Mastercard says coronavirus will likely hit its first-quarter revenue by 2-3%

February 26, 2020 | 12:02 am

MASTERCARD, Inc. said on Monday its net revenue in the first quarter will take a hit of between 2% and 3% over its previous forecast if the coronavirus outbreak persists through the quarter.

The company now expects revenue growth between 9% and 10% in the current quarter as the virus impacts travel and e-commerce across borders.

The credit card issuer also expects that net revenue growth on a year-over-year basis in 2020 would be at the low end of the low-teens range if the impact of the virus is limited to the first quarter only.

The company had earlier forecast net revenue growth in low teens for 2020 while expecting revenue to grow in low double digits for the first quarter.

The virus has killed 2,442 and infected 76,936 people so far in China. — Reuters

Ortigas Arts Fest on its 3rd year

February 26, 2020 | 12:02 am

AS PART of Arts Month, the Ortigas Art Festival will be held for its third year.

The festival’s curator is artist Renato Habulan of Eskinita Gallery, and he has put together works by contemporary artists including Arnel Agawin, Julio Austria, Jeho Bitancor, Gala Caki, Reynold dela Cruz, Michelle Dawson, Feliciano Gallardo, Processo Gelladuga, Katrinn Hamann, Sahid Kazi, Leonor RS Lim, Alfonso Medillo, Dengcoy Miel, Rey Padernilla, Made Palguna, Joel Soliven, Art Zamora, and Jose Zulueta.

Works from three galleries will be featured: Eskinita Art Gallery, Kaida Contemporary Gallery, and vMeme Contemporary Art Gallery.

Papelismo Boceto will also showcase 300 works from over 100 artists.

There will be workshops by local and international artists during the festival. Seven workshops await artists of all skill levels. On Feb. 29, there will be a mixed media demonstration by artists Gala Cali, Sahid Kazi, and Katrinn Haman. On March 1, visitors can learn about multimedia from Michelle Dawson, Made Palguna, and Rey dela Cruz.

The first Ortigas Art Festival won the Bronze Stevie for the International Business Awards 2019 — Communications or PR Campaign of the Year as well as a Bronze for the 2019 Asia-Pacific Stevie Awards, for its success in making art more accessible to ordinary people via Estancia’s immersive art rooms that allowed Filipinos to experience global art.

Admission to the festival — which will be held at the newly opened East Wing of Estancia at Capitol Commons starting on Feb. 28 until March 8 — is free. For details follow Estancia at Capitol Commons on Facebook or visit ortigasmalls.com.

Court of Appeals sides with 51 talents of GMA

February 26, 2020 | 12:02 am

THE Court of Appeals (CA) said 51 talents of GMA Network, Inc. are entitled to reinstatement and are found to be regular employees.

In a decision on Feb. 19, the courts’ 15^th division said the talents are entitled to reinstatement without loss of seniority rights, full backwages inclusive of allowance, and all benefits for regular employees of GMA.

The covered period is from the time the talents’ compensation was withheld until their resinstatement. Records of the case were remanded to labor arbiter National Labor Relations Commission (NLRC) for proper computation.

The court said that the talent agreements of the petitioners “clearly show that they are regular employees of GMA and not independent contractors.”

It also said that the network failed to proved that they hired the petitioners because of “peculiar skill, talent, or celebrity that no other ordinary employees possesses.”

“Therefore, it can be inferred that petitioners had all the necessary and basic requirements in the position they applied for, but no unique or peculiar skill, talent, or celebrity status that would separate him or her from the rest of the employees,” it said.

The court ruled that a provision in the agreement provided that the network has the “exclusive and irrevocable” option to renew the contract.

The network’s control and supervision over the works of petitioners showed that they should comply with GMA’s demands.

“Verily, the terms and conditions of petitioners’ Talent Agreements and General Terms show that they are not independent contractors and are regular employees of GMA,” it said.

It also said that the 15 who picketed or protested are not guilty of gross and habitual neglect of duty under the Labor Code as no other instances were presented aside from the days they did not report to work.

The employees who were not renewed are considered regular employees and since their talent agreements promote employee-employer relationship, the non-renewal of their agreement “constituted constructive and/or illegal dismissal on the part of GMA.”

It also said that GMA failed to present proof that other petitioners resigned or refused to accept reinstatement as ordered by the labor arbiter.

Others whom the network claimed were not offered contract renewal due to program changes were likewise illegally dismissed due to GMA’s failure to present any documentary evidence.

Two other petitions were denied.

The petitioners are appealing the 2017 decision and resolution of the NLRC dismissing the complaint for illegal dismissal filed by 35 complainants and directing GMA to return them to their former positions without payment of backwages/fees.

Before this, the labor arbiter in a decision in December 2016 declared the termination of 35 complainants as illegal and ordered the payment of backwages up to their actual reinstatement without loss of seniority rights and other privileges.

The arbiter also ruled then that the termination of 16 other complainants were valid and legal while the two other complaints were dismissed for lack of merit.

Last month, the media company asked the Supreme Court to reverse the appellate’s court separate decision ruling that more than 90 of its talents are regular employees. — Vann Marlo M. Villegas

Peso to weaken further on risk aversion due to virus outbreak

February 26, 2020 | 12:01 am

THE PESO may decline further due to the virus. — *BW FILE PHOTO*

THE PESO may continue to weaken in the coming days over continued risk aversion in the market due to the spread of the coronavirus disease 2019 (COVID-19) outside China and as markets await the release of key US data.

The local unit finished trading at P50.96 versus the dollar on Monday, shedding two centavos from its P50.94 close on Friday, according to data from the website of the Bankers’ Association of the Philippines.

A trader said that the peso’s weakness was on the back of risk-off sentiment from the market with news of more cases of COVID-19 infections recorded elsewhere around the world outside China.

“The local currency weakened as coronavirus concerns intensified after reported cases in South Korea doubled over the weekend as well as new casualties in Iran and Italy,” the trader said in an e-mail. “These reports have spooked investors over the widespread outbreak of the virus outside China.”

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort also blamed the local unit’s depreciation to the developments related to COVID-19 reported on Tuesday.

“The peso was weaker amid increased global market risk aversion largely due to concerns that COVID-19’s spread could lead to volatility declines especially in emerging markets such as the Philippines,” he said in a text message.

South Korea raised its infectious disease alert to its highest level on Sunday as confirmed coronavirus cases in the country jumped. A focal point was a church in the southeastern city of Daegu, where a 61-year-old member of the congregation with no recent record of overseas travel tested positive for the virus.

South Korean health authorities said on Tuesday they aim to test more than 200,000 members of a church at the center of a surge of new coronavirus cases that has taken the country’s tally to 893.

South Korea’s fast-spreading outbreak has fueled fears that the coronavirus, which is believed to have begun in the central Chinese city of Wuhan in December, is developing into a global pandemic.

Of 60 new cases reported on Tuesday, 16 were in the southeastern city of Daegu, where the church is located, and 33 from nearby North Gyeongsang Province, the Korea Centres for Disease Control and Prevention said.

South Korea also reported its ninth death from the virus, a patient from a hospital in North Gyeongsang Province.

In Italy, new cases climbed above 220 while fatalities reached seven. Shares also dropped by more than 5%, which was the biggest daily slip in almost four years as the market worried that the disease could cause a recession.

For today, the trader said the release of some US data could affect trading.

Reuters reported that latest data from the US Conference Board showed that its consumer confidence index increased 3.4 points to a 131.6 in January, the highest reading since August.

The February consumer confidence index report will be released on Feb. 25 in the US.

For the remaining trading days this week, Mr. Ricafort said the market will continue to monitor developments in the COVID-19 outbreak, which will likely guide currency trading this week.

“Major catalyst for the peso would remain to be the developments on the COVID-19 amid continued concerns…that it could slow down global growth and amid some disruption in China’s production and some parts of the global supply chain,” Mr. Ricafort said.

From Wednesday to Friday, the trader said that the peso might move within the P50.50 to P51.20 levels while Mr. Ricafort gave a thinner forecast range of P50.80-P51.20. — L.W.T. Noble with Reuters

Coronavirus, earnings to drive trading at PSE

February 26, 2020 | 12:01 am

LOCAL SHARES are seen driven by investor sentiment on the coronavirus disease 2019 (COVID-19) outbreak amid tempering of the tides by the release of full year 2019 earnings by listed firms.

The benchmark Philippine Stock Exchange index (PSEi) closed Monday’s session down 182.34 points or 2.47% to 7,187.44, as the market moved in sync with the rest of global equities.

Trading at the PSE was closed yesterday due to the anniversary of the EDSA People Power Revolution.

“The COVID-19 is still expected to be the local market’s backdrop for tomorrow,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a text message Tuesday.

“Fears of a global outbreak, already signaled by mounting cases outside China such as in South Korea, is expected to linger,” he added.

South Korea has so far reported close to 900 cases of COVID-19 in the country, most of which are in Daegu City, Reuters reported yesterday. This prompted the South Korean government to do a test of all members of the Daegu church where the disease is believed to have spread from.

But the coronavirus outbreak can still be beaten, the World Health Organization (WHO) said on Monday, insisting it was premature to declare it a pandemic even though it had the potential to reach that level.

“The key message that should give all countries hope, courage and confidence is that this virus can be contained, indeed there are many countries that have done exactly that,” WHO Director-General Tedros Adhanom Ghebreyesus told a news conference in Geneva.

The Philippines is now considering imposing a travel ban on South Korea, which is being assessed by an inter-agency task force. The country has already banned travelers from China, Hong Kong and Macau, and previously Taiwan, but was lifted after it issued threats.

Mr. Tantiangco said the worsening situation of the COVID-19 outbreak across the globe continues to give a downward bias for the market. But if it were to take any cushion for today, he said it is the release of financial results by listed firms.

Scheduled to make earnings announcements today are Metro Pacific Investments Corp. and Wilcon Depot, Inc. Manila Electric Co. also reported its earnings last Monday, and SM Investments Corp., BDO Unibank, Inc. and Manila Water Co., Inc. are set on Friday.

“We have 2019 corporate earnings which is expected to help the market by at least tempering the losses brought by the epidemic scare. Range will be from 7,150 to 7,300 with a possible testing of the lower bound,” Mr. Tantiangco said.

AAA Southeast Equities, Inc. Research Head Christopher John Mangun also said in an e-mail that the market could decline today. He noted trading last Monday saw investors rushing to sell blue chips regardless of demand and price.

“We may see a minor bounce after this massive move lower, however, we believe that this market will continue to display weakness in the near term,” he said. — Denise A. Valdez with Reuters

It’s about time to understand HIV

February 26, 2020 | 12:01 am

By Michelle Anne P. Soliman, Reporter

Theater Review
Under My Skin
By Rody Vera
Presented by Philippine Educational Theater Association (PETA)
Ongoing until March 22
PETA Theater Center, 5 Eymard Drive, New Manila, QC

PETA Theater closes its 52^nd season with Under My Skin, a drama about Filipinos living with HIV.

The show opens with Dr. Gemma Almonte (played by Cherry Pie Picache), an epidemiologist who treats the patients whose stories unfold throughout the play.

The modes different of the disease’s transmission — male-male sexual contact, male-female sexual contact, and sharing of infected needles — are presented through the stories of the HIV positive characters: Dino, a DOTA player who contacts tuberculosis before he learns that he has HIV/AIDs; Mary Rose, who discovers that her young son has contacted the disease after she was infected first by her husband; and a gay couple who learn to look out for each other despite the worsening condition of the infected partner.

The story is told in a straightforward manner. Award-winning playwright Rody Vera’s characters are based on real people and he narrate how one can contract the disease and its treatment.

A large part of the role of Dr. Almonte is to lay out and explain the latest statistics about HIV — aided by projections on terminology and statistical figures. (According to the Global Health Observatory data of the World Health Organization, 37.9 million people worldwide were living with HIV/AIDs in 2018. Data from the HIV/AIDs and ART Registry of the Philippines as of August 2019 states that there have been 70,740 confirmed HIV cases and 3,584 deaths in the country since 1984. Almost half of the afflicted (47%) were between the ages of 25 and 34 years old, and 35% were 15 to 24 years old at the time of testing.)

Ms. Picache (who alternates with Roselyn Perez) gives a realistic portrayal of the doctor who works to change her patients’ mindset and keep them from giving in to panic. Her character also serves as comic relief to heavily dramatic scenes.

The director, Melvin Lee, chose to use a proscenium stage setup in PETA’s black box theater, with an arch separating the upstage area from the downstage area. The flat backdrop is used for the projections on current statistics, videos and visuals of the immune system, and scientific names. Behind the arch hang pieces of sheer white cloth which are used as props — one scene used them for aerial choreography.

Under My Skin concludes on a positive note. It reinforces the importance of looking out for each other and avoiding paranoia.

In a country with the fastest growing rate of HIV cases in the Asia-Pacific region, keeping an open mind and educating ourselves is the only way to fight the virus of ignorance and indifference.

In the words of Dr. Almonte, “Ikalat ang kaalaman nang walang panghuhusga (Spread knowledge without judgement).”

After each performance, discussions with doctors, health practitioners, and representatives from PETA’s partner organizations LoveYourself and The Red Whistle are held. Free HIV screening is also available at the theater lobby.

Also performing alongside Ms. Picache and Ms. Perez are Eko Baquial, Miguel Almendras, Mike Liwag, Gio Gahol, Anthony Falcon, Gold Villar-Lim, She Maala, Mico Esquivel, Bene Manaois, Lotlot Bustamante, Kitsi Pagaspas, Dylan Talon, Ekis Gimenez, Erold Enriquez, Jarred Jaicten, Joseph Madriaga, Jason Barcial, Dudz Teraña, Rachelle Gimpes, Reggie Ondevilla, Roy Dahildahil, and Csai Habla.

Under My Skin has performances until March 22 (Fridays at 8 p.m., Saturdays and Sundays at 3 and 8 p.m.) at the PETA Theater Center, No. 5 Eymard Drive, Brgy. Kristong Hari, New Manila, Quezon City.

For tickets, contact PETA at petatheater@gmail.com, or TicketWorld at www.ticketworld.com.ph and 8891-9999.

US-based ASG targets partners in utilities business

February 26, 2020 | 12:01 am

ASG Technologies Group, Inc. will explore opportunities in the utilities sector this year, beginning with providing advanced automation solutions to water and electricity distribution companies, an official of the information technology systems management solutions provider said.

“We are expecting some traction in the utilities base this year,” ASG General Manager for Asia Pacific Praveen Kumar told BusinessWorld in a recent interview.

He said the company is in talks with a couple of utility firms, which he described as “mostly water-related.”

“We are going to start conversations with one electricity distribution company, which our partners are taking us to,” he said.

He said ASG wants to help those companies automate meter reading by capturing meters using mobile phones and digitize their billing processes.

“The Philippines was one of our best performing countries globally last year, so we had one of our strongest years in the past,” he noted.

“We had Singapore, Malaysia, and India which did very well last year, but the Philippines was the shining star. We almost tripled our revenues and doubled our headcounts. We do plan to add more this year. Of course, it will not be the same as the proportion that we did last year but we do plan to add more,” he added.

Mr. Kumar attributed ASG’s 2019 performance in the Philippines to the “strong growth” in three areas of its business such as enterprise information management, IT systems management, and digital automation platform.

“Across Asia Pacific, our strength lies in the financial sector. Banks and insurance companies control 60% of our customer base and in terms of revenue. For the remaining parts, we have pharmaceuticals and retail and telecommunications companies,” he said.

Mr. Kumar said that in the Asia Pacific region, he expects this year an increase in the utilization of artificial intelligence (AI) and machine learning in the business sector.

He also sees the “rise of development and operations (DevOps) and its role in interrupting the IT status quo.”

There will also be movements toward technology decisions coming from business leaders versus traditional IT channels, he added.

ASG has been in the Philippines for more than a decade. The company has its headquarters in Florida, United States. — Arjay L. Balinbin

Government spending on education ‘disproportionately skewed’ towards children from richest households — UNICEF

February 26, 2020 | 12:00 am

DTI: Car makers can be competitive with incentives

February 25, 2020 | 11:01 pm

TRADE SECRETARY Ramon M. Lopez said that car companies’ Philippine operations can be cost-competitive with incentive programs, after the closure of Honda Cars Philippines, Inc.’s (HCPI) Laguna facility raised questions about domestic manufacturing.

“If they participate in some programs or register for some incentives, pwedeng maging cost-competitive din sila (they can become cost competitive). So iba ‘yung magiging decision nila (And their decision might have been different.),” he told reporters on Monday.

The Comprehensive Automotive Resurgence Strategy (CARS) program offers fiscal support to car companies that invest in domestic production and commit to certain production volumes over six years. Honda was not a participant.

The two biggest car companies by market share — Toyota Motors Philippines Corp. and Mitsubishi Motors Philippines Corp. — have availed of the state support.

Mr. Lopez said that global headquarters of automotive companies make decisions to increase or cut volumes in certain locations, right down to which model is produced where.

“It could also be — dito namin lagay lahat ng production ng ganitong unit. Talagang lalaki ‘yung volume nila and that can be a decision of the company,” he said.

(They could also move the production of certain units in a given country. Their volume there will grow and that can be a decision of the company.)

“Toyota, Mitsubishi… are not leaving because they believe they have so many models, meron silang mas (they have more) profitable models that can help the overall profitability of the operation.”

Following a meeting with HCPI, Mr. Lopez said the decision to close was made by Honda headquarters in Japan after a global slowdown in the auto industry.

Honda had a 5.5% market share in the Philippines last year, with sales falling 12.7% to 20,338 vehicles.

Overall vehicle sales rose by 3.5% to 369,941 units last year, according to the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA).

This signalled a slight recovery after higher excise taxes caused an industry slump in 2018, with total sales falling 16% to 357,410 units.

Mr. Lopez said that the government plans to develop a manufacturing policy that gives preference to locally-manufactured products.

“If you’re talking let’s say of government projects, government-funded, ‘yan ‘yung mga possible measures na pwedeng gawin (that’s what can be done).”

He said the government is developing a campaign to use local products like cement and steel for its infrastructure projects. — Jenina P. Ibañez

Tobacco tax collections rise 8% in 2019 to P147.5 billion — DoF

February 25, 2020 | 11:00 pm

THE Department of Finance (DoF) said the tax take from tobacco products rose by over 8% to P147.5 billion in 2019, accounting for more than half of the P269.1 billion of so-called “sin tax” collections.

Excise taxes from other “sin” products also rose, with taxes from alcoholic drinks rising to P79.7 billion from P71.1 billion in 2018. Collections from sweetened beverages rose 10.5% to P42 billion.

This year, Department of Finance (DoF) projects sin-tax collections at P332.3 billion following another round of tax hikes for alcohol, electronic cigarettes and vapor products.

This is projected to rise further to P480 billion by 2024.

Currently, higher excise taxes have been imposed on tobacco, alcohol, sweetened beverage, e-cigarette and vapor products.

Separately, the Bureau of Internal Revenue (BIR) said its docket of unpaid tax cases covered P24.02 billion in 2019 over 347 separate complaints, amid stepped-up efforts to prosecute tax evaders.

Citing a report from the bureau, the DoF said in a statement Tuesday that the BIR was continuing to implement its Run After Tax Evaders (RATE) program.

BIR Deputy Commissioner Arnel S.D. Guballa said during a DoF Executive Committee (Execom) meeting that last year’s performance was a “marked improvement” from the number of cases filed in 2018, during which 197 complaints were filed before the Justice department, involving tax obligations worth P15 billion.

The 2019 totals involved 309 tax cases filed with the Department of Justice (DoJ) with liabilities estimated at P19.06 billion; and 38 complaints filed before the Court of Tax Appeals (CTA), involving liabilities of P4.94 billion.

“As of Dec. 31, the BIR has 118 tax-related cases pending before the CTA,” Mr. Guballa said.

Under BIR’s Oplan Kandado program, the bureau collected a total of P1.92 billion in 2019 from the temporary closure of 743 establishments caught violating tax laws, against 233 establishments closed in 2018 which generated P799.47 million in collections. — Beatrice M. Laforga

DoJ finishes draft rules for competition law’s criminal component

February 25, 2020 | 11:00 pm

THE Department of Justice said it completed the drafting of implementing rules for the criminal provisions of the anti-competition law.

DoJ spokesperson Undersecretary Markk L. Perete said the department’s Office for Competition (OFC) completed the draft implementing the criminal provisions of Republic Act No. 10667 or the Philippine Competition Act and other related laws.

Mr. Perete said the rules clarify the elements of the crime committed in entering anti-competitive agreements, and include special rules on the filing of information and venue for cases falling under the law.

“The rules likewise enumerate and guide prosecutors on the application of special rules in the prosecution of these cases, such as the plea of nolo contendere (no contest), and the inadmissibility of certain pieces of evidence arising from a party’s prior resort to administrative reliefs before the Philippine Competition Commission,” he told reporters in a mobile-phone message.

The undersecretary also said that the draft outlines the procedure for applications of immunity of cartel members that provide information, testimony, and assistance for the “successful prosecution” of competition cases. It also included the obligations of those who will be granted immunity.

“Example, three companies entered into an agreement to peg the price of a product or its substitutes which agreement defeats competition. One of them may be granted immunity from prosecution in exchange for evidence regarding the offense. Which one to choose and how to grant it is specified in the rules,” he said.

The draft was published by the office online to solicit comments from the public before its finalization.

RA No. 10667 which created the PCC was signed on July 21, 2015.

The Supreme Court last year approved the rules upholding the authority of commercial courts to issue inspection orders of companies that are suspected of violating the law.

Under the rules, the PCC must apply for an inspection order before commercial courts, with a ruling deadline of 24 hours.

Special commercial courts in Quezon City, Manila, Makati City, Pasig City, Cebu City, Iloilo City, Davao City and Cagayan De Oro City have been authorized to issue inspection orders. — Vann Marlo M. Villegas

Gov’t budget utilization improves to 74% in Jan.

February 25, 2020 | 10:59 pm

GOVERNMENT agencies improved their budget utilization to 74% in January, as measured by an indicator known as the Notice of Cash Allocations (NCAs), up from 60% a year earlier, the Department of Budget and Management (DBM) said.

The Budget department said agencies used a total of P145.576 billion during the month out of the P197.28 billion worth of NCAs released during that period.

NCAs represent an approval from the DBM to disburse funds allocated to them. A high utilization rate indicates effective spending on their various programs and projects.

Line departments posted an overall utilization rate of 66%, using P90.414 billion out of P136.38 billion in NCAs during the period.

The utilization rate for all other NCAs was 91%, with P55.16 billion used out of the P60.898 billion programmed.

The agencies that recorded 100% usage rates are the Office of the President and the Department of Energy at P492.61 million and P88.42 million, respectively.

Other agencies with high cash utilization rates were Congress (91%), the joint Legislative-Executive councils (91%), the Departent of Tourism (89%), the Department of Justice (88%) and the Department of Health (88%).

The Department of Education received the highest NCA releases last month but used P23.33 billion of its P34.58-billion budget, for a 67% utilization rate.

The Department of Public Works and Highways received the second-largest releases at P26.508 billion, but only used P11.804 billion.

Budgetary support to government owned- and controlled-corporations and allotments to local government units were used at rates of 94% and 91% respectively. — Beatrice M. Laforga