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Duterte to leave P1.4-T infrastructure projects to successor as ‘legacy’

THE Duterte administration will likely leave an estimated P1.4 trillion worth of infrastructure projects in the pipeline that will be up for implementation by the next administration, according to the Department of Finance (DoF).

DoF Secretary Carlos G. Dominguez III said the current administration was able to boost the project pipeline for its successor to P1.4 trillion, relatively higher than the P50 billion that the previous administration had left in 2015.

“I think that’s a very important legacy of a President — to hand over something to his successor on a silver platter,” Mr. Dominguez said.

Likewise, he said all packages under the Comprehensive Tax Reform Program (CTRP) will likely be passed before the next administration takes over.

Specifically, the Finance chief said the remaining tax reform packages that aim to reform the corporate income tax and fiscal incentives system, land valuation and the financial sector are expected to be approved this year.

“The revenue-generating agencies are going to be operating — firing in full — all cylinders,” said Mr. Dominguez.

However, he said the next two administrations will need to exercise “same strong political will and decisive leadership” to sustain the economic and social gains.

So far, the measures under the CTRP that have already been signed were the Package 1 or the Tax Reform for Acceleration and Inclusion Act and Package 1B or the Tax Amnesty Act.

Package 2+ or the measure proposing to increase the excise tax on electronic cigarettes, vapor products and alcoholic products was passed and ratified by the 18th Congress on Dec. 18 and is now up for the President’s signature.

President Rodrigo R. Duterte has until Jan. 24 to sign or veto the bill before it lapses into law. — BML

More than P500M worth of crops and livestock damaged by Taal eruption

TAAL VOLCANO’S eruption has damaged more than P500 million worth of crops and livestock, the Department of Agriculture said on Tuesday.

Agriculture damage in the Calabarzon Region — made up of the provinces of Cavite, Laguna, Batangas, Rizal, and Quezon — rose to P577.39 million involving 2,772 hectares of land and 1,967 animals, the agency said in a bulletin.

Affected crops include rice, corn, coffee, cacao, banana and other high-value crops, it said.

Vegetables accounted for 56.1% of the damaged crops, followed by banana (21%), coffee (10.9%), corn (7.2%). Rice, livestock and cacao accounted for 4.9%.

On Sunday, Taal Volcano spewed a giant ash column, covered large parts of Southern Luzon and cities near the capital on Monday, forcing financial markets to suspend trading and the Manila airport to close.

The volcano spewed lava on Monday, a day after it blew ash and steam into the air. Authorities warned that a “hazardous” eruption could happen in days as they raised the alert status to Level 4, the second-highest in a 5-step scale.

The Agriculture department said about 6,000 fish cages were at risk, especially those for tawilis, a freshwater sardine found exclusively in the Philippines, and tilapia.

Production loss was estimated at 15,033 metric tons, with high sulfur content from the volcanic eruption likely to have killed fish.

Agriculture Secretary William D. Dar ordered his agency’s marketing arms and the Bureau of Fisheries and Aquatic Resources to ensure there were no unnecessary price spikes.

The government will distribute livestock, rice and corn seed stocks, planting materials for high-value crops and other production inputs worth P21.7 million to 16 affected areas.

These are the municipalities of Agoncillo, San Nicolas, Talisay, Lemery, Laurel, San Jose, Nasugbu, Mataas na Kahoy, Balete, Cuenca, Alitagtag, Padre Garcia, Malvar and Taal, and the cities of Lipa and Tanauan.

The Bureau of Animal Industry also has available medicine for affected livestock and two trucks that can be used to rescue and evacuate animals.

Meanwhile, the Bureau of Plant Industry will distribute 5,000 coffee mother plants and 1,000 cacao seedlings to affected coffee and cacao farms.

The Fisheries bureau will provide seven million fingerlings of tilapia, 20,000 for giant freshwater prawn, 50,000 for catfish, 100,000 for bighead carp, and 5,000 for silver perch once operations at Taal Lake resume.

The Agricultural Credit Policy Council has P30 million in initial funding that will benefit about 1,200 farmers and fisherfolk in Batangas, while the Philippine Crop Insurance Corp. will allot funds to indemnify insured farmers and fishermen, the Agriculture department said.

ECONOMIC COST
Meanwhile, the economic cost of Taal Volcano’s eruptions and tremors since Sunday may have reached about P7.63 billion, the bulk of which affected the service sector, according to estimates by the National Economic and Development Authority.

Much of the cost is due to foregone income, NEDA Undersecretary Adoracion M. Navarro told BusinessWorld. This may translate to 0.3% of the region’s total economic growth, she said.

The service sector was the hardest hit, with P4.32 billion in estimated economic losses, followed by the agriculture, forestry and fishery sector with P3.28 billion and the industry sector with P27.16 million, she said in a mobile phone message.

The Calabarzon Region had the second-largest contribution to the country’s gross domestic product (GDP) with a 17% share in 2018, next to the National Capital Region’s 36% share.

Meanwhile, the Budget department said the budget for calamity response should be ready since the 2020 national budget had been enacted and the notice of cash allocation for the first quarter had been issued.

“The National Government can respond to the eruption,” Budget Undersecretary Laura B. Pascua said in a mobile phone message.

The local disaster agency has a P16-billion budget for calamity fund this year, while other agencies and local government units have their own quick-response funds. — Vincent Mariel P. Galang and Beatrice M. Laforga

SC orders Shangri-La to pay in EDSA Plaza case

THE Supreme Court (SC) ordered Shangri-La Properties, Inc to pay BF Corp. up to P52.6 million over the construction of the first and second phases, and the car parking structure of the EDSA Plaza project n Mandaluyong City.

The case stemmed from the contract between Shangri-La Properties, now known as Shang Properties, Inc., and the BF Corp. for the project. A trial court has directed them to pursue the case before the Construction Industry Arbitration Commission (CIAC).

The court also imposed a legal interest of 6% from the date of an arbitral tribunal’s decision until the decision becomes final and executory in 2007, and a 6% interest per annum until full satisfaction.

In its 25-page petition dated Oct. 15 released Tuesday, the court partially granted the petition filed by BF Corp.

It upheld the award granted by the CIAC in 2007 on unpaid progress billings on specific variation works that was reversed by the Court of Appeals (CA).

The court said that the arbitral tribunal has correctly ruled that BF Corp. complied with the requirements under the Civil Code.

“The Court upholds that Arbitral Tribunal. In our view, the CA wrongly disregarded the specific variation orders that carried the conformity of SLPI, which, when coupled with the letter dated may 9, 1991, satisfied the requisites under Article 1724,” it said.

“Accordingly, the Court reinstates the Arbitral Tribunal’s awards in favor of BFC for variation orders included in progress amounting to P9,513,987.91 and for change orders not included in progress billings amounting to P6,201,278.50,” it added.

The court also said that both the CA and the arbitral tribunal found that the original work scope was completed, and upheld the award of P24.5 million of unpaid progress billings.

The SC, on the other hand, denied that BF Corp.’s claim for fire damage and repair works due to lack of proof that Shangri-La received fire insurance proceeds.

The court also denied for lack of merit the petition of Shangri-La Properties.

The court also upheld the appellate court’s reduction of liquidated damages for Shangri-La Properties due to incurred delays to P780,000 from P7.6 million.

The court said that as BF Corp. is also liable to Shangri-La Properties due to the delays in the project, the money obligations were offset, it said in the statement. — Vann Marlo Villegas

Fiscal policy easing to lift main stock index in 2020, says FMIC

By Denise A. Valdez, Reporter

FIRST METRO Investment Corp. (FMIC) is projecting the main index of the Philippine Stock Exchange (PSE) to reach up to 8,600-8,900 in 2020, driven by the easing of fiscal policies and regulatory reforms this year.

In a briefing in Taguig City yesterday, the investment banking arm of the Metrobank group announced its projections for 2020, where it said the equities market is in the best position to grow this year. Aside from the PSEi forecast, FMIC also said the price-earnings ratio of companies in 2020 may hover around 16.8x-17.4x.

“If last year was a year of consolidation, that means the market can either go up or down (this year). But we are confident that there are a lot of arguments for the market to rise,” FMIC Vice-President Cristina S. Ulang said.

Among the catalysts FMIC enumerated are the growth momentum of corporate earnings, which it expects will rise 10% this year, the 1.7% growth differential between emerging markets and developed markets, the low base of foreign ownership of non-US stocks and the wider space for monetary policy easing in emerging markets versus developed markets.

“I believe the big swinger in as far as the PSEi rise above 8,000 (is concerned) would be policy direction, which is unfolding very nicely, coupled with policy execution,” Ms. Ulang said.

She noted the projected 6.2-6.6% gross domestic product (GDP) of the Philippines in 2020 makes it stand out from other countries that are also given a BBB+ debt rating by S&P Global Ratings.

“The Philippines continue to be one of the best in terms of GDP growth… If you look at Mexico, same rating, (GDP is around) 1%. If you look at Thailand, (it’s below 3%). We are the only BBB+ rated which is going to do 6% this year. It’s a compelling case for foreigners to revisit the Philippines,” Ms. Ulang said.

She added the Philippines has a big fiscal policy space to counter global headwinds such as the US-Iran conflict, Brexit, Hong Kong protests and Taiwan elections, driven by ongoing tax reforms which is driving government revenues up and a well-maintained debt-to-GDP ratio of below 38%.

“We can very well handle both the debt burden and the expenditure imperative. Whatever happens globally, you have your monetary policy. The central bank has room to cut rates,” Ms. Ulang said.

FMIC Executive Vice-President Daniel D. Camacho also said the equities market is seen to gain stronger momentum in 2020 on the back of solid macroeconomic fundamentals and a few regulatory developments: the release of rules for real estate investment trusts (REITs), the approval of short-selling transactions and the increasing of the minimum public float to 25%, which will require new offerings from one-fifth of the market.

Other factors are new issuances as the bourse operator hopes to have about six initial public offerings this year.

Aside from the equities market, FMIC also projects the debt capital market to sustain its growth in 2019 when it jumped 70% to P630 billion.

“We’re optimistic that 2020 will have an active debt capital markets on the back of continued low interest rates; solid macroeconomic fundamentals, which we expect shall be driven by higher consumer spending, muted inflation and lower unemployment; and refinancing opportunities amounting to P230 billion; as well as outstanding shelf registration from corporates,” Mr. Camacho said.

The PSEi closed Tuesday’s session up 16.48 points or 0.21% to 7,793.25.

Megaworld expands in Cebu with launch of residential condo

MEGAWORLD CORP. is expanding its footprint in Cebu with the launching of a new residential development in its 30-hectare The Mactan Newtown in Lapu-Lapu City.

In a statement yesterday, the Andrew L. Tan-led property developer said it is building a new 222-unit residential condominium which is expected to raise P2.3 billion in sales.

The 20-story building, which will be called The Pearl Global Residences, is the fifth residential development of Megaworld in Cebu. It is scheduled for completion by 2025.

“The Pearl Global Residences will showcase the Filipino pride to the world… [A]s we expect more visitors and tourists to come to The Mactan Newtown in the coming years, we want this tower to be one of the icons of Filipino pride inside our development,” Noli D. Hernandez, president of Megaworld Cebu Properties, Inc., said in the statement.

The condominium will feature four unit types that interested tenants may choose from: an up to 40-square meter (sq.m.) executive studio with a balcony or lanai; an up to 59-sq.m. one-bedroom and executive one-bedroom with a balcony; an up to 80-sq.m. two-bedroom with a balcony or lanai; and an up to 116-sq.m. three-bedroom with a balcony.

Once the property opens, it will ramp up The Mactan Newtown’s current inventory of 1,836 residential units by 222. The Mactan Newtown is Megaworld’s first township outside Metro Manila known for having its own beachfront. The company currently has 10 residential towers and four residential condominiums in the township.

The new building hopes to attract investors with amenities such as an adult pool, a kiddie pool, a fitness center, an outdoor lounge, a play area for kids, a function room, a game room, a reading nook and co-working spaces.

It will also have a dry bar, a lounge and a viewing deck at the roof deck, which will provide a view of Cebu’s iconic sites such as the Magellan Bay, the Hilutungan Channel and the Lapu-Lapu Shrine.

Aside from residential spaces, The Mactan Newtown also has five office towers at present amounting to a total office inventory of 81,000 sq.m.

Megaworld said it is also building a mall development in Cebu on a cliff by the seaside, which it will call the Mactan Newtown Beach Walk.

Earnings of Megaworld in the first nine months of 2019 rose 14% to P12.8 billion, driven by a 17% increase in total revenues to P48.12 billion.

Shares in the firm at the stock exchange gained 13 centavos or 3.06% to P4.38 each on Tuesday. — Denise A. Valdez

Ayala energy arm investing P1.86B in Laguna solar farm

AC Energy Philippines, Inc. is investing up to P1.86 billion in a company that is developing a 120-megawatt (MW) solar farm in Laguna, the Ayalas’ energy arm in the country told the stock exchange on Tuesday.

The company said it had signed an agreement with SolarAce1 Energy Corp. to subscribe to the latter’s 6 million Class A common shares and 180 million Class A redeemable preferred shares (RPS). It provided details on the planned solar plant investment in first disclosed on Oct. 10, 2019.

“SolarAce1 is developing a 120 MWdc (direct current) solar power farm project to be located in the Municipality of Alaminos, Laguna,” AC Energy Philippines said.

It said SolarAce1 is a wholly owned subsidiary of Gigasol2, Inc., which is a subsidiary of AC Energy Development, Inc., one of the companies acquired by AC Energy Philippines on Oct. 9 in a property-for-share swap. The share swap is pending regulatory approvals.

“The subscription will be used to fund initial works to start the construction of the plant,” the company said.

It said the total 186 million shares to be acquired represent 25.83% of the total outstanding stocks of SolarAce1. The Common A shares and the Class A RPS are both priced at P10 each for a total subscription price of P1.86 billion.

AC Energy Philippines, the unit of AC Energy, Inc. for its local projects, said the common shares were paid in full while 35% of the redeemable preferred shares were paid in full. Payment of the balance amounting to P699,963,160.36 is to be within the year.

It said the closing of the transaction is subject to the necessary regulatory approvals from the Securities and Exchange Commission on the increase in the authorized capital stock of SolarAce1.

On Tuesday, shares in AC Energy Philippines traded lower by 2.13% to close at P2.30 each. — VVS

No dozing off for Ballet Manila as it readies for Sleeping Beauty

THREE MONTHS after a fire ravaged the Star City complex destroying the Aliw and Star Theaters which was Ballet Manila’s home in the process, the dance company continues undaunted with the rest of the performances in its 24th season.

“You cannot kill the fighter in me,” Ballet Manila CEO and artistic director Lisa Macuja Elizalde said about the decision to showcase Sleeping Beauty, the last installment of the “Princess Trilogy” which she choreographed. “I decided that was the best way to get out of this rut that I was in,” she said at last week’s press conference at the Ballet Manila studio 2 in Pasay City.

Originally scheduled for December 2019 at the Star Theater, the show will instead have performances on Jan. 18 and 19 at the Newport Performing Arts Theater in Resorts World Manila, Pasay City.

GOING NON-TRADITIONAL
The ballet by Ivan Vsevolozhsky and Marius Petipa, set to music by Peter Tchaikovsky, has been modified by shortening its running time and removing its divertissements.

In the ballet, Princess Aurora is cursed by the evil fairy Maleficent to fall into a deep death-like sleep, after pricking her finger on a spindle on her 16th birthday. She can only be awakened by true love’s kiss.

Co-choreographed by Osias Barroso, Ballet Manila’s version will introduce new characters such as the Keeper of the Golden Plates, as well as have guest appearances by princesses Cinderella and Snow White and their princes.

The Newport Performing Arts Theater’s giant LED screen will be used to project backdrops, and the production will have minimal sets and props.

“You have to come to the show to find out how it works,” Ms. Macuja Elizalde said.

“All our subscribers and ticket holders for the previous productions in Aliw Theater, we accommodate them with a better seat in the Newport [Performing Arts] Theater. We will do our very best to make them comfortable and make them loyal to Ballet Manila,” she told BusinessWorld.

Playing the role of Princess Aurora is principal dancer Jasmine Pia Dames and fellow principal dancer Romeo Peralta plays Prince Phillip. Also performing are Mark Sumaylo, Rissa May Camaclang, Joan Sia, Gerardo Francisco, Rafael Perez, Alvin Dictado, Shaira Comeros, and Emma Harris.

MOVING FORWARD
Ms. Macuja Elizalde admitted that it was difficult to accept that they had to take chances and cut costs to continue with the rest of the 24th season after the fire in Star City.

“We take everything one day at a time. One production at a time. The beauty of it was that we were able to reach out to audiences that we would normally do not get in Aliw Theater and Star Theater,” she said, adding that they have performed in state universities and at the Cultural Center of the Philippines (CCP) since the disaster.

The 24th season’s final shows, La Traviata and Carmina Burana, will be staged at the Samsung Hall at SM Aura Premier in BGC, Taguig City, on March 7 and 8.

“We’re going to keep the production manageable and simple. We’re going to let go of the huge theatrics that we normally do in Aliw Theater,” Ms. Macuja Elizalde said.

She noted that the rest of the season is still “in the making.”

“At the moment, we are opening our 25th season with a silver gala in the CCP Main Theater on July 17 and then we do a national tour of Ibong Adarna by 2019 TOYM awardee Gerardo G. Francisco, Jr.,” she said.

Ms. Macuja Elizalde noted that the upcoming season will include two classical ballets and “three other productions.”

“It will depend on whether or not we are really able to open in Aliw Theater in October 2020 as we are now planning to do,” she said.

For tickets to Sleeping Beauty, visit TicketWorld at (www.ticketworld.com.ph, 8891-9999). For more information, visit balletmanila.com.ph/ or www.facebook.com/BalletManilaOfficial/. — Michelle Anne P. Soliman

Gov’t partially awards T-bills as rates rise

THE GOVERNMENT partially awarded the Treasury bills (T-bills) it auctioned off yesterday as rates increased across-the-board following the uptrend in inflation and the possible uptick in global oil prices due to geopolitical tensions abroad.

The Bureau of the Treasury (BTr) raised P16.875 billion in T-bills out of its P20-billion program even as the auction was met with bids worth over P23 billion.

The Treasury fully awarded the 91-day papers even as the tenor fetched higher rates while they decided to partially award the 182- and 364-day bills.

Broken down, The government fully awarded the P6 billion it wanted to borrow via the 91-day T-bills at an average rate of 3.328%, 14.9 basis points (bps) higher than the 3.179% fetched during the last auction on Jan. 6.

On the other hand, the Treasury accepted just P4.85 billion in bids for the six-month papers out of the P6-billion program even as the tenor attracted bids worth P6.8 billion. The 182-day T-bills fetched an average rate of 3.587%, 15.2 bps more than the previous’ 3.435%.

Meanwhile, for the 364-day papers, the Treasury raised only P6.025 billion out of the P8-billion program as the tenor was undersubscribed, with tenders only reaching P7.425 billion. The one-year securities yielded an average rate of 3.896%, also 27.2 bps higher than the 3.624% fetched in last week’s auction.

Rates at the secondary market of the three-month, six-month and one-year papers stood at 3.261%, 3.429% and 3.732%, respectively, on Tuesday, based on the PHP Bloomberg Valuation Service Reference Rates.

Treasurer Rosalia V. de Leon said the one-year papers were slightly undersubscribed since investors are currently considering the duration risk for the tenor.

Ms. De Leon said the rates during the auction increased “because of the faster-than-expected December inflation and of course, ’yung (the) events both domestic and external.”

“First in the domestic, given ’yung happening (the impact of the) eruption of Taal (Volcano), so they would still have to see — everything is very fluid, watching what happens to the local economy of the affected areas. On the external front, (the) Iraq tensions (US-Iran), so we see also na (that global) oil prices (are) creeping up, that also adds up to what will be inflation for the coming months. So that’s being priced in, in the bids of today’s auction,” she told reporters after the auction on Tuesday.

Authorities raised Alert Level 4 due to the eruption of Taal Volcano on Monday. The ashfall was felt in the nearby provinces of Tagaytay, Laguna, Cavite, Rizal, Bulacan, and even in Metro Manila.

Work in government offices resumed on Tuesday after the previous day’s cancellation due to the ashfall, while classes remained suspended yesterday in Metro Manila.

The government reported last week that headline inflation picked up to 2.5% in December, averaging at the same rate in 2019. Last year’s headline inflation average fell within the 2-4% official target and was significantly slower compared to 2018’s 5.2% print.

However, economists flagged the conflict between US and Iran as possible risks to inflation this year as this may cause global oil prices to spike.

Sought for comment, a bond trader said the drivers for the auction were “the recent uptick in the (exchange of) dollar-peso. (Due to) weaker peso, the market bid higher. The (stronger) dollar brought about by the recent geopolitical tension in Iran (and US) and the high inflation trend (also contributed).”

Bloomberg reported Monday that the peso will likely remain weak, along with other currencies in the Southeast Asian nation, on the back of widening current account deficit, based on a report from the Goldman Sachs Group, Inc.

Meanwhile, Reuters reported on Monday that oil prices in the global market decreased by around one percent to $64.20 per barrel for the Brent crude and $58.08 for the West Texas Intermediate crude as the tension between US and Iran eased.

However, it said investors were now closely watching the US gasoline stocks which jumped by “9.1 million barrels in the week to Jan. 3,” at its highest in one week in four years.

The tension between the US and Iran when the a US air strike killed Iran’s top general last Jan. 3, to which Iran retaliated by firing off missiles at US forces in Iraq.

EXTERNAL BORROWINGS

Meanwhile, Ms. De Leon said the Treasury is programmed to borrow $3.7 billion from external sources for the year, but they have yet to secure the necessary approvals from the concerned regulators.

Likewise, she said the BTr will still consider the issuance of retail Treasury bonds, as the sale of the debt papers “will always be on the menu.”

The government plans to raise P1.4 trillion this year from local and foreign lenders to plug its budget deficit, which is expected to widen to as much as 3.2% of gross domestic product. — B.M. Laforga

FDC secures top credit rating

FILINVEST Development Corp. (FDC) has been given the top credit rating by a local debt watcher for its planned P15-billion bond issuance.

After the Gotianun-led holding firm announced last week its intention to apply for P8-billion retail bonds with an oversubscription option of up to P7 billion, Philippine Rating Services Corp. (PhilRatings) said Tuesday it is giving the proposed issuance a credit rating of “PRS Aaa.”

PRS Aaa is the highest credit rating that PhilRatings gives to borrowers, which means a company is expected to have an “extremely strong” capacity to meet its financial commitments.

PhilRatings likewise gave its credit rating to FDC a stable outlook, which means the rating is expected to stay in the next 12 months.

The debt watcher said it took into consideration FDC’s stable revenue streams, the strong track record of its subsidiaries, its conservative and professional management and the “well-positioned businesses” of the company in real estate and banking.

“Being in the business for over four decades, FDC and its subsidiaries have survived the country’s economic downturns, financial crises and political turmoil… The company’s chosen technical partners in power, hospitality and other business ventures also have the expertise and track record in their respective industries,” PhilRatings said.

It noted the company’s earnings remained “steady” over the years, with consolidated revenues keeping an uptrend since 2016. FDC’s total revenues grew 17% to P55.26 billion in the first nine months of 2019 to reach an attributable net income growth of 16% to P8.98 billion.

PhilRatings added the higher score of group 6 for the Philippines’ banking system by S&P’s revised Banking Industry Country Risk Assessment gives it confidence that FDC’s banking unit will perform well this year. It also said the projected growth of the real estate sector in the country by Jones Lang LaSalle, Inc. bodes well for FDC’s real estate business.

“PhilRatings based its assessment on available information and projections at the time that the rating review was performed. PhilRatings shall continuously monitor developments relating to FDC and may change the ratings at any time, should circumstances warrant a change,” it said.

FDC controls Filinvest Land, Inc.; East West Banking Corp.; Filinvest Hospitality Corp.; FDC Utilities, Inc. and Pacific Sugar Holdings Corp., among others.

Shares in the company at the stock exchange slipped 0.46% to P13.10 apiece on Tuesday. — Denise A. Valdez

It’s a (mostly) man’s world as Joker leads Oscar nominations

DARK comic-book story Joker led nominations on Monday for the Oscars in a best picture lineup dominated by stories by or about men and featuring only one actor of color despite efforts over the past few years to diversify the field.

The 11 nods for Joker, which turned the comic-book genre on its head with its terrifying portrayal of an isolated loner, covered all the major fields, including best picture, director Todd Phillips, and Golden Globe-winning actor Joaquin Phoenix. The controversial Warner Bros. movie has taken in more than $1 billion at global box offices.

Phillips in a statement said he saw the film as “a character study to reflect the world around us. Explore what we’re seeing and feeling in society, from the lack of empathy to the effects of the absence of love.”

Joker will compete for the top prize with testosterone race car drama Ford v Ferrari, Netflix gangster movie The Irishman, Nazi-era satire Jojo Rabbit, divorce drama Marriage Story, World War One film 1917, nostalgic show-business story Once Upon a Time in Hollywood, and South Korean social satire Parasite.

Netflix got 24 nominations, including for biographical drama The Two Popes and documentary American Factory, one of the first collaborations with the production company of former US President Barack Obama and his wife Michelle.

Only Sony Pictures’ Little Women, an adaptation of the classic Louisa May Alcott novel by an all-female production team, broke the mold with its best picture nod.

Director Greta Gerwig was shut out of the all-male directing race, but she scored a nomination for adapted screenplay. Stars Saoirse Ronan and Florence Pugh were also nominated.

Pugh said it was sad that Gerwig did not get a director nod but she told Reuters: “She got her film seen and people are recognizing the work and the talent that’s been put into it. So as sad as it is, we didn’t lose out completely.”

Little Women co-producer Amy Pascal said the movie “made history by being only the third movie ever to be nominated for best picture that’s written, directed, and produced exclusively by women.”

However, a record 62 women got nominations on Monday, almost one-third of the field, said the Academy of Motion Picture Arts and Sciences, whose 8,000 members vote on the nominees and the winners.

The academy on Monday did not respond to a request for further comment on the issue of diversity among the nominees.

The Oscars will be awarded in Hollywood on Feb. 9.

“I can’t look at this slate of nominees and say that anyone really doesn’t deserve to be there. I don’t necessarily see the omission of Greta Gerwig from this year’s slate of nominees as a gender-based decision,” said Owen Gleiberman, chief film critic for Variety, told Reuters.

SOMETHING FOR EVERYONE
Only one of the 20 acting nominees was a person of color: Cynthia Erivo for her lead role as anti-slavery activist Harriet Tubman in Harriet.

Last week the British BAFTA nominations were an all- white affair in the acting races.

A lack of nominees of color, which led to the hashtag #OscarsSoWhite, prompted the Academy in 2016 to diversify its mostly white, male membership by inviting more women and people of color to join.

Universal Pictures’ 1917, which took home the Golden Globe for best movie drama last week, got 10 nods, including for British director Sam Mendes.

Co-producer Pippa Harris said the film, about two young soldiers who have to deliver a lifesaving message across enemy lines, resonated because it went beyond the traditional war movie.

“There is very little blood and gore,” she told Reuters, saying the movie also focused on “friendships that get formed in the heat of battle, the importance of being home, being separated from your family.”

Harris said the nominations overall had something for everyone. “There are stories that feature men front and center stage, but what’s great is that there are also films like Little Women and Parasite which couldn’t be further apart in terms of their approach to filmmaking and subject matter.”

Parasite, a dark satire about the gap between rich and poor, became the first South Korean movie to be nominated in both the best picture and best international film categories. Director Bong Joon Ho also received a nod for best director.

Notable omissions included Robert De Niro, star of The Irishman, Jennifer Lopez for Hustlers, Eddie Murphy for comedy Dolemite is My Name, and Disney’s animated blockbuster Frozen 2. — Reuters

US Treasury drops China currency manipulator label ahead of deal

WASHINGTON — The US Treasury department on Monday dropped its designation of China as a currency manipulator days before top officials of the world’s two largest economies were due to sign a preliminary trade agreement to ease an 18-month-old tariff war.

The widely expected decision came in a long-delayed semi-annual currency report, reversing an unexpected move by Treasury Secretary Steven Mnuchin last August at the height of US-China trade tensions.

Mr. Mnuchin had accused China of deliberately holding down the value of its yuan currency to create an unfair trade advantage, just hours after President Donald Trump, angered at the lack of progress in trade negotiations, had also accused China of manipulating its currency.

The Treasury department had not labeled China a currency manipulator since 1994. Beijing had recently met just one of the department’s three criteria needed for such a designation — a large bilateral trade surplus with the US.

In its latest currency report, the Treasury said that as part of the Phase 1 trade deal, China had made “enforceable commitments to refrain from competitive devaluation” and agreed to publish relevant data on exchange rates and external balances.

Chinese Vice Premier Liu He arrived in Washington on Monday for a White House ceremony to sign the trade deal with Mr. Trump. People familiar with the negotiations said that although the manipulator designation had no real consequences for Beijing, its removal was an important symbol of goodwill for Chinese officials.

US Trade Representative Robert Lighthizer on Monday told Fox Business that the translation of the US-China trade agreement was almost completed and the text of the deal would be made public on Wednesday before the ceremony.

The currency report said the Chinese yuan, also known as the renminbi, had depreciated as far as 7.18 per US dollar in early September, but had rebounded in October and was currently trading at about 6.93 per dollar.

“In this context, Treasury has determined that China should no longer be designated as a currency manipulator at this time,” the report said.

It said, however, China should take decisive steps to avoid a persistently weak currency and allow greater market openness to strengthen its long-term growth prospects.

There was no immediate reaction from Beijing. In August, China’s central bank denied it had intervened to weaken the yuan, and said Washington’s designation of China as a currency manipulator seriously harmed international rules.

Mark Sobel, a former senior Treasury official and adviser to the London-based Official Monetary and Financial Institutions Forum or OMFIF economy policy think tank, said China “was errantly designated at a moment of presidential pique.”

“It should never have happened in the first place,” he said. “China manages, but does not manipulate its currency.”

Mr. Sobel said China’s current account surplus was small as a share of gross domestic product and it had not intervened in currency markets for years. The August move came at a time when the yuan had fallen against the dollar because of market apprehension over Mr. Trump’s “ratcheting up of trade tariffs,” he said.

SWITZERLAND ADDED TO MONITORING LIST
The Treasury report also cited continued concerns about the currency practices of eight other countries — Germany, Ireland, Italy, Japan, Malaysia, Singapore, South Korea and Vietnam — and added a ninth, Switzerland, to its list.

It raised particular concerns about Germany, the world’s fourth-largest economy, which it said continued to have the world’s largest current account surplus and was slipping into recession. It said the German government had a responsibility to undertake tax cuts and boost domestic investment.

The Treasury report said the continued strength of the US dollar was “concerning,” given the International Monetary Fund’s judgment that the dollar was overvalued on a real effective basis.

It said the real dollar remains about 8% above its 20-year average, noting that sustained dollar strength would likely exacerbate persistent trade and current account imbalances for the United States.

US Senate Democratic leader Chuck Schumer, a fierce critic of China’s currency and trade practices, blasted the Trump administration for its decision to “back down” from labeling China a currency manipulator.

“China is a currency manipulator — that is a fact,” Mr. Schumer said in a statement. “Unfortunately, President Trump would rather cave to President Xi (Jinping) than stay tough on China.”

The yuan reached five-month highs earlier on Monday ahead of the expected signing of the trade deal. — Reuters

Airlines update flights after Taal eruption

By Arjay L. Balinbin, Reporter

PHILIPPINE AIRLINES, Inc. (PAL) has cancelled 15 flights to and from Manila on Tuesday to accommodate flights to certain routes that were cancelled recently due to the Taal Volcano eruption.

For its part, Cebu Pacific (Cebu Air, Inc.) said that its operations in and out of Manila’s Ninoy Aquino International Airport (NAIA) went back to “normal” on Tuesday.

AirAsia Philippines (Philippines AirAsia, Inc.) said “further cancellation” of flights were to be expected on Tuesday “to ensure the safety of passengers and aircraft.”

In an advisory, PAL said: “We are in the process of operating replacement flights on certain routes to assist passengers affected by recent cancellations, and in a few cases we are upgrading certain flights to larger-capacity widebody aircraft to deal with the overflow of affected passengers.”

PAL said it had cancelled 15 flights to and from Manila, including the flights to and from Bangkok, Thailand and a flight to Nagoya, Japan.

PAL said it would also arrange replacement flights to accommodate the affected passengers of the said cancellations.

In a separate advisory, AirAsia said: “While flights have gradually resumed, further cancellations are being made to ensure the safety of passengers and aircraft.”

It said AirAsia guests travelling over the next few days should check the status of their flights on the airline’s official website.

Cebu Pacific said that its operations in and out of the NAIA “are now back to normal.”

“Passengers booked on cancelled flights may manage their booking before their scheduled time of departure through the Cebu Pacific website,” it added.

Manila International Airport Authority also announced on Tuesday its second day suspension of the “daily maintenance closure of NAIA’s main runway to give way for recovery flight operations.”

It noted that its runway 06-24 undergoes “derubberizing and degreasing” daily, from 1:30 a.m. to 3:30 a.m.

“We began accepting recovery flights from 10:00 p.m. last night to 4:00 a.m. this morning. We lifted the daily maintenance closure. We will do it again tonight until airlines are able to fully recover,” MIAA General Manager Eddie V. Monreal was quoted as saying in a statement.

NAIA partially resumed operations last Monday after more than 500 flights were affected by the eruption of Taal Volcano.

About 80,000 passengers and 516 flights were affected by Sunday’s volcanic eruption.

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