market and developing economies (EMDEs) will likely experience “deep recessions.”

“Beyond its short-term impact, deep recessions triggered by the pandemic are likely to leave lasting scars through multiple channels, including lower investment; erosion of the human capital of the unemployed; and a retreat from global trade and supply linkages,” according to part of the report published Wednesday.

The World Bank said EMDEs falling into recession this year while also experiencing financial crises will likely experience “larger long-term potential output losses” than recessions that are not experiencing financial crises.

Citing previous cases, the World Bank said, “Five years after a recession-cum-crisis, potential output in EMDEs remained almost 8% below baseline — more than the 6% potential output loss following the average recession,” it said.

The full report is due for release on June 8, during which the World Bank will also update its forecast for the global economy.

The World Bank also expects severe impacts on energy exporters because of plunging oil prices.

“The likely long-term consequences of the pandemic highlight the need to forcefully undertake comprehensive reform programs to improve the fundamental drivers of economic growth,” it said.

It said EMDEs that have wide current account or budget deficits, or heavy debt burdens are “particularly vulnerable” to a sharp rise in borrowing costs or may have limited access to financing.

This kind of “financial vulnerability” could constrain the economy’s capacity to deliver effective monetary and fiscal stimulus.

World Bank Lead Economist and Program Leader for Brunei, Malaysia, the Philippines and Thailand Souleymane Coulibaly last month said they are currently revising the economic forecast for the Philippines for 2020.

“It will not be the six percent growth. Maybe it will be zero this year, or even minus one or two this year. But next year, we will see resumption in the economy,” Mr. Coulibaly said during the BUSINESSWORLD INSIGHTS online forum.

In its Regional Economic Update report published in April, the World Bank downgraded its earlier 6.1% growth forecast for the Philippine economy and gave a growth forecast range of 3% to -0.5%, depending on the extent of the impact of the COVID-19 outbreak and the enhanced community quarantine (ECQ) in Luzon. — B.M. Laforga

Peso weakens on US-China trade war

June 2, 2020 | 9:00 pm

THE PESO depreciated against the greenback yesterday as trade tensions between Washington and Beijing continued to escalate.

The local unit ended trading at P50.34 per dollar on Tuesday, shedding two centavos from its P50.32 close on Monday, according to data from the Bankers Association of the Philippines.

The peso opened the session at P50.31 per dollar. Its weakest was at P50.41 while its strongest was at P50.28 against the greenback.

Dollars traded rose to $877.1 million from the $699.75 million on Tuesday.

A trader said the local unit’s depreciation came after continued trade tensions between the US and China.

“The peso weakened slightly on news that China might consider halting purchases of US agricultural products,” the trader said in an e-mail.

Some sources said that China is ready to suspend imports of American agricultural products if the US pushes for further actions related to what is happening in Hong Kong, according to Reuters.

However, at least three cargoes totaling 180,000 tons of US soybeans were purchased by state-owned Chinese firms on Monday.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the slightly weaker peso came after the latest data on the country’s balance of payments (BoP) position.

“The peso exchange rate closed slightly weaker after the lower BoP surplus data,” Mr. Ricafort said in a text message.

Data from the central bank showed the country’s BoP position settled at a surplus for the second straight month at $448 million in March. This was, however, smaller than the $627-million surfeit seen a year ago and the $839 million recorded in February.

“The BoP surplus in March 2020 reflected mainly the inflows arising from the BSP’s foreign exchange operations as well as income from its investments abroad, and the national government’s foreign currency deposits with the BSP,” the central bank said on Tuesday.

The trader expects the peso to move between the P50.30 to P50.50 band this Wednesday, while Mr. Ricafort sees the local unit playing around the P50.15 to P50.40 levels. — L.W.T. Noble with Reuters

PSEi back at 6,000 level on positive sentiment

June 2, 2020 | 9:00 pm

By Denise A. Valdez, Reporter

THE MAIN INDEX returned to the 6,000 level on Tuesday as investors sustained their optimism over the Philippine economy’s revival.

The benchmark Philippine Stock Exchange index (PSEi) closed yesterday’s trading session at 6,025.17, up 95 points or 1.60% from a day ago. The broader all shares index gained 41.50 points or 1.18% to close at 3,551.72.

“The PSEi broke through the 6,000 level after retracing modest losses earlier in the session, as the potential for an economic rebound overshadowed strife in regional economies that has sparked chaos and curfews especially in the United States,” Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a mobile message.

The PSEi’s finish yesterday is its best since March when the world was at the height of announcing lockdowns due to the coronavirus disease 2019 (COVID-19) pandemic. From ending at 6,353.26 on March 11, the main index fell to 5,736.27 on March 12 and hit a historic low of 4,623.42 on March 19.

With the Philippine government continuing to favor a relaxed lockdown to support the economy’s recovery, investors flocked to the local bourse with optimism, opposite of the distress in other countries amid the lingering effects of the pandemic.

“Investors also monitored Sino-American trade tensions and efforts in the US, and much of the world, to overcome the COVID-19 pandemic… The (Chinese) government told major state-run agricultural companies to pause purchases of some goods including soybeans as it evaluates the escalation of tensions with the US over Hong Kong,” Mr. Limlingan said.

Diversified Securities, Inc. Equity Trader Aniceto K. Pangan noted the same push from foreign investors. After nearly 50 days of recording net outflows, foreign investors have been net buyers for the third straight day on Tuesday, increasing net inflows to P1.13 billion from P268.58 million a day ago.

“With the Philippines’ fundamentals intact, it’s expected to be among the economies around the world to be resilient under these circumstances and make an economic rebound thereafter,” Mr. Pangan said via text.

All sectoral indices closed the session with gains: holding firms rose 141.38 points or 2.34% to 6,161.15; property improved 49.95 points or 1.68% to 3,022.73; industrials picked up 94.31 points or 1.25% to 7,590.34; financials added 13.18 points or 1.1% to 1,205.48; mining and oil increased 29.14 points or 0.65% to 4,466.71; and services climbed 6.53 points or 0.48% to 1,359.64.

Value turnover grew to P7.29 billion on Tuesday from P6.98 billion the previous day. Some 1.01 billion issues switched hands.

Advancers outnumbered decliners, 117 against 61, while 43 names ended unchanged.

Domestic flights allowed under eased lockdown

June 2, 2020 | 8:09 pm

By Gillian M. Cortez and Jenina P. Ibanez, Reporters

DOMESTIC flights between Philippine provinces under a relaxed lockdown may resume, the government said on Tuesday as airlines prepare to fly again after a global coronavirus pandemic halted their operations more than two months ago.

An inter-agency task force made up of Cabinet secretaries approved commercial flights between regions under a general community quarantine with conditions, Transportation Secretary Arthur Tugade told a news briefing.

“Flights for leisure are prohibited,” he said in Filipino. The flights must also be approved by local governments, he added.

Meanwhile, flag carrier Philippine Airlines (PAL) and rival Cebu Pacific will resume operations with limited capacity on Wednesday. AirAsia in a statement said it would resume flights on June 5.

PAL would offer limited domestic flights, spokeswoman Cielo C. Villaluna said at a separate briefing.

“The Inter-Agency Task Force yesterday allowed us to fly to Cebu, Davao, Dumaguete and Cagayan de Oro,” she said in Filipino.

Cebu Pacific spokeswoman Charo L. Logamon urged travelers to arrive at airports earlier because health checks mean it would take longer to process passengers.

“Because we have physical distancing, check-in and boarding will take longer so passengers must come earlier,” she said at the same briefing. Domestic travelers should be at the airport at least three hours before their flights, she added.

The Department of Health reported 359 new infections yesterday, bringing the total to 18,997.

Of the new cases, 176 involved test results released in the past three days, while 184 were released four days ago or more, it said in a bulletin.

The death toll rose to 966 after six more patients died. Eighty-four more patients have gotten well, bringing the total recoveries to 4,063.

Meanwhile, the Department of Tourism (DoT) said it would prioritize promotion of domestic land travel as it tries to recover losses from a 62% decline in foreign tourist arrivals.

International arrivals plunged to 1.3 million from January to April from 3.4 million a year earlier, Tourism Secretary Bernadette Romulo-Puyat said at a separate online news briefing yesterday.

Tourist shops with a certification from the agency may operate in places under a general community quarantine. Hotels and in-house food and take-out operations must get the permit.

Mr. Puyat said local governments were not yet ready to accept tourists. “Some local government units are still hesitant to open,” she said. “We still have to restore the confidence of the tourists.”

The Tourism department said it was in talks with local governments in La Union, Baler, Pampanga and Batangas to boost land travel.

DoT and the Trade department have adopted the so-called Safe Pass digital solution that helps businesses plan spaces for physical distancing, enforce health protocols and manage contact tracing.

The Tourism department has helped almost 37,000 stranded foreign and domestic tourists with sweeper and commercial flights and accommodations, it said.

President Rodrigo R. Duterte locked down the entire Luzon island in mid-March, suspending work, classes and public transportation to contain the pandemic. People should stay home except to buy food and other basic goods, he said.

He extended the lockdown for the island twice and thrice for Manila and nearby cities where COVID-19 infections have been mostly concentrated. The lockdown in the capital region was relaxed starting June 1. — with Vann Marlo M. Villegas