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Singapore’s Temasek offers to take control of Keppel for about $3 billion

SINGAPORE’S Temasek Holdings Pte plans to take control of Keppel Corp. for about S$4 billion ($3 billion) and undertake a review of the oil-rig builder’s business that could involve a board shakeup.

The state-backed investor, which already owns about one-fifth of Keppel, offered to buy an additional 30.6% stake at S$7.35 a share, according to a statement Monday. That’s 26% higher than what Singapore-based Keppel traded at before its shares were halted, pending the announcement.

Becoming the majority owner of one of the world’s biggest oil-rig makers would be seemingly at odds with Temasek’s preference to steer away from fossil fuels; the firm decided against investing in Aramco’s IPO in part over environmental concerns.

But taking over Keppel could open a variety of profitable merger, acquisition and divestment options that may help improve the builder’s financial and environmental sustainability amid falling revenue and rising capital demands.

“The partial offer reflects our view that there’s inherent long-term value in Keppel’s businesses, notwithstanding the challenges presented by the current business and economic outlook,” Temasek International President Tan Chong Lee said in a statement.

SEMBCORP MARINE
Temasek’s offer for the additional interest in Keppel could make a merger between Keppel’s offshore and marine unit and rival Sembcorp Marine Ltd. easier, Joel Ng, an analyst at KGI Securities Co. said by phone. It would allow the consolidation of Singapore’s two largest shipyards to proceed, he added in a note to clients.

“Temasek is already a major shareholder of Sembcorp Marine, and after this, they will become a major shareholder of Keppel making any merger easier,” Ng said. Sembcorp Marine rose as much as 12%, while its parent Sembcorp Industries Ltd. jumped as much as 9.6%.

Temasek said it plans to keep Keppel traded on the Singapore stock exchange. Keppel also has businesses involved in real estate and infrastructure, and the entire company is subject to a “comprehensive strategic review” with the objective of creating “sustainable value” for shareholders. That shakeup could lead to new directors on its board, Temasek said in its statement.

“The S$7.35 offer made by Temasek is a sign of where it sees value and potential in Keppel’s main segments, real estate and offshore and marine, especially given the fluctuation in the oil price recently,” Justin Tang, head of Asian research at United First Partners, said. “Sembcorp Marine shares are rising — it’s a view on the sector,” he said.

ENVIRONMENTALLY MINDED
The bid for control could also help Keppel fund Temasek’s preferred change in strategic direction. It needs to find capital for a range of projects, from becoming more palatable to environmentally minded clients to the 5G expansion of M1 Ltd. — the Singaporean telecoms company it helped acquire.

Temasek International investment group joint head Nagi Hamiyeh last week told Bloomberg News the company did not expect oil to be an ideal investment in the foreseeable future. When asked what this meant for Keppel, before Monday’s announcement, he said portfolio companies were looking at ways to “re-purpose some of their businesses to try and grasp the demands of tomorrow, such as potentially floating data centers, offshore wind platforms and others.”

The deal is subject to pre-conditions, which include regulatory approval around the world and the consent of counter-parties to material contracts. The deal could also be called off if Keppel’s financial performance and condition deteriorate “meaningfully” before the transaction is completed.

Morgan Stanley is acting as Temasek’s sole financial adviser. — Bloomberg

Gov’t partially awards T-bills as bets on RRR cuts affect demand

THE GOVERNMENT made a partial award of the Treasury bills (T-bills) it offered yesterday, rejecting all bids for the shortest tenor as rates climbed amid rising expectations of another cut in banks’ reserve requirement ratios (RRR).

The Bureau of the Treasury (BTr) raised just P12 billion via the T-bills out of its P20-billion program, even as the offer was almost three times oversubscribed, with tenders reaching P59.8 billion.

The Treasury did not award any three-month papers as its rate climbed. Total bids amounted to P21.65 billion versus the government’s P8-billion offer.

Had the government made a full award of the 91-day T-bills, its average rate would have climbed to 3.122%, 12.7 basis points (bps) higher than the 2.995% fetched during the Oct. 8 auction.

Meanwhile, the government awarded P6 billion as planned in the 182-day T-bills out of bids worth P16.41 billion. The tenor’s average rate inched up by 0.3 bp to 3.174% from the 3.171% recorded previously.

For the 364-day papers, the Treasury likewise borrowed P6 billion as programmed as the tenor attracted demand worth P21.72 billion. The yield on the one-year papers went down by 0.1 bp to 3.576% from the 3.577 seen during the last auction.

At the secondary market on Monday, yields on the three-month, six-month, and one-year T-bills stood at 3.165%, 3.299%, and 3.648%, respectively, based on the PHP Bloomberg Valuation Service Reference Rates.

Following the auction, National Treasurer Rosalia V. De Leon said the market flocked to the longer T-bill tenors after Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno hinted that the Monetary Board may cut banks’ reserve ratios further before the year ends.

“I think there’s really now a move going to the longer tenors, so we expect siguro na for the bonds, [we might see]…higher subscription. Given the lower rates, they’re going for the higher yields so they’re maximizing it also. Tapos (And) there’s another announcement on the (triple RRR cut),” Ms. De Leon told reporters.

The official said the auction committee rejected all bids for the three-month papers as the rates fetched were even higher than prevailing yields at the secondary marker.

“There’s really no reason why we should be accepting because of the higher rates for the 91-day,” Ms. De Leon said.

With the upcoming 100-bp cut in banks’ RRR next month, anticipation of additional reductions within the year, as well as the huge volume of government securities maturing in November, Ms. De Leon said the market will be “flush with liquidity.”

Robinsons Bank Corp. peso debt trader Kevin S. Palma said the auction results were “expected” as yields moved sideways, adding that investors favored longer tenors in anticipation of another RRR cut.

“Results were very much in line with expectations with yields just trending sideways from previous auction and moved in line with its respective secondary market counterparts. Despite the rejection on the 91-day tenor, healthy demand still met the auction as investors favored the longer end of the curve due to possibility of another RRR cut within the year,” Mr. Palma said via phone message.

“Reinvestment requirements from P24-billion T-bill maturities for the remainder of the month have propelled demand for this auction further,” Mr. Palma added.

BSP Governor Benjamin E. Diokno earlier said the central bank may consider another RRR cut after the cumulative 300-bp reduction for the year thus far, depending on relevant data expected to be released next month and in December.

The BSP announced last month that it will reduce lenders’ RRR by another 100 bps effective November to bring the reserve requirement of universal and commercial banks to 15% from 16%. The reserve ratios of thrift banks will also be cut to five percent from the current six percent, and to three percent from four percent for rural and cooperative banks.

The central bank last week said it will likewise cut the RRR for bonds issued by banks and quasi-banks to three percent, down by 300 bps from the current six percent, effective next month.

It said the move is “part of its commitment to contribute to deepening of the local debt market.”

On the other hand, the BSP chief said the central bank is likely done cutting policy rates for the year.

The government is set to borrow P220 billion from the local market this quarter, broken down into P100 billion in T-bills and P120 billion via Treasury bonds.

2020 BORROWING PLAN
Meanwhile, Ms. De Leon said that they will maintain a 75:25 financing mix for next year in favor of domestic lenders, with P3.5 billion of this via offshore commercial borrowings, excluding program loans and official development assistance.

Economic managers have set a P1.4-trillion borrowing program for 2020, higher than the P1.189 trillion the government is planning to raise this year from local and foreign sources to finance its budget deficit, which is expected to widen to as much as 3.2% of gross domestic product.

Wala pang breakdown (There’s no breakdown of the program yet). [We’re considering] dollar, and then the yen, samurai and then the euro (bond markets),” Ms. De Leon said.

Asked if the US bond market will be the first in their borrowing program for next year, she said, “Yes, I mean, if you follow the pattern, that would be the schedule.” — B.M. Laforga

NEOCOLOURS: Tuloy Pa Rin ang Banda

By Susan Claire Agbayani

SOCIAL MEDIA Consultant Chat Shaw (not her real name) was enrolled in SLU Girl’s High when she watched the all-male band Neocolours at the University of Baguio in Baguio City in 1989, three decades ago.

“I was with my barkada, screaming ‘Itoooooooooo!’” she commented on a Facebook post. The subject of their adulation: the band’s vocalist Ito Rapadas, who is now Overall Supervisor of Music Production at Universal Records, one of the recording companies owned by the Dy family.

He and keyboardist and fellow composer Jimmy Antiporda, and 2nd keyboardist Marvin Querido last week announced a rare Neocolours reunion concert titled Tuloy Pa Rin ang Banda at Music Museum on Nov. 16 with their contemporaries, The Dawn vocalist Jett Pangan, Miss Saigon alumna Jamie Rivera, and the younger singer Nicole Laurel Asensio of Laurel and Asensio clans, local music royalty.

Speaking at the press conference at JKAS on Congressional Ave., Quezon City, Mr. Rapadas noted the very good and positive reviews Mr. Pangan has been getting for his recent performance in Sweeney Todd, and said, “We are so proud and honored to have Jett join us on the show, as well as the two ladies. There are many possibilities for the night, so it’s going to be exciting. It’s gonna be a fun night,” he said.

WHERE HAVE THEY BEEN?
The Neocolours members have been blessed to have had some success in their careers independent of the group, said Mr. Rapadas. They don’t really have a “pwesto” (regular spot) and they don’t really plan their life as a band with regular gigs, making this reunion concert special. He however said that “(While) we don’t have any intention to go on and on and on, we hope we can continue to perform together.”

Neocolours evolved from Watercolours, a vocal ensemble put together by singer Celeste Legaspi.

“We have had relative success with our respective music careers. That’s something we didn’t have before, when we were starting out as a band (in 1987). Now, we… have the benefit of a track record,” Mr. Querido said.

Mr. Antiporda remarked, “We were so blessed we had hit songs that sustained Neocolours. That’s why in 1999, we had a reunion with the Emerge album. Every now and then, we (regroup),” he said.

Mr. Querido, who had missed many of the band’s “reunion” concerts, is a sought-after musical director who has worked with Martin Nievera, Billy Crawford, Daniel Padilla, Vice Ganda, and Anne Curtis. He arranged the song “Ikaw Lamang” which was recorded by Janno Gibbs and Jaya, and “Kunin Mo Na Ang Lahat sa Akin,” which was popularized by Angeline Quinto.

Mr. Antiporda, on the other hand, decided to focus on raising a family when his first child was born in 1993, and now has five children with Cymbee Antiporda. He is a successful producer and composer of jingles for commercials on television and social media, and has also directed commercials.

Joining them at the concert are Neocolours’ bassist Paku Herrera, and the band’s original guitarist, Josel Jimenez, who has been based in Davao since he left the band early on (guitarist Jack Rufo can’t join them).

When Mr. Jimenez flies in from Davao to perform with the band at the Music Museum, the audience can look forward to the “iconic guitar solos of Neocolours” and even songs the members wrote for others, like “Cold Summer Nights” (which Antiporda wrote for the late rapper Francis Magalona), noted Mr. Antiporda.

Unfortunately, drummer Nino Regalado has another gig on the same date with The Clash.

MUSIC LIVES ON
Among the band’s hits are “Kasalanan Ko Ba?,” “Maybe,” “Say You’ll Never go,” and “Hold On,” but the biggest hit was “Tuloy Pa Rin.”

Thankfully, their hit songs have been remade by other — even more popular — artists, something which was “never part of the intention,” Mr. Querido said.

Millennials have creating cover versions of the song “Tuloy Pa Rin” on YouTube. It has been used as a theme song for both TV shows and movies, but perhaps its most popular use was by a fastfood chain.

This continuing popularity in new mediums has been a boon, with Mr. Rapadas noting that “Kumikita ang songwriters (songwriters earn) through publishing. Lalu na kapag (especially) naka-monetize sa YouTube, automatic ang advertisements ng mga (of) high-streaming songs, kine-claim ng FILSCAP (they are claimed by the collecting society of composers).”

“We are so happy that they still remember our songs… That they are good enough to be covered. We’re proud and grateful to artists who cover our songs. Nabibigyan talaga ng buhay (It gives the songs a new lease on life),” Mr. Rapadas said, even as he noted that, “Hindi alam ng mga bata na kami ang original (The kids are unaware that we originally performed these songs).”

Rapadas wrote “Sa Kanya” for Ogie Alcasid, but it has also been covered by Zsa Zsa Padilla, and MYMP. He noted that “Mataas rin ang numbers n’on sa Spotify (Its numbers are still high on Spotify).”

In a chat via FB Messenger, Rapadas noted that while the fans of Neocolours used to be female, the number of male fans are increasing.

“According to Spotify analytics, most of our listeners are male, 30 years old and above. Nakakagulat (that is surprising). Many male supporters tend to focus on the music playing and arrangement of the ballads. They like guitar solos and keyboard playing. They are probably amateur and pro musicians,” he said.

Concert goers can expect to hear the songs in their original versions. “We’re actually trying to make it sound the way it was back then. Kung papano namin ginawa (The way we did it),” Mr. Querido promised at the press con.

THE NEXT GENERATION
Mr. Querido said that while his kids “can play musical instruments,” he never pressured them into becoming professional musicians. Mr. Antiporda, on the other hand, advised his kids, “If you really want (to go into) it, you really have to exert time and effort to write songs. Learn a lot not only from me, but listen to the ‘old stuff,’ attend workshops.”

Recently, Antiporda “lost” to one of his children whose composition/study was accepted as a jingle for a commercial (beating the other members of the family). He was the “overall producer.” He noted that “They have their own sound.”

He recently co-wrote “Kapit Lang” with his daughter Athena for Lance Busa, one of the three finalists of Pinoy Idol. “She is a songwriter. She really writes lyrics well. She also arranges,” the proud father beamed.

Waterfront chair passes away

RENATO B. Magadia, chairman of listed firms Waterfront Philippines, Inc., Metro Alliance Holdings & Equities Corp. (MAHEC), Acesite (Phils.) Hotel Corp. and director of Philippine Estates Corp., had passed away at the age of 82.

The companies announced his death in separate disclosures to the stock exchange on Monday. No new appointments have been made to replace him in his vacated positions.

Waterfront Philippines Independent Director Sergio R. Ortiz-Luis, Jr. told BusinessWorld Mr. Magadia has been “in and out of the hospital for a month” until his passing.

Mr. Magadia held positions in various companies until his death. In the Gatchalian-led Waterfront Philippines, Mr. Magadia has been a member of the board of directors since April 1999.

In MAHEC, Mr. Magadia was chairman of the board since 1999 and served as its president starting 2001.

He was elected vice-chairman of Acesite Phils. in June 2004 and led the risk management committee of the company as its chairman.

Aside from positions in listed firms, Mr. Magadia was also chairman of ZetaMark, Inc. and Mabuhay Vinyl Corp. In his earlier years, he led pharmaceutical firm Zuellig Corp. and held board memberships in various gaming, lodging and restaurant companies.

Mr. Magadia is a certified public accountant who earned his degree in Business Administration major in Accounting from the University of the Philippines Diliman. — Denise A. Valdez

How big data may help solve Metro Manila’s traffic problem

WITH mounting woes from commuters every single day, the government is now up and about in finding ways to solve traffic in Metro Manila. World-renowned architect Jason Pomeroy suggests one solution for this — big data analytics.

Mr. Pomeroy in an email interview said that setting up a digital command center can improve the efficiency and productivity of cities, especially in terms of easing traffic congestion and facilitating information flow on natural disasters.

He cited the case of the Indonesian city of Bandung where pollution, traffic congestion, and overcrowding are similar to what is happening in the Philippine capital.

“The city officials in Bandung provided a ‘digital conduit’ to the social media exchanges amongst the city’s population into one central command center. The filtered information allowed the municipality to identify and announce the occurrence of floods, pollution, traffic jams or other city related woes, and deploy resources efficiently to deal with such issues,” Mr. Pomeroy explained.

This way, citizens will also feel more engaged in finding solutions to free up the city’s roads.

In addition to a command center, Metro Manila could benefit from giving back the streets to the people, just like what city officials in Barcelona did.

“City officials in Barcelona reclaimed the streets for its people by creating ‘Superblocks’ that were pedestrianised and thus free from the congestion and pollution of cars. Such spaces were turned over to residents to create mixed-used public places for social interaction,” Mr. Pomeroy said.

The architect, who is known to promote sustainability features in his designs, also said the metro can do well to create more communities near the harbor of Manila Bay through what he calls a “Pod Off Grid.” This is a low-energy waterborne community prototype that looks to provide an alternative to the widespread urbanization of major cities around the world.

“If we can facilitate the creation of communities near the harbor of Manila Bay, we will be reducing the pressure on the land in the city area to a huge extent. If we transfer some communities to living on the water and create floating communities, we will be reducing congestion on the land and ease off the pressure in a myriad of ways,” Mr. Pomeroy said.

For these changes to happen, Mr. Pomeroy said that civil society, the academe, government, and the private business sector should work together as soon as possible.

“Academia needs to come together to test those ideas and thoughts through an evidence-based approach to justify ‘the proof of concept.’ Corporations can build upon such research — born out of the people’s needs, and then seek to implement through a government ratified process.” — Arra B. Francia

Japan banks to undergo stress test to prepare for crisis

TOKYO — Japan’s major financial institutions are set to undergo a stress test to prepare for any major shakeout in financial markets in light of worries about a global recession and a protracted Sino-US trade war, sources with direct knowledge of the matter told Reuters on Monday.

The stress test will be overseen by the Bank of Japan and the Financial Services Agency (FSA), which will assess the results to see how capital and liquidity on-hand would be affected at Japanese financial firms if stocks took a tumble and the yen spiked, the sources said.

It wasn’t clear when the test will be conducted, they said, but noted it marked the first time the BoJ and FSA were closely coordinating to manage the process.

Previously, each financial institution has drawn up their own scenarios when conducting stress tests, the results of which were examined by the FSA.

Seven Japanese institutions will be subject to the stress test, including the three mega banks designated as G-SIBs, or global systemically important banks, and four other domestic systemically important banks dubbed D-SIBs.

None of these institutions will likely be required to beef up their capital, but they may be urged to improve any shortcomings as a result of the stress test, the sources said.

The FSA and the BoJ have stepped up coordination lately. Last month, the two embarked on joint investigation into surging investments in collateralized loan obligation. — Reuters

PHL, Malaysia ban Abominable

FOLLOWING VIETNAM’s lead in banning DreamWork’s animated feature Abominable over a scene showing China’s controversial “nine-dash line map,” the Philippines and Malaysia have also banned the film from showing in their cinemas.

In a statement sent to Pilipino Star Ngayon by the Movie and Television Review and Classification Board (MTRCB) on Oct. 17, the board said the film had been pulled out of Philippine theaters on Oct. 15.

“MTRCB understands the situation brought about by the movie Abominable. We wish to assure the public that the said movie is already off the Philippine market effective October 15, 2019,” MTRCB Chairman Rachel Arenas said in the statement.

The movie, about a young girl befriending a yeti, has a scene which briefly shows a map of China’s “nine-dash line” — China claim around 80% of the resource-rich South China Sea, an area which is also claimed by several countries in Southeast Asia including Malaysia, Vietnam, the Philippines, and Brunei. The map was legally invalidated by the Permanent Court of Arbitration at the Hague, the Netherlands in 2016 in a landmark case brought to court by the Philippines.

The film was jointly produced by DreamWorks Animation and Shanghai-based Pearl Studio.

Last week, Vietnam took the lead in banning the film after a public outcry led to Vietnam’s largest theater chain apologizing for showing the film, according to The New York Times, and for the government to review and eventually pull it out.

Universal Studios, the film’s distributor, also abandoned plans to release the film in Malaysia after its censors demanded cuts to remove the offensive map.

“Universal has decided not to make the censor cut required by the Malaysian censor board and as such will not be able to release the film in Malaysia,” a spokeswoman for the film’s distributor, United International Pictures, said as quoted by The South China Morning Post on Oct. 20.

The film was supposed to be screened in Malaysia on Nov. 7. — ZBC

SB Corp releases P40M in loans to Marawi residents

SMALL BUSINESS Corp. (SB Corp), the financing arm of the Department of Trade and Industry (DTI), has released almost P40 million in loans to Marawi City’s internally displaced persons and uniformed personnel to help the city rebuild after the five-month siege in 2017.

“In line with President Rodrigo Duterte’s promise to continue the programs helping our kababayan in Marawi, especially those who have been affected by the siege, DTI will ensure that entrepreneurs will be back on their feet,” DTI Secretary Ramon M. Lopez said.

“Our goal is to bring back the vibrant business of the city, as well as provide jobs and livelihood to Maranaos.”

SB Corp has provided P7.595 million in loans to 457 Marawi entrepreneurs under the Pondo sa Pagbabago at Pag-asenso or P3 program. Each beneficiary availed of loans between P10,000 to P20,000.

Launched in 2017, P3 is a financing program for small businesses intended as an alternative to predatory “5–6” lending schemes.

SB Corp also extended loans to wounded soldiers and the families of those killed in action in the Marawi siege under the Wounded-And-Killed in Action (WIA-KIA), an offshoot program of P3.

As of Oct. 18, P30.92 million has been released to 402 uniformed personnel, with loans ranging between P40,000 to P100,000.

The agency earmarked P50 million in lending for the P3-Marawi program, which includes WIA-KIA.

The loan assistance for Marawi follows Administrative Order No. 03, which mandates the creation of an inter-agency Task Force Bangon Marawi for the recovery, reconstruction, and rehabilitation of Marawi City, including providing livelihood to internally displaced persons in the area.

The DTI leads the business and livelihood subcommittee of Task Force Bangon Marawi, to fast-track the recovery of businesses in the city. — J.P. Ibañez

Federal Land, Orix unveil Ortigas project

FEDERAL Land, Inc. and Japan’s Orix Corp. recently launched a new residential project in Ortigas Center, Pasig City.

The Grand Midori Ortigas, located along Exchange Road, is a high-rise development offering prime units imbued with elegant and functional Japanese design and aesthetics. World-renowned Tokyo-based Japanese architectural firm, Tange Associates, designed the two-tower development.

“With the country’s consistent economic growth as we work towards improving our infrastructure, more investors are keen on establishing a presence in Philippine real estate. We are privileged to have partnered with Tange Associates to once again marry Filipino ingenuity and Japanese discipline,” Tom Mirasol, General Manager of Federal Land, Inc., was quoted as saying.

The first Grand Midori development was built in Makati City in 2011. The 35-storey twin tower project received the Gold Award for Outstanding Developer in the Residential High Rise category during the 2017 FIABCI-Philippines International Real Estate Federation’s Property and Real Estate Awards.

“Similar to its Makati development, The Grand Midori Ortigas evokes a grand yet refined design. Tange Associates’ affinity towards innovative yet functional designs is shown by the weave patterns that adorn the facade of the development. The overall feeling the Grand Midori brand brings a clean and fuss-free lifestyle that truly captures the essence of Japanese living that many aspire for,” the company said.

China unexpectedly keeps LPR lending benchmark unchanged

CHINA unexpectedly kept its new benchmark lending rate unchanged on Monday, but analysts expect further downward adjustments in the coming months. — REUTERS

SHANGHAI — China on Monday unexpectedly kept unchanged its new benchmark lending rate, suggesting Beijing is keen to avoid overly loosening monetary policy for fear it may push up already-high debt levels across the economy.

The one-year Loan Prime Rate (LPR) remained at 4.20%, steady from the previous monthly fixing. The five-year LPR was fixed at 4.85%, unchanged from September.

A Reuters poll last week had forecast the rate would be cut again following reductions in August and last month.

Frances Cheung, head of Asia macro strategy at Westpac in Singapore, said Monday’s decision does not point to an end to the downward adjustment in the LPR.

“That said, the outcome is likely to reinforce the somewhat risk-on sentiment today,” Ms. Cheung said.

“Looking ahead, we still see each monthly LPR re-set as providing an opportunity for a baby-step reduction.”

Investors in China’s financial markets took the rate decision in stride. Benchmark 10-year treasury futures for December delivery, the most-traded contract, were barely moved after the data release.

A separate Reuters poll of 83 analysts showed that the central bank is expected to slash the one-year LPR to 4.00% by the end of 2019, down by 20 basis point from its current level.

The decision to keep the LPR steady came just days after China reported its third-quarter gross domestic product (GDP) growth cooling to near 30-year low.

Economists and China observers say a recent bath of weak data showing a further loss of momentum in the world’s second-biggest economy underlined the need for further monetary policy support.

A bruising 15-month long Sino-US trade dispute was also one of the key factors fueling the easing expectations. US President Donald Trump has outlined the first phase of a deal to end a trade war and suspended a threatened tariff hike, though officials on both sides said much more work needed to be done.

All the same, some policy insiders have said the room for the government to step up stimulus measures could be limited by its worries about rising debt risks and possible property bubbles.

Data earlier on Monday showed new home prices in China grew at a steady pace in September, with fewer cities reporting price gains, giving the authorities some breathing room as they refrain from over-stimulating the property sector.

Beijing has leaned more heavily on fiscal stimulus to address the current downturn, announcing trillions of yuan in tax cuts and special local government bonds to finance infrastructure projects.

Monday’s fixing was the third since the People’s Bank of China (PBoC) unveiled the new lending benchmark, which is set by 18 banks.

The new LPR is linked to the rate on PBoC’s medium-term lending facility (MLF), which is determined by broader financial system demand for central bank liquidity. The one-year MLF rate, last cut in February 2016, now stands at 3.3%.

The PBoC unexpectedly injected 200 billion yuan ($28.29 billion) through MLF loans last week while keeping the lending rates unchanged. — Reuters

Cleaners: Growing pains

By Carmen Aquino Sarmiento

Movie Review
Cleaners
Written and Directed by Glenn Barit

THIS THROWBACK to the pre-touch screen smart phone era, when owning a Blackberry was the ultimate in status symbol gadgetry, evokes the remembrance of things past with relentlessly flickering stop-motion animation throughout its 90 minutes or so running time. The novelty of re-shooting all the grungy photocopied frames wherein the major characters (all unknowns) have been laboriously color-coded in fluorescent marker, gives it the distinction of having what may be the largest carbon footprint, minute-for-minute, since filmmaking went digital. Cleaners should come with a warning that prolonged viewing may induce migraines or even grand mal seizures in those so predisposed.

Structured as an anthology set around highlights of the school calendar, the film is purportedly set in a private co-educational Catholic school in Tuguegarao. It is a fantasy institution, given the absence, indifference, or ineffectuality of teachers and other authority figures, and the lack of realistic consequences for students’ actions.

“Nutrition Month” is a tale of moral come-uppance for the unsympathetically portrayed Stephanie (green), who is unmistakably branded maarte (affected) as she repeatedly expresses disgust over having to sully her hands in the school’s vegetable garden. In case we don’t get that she is a germophobe, she is also repeatedly shown dousing herself with rubbing alcohol, even while fully clothed in the privacy of her bathroom. While performing with her high school dance club for the entire student assembly, she has explosive diarrhea onstage. Instead of running to the bathroom as a sane and civilized person would, she scoots across the floorboards like a sick puppy, the better to spread her fluid bacteria-laden excrement for her oblivious, barefoot fellow dancers to step in. The show must go on.

Then, still eschewing the use of her school’s sanitary facilities, Stephanie races to her class’s vegetable garden, to finish doing No. 2 in a conveniently prepared hole in the ground. She leaves her soiled panty hanging inside out on a papaya plant, like a flag, for further scatological emphasis. It is toilet humor taken to new depths. Her dirty panty remains hanging there until harvest time when succulent papayas, fertilized through her personal efforts, appear. Is the message this sends to the throngs of high school students being taken by their clueless teachers to watch this film: eat s—?

Next is “Buwan ng Wika” where the goody-two-shoes Angeli (yellow) must team up with a very mature-looking Goth triumvirate (orange) for their presentation. The reliance on visual anachronisms such as CDs, or the absurdity of Angeli rehearsing tinikling by herself are a banally soporific stretch. Sketch comedy should be under five minutes. But then, Filipino audiences are suckers for the Tito-Vic-en-Joey schtick and in a collective autonomic reflex, will laugh mindlessly. One wonders how this peculiarly Pinoy humor might translate on international film festival screens.

“Prom” deals with the ostensibly serious issues of teen pregnancy, slut-shaming, and bullying. Francis (aqua) is singled out for being supot (uncircumcised) by a pack of high school alpha males who are inordinately interested in his penis. Helpless before their sheer numbers and superior strength, and unable or unwilling to seek professional help and support, he resorts to performing a DIY pagtutuli (circumcision) with scissors before his tormentors in the school corridor. His member must have been engorged with excitement or arousal, as evidenced by the blood which photogenically sprays the leader’s face. Such crude self-mutilation is supposed to be an admirable act of bravado which the audience dutifully applauds. Francis is presented as a role-model in these times of rising rates of teenage depression/suicide and the popularity of cutting as an expression of adolescent angst.

“SK” examines Philippine social and political structures through the wide eyes of Jun-Jun (purple), the heir to a local political dynasty. His best friend Ramon is a bad influence, an incorrigible juvenile delinquent who spray paints penises in an homage to Netflix’s American Vandal. It turns out that Ramon’s family has been using, rent-free, land owned by Jun-Jun’s family for their pancit batil patong (a Cagayan delicacy) eatery. Nonetheless, Jun-Jun always offers to pay whenever he eats there.

Despite his friend’s obvious decency and the debt which they owe to his family, Ramon continually derides Jun-Jun as a “weak shit” for his reluctance to take part in his nightly spray-painting forays. The one time Jun-Jun gives in, they get caught by the police and, as expected, Jun-Jun’s father who used to be the mayor (a seat his wife is now keeping warm) gets him out of trouble. The daddy mayor is such a loving father that he doesn’t even scold Jun-Jun and assures him he understands that it was all misguided youthful high spirits. Later though, Jun-Jun’s father mentions that he needs the property which Ramon’s family has been using for free for their food business all these years. All good things must come to an end after all.

Jun-Jun repays his parents’ nurturing and his best friend’s insults, ingratitude, and vindictiveness (Ramon has defaced all of the posters of Jun-Jun’s family) by taking the money that his parents gave him for his SK campaign and handing it over to Ramon’s parasitic family. That’s where his loyalty lies. His questionable action is held up as admirable: be the viper in your own family’s nest; bite the hand that feeds you; s— where you eat. Like most of the characters in Cleaners, Jun-Jun clearly needs professional help.

The film’s climax, “Huling Araw,” confirms the poor mental health of the main characters. On the last day of school, they spontaneously screech profanities, ululate, hurl themselves against the walls, roll on the floor, shatter the classroom furniture. No one gets naked though so it all stays PG. Again, no responsible adult intervenes. There are no grown-up’s in the room. It is a teenage sociopath’s fantasy come true.

UBS plans to cut about 40 banking jobs in Asia

UBS GROUP AG is planning to cut about 40 jobs in its market and investment banking teams in Asia-Pacific. — REUTERS

UBS GROUP AG is cutting about 40 jobs in the Asia-Pacific region as part of a global push to trim costs and combine its trading units, according to a person familiar with the matter.

The staff reductions are roughly split between UBS’ markets and investment-banking teams, with a majority at the level of vice-president or below, the person said, asking not to be identified because the details aren’t public. The Asian divisions — led by Hong Kong-based Taichi Takahashi and David Chin — will see smaller cuts than those planned in Europe because UBS sees the region as a driver for growth, the person said.

UBS has embarked on a sweeping overhaul of its investment bank, reshuffling senior management and combining trading operations in changes that may ultimately eliminate hundreds of positions, people with knowledge of the plan have said. Citigroup, Inc., Deutsche Bank AG and HSBC Holdings Plc also are cutting staff to rein in costs as the industry deals with difficult trading conditions, sputtering economies and the impact of trade tensions on cross-border deals.

Mark Panday, a Hong Kong-based spokesman at UBS, declined to comment.

UBS is set to announce its third-quarter results today. While the company’s investment-banking fees fell in both Europe and the US in 2018, they grew 28% in Asia, according to Freeman & Co. The fees totaled $388 million this year through the third quarter in Asia, ranking the region ahead of Europe and behind the US, the consulting firm said.

As part of its global restructuring, Ros L’Esperance and Javier Oficialdegui are being put in charge of the newly named global banking division, which will include public capital markets, private financing and mergers and acquisitions. A combined global markets operation, including equities and foreign exchange, rates and credit, will be run by Jason Barron and George Athanasopoulos.

Greg Peirce is taking over as global head of mergers and acquisitions, the first time that role will be based in Hong Kong, the person said. The Asian staff reductions have already begun, with a fresh round expected later this month, they said.

The restructuring comes as UBS seeks to boost collaboration between dealmakers and its wealth-management unit, while sharpening a focus on industries most of interest to its richest clients. The investment bank’s 10% return on equity in the first half of the year was roughly half that of UBS’s other divisions. — Bloomberg