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SEC plans to ease filing rules for firms amid virus

THE Securities and Exchange Commission (SEC) is planning to relax regulatory policies for corporations amid the coronavirus disease 2019 (COVID-19) outbreak.

In a statement Wednesday, the country’s corporate regulator said it is finalizing two memorandum circulars that would allow remote communication for meetings and extend the deadline for filing annual reports.

“The SEC will issue a memorandum circular to provide guidelines on the attendance and participation of directors, trustees, stockholders, members and other officers of corporations in regular and special meetings through remote communication,” it said.

“(It) is likewise set to issue a memorandum circular giving all affected companies more time to submit their annual reports (SEC Form 17-A), including annual financial statements, for the period ended December 31, 2019, as well as quarterly reports (SE Form 17-Q) for the first three months of 2020 for publicly listed companies,” it added.

This comes after the bourse operator Philippine Stock Exchange, Inc. advised shareholders of publicly listed firms on Tuesday to explore remote participation in annual stockholder meetings scheduled in the coming weeks.

“In line with the President’s declaration of a state of public health emergency, the Commission will explore and implement all appropriate measures to help contain the spread of COVID-19 and mitigate its effects,” SEC Chairperson Emilio B. Aquino was quoted as saying in the statement.

The SEC said it has started doing meetings remotely to explore the possibilities that companies may implement to address the threat of COVID-19.

The extended period for submitting regulatory filings will likewise accommodate companies that are affected by travel restrictions and work suspensions.

Until the circulars are out, the regulator said companies may use the SEC Express Nationwide Submission to file annual reports via courier. Copies of the filings may be obtained by the public by requesting through www.secexpress.ph or calling (02) 8737-8888.

As of writing, the number of confirmed COVID-19 cases in the Philippines stood at 33, some of which were results of local transmission of the virus.

The Department of Health advised the public to avoid going to public places and attending mass gatherings to limit the spread of the virus. — Denise A. Valdez

SMC foods and drinks unit posts 6% profit increase to P32 billion

PROFITS of San Miguel Food and Beverage, Inc. (SMFB) climbed 6% in 2019, driven by higher volumes of its products and an increase in average selling prices.

In a statement yesterday, the listed food and beverage arm of San Miguel Corp. (SMC) said its consolidated net income in 2019 stood at P32.28 billion. Consolidated revenues also improved 9% to P310.79 billion.

The main driver of the company’s growth was its beer business, which posted a 10% increase in revenues to P142.27 billion backed by increased beer volumes.

The food segment added P139.46 billion in revenues, up 5% year on year, due to the recovery of its poultry business previously challenged by an industry-wide decline. It noted consumer demand also remained strong for its key products such as Tender Juicy Hotdogs, Purefoods Chicken Nuggets, Purefoods Corned Beef, Magnolia Gold Butter and Star Margarine.

The spirits and liquor segment had the highest jump in revenues at 17% to P29.06 billion. The increase was driven by a 14% rise in volumes, which the company attributed to successful promotional campaigns.

“We continue to remain confident in the strength of the Philippine consumer and resilience of the economy,” SMFB President and Chief Executive Officer Ramon S. Ang was quoted in the statement as saying.

“We believe we have the ability to overcome the challenges we now face as we continue to expand the breadth of our product offerings and reinforce our presence in markets. We remain focused on delivering the best products, and providing improved results to all our stakeholders,” he added.

In a separate disclosure to the stock exchange, SMFB said its board of directors approved looking at alternatives to conduct the company’s annual stockholders’ meeting amid the coronavirus outbreak.

“In light of public health concerns…, the board approved for management to study whether to allow stockholders to attend and vote through remote communication…, and if so, for management to determine the mechanics to implement such mode of voting…,” it said.

The annual stockholders’ meeting of SMFB is scheduled on June 3.

Shares in the company at the stock exchange closed flat on Wednesday at P67 each. Shares in its parent SMC were also flat at P119.50 each. — Denise A. Valdez

Venture capital firm Kickstart sees more local investing opportunities

By Arjay L. Balinbin
Reporter

KICKSTART Ventures, Inc. said it sees more opportunities to invest this year in startups that offer Internet-of-Things (IoT) innovations for “smarter living.”

“We are seeing a lot in network technology and IoT. We are seeing a lot of opportunities around connected devices. Some [startups] are locals and some of them are from overseas. This is the year that there are more and more companies that think how to make devices more intelligent, connect them to the cloud and help people analyze data,” Kickstart Vice President Joan Cybil Yao said in a recent interview.

Kickstart is a venture capital firm, a wholly-owned subsidiary of Globe Telecom, Inc. and backed by Ayala Corp. and SingTel. It has invested in 42 digital startups across seven countries since it was established in 2012.

“The bulk of our investments are here in the Philippines. The others are in the US, Canada, Israel, Indonesia, Singapore, and Malaysia,” Ms. Yao said.

For her part, Kickstart President Minette B. Navarrete said the company is also looking to invest in areas that are relevant to the Ayala Corp. and the Department of Trade and Industry.

“We are faithful to the kind of future we want to build; hence, we have four descriptors for the future that we would like to build, and these four themes shape the kinds of investments we want to make,” she said.

The four investment themes, she said, are: A Frictionless Future, From Automation to Augmentation, Smarter Living, and A World of Plenty.

“How do we remove frictions for a regular person on a day to day basis? That’s what a frictionless future is… What we would also like to do is look for a technology which enhances the human capital and makes work less dangerous, less repetitive, more enriching, and more engaging. As for the smarter living, we are looking for a technology which makes people’s lives more secure, or maybe more enjoyable, or maybe helps them integrate better with other people in the community,” Ms. Navarrete said.

For the fourth theme, she said: “We are looking for solutions that are more reliable, more affordable, and more accessible to get services to wider population whether it’s water, energy or clean air.”

Ms. Navarrete said Kickstart started with $2.5 million seed fund in 2012, followed by $50 million growth fund in 2015.

“Last year, we got a new fund from Ayala, and that’s a commitment of $195 million,” she added.

On her assessment of the company’s performance last year, Ms. Navarrete said: “I think it was a big year for us. We nearly doubled the deal flow. We invested and raised more cash.”

Ms. Yao said the company is currently in talks with “quite a few” startups.

“We have presented them to our investment committee, and some are in the final stages of the deal while others are in the earlier stages,” she noted.

Amazon launches business selling automated checkout to retailers

AMAZON.COM Inc. on Monday is set to announce a new business line selling the technology behind its cashier-less convenience stores to other retailers, the company told Reuters.

The world’s biggest web retailer said it has “several” signed deals with customers it would not name. A new website Monday will invite others to inquire about the service, dubbed Just Walk Out technology by Amazon.

The highly anticipated business reflects Amazon’s strategy of building out internal capabilities — such as warehouses to help with package delivery and cloud technology to support its website — and then turning those into lucrative services it offers others.

Its chain Amazon Go has brought shopping without checkout lines into the mainstream, and the market for retail without cashiers — one of the most common vocations in the United States — could grow to $50 billion, US venture firm Loup Ventures has estimated.

Dilip Kumar, Amazon’s vice president of physical retail and technology, had no market forecast to share but said shoppers’ preferences will determine how big the business becomes.

“Do customers like standing in lines?” he asked. “This has pretty broad applicability across store sizes, across industries, because it fundamentally tackles a problem of how do you get convenience in physical locations, especially when people are hard-pressed for time.”

Unlike Amazon Go stores, shoppers will insert a credit card into a gated turnstile to enter, rather than scan an app. The turnstiles will display the logo “Just Walk Out technology by Amazon,” but all other branding and store aspects will be controlled by the retailer using the service.

Items picked up by a customer and any guests who enter with them will be added to the shopper’s virtual cart. The store will then bill the credit card once the person or group leaves the store — no bar code scans or checkout lines necessary.

Kumar said Amazon will install the technology including ceiling cameras and shelf weight sensors at retailers’ stores, whether they are new locations or retrofits, and it will have a 24-7 support line.

COURTING RIVALS?
A by-product of demand for the offering would be increased usage of Amazon Web Services, the company’s cloud that underpins its checkout-free systems.

Still, high demand is by no means certain. Other vendors including Grabango and AiFi are offering automated checkout to retailers, which in the past have been loath to hand deals to their rival Amazon that has been the biggest disruptor of their brick-and-mortar businesses.

Media reports have said Amazon was in talks to bring its technology to airport stores, for instance, rather than to Walmart Inc or Target Corp. Kumar said Amazon “potentially” could sell the service to big box rivals but would not speculate.

He declined to comment on the service’s business model or pricing, saying, “a lot of those are bespoke deals.”

One issue that may arise is who owns the shopper data, something that businesses typically want in order to tailor marketing offers and build their customer base.

Shoppers who desire a receipt will be able to type their email into a kiosk at any store. Amazon will send receipts to that address each subsequent time the credit card is used at a Just Walk Out location, no matter the retailer. Kumar said Amazon saves the email address and ties that to the credit card information, solely for the purpose of charging the customer.

Kumar would not discuss whether or how Amazon would integrate this into retailers’ loyalty programs but said, “These are the retailers’ customers.”

“We prohibit the use of Just Walk Out technology data for anything other than supporting Just Walk Out retailers,” he said. — Reuters

Yields on BSP’s term deposits drop on virus, lower oil prices

YIELDS on the central bank’s term deposits declined. — BW FILE PHOTO

YIELDS ON THE central bank’s term deposit facility (TDF) declined further on Wednesday amid developments in the coronavirus disease 2019 (COVID-19) outbreak and the recent drop in oil prices.

Bids for the term deposits offered by the Bangko Sentral ng Pilipinas (BSP) amounted to P217.39 billion on Wednesday, beyond the P150 billion auctioned off by the central bank and also higher than the P168.216 billion seen the previous week for the P120-billion offer.

Tenders for the seven-day deposits totaled P66.733 billion, surpassing the P50 billion on offer and also beating the P48.697 billion in bids logged on March 4.

Yields for the tenor ranged from 3.7% to 3.8%, down from the 3.75% to 3.85% margin logged last week. This caused the average rate to drop to 3.7557%, down by 2.64 basis points (bps) from last week’s 3.7821%.

For the 14-day term deposits, total bids amounted to P70.844 billion, higher than the P50 billion on offer as well as the P52.454 billion in tenders seen last week for the P40 billion on the auction block.

Banks sought yields ranging from 3.75% to 3.8125%, a slimmer band compared to the 3.765% to 3.85% range seen last week. This brought the average rate to 3.7757%, slipping by 5.45 bps from the 3.8102% seen on March 4.

On the other hand, bids for the one-month term deposits hit P79.813 billion, higher than the P50 billion on offer and also going beyond the P67.065 billion worth of tenders logged last week for a P30-billion offering.

Yields sought by banks for the 28-day tenor ranged from 3.675% to 3.78%, a wider margin compared to the 3.75% to 3.8% seen last week. With this, the average rate for the papers settled at 3.7436%, inching down by 4.24 bps from the 3.786% seen a week ago.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion attributed the lower yields to weaker investor sentiment caused by the coronavirus disease 2019 (COVID-19) outbreak, as well as tensions caused by the oil price war.

“These lower yields indicate the continuing impact of the COVID-19 and oil price war uncertainties on investor sentiment. The downward pressure on yields is expected to continue as players continue to take on lesser risks,” Mr. Asuncion said in an e-mail.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort also said the decline in oil prices may have dragged down yields further.

“The latest decline in TDF auction yields was largely triggered by the sharp decline in global oil prices, to new 4-year lows, thereby could reduce the country’s inflation rate and further increase the odds of a further cut on local policy rates,” Mr. Ricafort said in an e-mail.

Reuters reported that Saudi Arabia on Tuesday announced that it would heighten its oil supplies to a record high in April, raising the stakes in a standoff with Russia and effectively rebuffing Moscow’s suggestion for new talks.

On Monday, oil prices fell by about 30% after Saudi Arabia slashed its selling price in a bid to start a price war with Russia amid falling demand in the market on the back of the COVID-19 outbreak.

The BSP’s Monetary Board will have its second policy-setting meeting on March 19. BSP Governor Benjamin E. Diokno has said the COVID-19 outbreak, the emergency rate cut of the US Federal Reserve last week, as well as the 2.6% headline inflation print in February will be among the factors they will consider in their rate decision.

Rates of the BSP’s overnight deposit, overnight reverse repurchase, and overnight lending facilities are currently at 3.25%, 3.75% and 4.25%, respectively. — Luz Wendy T. Noble with Reuters

Senate resolution on ABS-CBN operation turned over to NTC

THE Senate on Wednesday turned over to the National Telecommunication Commission (NTC) the resolution allowing ABS-CBN Corp. to operate while its franchise extension is pending in Congress.

“This is the official turnover of the approval of the resolution authored by Senator Drilon and all the members of the Senate to the NTC for the provisional authority of ABS-CBN so they could continue operations while their application is pending in both Houses,” Majority Leader Juan Miguel F. Zubiri said in a briefing, Wednesday.

Under Senate Resolution No. 344, thirteen senators moved to authorize the commission to permit the continued operation of ABS-CBN and subsidiary, ABS-CBN Convergence, Inc.

The resolution also covered other franchisees, whose applications are likewise pending in the House of Representatives, namely: Sky Cable Corp. and Amcara Broadcasting Network, Inc.

Mr. Zubiri guaranteed that the chamber would act swiftly on the bills, once the franchises are transmitted.

“We’ll hope and pray na pagbalik natin sa May 4, maaksyunan agad ng ating (that upon our return on May 4, the franchise will be acted on by our) colleagues sa House of Representatives,” he said. “Dito sa senado (In the senate), we guarantee very quick discussions on the matter and we’ll dispose [of] it as soon as possible.”

The House Legislative Franchises Committee on Tuesday started tackling the ABS-CBN franchise, adopting in the process the letter, written by Palawan Rep. and chair of the committee Franz E. Alvarez and House Speaker Alan Peter S. Cayetano, to allow ABS-CBN to continue operation.

The NTC was represented by Deputy Commissioner Edgardo V. Cabarios, who assured the provisional authority will be issued “unless we are restrained by the court.’’

Senate Minority Leader Franklin M. Drilon, for his part, clarified that any case against ABS-CBN will not affect the provisional authority.

“In our view, while the application for the renewal of the franchise is pending, de facto the expired franchise will continue to exist, especially the authority granted by the NTC,” he said in the same briefing.

Meanwhile, the Senate has approved on third and final reading the bills extending the franchise granted to six broadcasting networks for 25 years.

The bills are for the franchise application of Broadcast Enterprises and Affiliated Media, Inc. (BEAM), Crusaders Broadcasting System (CBS), Bicol Broadcasting System, Inc., Golden Broadcast Professional, Inc., Gold Label Broadcasting System, Inc. (GPBI), and the Global Satellite Technology Services, Inc.

“We want to make sure that all franchises are given equal opportunity and prompt scrutiny as we recognize the value of able media firms as sources of job opportunities and information, especially in the countryside,” Senator Grace S. Poe-Llamanzares said in a statement, Wednesday.

Beam largely caters to Metro Manila, Cebu and Davao. It also reaches audiences in Baguio and Naga in Luzon, Iloilo in Visayas and Zamboanga in Mindanao. CBS, meanwhile, is a religious radio network that operates the DWAD 1098 AM station.

Bicol Broadcasting operates radio stations, serving Camarines Sur and some areas in Camarines Norte and Albay among other parts of the Bicol region. It’s DWLV station offers retro hits, while DWLV-FM serves public information and current affairs programming.

GBPI is a Zamboanga-based network with flagship programs, Dateline Teleradyo and Dateline Zamboanga. It also operates Magic 95.5 FM; while the Gold Label, established in Dumaguete, is known for its Power 91 DYGB-FM, which offers both news and music and entertainment.

The Global Satellite, formerly the First United Broadcasting Corp., is an alternative source of international entertainment and information. It operates a news channel, the Global News Network, and radio stations, Pampanga44, Naga43, and Cagayan de Oro45 among others.

The networks’ franchises will all expire in May, while Gold Label’s will end in July.

Ms. Llamanzares said the granting of franchises is a public duty and reiterated that it is a privilege granted by Congress. — Charmaine A. Tadalan

Wells Fargo CEO tells US Congress bank is tackling regulatory issues

NEW WELLS FARGO & Co. Chief Executive Officer (CEO) Charlie Scharf testified on Tuesday that substantial change was under way at the bank as lawmakers grilled him on the status of its remediation efforts and contingency plans related to coronavirus.

“We are putting a substantially different group of people in charge of these issues,” he told members of the House Financial Services Committee.

Since taking over the scandal-plagued bank late last year, Mr. Scharf has shaken up its leadership and overhauled the bank’s business lines, winning over some regulators in the process.

Last week the Office of the Comptroller of the Currency, the bank’s top regulator, said it was encouraged by the new leadership. Many lawmakers were cautiously optimistic that Mr. Scharf was the right person for the job but said righting the bank would be a tall task.

“While I wish you luck, it is clear to this Committee that the bank you inherited is essentially a lawless organization that has caused widespread harm to millions of consumers throughout the nation,” Democratic House Financial Services Committee Chair Maxine Waters said in her opening remarks.

Ms. Waters on Thursday told reporters that after meeting with Scharf, she had no indication that he had a compelling plan for turning around the bank.

In a report released last week, the committee unearthed documents and e-mails that appeared to reveal complacency on the part of the bank’s directors and management, including board Chair Betsy Duke, regarding its various regulatory issues. Ms. Duke resigned on Monday.

When pressed for details on the status of the bank’s remediation efforts and a timeline for getting over the bank’s regulatory hurdles, Mr. Scharf was light on specifics but was clear that his management team was committed to working through the banks issues with a fresh sense of urgency.

Ms. Waters and others on the committee, which is responsible for overseeing financial firms and their regulators, quizzed Mr. Scharf on the health of the banking system amid turmoil in global markets, and on social issues like gun financing and lending to minority groups.

Bank stocks have been hurt more than other sectors as the spreading coronavirus has led to lower interest rates and raised concerns about future credit costs as businesses are squeezed, according to analysts.

“We understand the seriousness of concerns felt by customers and employees about the coronavirus,” Mr. Scharf said in prepared remarks. During the hearing, he declined to provide specifics on how the bank planned to help consumers and clients who are facing hardships due to the health crisis, however.

When Mr. Scharf took the reins in October, he inherited a bank that was under federal investigation, subject to more than a dozen consent orders and hindered by an unprecedented Federal Reserve cap on its balance sheet growth. Sources inside the bank say that he has focused on tackling the bank’s problems by cutting unnecessary meetings and focusing on accountability.

The bank has also recently announced a number of initiatives that may appeal to the Democratic majority committee, such as increasing the minimum wage for its employees.

Prior CEOs John Stumpf and Tim Sloan left the company shortly after similar appearances before Congress.

Ms. Waters on Tuesday asked the Justice department to determine if Mr. Sloan broke the law in giving “misleading” sworn testimony to her panel one year ago, when he told lawmakers the bank was complying with a settlement to remediate customers harmed by its sales practices. Bank regulators said afterwards the bank was still coming up short in its efforts.

The Justice department declined to comment on Ms. Waters’ request.

Mr. Sloan’s attorney said the allegation was “inaccurate and completely unfounded.”

“His testimony to the committee about those efforts was truthful and in good faith,” Josh Cohen, of Clarence Dyer & Cohen LLP in San Francisco, said in an emailed statement. — Reuters

LT Group’s board approves P2-B share buyback

LT Group, Inc. is planning to buy back up to P2-billion worth of shares from the stock market until the end of next year.

In a disclosure to the stock exchange yesterday, the Lucio C. Tan-led company said its board of directors had approved the share buyback program which will start next Friday, March 20.

“[T]he board approved the corporation’s buyback program for the purpose of purchasing its shares from the Philippine Stock Exchange (PSE) starting Mar. 20 until Dec. 31, 2021 for an amount of not more than P2 billion from its unrestricted retained earnings…,” it said.

It added these shares are intended to be resold to the market “when it is beneficial to the corporation.”

Shares in LT Group gained 11 centavos or 1.34% yesterday to close at P8.31 apiece. This is a 53% drop from its 52-week high of P17.60 per share.

Buyback programs are commonly done by companies to preserve share price when they think their shares are undervalued.

Aside from LT Group, companies that have announced approving share buyback plans or have increased the amount of existing programs are Robinsons Retail Holdings Inc., Megawide Construction Corp., Metro Pacific Investments Corp. and Ayala Land Inc.

The market has been highly volatile in recent weeks, falling to bear market territory this week after closing at 6,312.61 on Monday. The Philippine Stock Exchange index picked up 34.88 points or 0.55% yesterday to settle at 6,353.26.

Earnings of LT Group grew 17% to P14.72 billion in the nine months to September 2019, while total revenues increased 27% to P68.86 billion. — Denise A. Valdez

Apple sells fewer than 500,000 smartphones in China in February amid coronavirus spread

SHANGHAI — Apple sold fewer than half a million iPhones in China in February, government data showed on Monday, as the coronavirus outbreak halved demand for smartphones.

China placed curbs on travel and asked residents to avoid public places in late January, just ahead of the Lunar New Year festival, a major gift-giving holiday. Those restrictions stayed largely in place through most of February.

In total, mobile phone brands sold a total of 6.34 million devices in February in China, down 54.7% from 14 million in the same month last year, data from the China Academy of Information and Communications Technology showed (CAICT).

It was also the lowest level for February since at least 2012, when CAICT started publishing data.

Shares of the iPhone maker fell about 6% amid a broader slump in Wall Street on rising fears of a recession due to a steep fall in oil prices and the fast-spreading virus.

“While this is very nervous time…we caution that Chinese demand in the March quarter is not the trend, but a ‘shock event’ that we believe will be short lived,” Wedbush analyst Daniel Ives wrote in a note.

Android brands, which include devices made by Huawei Technologies and Xiaomi, accounted for most of the drop, as they collectively saw shipments decline from 12.72 million units in February 2019 to 5.85 million, the data showed.

Shipments of Apple devices slumped to 494,000, from 1.27 million in February 2019. In January, its shipments had held steady at just over 2 million.

Research firms IDC and Canalys previously forecast that overall smartphone shipments would drop by about 40% in the first quarter as the virus outbreak hit demand and disrupted supply chains.

Apple’s branded stores in China were shut for at least two weeks in February as fears over the epidemic mounted.

The company’s chief executive, Tim Cook, wrote a letter to investors that month warning it would not meet its initial revenue guidance for the current quarter due to weak demand. — Reuters

Samar gives up its secrets

By Joseph L. Garcia, Reporter

SAMAR is regularly brought down to its knees thanks to its geographical location, which puts it right in the path of storms, including the long nightmare that was Typhoon Yolanda. And yet, when BusinessWorld spent the last days of February there, it was hard to feel that it was a province that knew hardship. In a carinderia (roadside eatery), a couple feasted on what are considered luxuries in the country’s capital: crabs and upland rice. A member of the tour group, who will not be named, scoffed, “And they call us poor.”

It isn’t an exaggeration when this reporter uses the word “poor.” An article from the Philippine News Agency in 2019 identifies Samar province (also known as Western Samar) as among the country’s poorest provinces in the country. Samar province shares this status with its neighbors on Samar Island, Northern and Eastern Samar.

BusinessWorld was on a trip to Samar province because of the provincial government’s launch of its project, Secret Kitchens of Samar. The project aims to make Samar a culinary destination, tied to the local government’s Spark Samar development program, which once aimed to boost tourism in the province. In the process of developing tourist spots and highlights in the province, they also managed to change the face of the province bit by bit. The project was started by former Governor and now Representative Sharee Ann Tan, and is being continued by her brother, the present governor, Reynolds Michael Tan (whom people fondly call Mike). Just in his 30s, he ascended to the position after his mother, Governor Milagrosa Tan, passed away late last year. He was then sitting as vice-governor.

At a dinner with the provincial officers, Tourism Operations Officer John Michael Cristobal (also called Mike) happily announced that the poverty incidence within the province has dropped to 22% from a figure of 43.9% in 2015, and 32.2% in October 2019 (the last two figures are from the Philippine Statistics Authority).

BusinessWorld then got a taste of the riches this poor province may have to offer, honoring its efforts to get up from its knees.

AGRICULTURAL PRODUCTS
Our very first stop was the Sta. Rita Food Processors’ Association, located behind a church. It began as a project of the Department of Trade and Industry (DTI) to help Samarnon (what the citizens of Samar are called) women rise up from the ravages of Yolanda. Others were taught crafts, but this group from Sta. Rita was taught how to make chips from karlang, a humbler cousin of taro. Karlang used to be converted into animal feed, but after being taught to wash it several times, and fry with garlic or other flavorings, the women have managed to turn them into chips that remind one of Pringles. Help from the DTI is key: several more of the small businesses we would see during the tour would thank various government agencies such as the Department of Agriculture (DA), the Department of Science and Technology (DoST), and the Department of Tourism (DoT).

It is said that a word is invented because society has a need for it: it’s the same reason we have different words for rice, like in its seed form, or what it’s called after it’s cooked (palay vs. kanin). It’s no surprise then, that we encountered several words that reflect several variations of food, though they belonged to the same family. An example would be the various kakanin (snack food) we saw in the municipality of Pinabacdao. There’s the plain nilupak made of cassava, but then there was sagmani, made of taro and nuts. Cassava, meanwhile, is processed into thin sheets and fried, resulting in a crispy sheet called piking, topped with coconut sugar. Other towns we visited also had various desserts made out of crispy, toasted rice, while another town boasted its own cheesemaker and tablea (chocolate) maker. Mayette and Norbing Bernales showed us how they processed the tablea, shoving cocoa beans into a roaster — the noise made us lose part of the process as she explained it, but she showed us a metal bowl that contained the sticky and shiny penultimate step, just waiting to be molded and cooled. Mrs. Bernales also showed us how she made the province’s version of cheese, keseo, made of carabao’s milk curds in vinegar, then molded into discs. While the recipe is from her mother, another government agency helped her formalize the process. They were happy to tell us that the provincial government was kind enough to sponsor their trips to the capital during trade fair season, but Mr. Bernales said that since they’ve had a measure of prosperity, they’ve begun to pay their own way.

LIVESTOCK
As we moved closer to the provincial capital of Catbalogan, we began to see how the wealthy of Samar entertained. Juliana Samson, descended from an old Samar clan, welcomed us into her home. She told us how to make tamalos, a pork and peanut dish served at fiestas. While her large sapphire earrings gleamed, she cooked the pork in a process akin to making an adobo (a stew made with vinegar). She took the pork out after about an hour of cooking, and used the dark brown broth from that to make a peanut sauce, mixing it with homemade peanut butter. This is mixed with rice, wrapped in banana leaves, and then steamed — kind of like tamales, except tamales is made with corn. The result is kind of like kare-kare (a stew with peanut sauce), but with more flavor, and an interesting, congealed texture. A version without steaming is called pinipian, which was served to us in chafing dishes at dinner at the hotel we stayed in, Alfreda’s Bed and Breakfast. Once a house occupied by a provincial governor, the rooms are decorated in mid-century style, and display his family’s academic achievements: from the Ateneo de Manila to the University of Pennsylvania.

Meanwhile, two descendants of the local Piczon family, the Paleyan siblings Mary May and Gilbert, showed us how to make bola catalana, yet another festive pork dish, made with ground pork wrapped around sausage and eggs, mixed with pickle relish and cheese. The difference of this dish from more familiar meat loaves is that this is wrapped in lace fat, a membrane that surrounds the internal organs of some animals. This creates a crispy crust around it, like bacon.

Meanwhile, further from Catbalogan and closer to the sea, we met Leonora Nono, a retired principal who showed us how to make humba. While humba in other provinces is sort of like adobo but with black beans, this one from Samar is made with peanuts. She cooked it in an old clay pot, which is, just like the recipe, passed down from one generation to another (she has since lost the lid though).

And thus we began to ask why the project was called the Secret Kitchens of Samar. The governor told us that it is to be developed into a brand with a yellow and purple “S” seal, with about 10 products which were slated to launch on March 12 — the coronavirus scare has dampened those plans, as the event in Shangri-La Plaza in Metro Manila was postponed, according to a statement from an agency. Mr. Cristobal told us, “It comes from the idea that normally, our elders here, when they cook, they’re alone. They close the doors, the windows. They don’t really share their recipes.”

Karina Tiopes, Director, Department of Tourism Regional Office VIII, added, “The recipe is handed down from generation to generation, to select members of the family.” In jest, she then pointed to one of her colleagues and said that he wasn’t able to inherit his grandmother’s recipe for yet another pork dish. (No prizes for guessing that pork and peanuts are popular here).

I will tell you now though that one of my personal highlights of the trip was sipping and nibbling on an exceptionally fine tinola (light chicken stew) from Calbiga. It was cooked in a pot, boiled with just ginger, turmeric, and lemongrass. It was special, not only because the broth was fine, clear, and tasty, but because the tour party had this served amidst the roaring Lulugayan Waterfalls, a local tourist spot, refurbished with a viewing deck and improved roads.

SEAFOOD
The improved roads didn’t reach the municipality of Pagsanghan, one of our stops. The journey for these wretched crabs took an hour and 45 minutes on a rough road traversing a mountain, that may make you want to grit your teeth and purse your lips.

But I take it back. Those crabs were not wretched. Perhaps it was the long journey on an empty stomach, but the mud crabs served in the municipal hall was one of the best meals I’ve ever had. The town credits its seafood bounty to the fact that it is situated on brackish water, and the mix of saltwater and fresh results in their seafood grows better than the rest.

In the town of Jiabong, meanwhile, nearer the sea, mussel farmers showed us their wares. The green shellfish grow on bamboo stilts, which seem miniscule on land. “Oh, that’s just one of them,” said one farmer. We were shown how the mussels are grown: in tent-shaped bamboo structures several feet high and wide. They’re planted in the sea so the mussels could spawn on them. Boats travel around from structure to structure during the day to scrape off the mussels, and then the shells are brought to shore to be sold. It was in this town that we encountered barbecue made of mussels (served on a stick) and mussels adobo (a lovely and spicy preserve in oil).

We also went to a tinapa maker, who showed us how he made the smoked fish by first cooking it in brine, then smoking it over bamboo shavings. The fish were beautiful in the sunlight, the skin radiating an iridescence that disappears in the smoking process. The people there said that they started in the 1970s, their parents migrating from Cavite. The fishing boat that brought them a measure of wealth in the 1970s disappeared, which was why the family learned how to make smoked fish. In a story that echoes in the fishing villages ravaged by typhoons, a family member said, “Sa dagat siya nadapa. Doon rin siya bumangon (She fell in the sea, and in the sea, she rose again).”

INFRASTRUCTURE
If all the roads in Samar were like those we were on, on the way to Crab City, then the Secret Kitchens of Samar, will remain well, secret. Governor Tan told us that unfortunately, that road is the only one they haven’t finished, and when the funds from the national government arrive, construction will continue. “The roads here, to the municipalities, are concrete, except for Pagsanghan. What we’re doing is to connect all the barangays.”

One can take roads for granted, but roads function just like veins to the heart. Without them, communities can die at a slow pace — or as quickly as possible. Mountainous Samar province has a problem with the militant New People’s Army. The provincial government says that in a series of peace talks, it found out what they were so angry about: roads.

“The reason why they go to the mountains is because there are no access roads; they don’t have opportunities,” said Governor Tan in a mixture of English and Tagalog.

“Through tourism, they get their roads, they’re given opportunities,” he said, citing success stories such as former combatants turning into tour guides, or opening their own local businesses. He also announced that an airport will be built in the provincial capital of Calbiga, which he hopes would be open and operational by the end of the year.

Roads make it easier for everyone. The path to Lulugayan Falls once took four hours: both for locals in the capital and even those who live near it. After roads were built to make the falls more accessible, not only were tourists able to reach it more easily, but the farmers who lived near the falls were able to bring their crops to town, bringing down both cost and prices. We go back to the original project, which was only supposed to boost tourism: “It’s not about tourism alone. It’s [already] a development agenda,” said Governor Tan.

Financial firms around the world ramp up their contingency plans as coronavirus hits

FRANKFURT/NEW YORK — Banks and other large financial companies in major cities across the world ramped up their emergency measures to combat the spread of the coronavirus on Tuesday, with Barclays Plc and BlackRock, Inc. confirming one case in their New York offices.

The steps including telling staff who had been exposed to someone with the virus to self-quarantine for 14 days, splitting operations so that some staff work from home or back-up locations and deep cleaning offices.

Barclays told staff on Tuesday that a trading floor employee in its Midtown Manhattan office tested positive for the virus and told employees who worked near or met with the individual to self-quarantine, according to a memo seen by Reuters.

Morgan Stanley also confirmed that an employee at its Purchase, New York, campus, roughly 45-minutes north of Manhattan, tested positive for the virus.

A BlackRock employee in its 40 East 52nd Street office in New York informed the company on Monday evening that they had been diagnosed with COVID-19, according to a spokesman. The employee had no symptoms, but the company did a deep clean and close colleagues were told to work from home for 14 days, the spokesman said.

The asset manager said business continuity plans were working, including provisions for teams to alternate working from the office and from home to limit exposure.

Starting Wednesday, Citigroup Inc. will divide its entire North America work force into two groups that will alternate working from the office and other places in one-week shifts, according to a source familiar with the plans.

Trading staff will largely report to backup sites and other teams like communications will work from home during off-weeks, the sources said.

Similar arrangements could pose risks for markets continuing to function smoothly, analysts said.

“With several large dealers having announced split staffs and widespread work from home arrangements, we believe markets are about to experience arguably the most significant large-scale operation risk event since 2001,” JPMorgan fixed-income market strategists wrote in a note on Tuesday.

EUROPEAN CASES
In Europe, Deutsche Bank and BBVA reorganized operations after employees were infected.

Deutsche Bank has split some of its trading operations across sites in Frankfurt, while Spain’s BBVA has shut one building at its headquarters in Madrid.

The spread of the coronavirus is increasingly disrupting financial companies’ operations and adds to the impact of a weaker economy on their businesses.

“Banks will see a weakening of their loan book quality as the effects of the virus will reduce global travel and factory output, and dampen domestic demand in Europe,” Moody’s analyst Bernhard Held said.

Private equity firm KKR & Co. Inc. said late on Monday that an employee at its London office had tested positive, causing it to temporarily close both its sites in the city.

Standard Life Aberdeen said on Tuesday it was planning to split its British and US investment teams into groups and have them work separately as part of contingency planning.

Traders at the world’s biggest banks began last week swapping their plush city center offices to work from suburban outposts in New York and London, facing lengthy commutes as their employers attempt to reduce the disruption caused by coronavirus.

The measures by Deutsche on Tuesday are expected to affect dozens of people and last until at least March 27. The bank also split some operations in London on Monday, following similar moves in places including Italy and China.

“We expect no impact on our ability to operate our full range of services for our clients and recognize that this setup will require extra effort and discipline from all,” Deutsche said in a memo to staff. — Reuters

Robinsons Land board clears P15-B fixed-rate bonds

ROBINSONS Land Corp. (RLC) has gained approval from its board of directors to issue up to P15-billion fixed-rate bonds.

In a disclosure to the stock exchange Tuesday, the Gokongwei-led property developer said its board of directors had given the nod for the company to issue peso-denominated bonds.

The issuance will have an aggregate principal amount of P10 billion with an over-subscription option of up to P5 billion.

RLC did not give further details as these are yet to be finalized.

“(The issuance is) subject to the requirements of the Securities and Exchange Commission and the rating process of the Philippine Rating Services Corporation,” it said. “Further details on the offer will be made available to the public once finalized.”

RLC handles the real estate and hotel business of its parent firm JG Summit Holdings, Inc. It reported a 6% increase in net income last year to P8.69 billion, driven by a P1.02-billion jump in revenues to P30.58 billion.

Shares in RLC at the stock exchange gained 95 centavos or 4.75% to close P20.95 apiece yesterday. — Denise A. Valdez

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