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Shops in Asian countries starting to shun Huawei phone trade-ins

SINGAPORE/MANILA — Mobile phone retailers in some Asian countries are refusing to accept Huawei devices for trade-ins, as more consumers look to offload their device on worries Google suspending business with the Chinese firm will disrupt services.

Google has said it will comply with an order by US President Donald Trump to stop supplying Huawei, meaning current owners of Huawei phones face being cut off from updates of the Android operating system from late August. New phones will lose access to popular apps such as YouTube and Chrome.

Against this backdrop, some customers in Singapore and the Philippines have rushed to sell their Huawei phones, according to retailers and online marketplace data.

BUT THERE ARE FEW TAKERS
“If we buy something that is useless, how are we going to sell it?,” said Dylan On, a salesman at Wanying Pte Ltd., a Singapore retail and repair shop.

“It’s not that Huawei is a bad product. It’s a very good product. It’s just that nobody wants to buy it now because of US policy,” he said, adding he was looking to sell existing Huawei stock online to overseas buyers in hopes they are less aware of current events.

When contacted by Reuters, a Huawei spokeswoman said the company “will continue to provide security updates and after-sales services to all existing Huawei and Honor smartphone and tablet products.”

The company said previously it is developing its own phone software and it can still use an “open source” version of Android that lacks access to Google apps. Huawei also went ahead with a new phone launch in Britain on Tuesday, even as the number of users trading in their devices rose in Asia.

Previously, about five people a day were looking to trade in their Huawei phones, but that has jumped to 20 in the last two days, said Zack, a salesman at Mobile Square in Singapore who declined to give his last name.

“Normally, you would see people wanting to trade their old phones as they want to replace them with new ones,” he added. “Now you’re seeing people wanting to trade in the latest one.”

Carousell, Singapore’s most popular online marketplace, said the number of Huawei phone sales more than doubled the day the US order was announced.

Huawei smartphones had a 14% share of Singapore market last year, according to research firm Canalys.

Mobile phone retailers in the Philippines are also staying away from Huawei products.

“We are no longer accepting Huawei phones. It will not be bought by our clients anymore,” Hamida Norhamida, a saleswoman of new and used phones in Manila’s Greenhills shopping center told Reuters, adding that she felt relieved to have sold off her stock of Huawei P30 Pro ahead of Google’s Monday announcement.

Another phone salesperson at Greenhills said she would only buy Huawei phones at a 50% discount.

“Selling it will be a gamble,” said the saleswoman, who would give her name only as Thelma.

But some see this as an opportunity to get a quality phone on the cheap. “My immediate reaction was worry that my current Huawei could be worthless,” Xin Yi, 24- year-old student from Singapore, told Reuters. “But Google said current Huawei users will not be affected … after that, I was relieved.”

She added that she was now in the market for a new Huawei model at a marked-down price.

Earlier on Wednesday, Japanese telcos KDDI Corp and SoftBank Corp.’s low-cost mobile brand Ymobile said they would delay the launch of Huawei P30 Lite smartphone which was due to go on sale on Friday. — Reuters

Darkly comic Parasite gets critics buzzing at Cannes Film Festival

CANNES, France — Parasite, a thriller that doubles up as a wickedly funny satire about class struggles, has upped the ante at the Cannes Film Festival, with South Korean director Bong Joon-ho emerging as an strong contender for an award after impressing critics.

Bong, last at Cannes in 2017 with Netflix-produced Okja, revealed his darkly humorous exploration of social tensions at the cinema showcase on Tuesday evening.

Set in modern South Korea, the action switches between a crammed basement flat shared by a down-on-their-luck family of four — who have to resort trying to capture Wi-Fi signal from their neighbors — and the glamorous mansion they manage to infiltrate as one by one they con their way into jobs with a wealthy family.

Viewers are horrified and sympathize in turn as the protagonists feed the wealthy mother’s belief that her son is an art genius, or are subjected to cold disdain from the businessman father.

Suspenseful throughout, violent at times and searingly funny at others, the film is hard to neatly define — deliberately so, Bong said.

“I really want to enjoy the convention of genre … but at the same time, I really want to break it, destroy it,” he told a news conference on Wednesday.

The film was “giddy one moment, unbearably tense the next, and always so entertaining and fine-tuned that you don’t even notice when it’s changing gears”, IndieWire critic David Ehrlich wrote.

Variety’s Jessica Kiang said Bong was on “excoriating form in his exceptional pitch-black tragicomedy.”

The festival runs until May 25. Bong is vying for the top Palme d’Or prize along with other veteran directors such as Spain’s Pedro Almodovar or Britain’s Ken Loach, as well as newcomers like French promise Celine Sciamma. — Reuters

TUCP hails Senate passage of security of tenure bill

A MAJOR union said the 15 Senators who supported the security of tenure bill displayed “great political leadership” in voting to pass the measure on second and third reading Wednesday despite pressure from government economic managers, foreign business chambers and employers.

The Trade Union Congress of the Philippines (TUCP) and the Nagkaisa Labor Coalition “are overjoyed that notwithstanding fierce lobbying to oppose the passage of (Senate Bill) 1826, the Senate passed the measure that will begin the process of finally ending contractualization and ‘endo’ (end-of-contract) employment,” TUCP President Raymond C. Mendoza said in a statement Thursday.

Endo denies probationary workers a path to permanent employment and the benefits associated with it, typically by getting workers to sign contracts just short of the 6-month probationary period, after which most workers enter regular status under the law. The workers are then signed to new contracts and continue as before.

“By a vote of 15-0, the Senate also brushed aside the apprehensions and objections made by Finance Secretary (Carlos G. Dominguez III) that the BIll would negatively affect the economy and was contrary to the interest of management flexibility. We remind Secretary Dominguez that TUCP also respects management flexibility, but it must be consistent with the Constitutional rights of workers, the right to security of tenure, the laws, and the higher goals of building decency and fairness in a society faced with growing income and social inequality,” Mr. Mendoza said.

“By helping President (Rodrigo R. Duterte) meet his campaign vow of ending contractualization, all of us are actually building a socially-inclusive country and strengthening genuine grassroots democracy.”

He estimated the number of contractuals and endo workers in the Philippines at “easily 15 million” and said that workers put on a path to regularization will boost productivity and cut employer costs by eliminating the need for specialist labor suppliers.

He suggested that the passage of the bill was overdue after the House of Representatives passed a similar measure “two years ago by a vote of 177-8.”

Dennis Uy’s PH Resorts plans fund raising for 2 casino projects

By Arra B. Francia, Senior Reporter

DAVAO-BASED businessman Dennis A. Uy’s PH Resorts Group Holdings, Inc. targets to raise funds through a combination of debt and equity within the next two to three months to fund its casino projects in Cebu and Pampanga worth about $850 million.

PH Resorts President Raymundo Martin M. Escalona said they will have to raise capital to fund its $600-million integrated resort and casino project in Mactan, Cebu called The Emerald, as well as a $250-million casino in Clark, Pampanga.

“The debt portion will be raised at the project level…then PH Resorts will be the one to raise the corresponding equity that will go to each of the subsidiaries,” Mr. Escalona told reporters before the company’s annual shareholders’ meeting in Pampanga yesterday.

Mr. Escalona said they have a syndicated term loan that has already been assigned to China Banking Corp. for the debt portion.

PH Resorts will follow the Philippine Amusement and Gaming Corp.’s (PAGCOR) 70% to 30% ratio of debt to equity in financing casino projects, but Mr. Escalona said they have yet to decide if they will raise more through equity.

The listed company earlier postponed its plan to sell about P12 billion worth of shares through the Philippine Stock Exchange, saying that it saw more strategically suitable alternative options for its funding requirements.

“The intention of PH Resorts is to really go to the market. We have the option until the end of 2020, depending on the market situation,” Mr. Escalona said.

At the same time, the company during its annual shareholders meeting approved the increase in its authorized capital stock to P15 billion divided into 15 billion common shares, from P8 billion. This gives the company more space to issue more shares in the future.

PH Resorts started the construction of The Emerald back in December 2017, and is set to be completed by the end of 2020.

The Mactan project will allocate 7,585 square meters (sq.m.) in aggregate gaming floor area for its first phase, in addition to a five-star hotel with 838 rooms, a retail complex, a convention center, and restaurants. The second phase will feature 9,400 sq.m. of gaming space, another five-star hotel with 1,300 rooms, food and beverage outlets, and retail areas.

Meanwhile, the Clark project will feature a casino catering to the mass gaming market, and hotel with 2,000 rooms.

Mr. Escalona said they are “very optimistic” for the casino business in the Philippines, especially since all of their projects are near airports.

“If you look at growth rate of the GGR (gross gaming revenues) in the Philippines in the last seven years, it’s above 20%. That will continue to grow to help tourism,” he said.

Shares in PH Resorts jumped 8.15% or 34 centavos to close at P4.51 each at the stock exchange on Thursday.

Craig to have ankle surgery; Bond remains on schedule

LOS ANGELES — James Bond actor Daniel Craig will undergo ankle surgery after injuring himself while filming the spy franchise’s latest installment, but the movie remains on schedule for an April 2020 release, producers said on Wednesday.

A posting on the official James Bond Twitter account said the surgery was minor and that Craig hurt himself while shooting in Jamaica.

“Production will continue whilst Craig is rehabilitating for two weeks post-surgery. The film remains on track for the same release date in April 2020,” the tweet said.

The still untitled movie, known by the working title “Bond 25,” will be Craig’s fifth go-around as Britain’s most famous fictional secret agent.

British media reported that Craig, 51, slipped and hurt himself on set last week while filming an action sequence.

The MGM spy franchise is one of the movie world’s most lucrative with 2015’s Spectre, directed by Sam Mendes, raking in $880 million at the box office worldwide, while Skyfall in 2012, also directed by Mendes, grossed more than $1 billion globally.

Bond 25 is being directed by American Cary Joji Fukunaga. — Reuters

PHL IT workers skilled in basics, developing capability seen key

THE information and communications technology (ICT) industry’s employers need to develop the potential of workers amid severe personnel shortages challenging the industry worldwide, stakeholders said.

Despite high demand for ICT skills, the sector remains vulnerable if it does not develop the capabilities of the work force, they added. Around 1.8 million Filipinos are employed in the sector.

The CEO of job portal ICTjob.ph Fred Tshidimba said in a briefing Thursday that companies need to hire and maintain employees with growing their capability in mind.

“It is crucial today more than ever for companies to explore new ways to find, acquire, and retain employees with the right sets of skills not only to boost competitiveness but also enable companies to cushion themselves from talent acquisition challenges and the impending talent shortage,” he said.

Citing a report from the Korn Ferry Institute, the talent shortage in the ICT industry is a global problem that might peak by 2030 when 85.2 million jobs will remain unfilled worldwide, with over half of them in the Asia Pacific region.

Information Technology and Business Process Association of the Philippines (IBPAP) Board Trustee Jonathan D. de Luzuriaga said the Philippines has a sizeable workforce with basic capabilities who need to advance their skills in order to keep up with ASEAN neighbors.

“We are being challenged by other small countries that do not have the mass talent that the Philippines produces… If we could now address the quality issue and not just the quantity issue then I think the future is very bright for this country in the ICT aspect,” he said in the same briefing.

ICTjob.ph is teaming up with the academe and non-government organizations (NGOs) to establish programs and training for those new to the ICT industry or those who have been longtime professionals. — Gillian M. Cortez

Hot money leaves PHL in April

FOREIGN PORTFOLIO investments went out of the country for a second straight month in April following the delayed approval of the government’s 2019 spending plan and earthquakes that hit Luzon and the Visayas, as well as the ongoing US-China trade war, the Bangko Sentral ng Pilipinas (BSP) reported on Thursday.

Last month saw hot money — called such because of the ease by which these funds enter and leave the economy — post a net outflow of $298.83 million, a reversal of the $279.29-million net inflow seen in April 2018. Still, April’s net outflow was less than the net $739 million that left the country in March.

Gross outflows last month totaled $1.29 billion, higher than the $1.097 billion seen in the same month last year but below the $2.47 billion logged in March.

This offset the $989.98 billion that foreign firms placed in April — lower than the $1.38 billion in gross inflows seen a year ago and the $1.73 billion the prior month.

The central bank said in a statement that the decline in inflows “may be attributed to investor reaction to the delayed approval of the 2019 national government budget and the damage caused by the April 22 earthquake that jolted parts of Luzon and Visayas.”

“Investors also stayed cautious amid the lack of fresh catalysts in the market and ongoing trade negotiations between the United States (US) and China,” the BSP said.

Investors left local financial markets, with net outflows worth $238 million logged for government securities. Net outflows were also logged for transactions involving Philippine Stock Exchange-listed companies at $61 million, as well as other peso-denominated debt and portfolio instruments at less than $1 million each.

Meanwhile, a net inflow of less than $1 million was recorded for peso time deposits.

About 79.2% of investments registered during the month were in PSE-listed securities — mostly property companies, holding firms, banks, food, beverage and tobacco companies, and transportation services companies — while 20.8% went to peso government securities. The balance of less than one percent went to peso time deposits.

The United Kingdom, the United States, Singapore, Hong Kong, and Luxembourg were the top five investor countries for the month, with combined total share of 84.8%, the BSP said.

Ruben Carlo O. Asuncion, chief economist of UnionBank of the Philippines, Inc., said: “First few months saw some general positive signs from the progress of trade negotiations between the world’s biggest economies. It was easy however that two tweets from Trump can quickly turn sentiment into negative tones.”

“With how quickly things can turn negative, our research thinks that it can also be easy to take a U-turn to positive,” Mr. Asuncion added.

Michael L. Ricafort, economist at the Rizal Commercial Banking Corp., said: “On local factors, delay on the 2019 national budget that eventually slowed down economic growth partly contributed to the market volatility… Concerns on El Niño, water shortage were also part of the local risk factors, which were offset by the easing trend in both inflation and interest rates, as well as signals on monetary easing.” — R.J.N. Ignacio

After four decades, Japan’s banks still struggle in international capital markets

TIME AND AGAIN since Japan emerged as a global economic force, its financial leaders have hatched plans to translate their influence into investment-banking clout. Time and again, they’ve failed.

The retreat sounded by Nomura Holdings Inc. last month marks just the latest Japanese overseas flop, prompting current and former executives, as well as analysts, to question if they can ever make it in international capital markets.

“Japan is a manufacturing powerhouse but a financial lightweight,” says David Threadgold, a Keefe, Bruyette & Woods analyst in Tokyo who has followed banks there for more than three decades.

Their weakness overseas is an urgent handicap for Japan’s biggest banks​​​​, which are facing tough times at home. Results last week highlighted the effect of a weakening economy and rising trade tensions, with Sumitomo Mitsui Financial Group Inc., Mitsubishi UFJ Financial Group Inc. (MUFG) and Mizuho Financial Group Inc. all posting net income projections that missed analysts’ estimates. Those, combined with entrenched rock-bottom interest rates, point to cost-cutting as a top priority—especially abroad.

But since Nomura brought in top bond traders to sell US Treasuries to domestic investors in the early 1980s, Japanese banks have stumbled on practices that work at home but not so much on Wall Street and Canary Wharf: excessive risk aversion, centralized control that values process over profit and, most critically, personnel policy that rotates senior executives every few years.

“Decision-making in every Japanese company is consensus-based, process-heavy and very slow,” says Threadgold. “It’s easier to get cultural buy-in for that style from auto workers in Tennessee but very difficult to do so from investment bankers in Manhattan or London.”

The latest faux-pas are especially stark because Japanese banks had the chance to hit their US and European rivals when they were bloodied from the financial crash of 2008. The story is best seen in the diverging strategies and outcomes at Nomura, the largest securities firm, and the No. 1 bank, MUFG. With this month’s 15% plunge, Nomura’s shares have lost 81% since the start of 2008; MUFG has lost 52%. Both lagged the benchmark Topix Index.

MUFG put $9 billion into Morgan Stanley at the height of the 2008 crisis and is now the biggest shareholder of the US investment bank, cashing in the dividends from the much more profitable business.

In contrast, Nomura bought the European and Asian businesses from bankrupt Lehman Brothers. The combined capital markets revenue of the acquired business and Nomura was $12 billion in 2007. Today’s it’s around $5 billion. With too many employees and too few clients, the Japanese firm is again on the defensive: it’s slicing $1 billion of costs and eliminating about 150 jobs across the Americas and Europe, the Middle East and Africa on top of reductions in Hong Kong and Singapore. It was the fourth time in four decades: Nomura had attempted global prominence in the 1980s, 1990s and 2000s.

Despite failing to capture revenue from the Lehman business, Nomura’s headcount still reflects the bump caused by the arrival of 8,000 Lehman folks and more. The firm’s 2018 revenue was almost the same as it was in 2007, yet Nomura employs 10,000 more people now than it did then. In an interview last month, Nomura CEO Koji Nagai acknowledged the problem somewhat.

“The biggest reason is costs are too high,” Nagai said. “Revenue has risen modestly, but that was overwhelmed by costs.”

The bank has failed to make money in trading because it doesn’t allow highly paid traders to take risk, one of those recently let go said. Every increase in a trader’s risk position has to be approved by headquarters, the trader added.

“I was always aware that anything we decided to do in America was conveyed to Japan overnight,” says Max Chapman, who was head of the firm’s overseas business in the 1990s. “We would work all day and they would work all night translating what we were doing back to Tokyo so I would see people in the morning and they were kind of groggy.”

A New York-based banker for Sumitomo Mitsui echoes Chapman, saying that the American chief of the US unit is often overruled by the Japanese co-head. Like other Japanese banks, Sumitomo Mitsui rotates the executives it sends to overseas units every three years, which also undermines the understanding and knowledge of those appointees of the regional market, the banker says.

“The rigidity of Japan’s rotation system has become a disadvantage,” says Jesper Koll, a Japan-based senior adviser at asset manager WisdomTree Investments Inc.

The domination of process over everything else is so overwhelming that a 10 cent error on a multi-million-dollar currency trade took several weeks to fix and involved dozens of people, recalls a former trader who used to work for a unit of MUFG in the US All current and former employees asked not to be identified discussing internal matters.

An MUFG spokeswoman said such stories reflect the past at her company, which has been “advancing localization” with non-Japanese managers running the US and European securities and investment banking units. “We are creating a structure where they can operate while exercising appropriate authority,” said Kana Nagamitsu.

Mizuho and Sumitomo Mitsui spokesmen declined to comment. A Nomura representative pointed to the company’s plans to improve overseas business through efforts such as increasing the use of digital technology for fixed-income trading.

Beyond Nomura and MUFG, Mizuho also sought to strike in the aftermath of the 2008 crisis. In 2015, it hired about 130 bankers from Royal Bank of Scotland Plc in the US Sumitomo Mitsui laid out ambitions to expand in global markets two years ago, saying it might add 250 positions abroad. While that has helped it climb the ranks in some products, such as investment grade bond underwriting in the US, Japanese banks still are absent from the top 20 in most other league tables. Mizuho and Sumitomo Mitsui’s total global markets revenue, including asset management, roughly equaled the trading revenue of RBS, which remains state-owned after the crisis-era bailout.“I appreciate the pain you can suffer if you make a stand in New York or London,’’ says Chapman. But “from an international standpoint, as banking has become increasingly international, demonstrating a lack of commitment isn’t going to build you a global franchise.”

All of which highlights MUFG’s relative success via Morgan Stanley. The two companies merged their Japanese investment banking and trading units as well. They also have a cooperation deal on US bridge loans, where Morgan Stanley uses the Japanese partner’s bigger balance sheet to lure advisory clients on mergers and acquisitions. A quarter of MUFG’s fiscal year 2018 profit came from Morgan Stanley dividends. — Bloomberg

TKC Metals to issue up to P1.5B worth of shares

TKC Metals Corp. will be issuing up to P1.5 billion worth of shares after it secures approval to increase its authorized capital stock.

In a disclosure to the stock exchange on Thursday, TKC said it will issue 750 million shares at P2 each. The shares will be taken from the increase in its authorized capital stock to three billion shares with a par value of P1 each, from its current capital stock of P1 billion.

“The proceeds from the increase in authorized capital stock shall put the corporation in a better position to pursue its operations, plans, and projects,” the company said.

The increase in authorized capital stock, which will be reflected in its articles of incorporation, was approved by the company’s shareholders in October 2018. The amendment is now pending with the Securities and Exchange Commission.

Trading of shares in TKC were suspended for an hour from 9-10 a.m. on Thursday, to give investors time to digest the material information. Shares in the company then soared 50% or 45 centavos to P1.35 each by the market’s close on Thursday.

The listed steel manufacturer earlier said that it will undertake an equity restructuring program to bring its stockholders’ equity back to positive territory.

This came after the Philippine Stock Exchange required the firm to submit a detail plan to prevent it from getting delisted, after the company registered a negative equity of P170.3 million, negative P898.72 million, and negative P574.9 million by end-2016, end-2017, and end-March 2018, respectively.

Firms with negative equity for three consecutive years must be delisted, according to the listing and disclosure rules of the PSE.

TKC manufactures and distributes steel products through its subsidiaries Treasure Steelworks Corp. and Zhangzhou Stronghold Steel Works Co. Ltd. The firm attributed its dismal financial performance to the drop in steel prices since 2014, which also forced it to reduce operations.

The company registered a net loss attributable to the parent worth P33.71 million in the three months ending March, amid gross revenues of P146.31 million. — Arra B. Francia

Quietly, delicately breaking our heart

Kundiman ng Lahi (Folksong)
Directed by Lamberto Avellana
Citizen Jake vimeo site

(Again, a film from LVN studios, available — without subtitles, alas — on Mike de Leon’s Citizen Jake vimeo website)

GIVE IT to master Filipino filmmaker Lamberto Avellana: he knows how to start a picture. Badjao had a horn blown to gather a village of house canoes, forming a seaborne village; Huk sa Bagong Pamumuhay began with a detonating grenade; Anak Dalita evoked Roberto Rossellini in neorealist mode, tracing the ruin of a church from its fractured belfry to the people teeming at the base of its crumbling walls. Kundiman ng Lahi (Folksong, 1959), Avellana’s last film for LVN studios, trumps them all I think: no blown horn, no explosives, no church ruins, just the monotonous thumping of a wood pestle milling rice in a mortar. An obvious symbol — we’re the rice, the husk (our innocence, our sensitivity) pounded out of us by the relentless pestle — but also a sexual one, the phallic pestle pounding into the accepting mortar, turning hard seed into tender food.

Village lass Isang (Charito Solis) is enjoying the town fiesta when she receives bad news: her mother is dying. She ends up in the care of her Aunt Siyanang (Rosa Aguirre, who was Tony Santos’ martyr mother in Anak Dalita) and Uncle Teryo (Avellana stalwart Joseph de Cordova), who lent her mother money. Isang has debts to pay, so Siyanang has turned the girl Cinderella-style into their housemaid — washing clothes, cleaning house, cooking and serving food; worse, Teryo has noticed that the girl is growing in all kinds of ways.

There’s a claim that this is the first Filipino film to attempt a more open depiction of eroticism — I wonder about that. Gerardo de Leon’s Sisa has his heroine lusted after by four men (five if you count the director with his camera); Avellana’s own Anak Dalita has the imperious Rosa Rosal flaunting her endless limbs at the stoic Tony Santos, Sr. Avellana does put the eroticism front and center here more than in any of his previous films, using his intimate camera to film Teryo sitting down to dinner with Isang serving. Teryo insists that she sits and eats with him; the girl reluctantly complies, wiping away spilled soup when Teryo, sucking on a bottle of cheap gin, knocks the bowl with his hand. Each time the camera cuts to a different shot the lens is angled just so (presumably Teryo’s point of view) that we have a sidelong view of Isang’s creamy cleavage; inserted into the sequence are a series of closeups of Teryo’s face as he surreptitiously steals glances. What makes the scene however is that Isang isn’t being seductive at all; Solis plays the scene with casual ease, totally unconscious of her effect on her uncle — when she finally has a glimmer of an idea that he’s paying too much attention (a stare held a moment too long) she immediately tries to cover up, an act of modesty all the more provocative for being sincere, if belated.

Her modesty, a pink ribbon tied in a bow across her undeniably sensual figure (the bow is like a red flag to men: it calls out to you to undo the knot), is the complication that drives much of the plot. Isang loves honest Tonio but Siyanang doesn’t approve; on the other hand Isang needs to earn a better salary (to pay off her debts faster of course) so Teryo with Siyanang’s approval takes her to a “salon” (headed by Oscar Keesee, of course, in habitual villain mode) to become a taxi dancer. When Isang points out the contradictions in her adoptive parents’ treatment, Siyanang and Teryo have the same answer: this is for your own good. Isang resists as modesty demands, but when Teryo attempts to rape her (a scene that has apparently been cut out of this only surviving copy) she moves out and ends up working there anyway. If Isang and her fellow townspeople represent traditional Filipino values, said salon represents a more modern Philippines, frank in its recognition of the sexual needs of today’s men, practical about the impulse to sell anything and anyone to survive.

Enter Vic Silayan’s Jaime, a rich playboy with a snazzy convertible (a Pontiac Silver Streak if I’m not mistaken) — the look of thrilled joy Isang throws over her shoulder as he carries her away from the chaos in the club (Jaime had started a fight), shot verite style with the shaky camera apparently mounted on another car, is about the happiest she’s ever been, and arguably a poignant high point in the film — poignant because it’s so unexpected and you know it’s strictly temporary: she’s in for more suffering, and this is just the setup prior.

Jaime tries to seduce her, but she won’t have any of it; she may be a taxi dancer, but she’s a taxi dancer on her terms, however unlikely that may sound. If her modesty is the film’s narrative motor, the way it bends and deforms to adapt to circumstances is her character’s narrative arc.

Isang eventually turns to Tonio and — in possibly the one break granted her in the film — he unquestioningly accepts her. Again modern life intrudes: Isang has done the most traditional thing she can possibly do (marry her true love), but for the sake of her considerable debts her husband has to abandon farming in favor of a job at a concrete factory. The rest of the film is spent wondering when Isang’s past will catch up to her which, knowing the trajectory of her life so far and the conventions these melodramas follow, it eventually will.

Avellana is serving up a potboiler here, no doubt about it: a chance to display Charito Solis’ physical charms while at the same time presenting traditional Filipino morality’s struggle to make sense in modern times, in a way that titillates yet ultimately satisfies audiences’ sense of right and wrong (Skip this paragraph if you haven’t seen the film!). Isang doesn’t want to be a taxi dancer but is forced to do so when her uncle attempts to rape her; she gives herself to the man she loves but goes to the church the very next day to marry; later Siyanang, on learning the truth about Teryo, reconciles with Isang. People’s values are bent but not quite broken, and with a little belated action and a lot of forgiveness everything comes out more or less right in the end. Perhaps the only real injustice that lingers past the end credit is Tonio’s fate: ironic that of all the men Isang knows he would treat her the cruelest; like in Yasujiro Ozu’s A Hen in the Wind, the husband’s anger is sadistic in its sense of betrayal — is especially sadistic because society and social mores back up his indignation. Avellana does pay the self-righteous prig back a little — the co-worker who corrects Tonio’s delusions beats him up and humiliates him (Avellana’s gift for comedy on brief display here) but the payback feels inadequate: what Tonio really needs, you feel, is a knee to the groin, not his wife back.

But all this is incidental, is arguably shallow if clever posturizing; what Avellana is really after, I suspect, is the spectacle of a woman suffering. Solis is a simple fresh-faced beauty, but her beauty really comes into its own with a touch of adversity: the death of a mother, domestic slavery, attempted rape, a husband’s wrath — she’s never more gorgeous than when she’s facing the slings and arrows of outrageous fortune, here being more outrageous than usual. You wonder what the title has to do with the film — beyond the vague statement “this is how Filipino life is like” — until finally, with Tonio collapsed and snoring drunk, and Isang, having freshly endured verbal and physical spousal abuse, pleads to his sweatstained back. Solis isn’t acting with much — her hair hides her face like a veil, and her voice struggles to keep control. The song’s lovely melody sneaks into the scene, and in silence Isang performs a small act of tenderness. Avellana has used his camera in an emphatic manner throughout the picture to point up the melodrama, leading up to this moment; here he’s as chaste as Isang has always claimed to be (and largely is), with the camera sitting at a discreet distance (a tatami-mat shot worthy of Ozu), and quietly delicately breaks our heart. Not perhaps Avellana’s best work, but it’s up there.

Fed: Labor may finally win out over inflation

MINNEAPOLIS — At 2.3 percent, Minneapolis’ jobless rate seems impossibly low, even with national unemployment at a 50-year trough.

But that doesn’t mean full employment in North Minneapolis, where job advocate Tony Tolliver said half of adult black men in some neighborhoods don’t have jobs, and could benefit from even tighter labor markets.

US policymakers “may be satisfied because we see numbers we have not seen in a while” in the headline unemployment rate, said Tolliver, director of workforce innovation at the Center for Economic Inclusion, a local group that works on economic inclusion and growth issues.

But it is only recently, deep in the recovery from the 2007-2009 recession, that employers “are recognizing that they can do more, they can do better, and they can be more inclusive.”

Federal Reserve officials increasingly agree. And that may herald a historic shift of emphasis for a U.S. central bank traditionally hesitant to allow unemployment to fall too far before tapping the brakes with interest rate hikes lest it risk uncontrollable inflation.

The Fed has already come partly around to that view, opting recently to leave rates on an indefinite hold even with record-setting unemployment. The U.S. unemployment rate was 3.6 percent in April, the lowest since December 1969.

But a more formal departure from its keep-a-lid-on-inflation-first orthodoxy is taking shape as part of a review of the Fed’s operating framework kicked off this year by Fed Chairman Jerome Powell.

A series of public sessions around the nation and an upcoming research conference in Chicago may provide the basis for fundamental changes in how the Fed views the interplay of inflation and employment and decides on appropriate monetary policy.

That would be a welcome outcome for labor advocates who have borne witness to how some groups and regions have been left out of a decade-long, record-setting economic expansion. The Fed, they have long complained, has been too quick to address inflation fears with rate hikes that choke off employment and wage gains.

For Fed officials themselves, it is a chance to lean into a new consensus that a low unemployment rate alone does not tell the whole story of the economy.

The strategies being debated “would by definition call for lower monetary policy even when inflation is at target or above target. That would give us more room to push on maximum employment and see how many more workers we could drag back in,” Minneapolis Fed President Neel Kashkari said following a recent session on the topic organized by the Minneapolis Fed.

LITTLE JOY FOR AVERAGE WORKER
The dilemma the Fed faces is rooted in the fact that for large swaths of the American workforce, the economic expansion that followed the financial crisis a decade ago has delivered only meager returns.

Wages and middle-class incomes have been largely stagnant despite the creation of more than 21 million jobs, and that has upended the Fed’s traditional thinking about the relationship between employment, inflation, and how the benefits of growth are divided between workers and business owners.

Unemployment this low should be boosting wages and prices alike faster than has happened, and also should be pushing labor’s share of national income back towards levels of around 60% to 62%, where it has typically returned in recent decades after dipping during recessions.

While labor’s share was higher than that in the 1950s and 1960s, a variety of forces — technology, globalization, and recession among them — are thought to have pushed it down since the start of this century.

It hit a low of just under 56% in the years after the 2007-2009 recession, and has edged only a little higher since.

In an economy driven by consumer spending, that’s the sort of dynamic that has Fed officials worried about long-term growth, and which community advocates say is being felt on a daily basis in their neighborhoods.

Of five panelists who spoke at the Fed’s recent event here, none felt their community was near full employment.

“Absolutely not,” said Michael Goze, chief executive of the Minneapolis-based American Indian Community Development Corporation. “So many folks are not in the workforce. We are not reaching them.”

‘COMPLEX ORGANISM’
A new policy framework is unlikely to emerge until next year, but interviews with current and former Fed policymakers, public statements by officials, and the writings of key figures in the debate indicate the implications for the economy and for the central bank could be extensive.

The Fed’s current strategy statement places unusually low unemployment on the same footing as excessive inflation as a risk the Fed would try “to mitigate.” That language may be ripe for change, one former Fed official suggested, to reflect that low unemployment, other things equal, is preferable.

One issue is how much policymakers ought to rely on the concept of a non-inflation accelerating rate of unemployment, or NAIRU, an elusive measure frequently debated as the Fed judges whether to raise interest rates.

Fed Vice Chairman Richard Clarida, appointed by Powell to head the framework review, is among those arguing the central bank is placing too much emphasis on it.

“What does a full employment mandate mean? Sometimes these conversations can get very ‘NAIRU-centric,’” Clarida said at a recent Minneapolis Fed conference. “The labor market is a very complex organism and it is useful to keep multiple indicators” of how it is working.

Before coming to the Fed last year, Clarida had written that in recent business cycles, tight labor markets have allowed workers to regain some of their lost portion of national income without an obvious inflation pressure.

Jon Faust, a former Johns Hopkins University professor who now advises Powell, has written that while central bankers may view a recovery of labor income as “cyclical overheating” to be offset with the traditional response of higher interest rates, they could lean another way. They could judge it to be “part of a secular — and to many, a desirable — re-balancing” of the economy which, left to run its course, would benefit workers.

It is an unorthodox suggestion for a central bank shaped by the runaway inflation of the 1970s and 1980s, and by the deeply held commitment to never let that happen again. Though central bankers do not think they can influence much about the long run path of jobs, wages and underlying growth, the benefits of tighter job markets in the short run have been emphasized repeatedly in the Fed’s public “listening” sessions.

It is only recently, for example, that black women in Rhode Island have seen wage gains, Rachel Flum, executive director of Rhode Island’s Economic Progress Institute, told Fed officials at a recent meeting in Boston.

“I would like to push back a little bit on this argument that labor markets are tight. I’m not sure that’s true for everyone across the board,” she said. “The tighter the labor market can get over a sustained period of time, the better in addressing these disparities.” — Reuters

Finance department wants PCIC converted into a reinsurance firm

THE DEPARTMENT of Finance (DoF) wants to convert the Philippine Crop Insurance Corporation (PCIC) into a reinsurer rather than an insurance provider so it will not compete with private insurance providers.

“If somebody is offering a subsidized product and the private sector offers a fully costed product, who do you think the people will go to? That’s unfair competition so let the private sector provide the product and let the PCIC…play a more active role as a reinsurer to diversify the risks,” Finance Undersecretary Gil S. Beltran told reporters late Monday.

Mr. Beltran noted that converting PCIC into a reinsurer will not mean more expensive insurance policies for farmers.

“Sometimes, the private sector offers better protection,” he said.

Mr. Beltran earlier said that the DoF wants to increase the current 39.8 million in microinsured individuals in the country to 50 million by 2022, noting the importance of microinsurance in a disaster-prone country like the Philippines.

Kasi yung microinsurance providers, they are limited to certain areas and if a typhoon strikes and everything is wiped out, kawawa siya. The role of PCIC will be to diversify the risk. Bibilhin niya tapos bebenta niya ulit sa kabila (It will take on the risks and sell it to another),” Mr. Beltran said.

“There’s a plan to transform this PCIC into a reinsurer instead of competing with the private sector as an insurer. So once this takes effect, then private provision of farmers’ insurance will become more competitive,” he said.

House Bill 6923 or An Act Strengthening the PCIC authored by Representative Arthur C. Yap was already approved on third and final reading last April. The bill mandates the PCIC to engage in index-based insurance and reinsurance policies.

Mr. Beltran said the DoF is waiting for Senator Cynthia A. Villar, who heads the Committee on Food and Agriculture, to file a counterpart bill for the House measure.

“Depends upon Senator Villar filing her bill. Pending na sa Senate (It is already pending in Senate)… But I think they passed it in the House, sa Senate na lang (we’re just waiting for the Senate). They can still do it during the three weeks,” Mr. Beltran said.

The official said the government also has the option to privatize the PCIC, but this will depend on lawmakers. — RJNI