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Loans to firms eyed as RRR compliance

THE BANGKO SENTRAL ng Pilipinas (BSP) will expand banks’ alternate reserve compliance to include lending to large enterprises that meet the criteria set by the central bank, according to an official, as the pandemic continues to affect many businesses.

Circular No. 1083 dated April 22 only allowed as alternative reserve requirement compliance banks’ loans to micro-, small- and medium-sized enterprises (MSMEs) in a bid to encourage lending to small businesses that have been struggling due to measures imposed to prevent the spread of the virus.

“Under the forthcoming guidelines, loans to large enterprises that are granted after March 15 will be considered eligible alternative compliance with the reserve requirements,” BSP Deputy Governor Chuchi G. Fonacier said in a text message.

Ms. Fonacier said the revised policy will be effective starting May 29 and will be applicable to banks as well as quasi-banks until Dec. 30, 2021.

“The BSP’s policy aims to channel funding to heavily-affected large enterprises as well as to ease their financial burden during the ongoing coronavirus disease 2019 (COVID-2019) pandemic,” Ms. Fonacier said.

She said only lending to large enterprises that meet all the criteria set by the BSP will qualify as alternative reserve compliance.

Loans covered by the new relief measure will be lending to an enterprise that has been “directly and adversely impacted by the COVID-2019 outbreak,” the official said.

“[S]uch that (a) its liabilities has become more than its assets, or (b) it has experienced at least a fifty percent (50%) decline in gross receipts for at least one calendar quarter; and in either instance, is generally unable to pay or perform its obligations as they fall due in the ordinary course of business, as a result of the COVID-19 outbreak,” Ms. Fonacier explained.

Lending to large firms that appropriate regulatory agencies assessed to be badly hit by the pandemic will also qualify as alternative reserve compliance.

Ms. Fonacier said the new rules will cover credit to large enterprises that could be a proprietorship, partnership or a corporation that does not belong to a conglomerate with an asset size of more than P100 million and with 200 employees or more.

BSP Governor Benjamin E. Diokno on Friday said the central bank is also considering allowing credit granted to some educational institutions to be part of lenders’ reserve requirement compliance.

The reserve requirement ratio (RRR) of universal and commercial banks was reduced by 200 basis points in April to 12% in a move to boost liquidity during the crisis. Meanwhile, the RRR of thrift and rural banks stand at four percent and three percent, respectively.

The central bank also reduced the minimum liquidity ratio of stand-alone thrift and rural banks by 400 bps to 16% until end-2020 to support smaller lenders during this crisis. — L.W.T. Noble

Customers asked to book ahead as select Maxus PHL dealerships reopen

SOME DEALERSHIPS of Maxus Philippines in Metro Manila have opened after shuttering for two months in compliance with the government’s guidelines under the enhanced community quarantine (ECQ). The company says the facilities are following health and physical distancing protocols with the reopening.

Open once more are Maxus Mandaluyong Greenfield District at 833 Sheridan Street, Barangay Highway Hills in Mandaluyong City (customerrelations.gdsc@idi.ph, [02] 8558-5823); Maxus Quezon Avenue at 1229 Quezon Avenue, Quezon City (customerrelations.qa@idi.ph, 0917-872-0464/0977-822-8585); and, Maxus Taguig South at 6140 P. Cayetano Blvd. Brgy. Ususan, Taguig City (iautoinc@yahoo.com, 0917-800-1076). Meanwhile, Maxus Iloilo in Barangay Taft North, Mandurriao, Iloilo City (maxusiloilo@gmail.com, 0936-953-4345) also resumes operations under the general community quarantine (GCQ) status. Maxus Alabang at Alabang-Zapote Road, Madrigal Business Park, Ayala Alabang, Muntinlupa City (customerrelations.alb@idi.ph, [02] 8558-5828/0916-994-8113) opened last May 20, while Maxus Cebu along Soriano Avenue in the North Reclamation Area, Mabolo, Cebu City is closed until further notice. Customers are “strongly encouraged” to call or e-mail their respective Maxus dealerships to schedule a showroom visit or to book a service appointment. The central Maxus Philippines customer care team may be reached through customercare@maxus.com.ph.

Maxus says that it will be initiating measures to assure the health and protection of its customers and people. Customers will be required to wear face masks, screened for fever (if reading exceeds 37.5 degrees Centigrade, entry will be refused), urged to maintain physical distancing, and encouraged to use available hand sanitizer.

As for staff, sales, service and delivery crew, they will ensure that the customer lounge, comfort rooms, and door handles are regularly disinfected. Protective covers will be put on vehicle seats, steering wheel, shift knob, floor, and bumpers throughout the time the vehicle is serviced. The service team will use disposable gloves and proper protective gear during the entire service process, from receiving to releasing. Car keys will be sanitized before turnover to the customer. Used parts will be properly disposed of. Billing/invoicing staff will wear face masks and gloves as well. Sanitized pens will be offered to customers when asked for their signature, and payment cards will be disinfected before and after transactions.

For more details, visit www.maxus.com.ph.

US meat inventories tighten as virus shuts slaughterhouses

CHICAGO — US frozen pork inventories fell in April, when they typically rise, and beef inventories dropped more than normal as the coronavirus pandemic shut slaughterhouses and prompted grocers to limit customers’ buying, government data showed on Thursday.

About 20 meat plants shut last month while consumers were stocking freezers during state-imposed lockdowns. US President Donald Trump ordered the plants to stay open after meatpackers warned of shortages.

Total pork inventories in cold-storage facilities declined about 2 million pounds to 614.8 million pounds as of April 30, compared to a month earlier, according to US Department of Agriculture (USDA) data. Normally supplies increase 27 million pounds from March to April, said Rich Nelson, chief strategist for broker Allendale.

Total beef inventories fell by about 12 million pounds to 490 million pounds, exceeding the average decline of about 6 million pounds from March to April.

“There was a moderate drawdown story for pork,” Mr. Nelson said. “It was nothing like a catastrophic scare.”

Inventories of pork bellies, which are cured into bacon, rose by 2.7 million pounds from March to 80.87 million pounds, according to the USDA. Typically they increase by about 7 million pounds over that period, according to Allendale.

Prices for pork bellies tumbled as restaurants closed dining rooms, but other cuts have become more expensive due to stronger retail demand.

Much of the meat in cold storage is destined for export markets, rather than US grocery stores, analysts said.

China has been a major buyer of US pork this year but canceled purchases of 12,561 tons last week, according to separate USDA data. Shipments of US pork to China remained strong at 19,808 tons.

“Pork the last couple weeks has gotten extremely high,” said Don Roose, president of broker US Commodities in Iowa. “It looks like they’re just backing away from the price here.” — Reuters

WFH: Favor Church’s James Aiton

MONDAYS to Fridays were spent working in the office. Friday nights kicked off the weekend of me-time or hanging out with friends. Sundays were for church and family bonding. Then Monday would roll around. An ordinary week used to look like this. Until the pandemic happened, and everyone found themselves stuck at home 24/7, save for the occasional grocery runs and essential errands. Now the days blend together and it’s doubtful anyone can tell what day it is without looking at the calendar.

Despite that, people try to replicate most of their usual activities from home. They work from home, hold Zoom catch-up sessions with friends and family, and attend digitally streamed worship services.

Attending church is a highly social activity, a weekly mass gathering attended by hundreds of people: something quarantine measures strictly prohibit and probably won’t allow for the foreseeable future. How do churches cope?

Favor Church, a Mandaluyong-based Christian congregation led by Senior Pastors James and Kate Aiton, is one of many churches that turned to digital platforms while Metro Manila is under strict quarantine. Mr. Aiton told BusinessWorld via e-mail how his congregation gathers during these unique times.

Replies have been lightly edited.

HOW LONG DID IT TAKE FOR YOU TO ADJUST TO THE CHURCH-FROM-HOME FORMAT? DID YOU HAVE TO SUSPEND ACTIVITIES LIKE THE SUNDAY SERVICE WHEN THE ECQ (ENHANCED COMMUNITY QUARANTINE) STARTED, OR WERE YOU ABLE TO MOVE IT ONLINE IMMEDIATELY?
The announcement of ECQ happened on a Thursday night, so we had 48 hours to change our physical service into an online videoed service, and then full ECQ happened the day after, giving us 12 hours to get everything we needed out of our church venue (located in a mall) before it was shut down. That was a pretty hectic weekend!

The flexibility of our team was amazing, and they were able to make it happen so quickly, and every week since we have been working on different things, trying to improve the experience for those watching, and the workflow for us.

HOW ARE YOU DOING CHURCH ACTIVITIES NOW? HAS THE WORK-FROM-HOME FORMAT AFFECTED YOUR LINEUP OF ACTIVITIES?
In our church, our two main focuses are the Services and midweek Connect groups (small groups of people that get together for social connection and Bible studies). Obviously both of these things, and most things we do, are centered around meeting with people, so the change has been moving all these meetings online.

We’ve had great success in transferring nearly all our activities online, but are really missing that person to person contact!

We have been able to film our services with a skeleton team in a make-shift studio, and all other meetings have been done from homes.

WHAT WAS A NORMAL WEEK LIKE FOR YOU BEFORE THE ECQ, AND HOW DID IT CHANGE?
My week consisted of meetings with my staff, spending time preparing for sermons and catching up with leaders and members of our church.

I’m a highly relational leader, and so I have really missed being in person with people. I’ve been able to easily shift all these meetings online, but having three kids under the age of six has made it a little more difficult to have meetings at home. There is an increased usage in the “mute” button on video chats!

HOW DO YOU GATHER PEOPLE ONLINE — BOTH CHURCH WORKERS AND ATTENDEES?
Our strategy is based on whether the event is an internal one (just aimed at the people within our church) or an external one (aimed at everyone online).

Internally, we have communication channels set up through Facebook groups, messenger groups and via e-mail to promote what meetings are coming up. Most of these internal meetings are done over Zoom (sometimes up to 400 people) or Google Meet.

For external meetings, we rely heavily on social media, through our own promotion on Instagram and Facebook, and our church family sharing those posts.

We use different social media platforms to broadcast our meetings externally.

WHAT IS YOUR PREFERRED PLATFORM FOR HOLDING WORSHIP SERVICES ONLINE? WHAT TOOLS DO YOU USE TO RECORD YOUR PROGRAMS?
During the ECQ, we have been on quite the journey with this. At the moment we are broadcasting (through a restreaming service online) to multiple platforms — Kumu, YouTube, Facebook, Twitter, Periscope — and recently have partnered with ABS-CBN to be shown on itsr Sports and Action Channel, Sky Cable, and iWant.ph.

It looks like mass gatherings will be prohibited for the foreseeable future, so we are in the middle of trying to transition people to a new platform that is actually run on our webpage. This gives us greater control (not relying on streaming sites’ back end) to connect with people. We highly value connection with people, and don’t believe church is just about attending a service, but actually doing life with people. This new platform will give us greater flexibility in being able to pray for people, and connect with them, right on the page! It also has an auto translation tool for those typing in the chat in different languages!

For our services, we have a three-camera production set up, and have a team that captures and edits our service. For everything else, we are just using laptops and phones! Trying to be as resourceful as possible.

HAS THE QUARANTINE SPARKED NEW OPPORTUNITIES FOR YOUR CHURCH TO EXPAND? HOW?
It’s been huge for our church. We were not streaming services before this, so it forced us to go online. Within the first month, our reach on Facebook alone exploded to about 3 million people.

Viewing of our services has increased dramatically from when we were meeting in our venue. We also have had to start new international connect groups for people that are now tuning in from overseas.

The ECQ has been horrible on so many levels, but the silver lining for our church is the fact we’ve been able to get into people’s homes through their TVs and devices, people that never would have stepped foot in our venue. It’s very humbling.

Also, we have established our Favor Church Community Care, which have been feeding between 500-3,000 families a week all over Metro Manila. Families that otherwise would not have had access to food. This has been made possible by the generosity of our church family that have given financially towards it.

WHAT DO YOU MISS THE MOST ABOUT BEING UNDER QUARANTINE?
I miss people, giving them hugs and laughing and eating with them in person. I love people, and the fact that social distancing is going to be a real thing for the future, it breaks my heart that I won’t be able to get back to that for some time. — Denise A. Valdez

SEC to resume some office work this week

THE Securities and Exchange Commission (SEC) will start the gradual reopening of its main office on Tuesday for select services such as processing of company registrations.

The corporate regulator said in a statement over the weekend its Company Registration and Monitoring Department (CRMD) will be physically available starting this week, but on shortened workweek and operating hours.

The SEC CRMD, located at its main office in the Philippine International Convention Center Complex in Pasay City, will be open from Monday to Thursday, 9 a.m. to 4 p.m., for the duration of the modified enhanced community quarantine.

The office will offer limited services such as receiving proof of payment, signed and notarized copies of approved applications and supplemental documents required during the processing.

It will also release Certificates of Incorporation/Amendment and Confirmation of Payment and orders in Petitions to Lift Order of Suspension/ Revocation and/or Correction.

Payment facilities will likewise open for both SEC’s main office in Pasay City and former headquarters in Mandaluyong City starting Tuesday. This will be available from Monday to Friday, 9 a.m. to 2 p.m. for the Pasay office and 8 a.m. to 3 p.m. for the Mandaluyong office.

SEC extension offices outside Metro Manila have been operating at limited capacity since quarantine measures started easing this month. But the SEC noted the offices are on skeleton staff and some personnel are still working from home.

“In this light, the SEC asks for patience while it works on returning to full operations. It also encourages the transacting public to utilize its online registration platforms to limit unnecessary movements amid the COVID-19 pandemic,” it said.

For visitors in any of its offices, the SEC reminds that a “no face mask, no entry” policy is currently in place. Social distancing and limited human capacity per office is also being followed.

Online alternatives are available through the SEC’s Company Registration System at https://crs.sec.gov.ph. The interim online registration system for corporations with less than five incorporators may be done through https://apps004.sec.gov.ph:8001/application.

Payment of fees are accepted through accredited branches of the Land Bank of the Philippines and its online payment option, ePayment Portal. — Denise A. Valdez

Foton PHL turns over 6 ‘negative pressure’ ambulances to Philippine Red Cross

TO ADDRESS the need for safe transport of patients during the pandemic, Foton Philippines turned over six units of the Toano negative pressure ambulance to the Philippine Red Cross. This is said to be the first fleet of its kind here.

Also known as the “mobile N95 solution,” a negative pressure ambulance “isolates” the patient from the vehicle cabin to control spread of infection from the patient to the medical team in the ambulance. The Toana ambulance is also equipped with a full set of rescue equipment including a ventilator, defibrillator, ECG monitor, ultraviolet disinfection lamp, and central oxygen supply interface. Stretching to almost six meters, the Toano also stands 1.7 meters high — offering more space than typical vans. Foton said in a release that its bigger size “will allow medical institutions to add more medical equipment” for better emergency response.

“As the virus continues to spread, the demand for professional ambulance equipment in the Philippines has started to increase, and we are here to provide the solution for medical mobility needs,” said United Asia Automotive Group, Inc. (UAAGI) President Rommel Sytin. UAAGI is the exclusive country distributor of Foton, and is continuing to provide ambulances to different government during this trying time. Foton Philippines also has regular ambulance units available for sale in its 29-strong dealership network nationwide.

Germany tightens abattoir rules after outbreaks

BERLIN — Germany will tighten up rules on abattoirs, banning the subcontracting of meatpacking work through agencies after a rash of coronavirus outbreaks, Labor Minister Hubertus Heil said.

The cases have caused outrage in the home countries of the sector’s predominately foreign workers.

The new rules were agreed on Wednesday after more than 600 cases were reported of workers contracting the disease, government sources said.

The epidemic has thrown a spotlight on the German food industry’s reliance on migrant labor, particularly from Romania, where anger at the deaths of two harvest workers from the coronavirus and mass infections led the country’s labor minister to drive through locked-down Europe to Berlin for a fact-finding mission.

Under the new rules, meatpackers in abattoirs must be employed by the company itself, ending the practice of hiring many of the sector’s 200,000 workers through long chains of subcontracting agencies which pushes down final wages.

Heil said that repeated attempts to legislate to improve conditions in the industry, which works to thin margins, had failed but this time the government would persist.

“The government is resolved to be led not by lobbying interests but by the public good,” he said.

Agriculture Minister Julia Kloeckner added in a statement that companies must take responsibility for their workers.

“There are conditions in the meat industry that are not acceptable,” she said.

Some in the industry, which faces cost pressures from retailers including discounters Aldi and Lidl, fear that having to hire workers as staff will drive up their costs.

The state of Lower Saxony ordered that 10,000 abattoir workers at plants that used subcontracted employment be tested for COVID-19 (coronavirus disease 2019) after 92 workers tested positive at a plant in the town of Dissen.

The law will also allow workplace inspections and give local inspectors new powers to check workers’ accommodation. — Reuters

SSI reopens stores, offers online concierge services

FOR those missing selections from Givenchy (or essentials from Muji), the SSI Group has resumed operations for some of its stores and brands, following the government’s announcement on the re-opening of select malls and establishments.

Customers may also shop via The Specialist, the SSI Group’s at home concierge service. The service assists customers with their shopping needs via direct digital communication with customers and delivery at home or curbside pick-up.

The reopened stores practice the following safety measures to ensure proper hygienic standards: Fitting rooms are sprayed with alcohol before and after use, regular sanitation of card terminal keypads, proper sanitation of stores is done daily, before opening and closing hours, and finally, the stores’ salespersons wear face masks, gloves, and use hand sanitizer. They also encourage shoppers to follow protocol: face masks are a must, social distancing of at least a meter apart between people is enforced, and using hand sanitizer provided at the counter is encouraged.

Among the SSI shops that have reopened are 158 Designers’ Blvd., Acca Kappa, Armani Exchange, Bally, Banana Republic, Beauty Bar, Bershka, Bobbi Brown, Bottega Veneta, Brooks Brothers, Burberry, Calvin Klien Jeans and Underwear, Charriol, Coach, Cortefiel, Debenhams, Dune London, Ermenegildo Zegna, Gap, Givenchy, Gucci, Hugo Boss, Jo Malone, L’Occitane, Lacoste, Longchamp, Lush, MAC, Marks and Spencer, MUJI, Old Navy, and Zara. For a complete list and a directory of branches, visit the SSI Life blog at ssilife.com.ph/blog/.

For more updates, follow @SSILifePH on Instagram and Facebook or visit the website www.ssilife.com.ph. — JLG

Buskowitz powers farms with solar units

RENEWABLES enterprise Buskowitz Energy has powered three poultry farms with rooftop solar installations, bringing down their carbon emissions and electricity costs.

Under its build-operate-lease-transfer (BOLT) program, Buskowitz’s solar segment offered three farms in Visayas and Mindanao with solar photovoltaic units.

These farms are ESU Jasaan in Tulugban, Bukidnon, which is given a 90.2 kilowatt-peak installation; E&M Hatchery, also in Bukidnon, which operates a 70.13 kilowatt-peak solar system; and Cal’s Poultry Farm in Roxas City, Capiz, now running with a 100 kilowatt-peak rooftop installation.

“We hope that by going solar, more farms and broilers will be able to reduce their carbon emissions. We not only want to save the environment but also want to help lower overhead costs for produce and poultry farms through the BOLT program,” Buskowitz Energy Chief Executive Officer James Buskowitz said in a statement.

“If more agricultural farms adopt the use of solar, perhaps in the long run, we’ll feel these effects by seeing lower food costs, and create green-conscious farmers who will help shape the future of the food industry,” he added.

Citing World Bank data, at least 12.8 million tons of carbon emissions each year are generated from poultry farms.

The solar company noted that the three installed units can save an estimated 2,434 pounds of coal, and 249 gallons of gasoline, while the carbon sequestered is equivalent to planting 2.8 acres of Philippine forests and 36.5 tree seedlings over ten years.

Buskowitz Energy has been pushing for the use of rooftop solar units for electricity generation to save the country’s remaining farmable lands.

“With only 18% of the Philippines lands left for agriculture, we encourage our business partners in all industries to install [solar panels] on their roof,” he said. — Adam J. Ang

Specter of negative rates putting Wall Street’s bankers on edge

US BANKS have long looked with pity at overseas lenders coping with negative interest rates. Now, they’re grappling with the fear they may join the crowd.

Negative rates — especially if they persist for many years — reduce the spread banks make between lending and borrowing because they cannot pass the negative rate onto most depositors. Coupled with surging defaults due to an economic downturn, they can sap profits out of the banking system even if they create an initial jump in lending. That toxic combination has crippled Europe’s banks in the last six years, a dreaded position their US peers would like to avoid.

“Initially, there’s a sugar rush when negative rates are introduced,” said Alberto Gallo, head of macro strategies at London-based hedge fund Algebris Investments. “But ultimately, over time, you zombify the banks by lowering the velocity of money. Negative rates are a bad idea.”

Surging provisions for bad loans have already eaten into US bank profits, with the top six firms seeing their first-quarter income decline by about 60%.

A quarter-point cut to zero for the upper bound of the Fed’s main policy rate could lower annual income by about $1 billion to $2 billion for each of the biggest banks, according to their latest quarterly filings. Further cuts below zero would add additional costs: paying the Federal Reserve for the $3 trillion excess reserves held at the central bank. At a hypothetical -1%, that would mean an annual charge of $30 billion for US lenders, and roughly $10 billion of that would fall on the six biggest firms.

PAYING THE FED
Fed policy makers have pushed back on traders who are pricing in the chance that they utilize a negative-rate policy. Earlier this month implied rates on Fed-funds futures showed traders saw likely odds of the central bank cutting rates below zero in January. Prices have stabilized since with futures no longer pricing in a negative Fed rate, yet options traders continue to purchase contracts that hedge against risk of that happening.

“Debt traders and the stock market overall are still pricing in the idea of negative rates being part of the arsenal of what the Fed may do,” said Patrick Leary, chief market strategist and former trader at independent broker-dealer Incapital. “My mantra on the Fed, particularly this Fed, is don’t look at what they say. Look at what they do — and look at what the market tells them to do.”

Bank executives constantly decry negative rates, arguing that the benefits to the economy are elusive while the harm to the banking system is significant. JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon has talked about “huge adverse consequences” of negative rates. European banks, which have suffered on their home turf with below-zero rates since 2014, have warned US policy makers not to follow suit.

“Please don’t do this,” said Christiana Riley, head of Deutsche Bank AG’s US operations, at a conference in October. “It defies all logic.”

Traders pull back from pricing sub-zero Fed policy rate for now

Still, President Donald Trump has consistently pressured the Fed to go negative, recently calling it a “gift” to the US economy that should be accepted.

The biggest US banks are still counting on Fed Chairman Jerome Powell not to heed those calls. In their latest quarterly filings, the scenarios that look at the potential impact of interest-rate changes on income all assumed a zero floor in the US while considering lower rates worldwide.

Nevertheless, the banks are running internal models with negative rates, executives say. While they won’t reveal the numbers, executives acknowledge that the drop in income would grow incrementally as rates went further and further below zero. European lenders’ interest margins have declined by more than a quarter since the European Central Bank went negative, starting with -0.1% in 2014 and ending last year at -0.5%. Margins in Japan have dropped by about the same since 2016 after the Bank of Japan went to -0.1% and stayed there.

PROTECTING MARGINS
Algebris’ Mr. Gallo says US banks have more pricing power in lending than their European counterparts because the banking system is dominated by a few large companies, which should cushion some of the blow from negative rates, at least initially. Most loan contracts in the US have zero-rate floors even if they’re pegged to market interest rates, executives say. The largest US lenders also earn quite a lot more than European peers from capital-markets businesses after having gained share in recent years.

Despite all the push-back, the Fed might move rates below zero if the right conditions unfold, according to JPMorgan analyst Nikolaos Mr. Panigirtzoglou. Those include the market ramping up its wagers again for negative rates and other leading central banks that haven’t gone negative yet switching tracks to do so, Mr. Panigirtzoglou said. In the short run, that would be a good move, though the benefits would erode after a year or two, he said.

“Negative Fed policy rates should help liquidity in the banking system as reserves should start propagating rather than staying idle at the big banks, which have been hoarding them,” said Panigirtzoglou, a London-based global market strategist. “For some smaller banks there are shortages of reserves and they’ve had to pay higher rates in the interbank market to get liquidity.”

While the Fed hasn’t yet delved into the sub-zero policy-rate zone, Treasury yields of the shortest of maturities have traded negative before and currently those with tenors out to two years have rates below the 0.25% top of the central bank’s target range. Two-year notes yield about 0.17% and four-week Treasury bills are at just 6 basis points. From mid-March to early April the four-week bill rate was mostly negative, in part due to shortages of the security.

“Market rates are so close to zero, negative rates are no longer a far-fetched scenario for US banks,” said Brian Kleinhanzl, an analyst with Keefe, Bruyette & Woods based in New York. “The longer they last, negative rates are a slow burn on net interest margins. Coupled with bad credit, that would permanently impair their business models just like it did European peers.”

Several years of negative rates would probably bring market valuations of US banks to levels European and Japanese rivals have faced for a while, Mr. Kleinhanzl said. — Bloomberg

Stuff to do at home (05/25/20)

Bayanihan Musikihan

Online concert fundraiser Bayanihan Musikahan presents the Free Facebook Live Concert Series on May 25 at https://www.facebook.com/bayanihanmusikahan/. The concert series features Fe De Los Reyes (10 a.m.), Golden Cañedo (6 p.m.), Kristoffer Martin (6:30 p.m.), Garrett Boldren (7 p.m.), and Kyline Alcantara (7:30 p.m.). To donate, visit https://www.bayanihanmusikahan.org/donate-now.html.

Ayala Museum online

Experience Fernando Zobel’s art through a virtual visit to his exhibition Toward Abstraction. Watch the full tour at http://bit.ly/ZobelVV.

CCP Online

CCP Online’s seventh week of online programming continues with fashion, ballet, and superheroes. Fashion and ballet come together on May 26 (3 p.m.) with the Michael Cinco x Ballet Philippines Autumn-Fall 2020, a fashion show cum ballet performance produced to celebrate the golden anniversary of Ballet Philippines. The one-night gala featured Swan Lake-inspired choreography by Alden Lugnasin and the couture fashion collection of designer Michael Cinco. Meanwhile, Agnes Locsin’s neo-ethnic masterpiece, Ballet Philippines’ Encantada, premieres on May 28 (3 p.m.). The ballet, which revolves around the sovereign spirit of the mountain, features guest artist Georgette Sanchez, BP principal dancer Candice Adea, Jean Marc Cordero, and Katherine Trofeo, and Carissa Adea. Finally, the hit superhero musical, Zsazsa Zaturnnah Ze Muzikal premieres on May 30 (3 p.m.). Based on a graphic novel of the same title by Carlo Vergara and performed by Tanghalang Pilipino, it follows the adventure of a gay beauty salon owner who transforms into a voluptuous superhero who saves her town from marauding zombies, power-tripping fashion forward aliens, and a giant dancing frog. Watch the shows at bit.ly/CCPOnlineYT.

National Museum of the Philippines

The National Museum of the Philippines has released a new illustration for coloring by Larie Dianco featuring the humpback whale. Download the coloring sheet at https://www.facebook.com/nationalmuseumofthephilippines/photos/a.195151237175869/3258074807550148/?type=3&theater. This joins the previously released illustrations of a dugong or “sea cow” and another featuring butterflies.

A Better Normal podcasts

The Philippines’ first podcast network PumaPodcast, launches A Better Normal, a series where experts and thought leaders share their vision for the future, and new ideas to make the world better, from small nudges to big initiatives. In the first episode (https://open.spotify.com/episode/2k1spbGGLvOQsocGWATZnw), urban planner and mobility expert Benjie dela Peña discusses why we should seize this moment as a chance to finally fix our public jeepney and bus systems. His big idea is that the government should pay jeepney drivers and operators to run their routes. In upcoming episodes, listeners will hear more ideas from thought leaders in business, mobility, health, sports, culture, education, agriculture, and more.

Expo Pompéi

Expo Pompéi opens an immersive virtual exhibit and retraces the history of the ancient Roman city of Pompei. The exhibit includes virtual reality (VR), augmented reality (AR), 360 projections and 3D reconstructions, online games, and quizzes. Experience the Expo Pompei at https://www.grandpalais.fr/fr/expo-pompei-chez-vous.

The Romance of Magno Rubio

Lonnie Carter’s The Romance of Magno will stream for free on Ma-Yi Theater’s website (http://ma-yitheatre.org/) from May 25 to June 4. The performance was filmed in 2003 at the Cultural Center of the Philippines. Directed by Loy Arcenas, the show features Jojo Gonzalez, Art Acuña, Ron Domingo, Antonio del Rosario, and Ramon de Ocampo. The play is based on an original short story of the same title by America is in the Heart author Carlos Bulosan. For more information, visit https://www.facebook.com/MaYiTheaterCompany/posts/10157504311167411?d=m.

Creating Post COVID

The 9th Studios Creative Hub presents the “Creating Post COVID” online summit with professionals in the arts and culture industry on May 27 to 29. Speakers include singer Mig Ayesa, Cultural Center of the Philippines Production Management Services Division Head Nikki Garde-Torres, Komunidad x Sipat Lawin Inc. artistic director JK Anichohe, Manila Wrestling Federation senior analyst and actor Tarek El Tayech, and painter Dino Pajao. Register for free at www.the9thstudios.com.

Tanghalang Pilipino’s Lola Doc

Written by Layeta Bucoy, Tanghalang Pilipino’s play Lola Doc features a senior frontliner (played by Nora Aunor) who talks about the pain of losing her husband in a pandemic, remaining strong for their family, and courageously facing the risk of catching the deadly virus to attend to the sick. To watch the performance, visit http://youtube.com/tanghalangpilipino. For more information, visit https://www.facebook.com/tanghalangpilipino/.

NHCP Museums

Learn about Philippine history by visiting various National Historical Commission of the Philippines museums across the country online. To do so, visit https://www.facebook.com/historymuseumsPH/photos/a.474072142988822/769005046828862/?type=3&theater.

Streetcar Named Desire online

Tennessee Williams’s Pulitzer Prize-winning play A Streetcar Named Desire will stream online at The National Theatre’s YouTube channel. Starring Gillian Anderson, the production will be available until May 28. To watch, visit https://www.youtube.com/user/ntdiscovertheatre).

The Royal Opera House online

As part of its #OurHousetoYourHouse, the Royal Opera is streaming Jules Massenet’s Cendrillon on May 22 (7 p.m. BST) at its official Facebook page at (https://www.facebook.com/royaloperahouse/). The show stars mezzo-soprano Joyce DiDonato in the title role.

Foo Fighters at the Wembley Stadium

The Foo Fighters’ concert film Live at the Wembley Stadium is now available online at the band’s YouTube channel (https://www.youtube.com/watch?v=jcwBsntqjmY&feature=emb_title). The show features guest performances by Jimmy Page, and John Paul Jones of Led Zeppelin.

Gateway Gallery’s interactive website

THE Gateway Gallery launches its own website https://gatewaygallery.aranetacity.com/. Exhibits featured online include SiningSaysay: Philippine History in Art which retells the story of the Philippines from prehistory to contemporary period in 30 monumental paintings. The gallery’s show Art Heals: Echoes of the Pandemic exhibition is also on view.

Indigo Child

Rody Vera’s Indigo Child, a one-act play about 20-year-old Jerome who takes care of his rebellious and bipolar mother, is now available online at https://learn.pelikulove.com/blackbox. The play is on view until May 31.

Tanghalang Ateneo’s Lysistrata ng Bakwit

Tanghalang Ateneo’s Lysistrata ng Bakwit (2018), an adaptation of Aristophanes’ Greek classic, is available for viewing online at https://www.youtube.com/watch?v=S8HhUJTXE2A&feature=emb_title. Directed by Ricardo Abad, the story is set in a fictional war-torn Philippine province and follows the revolt of women evacuees fighting their own wars concerning territory, familial ties, and tribal disputes.

Shelter fund’s photography

The Shelter Fund gives freelance photographers a venue to exhibit their art for sale amidst the challenges posed by the quarantines. Each print is an original signed artwork specially selected by the photographer for the Shelter Fund, and printed on archival, heavyweight paper in A2, A3, A4 and A5 sizes through Shutterspace Studios. Visit the Shelter Fund on Instagram at https://www.instagram.com/shelterfund and on Facebook at https://www.facebook.com/shelterfundph.

Jerrold Tarog’s Senior Year

Written, directed, edited, and scored by Jerrold Tarog, the film Senior Year (2010) is now streaming on Vimeo (https://vimeo.com/404089376). Set in a Catholic school the story follows the struggles and anxieties of students during their final year in high school.

Dulaang UP’s Adarna

Dulaang UP’s play Adarna (2013) is now streaming online. Adapted by Vlad Gonzales and directed by José Estrella, the story is based on the narrative poem about three princes’ quest to save their ailing father by capturing the Adarna bird which is believed to have curative powers. To watch, visit https://www.youtube.com/watch?time_continue=1&v=hV2UPXi1wMA&feature=emb_title.

National Library of the Philippines

The National Library of the Philippines offers free scholarly eResources including research related to COVID-19. The list of resources come from the National Emergency Library, Cochrane Library (Medical & Health Science), De Gruyter — Journals (Multidisciplinary), and more. To view access links to eResources, visit https://www.facebook.com/NLP1901/photos/a.375779479606724/912930019224998/?type=3&theater.

Jenkins at Royal Albert Hall

Welsh mezzo-soprano Katherine Jenkins performed alone at The Royal Albert Hall. The online show is the first in a series of performances of the London Together initiative as a tribute to the COVID-19 frontliners. Watch the concert at The Royal Albert Hall’s YouTube channel at https://www.youtube.com/channel/UCugNt9gmBgZSFEv4lc4B6Zg.

Guggenheim artbooks

The Solomon R. Guggenheim Museum offers downloadable items from its archives for free. Titles include modern and contemporary art books about Vincent Van Gogh, Pablo Picasso, Vassily Kandinsky, Gustav Klimt and more. The archive is searchable by artist, year, medium and artistic style or movement. Visit the archives, https://archive.org/details/guggenheimmuseum.

BioBalance Wellness consultation

The BioBalance Wellness Institute offers the following services and features: free online consultation with its clinical nutritionist and nurse practitioners, wellness expert psychologist; online health and immunity risk assessment; and more payment options for availed services and products. For more information, contact 0917-521-4860 or concierge@biobalanceinstitute.com.

IkotMNL tour from home

The Museo de Intramuros, Ayala Museum, and Presidential Museum and Library in Malacañang Palace have partnered with Google to put their works online. Learn new things at home and visit the museums through a virtual tour: https://artsandculture.google.com/partner/malacanang-presidential-museum-and-library; https://artsandculture.google.com/partner/ayala-museum; and https://artsandculture.google.com/partner/intramuros-administration.

CAST recordings on Spotify

CAST PH offers CAST Recording, a collection of one act plays, recorded online and released as radio/audio drama. The first recordings are A Matter of Husbands by Ferenc Molnár, featuring Pinky Amador and Giannina Ocampo-Van Hoven; and Enemies by Neith Boyce and Hutchins Hapgood, featuring David Bianco and Jennifer Blair-Bianco. Listen at https://open.spotify.com/show/5bLSOsJPkZnlaEFDfSSHbl?si=fDsW-kNpT6iP89En-dWbog.

National Bookstore delivery

National Book Store has reopened its branch in Cubao, Quezon City and now offers delivery services for its supplies to selected areas around Metro Manila. For orders from Marikina, San Juan, and Quezon City, contact 0917-631-1374; Mandaluyong, Pasig, Pateros, and Taguig contact 0917-834-3224; Caloocan, Manila, Navotas, and Valenzuela, contact 0917-302-7475; Makati, Muntinlupa, Parañaque, Pasay, and Las Piñas, contact 0917-791-0916. Orders are accepted on weekdays from 9 a.m. to 4 p.m.

Film masterclasses

Learn film concepts through interviews and film retrospectives from more than 60 directors, producers, writers, and actors including Bong Joon-Ho, Abbas Kiarostami, Agnès Varda, Spike Lee, Werner Herzog (with Roger Ebert), Jane Campion, Jodie Foster, Todd Haynes, Ang Lee, Jessica Lange, and Clint Eastwood. To watch, visit https://walkerart.org/magazine/series/dialogues-film-retrospectives.

Fully Booked delivery

FULLY BOOKED is back in business for book orders (https://www.fullybookedonline.com/). In a Facebook post, Fully Book stated: “[O]ur Lazada and Shopee stores will be back online, too. Please do expect some delays and changes in our processes.” For advisories, visit bit.ly/fb-ecq-advisory.

English National Ballet shows online

ENGLISH National Ballet launched ENB at Home, releasing one show weekly for its Wednesday Watch Parties. The first in the lineup is Broken Wings, a Frida Kahlo-inspired production starring lead principal and ENB artistic director Tamara Rojo as Frida. It is available to stream for free for 48 hours. Watch at https://www.youtube.com/user/enballet or https://www.facebook.com/EnglishNationalBallet/.

Radiohead Concerts

BRITISH rock band Radiohead has been uploading some of its concerts via its official YouTube page (https://www.youtube.com/user/radiohead). Fans of the Rock and Roll Hall of Fame band, known for songs like “Creep” (1992) and “Fake Plastic Trees” (1995), can watch the concerts Live from a Tent in Dublin (2000) and Live in Berlin (2006).

David Guetta: United at Home

FRENCH DJ David Guetta, the man behind the song “Titanium” (2011) featuring singer SIA, held a live concert fundraiser inside his Miami home benefiting the World Health Organization and other charities. The two-hour concert is currently available on his YouTube page (https://www.youtube.com/user/davidguettavevo).

Dior’s Designer of Dreams exhibition

DIOR’S exhibition titled Christian Dior: Designer of Dreams is now available to view online. Originally held at Paris’ Musée des Arts Décoratifs from 2017 to 2018, the exhibition traces the evolution of the house of Dior from post-war Paris to the present through a behind-the-scenes in-the-making of the exhibition, plus a virtual tour of its rooms. Visit Dior’s YouTube channel to watch the documentary (https://www.youtube.com/watch?time_continue=1521&v=FLWDWzMrkBE&feature=emb_title).

Frank Lloyd Wright virtual tours

THE Frank Lloyd Wright Building Conservancy, in partnership with the Frank Lloyd Wright Foundation and Unity Temple Restoration Foundation is offering #WrightVirtualVisits every Thursdays (1 p.m. Eastern/10 a.m. Pacific time) in participating sites. Check the participating sites at https://savewright.org/news/public-wright-sites-swap-virtual-visits/.

Color Tolkien characters

THE official Facebook page of the late author J.R.R. Tolkien has uploaded an illustration of Smaug the Magnificent from The Hobbit Movie Trilogy Colouring Book. Download the coloring sheet at https://bit.ly/2wKY3lp.

MoMA free courses online

After offering virtual tours, the Museum of Modern Art (MoMA) is now offering free online courses. The courses include a series of five free classes for contemporary art, fashion, and photography. It includes readings and exercises which can be completed within 12 to 38 hours. For details, visit https://www.coursera.org/moma.

Print & Play activities for kids

Keep kids entertained with new curated Print & Play activities from HP. The activities from craft making, mazes, dot-to-dot drawing and puzzles are suitable for ages 2 to 12. With HP Print & Play, parents can choose from a range of activities that are best suited to their children’s needs to achieve the best possible learning outcomes. To try the activities, visit https://www8.hp.com/ph/en/printers/printandplay/index.html?jumpid=va_u19mhncewr.

Harry Potter exhibit online

The British Library’s Harry Potter: A History of Magic exhibition is available online through Google Arts and Culture. Its features include video clips and sketches, a Q&A with exhibit curator Julian Harrison. To view, visit https://artsandculture.google.com/project/harry-potter-a-history-of-magic.

The Nanny’s Pandemic Table Read

The cast of the ‘90s comedy sitcom The Nanny reunites for The Pandemic Table Read of the show’s pilot episode. It stars Fran Drescher as Fran Fine who finds a job as a nanny to the three children of wealthy widower and theater producer Maxwell Sheffield (played by Charles Shaughnessy). To watch, visit Sony Pictures Entertainment’s YouTube channel at https://www.youtube.com/watch?v=C3a6KuP1X14&feature=youtu.be&fbclid=IwAR1eEwvK0A7lrLMnt2GTXBPoDR7y8_Q5TXMexTLIo9es9Gei4W1Yi-asITM.

Science experiments at home

Enjoy 44 science experiments with the kids at home with the James Dyson Foundation Challenge cards. To download the challenge cards, visit https://www.jamesdysonfoundation.co.uk/resources/challenge-cards.html.

Hogwarts online

Hogwarts Is Here, an online version of the Harry Potter series’ magical school by Harry Potter fans that allows visitors to take courses like the characters from J.K. Rowling’s book series. Various courses include Astronomy, Herbology, History of Magic, and Transfiguration. The website also includes a forum, groups, and library feature. Visit http://www.hogwartsishere.com/.

Color Manolo Blahnik designs

Manolo Blahnik shares a selection of his original sketches for coloring. The shoe designs are downloadable at https://www.manoloblahnik.com/gb/smile.html.

Podcasts on Philippine crime

Stories After Dark features podcasts on Philippine true crime and mystery stories. It currently has 14 episodes including The Maguindanao Massacre (2009), The Ozone Disco Fire (1996), and Pepsi Paloma: Rape or Publicity Stunt? Suicide or Murder? (1982/1985). To listen, visit https://www.facebook.com/storiesafterdarkph/.

Palacio de Memoria virtual tour

Art and history enthusiasts can now go on a virtual tour of Palacio de Memoria, the resplendent Colonial Revival mansion, and marvel at its luxurious facilities and hundreds of Euro-Filipino paintings, sculptures, art displays, and historical pieces online. It features the showroom of Palacio de Memoria’s auction house, Casa de Memoria or the Casa, which houses the Lhuilliers’ unrivalled collection of antiques, the Mosphil Lounge, and a passenger plane that was refitted to be a lounge for special occasions. To view the complete Palacio de Memoria’s virtual tour, visit https://www.palaciodememoria.com/tours. For more updates, follow @thepalaciodememoria on Facebook and @palacio.de.memoria on Instagram.

E-coloring books

The Getty Museum and the Getty Research Institute of Los Angeles offers the Color Our Collections edition for 2020. To view, visit http://library.nyam.org/colorourcollections/page/11/.

Yields on gov’t debt fall amid safe-haven demand

By Lourdes O. Pilar
Researcher

YIELDS ON government securities (GS) traded in the secondary market went down last week amid strong demand as investors continue to look for safer investments.

Bond yields — which move opposite to prices — fell by an average of 10.6 basis points (bps) week on week, according to the PHP Bloomberg Valuation Service Reference Rates as of May 22 published on the Philippine Dealing System’s website.

“[Last] week, we saw more steepening for the GS curve as demand on the short end to belly securities continued to be strong, while the long-end moved sideways to slightly higher. This continues to be because banks continue to stay nimble by staying short,” Carlyn Therese X. Dulay, first vice-president and head of Wholesale Treasury Sales at Security Bank Corp., said in an e-mail interview.

“On the other hand, holders of long duration [papers] continue to derisk as we are still in a risk-off environment due to the COVID 19 (coronavirus disease 2019) pandemic, and the feared negative effects of it in the economy,” she added.

“The current elevated liquidity in the financial system had investors on the lookout for safer and higher-yielding investments across the GS curve. Implications of the auction results in the primary market continue to suggest that bond bulls are still out in the wild,” Kevin S. Palma, peso sovereign debt trader of Robinsons Bank Corp., said in a Viber message.

Last Monday, the Bureau of the Treasury borrowed P24 billion via Treasury bills (T-bills) from total bids of P103.8 billion, five times higher than the initial P20-billion offer.

It also opened its tap facility for P5 billion worth of one-year notes to accommodate the strong investor demand.

Supportive policy actions from the Bangko Sentral ng Pilipinas kept yields on a downward trend, according to National Treasurer Rosalia V. de Leon.

The central bank’s Monetary Board trimmed benchmark rates by a total of 125 bps since the start of the year, the latest of which was the 50-bp off-cycle cut last April.

For this month, the government plans to borrow P170 billion from the local market in weekly T-bill offerings worth P110 billion and P60-billion Treasury bonds (T-bond) to be auctioned off every two weeks.

Yields on all tenors fell across- the-board at the end of trading last Friday. The 91-, 182-, and 364-day T-bills dropped 27.7 bps, 20.1 bps, and 10.6 bps to yield 2.128%, 2.253%, and 2.627%, respectively.

At the belly, the two-, three-, four-, five-, and seven-year T-bonds saw their rates decline by 11 bps (2.736%), 8.4 bps (2.825%), 8.3 bps (2.880%), 8.8 bps (2.931%) and 7.5 bps (3.073%), respectively.

On the other hand, rates of the 10-, 20-, and 25-year debt declined by 2.5 bps, 3.9 bps, and 7.4 bps, respectively, to fetch 3.274%, 4.187%, and 4.288%.

Analysts see the downward trend continuing this week.

“Local bond yields may continue to trend lower but this may already be tempered as we may see a resurgence of profit takers and take advantage of the bullish sentiment by lightening up on their holdings,” Mr. Palma said.

“For this week, expect to see stable demand for the four-year and shorter as cash continues to be allocated in these securities. Demand on the five-year may be limited as market participants wait for the results of the auction on Tuesday,” Ms. Dulay said.

On Tuesday, the Treasury will offer P20-billion T-bills. The following day, it will auction off reissued five-year bonds with a remaining life of four years and four months worth P30 billion.

Local financial markets are closed today in observance of Eid’l Fitr.

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