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SEC approves creation of company for mobile phone number portability

MOBILE PHONE users will be allowed to switch networks without changing contact numbers.

CONSUMERS switching telecommunication networks are a step closer to retaining their contact digits after the securities regulator cleared the creation of a new company that will ease the portability of mobile phone numbers.

“We wish to update you that we received the approval of the Securities and Exchange Commission on the incorporation of Telecommunications Connectivity, Inc. today,” Globe Telecom, Inc. told the stock exchange on Tuesday.

The new company will “enable number porting services in line with the new mobile number portability initiative of the government or Republic Act 11202 also known as the ‘Mobile Number Portability Act’,” Ayala-led Globe said.

Telecommunications Connectivity was jointly put up by the country’s major telecommunication firms with the passage of Republic Act 11202 or the MNP Act. The law, which was signed by President Rodrigo R. Duterte in February 2019, allows mobile phone users to switch networks without changing their numbers.

Globe, PLDT, Inc.’s wireless unit Smart Communications, Inc. and Dito Telecommunity Corp. announced in a joint statement on Dec. 26 last year that they were investing in the new company that will enable number porting services.

Under the law, mobile number portability refers to the ability of a mobile postpaid or prepaid subscriber, who has no existing financial obligation to the service provider, to retain an existing mobile number despite having moved from one mobile service provider to another, or to change subscription mode from postpaid to prepaid or vice versa.

The law requires telcos to provide mobile number portability to subscribers nationwide free of charge. Every telecommunication service provider has to change subscription mode within 24 hours from the time a subscriber submits application.

The telcos have said they had tapped Florida-based Syniverse as mobile number portability service provider (MNPSP) that “will bring in the technical infrastructure to fulfill its primary function as clearinghouse for the telcos and ensuring smooth implementation of number porting services.”

Under the MNP Act’s implementing rules and regulations issued in July, the operators “will equally share the capital expenditure for the software, hardware and other facilities required by the MNPSP.”

Syniverse is a company that assists mobile operators globally in managing and securing their mobile and network communications. — Arjay L. Balinbin

PHL banking sector seen to weather risks this year on economy’s strength

BANKING SYSTEMS in emerging economies will face three key risks in 2020, including uncertainties from geopolitical and domestic policies, deterioration in asset-quality indicators, and risks coming from volatile investor sentiments, according to S&P Global Ratings.

But the Philippines is likely to weather these headwinds amid continued “relatively high economic growth,” it added.

“One-third of our 15 emerging economies should still experience relatively high economic growth — and they are all in Asia — China, India, Indonesia, the Philippines, and Malaysia,” S&P said in a note sent to reporters on Tuesday.

“However, growth remains below trend for most Asian emerging markets (EMs) due in part to the ongoing downturn in the trade and manufacturing cycle,” it added.

The credit rater said that among key credit drivers for the Philippines in 2020 are the recovery in economic growth on the back of government spending and the possibility of continued monetary easing.

“We expect growth to recover slightly in 2020 thanks to government infrastructure spending and monetary easing after weak sentiment in the private sector in first-half 2019 dragged

down growth,” the firm said, adding that they expect additional rate and reserve requirement ratio reductions during the year.

Meanwhile, S&P projects that bad loans as percentage of domestic loans may inch up to 3.6% in 2020 and 2021 from 3.4% in 2019.

According to analysts, uncertainties that have haunted the rest of the world are coming from the US-China trade war saga, Brexit, as well as geopolitical tensions in the Middle East.

“For the Philippines, S&P may be pertaining to the recent developments in the Middle East between the US and Iran, which has somewhat died down already,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mailed response.

“The lingering and escalation of the US-China war since July 2018 as well as uncertainties related to Brexit were also major causes of risk aversion that slowed down global economic growth and global trade, also had adverse effects on the global financial markets, especially in EMs,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said, noting that risk factors have somehow waned after the phase one deal of Washington and US and the avoidance of the no-deal Brexit.

UnionBank’s Mr. Ricafort added policies that may have impact on the local banking industry are the better signaling of the Bangko Sentral ng Pilipinas (BSP).

“There has been some improvement in signaling monetary policy by the BSP, which pointed out that this will facilitate better planning in view of possible cut in policy rates and/or any cut on banks’ RRR (reserve requirement ratio) in 2020,” he explained.

The BSP cut key policy rates by 75 basis points (bps) in 2019 to 3.5% for the overnight deposit facility, four percent for overnight reverse repurchase and 4.5% for overnight lending.

BSP Governor Benjamin E. Diokno has said the central bank still has a “lot of monetary space” and hinted that another next rate cut could be on the table as early as the first quarter. Meanwhile, he said there is no hurry to cut banks’ reserve ratios as he still has 14 quarters left to fulfill a single-digit reserve requirement by the end of his term in 2023.

When asked about how exposure to Philippine Offshore Gaming Operators (POGOs) could affect banks, the analyst downplayed risks, saying that lenders are safe based on asset-quality indicators.

“Local bank exposure to POGOs are minimal, and this is mandated by the central bank. Asset-quality indicators are rather safe in the Philippines and the banking industry is quite healthy at this point,” Mr. Asuncion said.

“Borrowers that supply POGOs such as property companies and other service providers could be adversely affected in terms of reduced sales that could potentially impair the ability to pay their loans and could lead to some pick up in NPLs (nonperforming loans,” RCBC’s Mr. Ricafort said.

“However, some of the property companies that provide office, residential, and commercial spaces for POGOs belong to and have the financial backing of the country’s biggest companies/conglomerates, as a mitigating factor.”

Meanwhile, volatile investor sentiment, which could be a risk for banks according to S&P, is something a small-open economy country like the Philippines is bound to “resiliently face,” according to UnionBank’s Mr. Asuncion.

“In a global economy where big players abound, small economies are vulnerable to quick changes in investor appetite. This is why a strong external position is a necessity to be resilient in a fickle and unforgiving global economy,” he said, noting that ample dollar reserves will be vital to survive the currents of world trade.

Mr. Asuncion said banks should also look to target strong domestic reserves, just as the central bank is doing for the economy.

“Not only do they [banks] need strong domestic reserves to combat internal uncertainties, but also, just enough foreign volatility exposure to skirt any quick changes in foreign investor perceptions,” he said. — Luz Wendy T. Noble

New gallery opens at La Fuerza

MODEKA Creative Space joins the roster of contemporary art galleries in La Fuerza 1 in Makati City.

The gallery, which opened last December, showcases contemporary art from up-and-coming and established Asian and internationally acclaimed artists, with mediums such as paintings, sculptures, mixed media, limited edition prints and photography. It also offers artist development opportunities, and art performances.

The gallery has taken up the space that formerly housed the 20:20 restaurant (the restaurant has downsized and is now located in front of the gallery).

“[The space] came as an opportunity. It just happened that our friends from 20:20 restaurant freed up the space.” Modeka creative director Riccardo Corsini told members of the press during the gallery’s launch.

“We valued the fact that La Fuerza is already an art district. As an art buyer or enthusiast, you simply would not want to go to just one gallery. The idea is that you can experience different galleries at the same time,” he added.

La Fuerza 1 is also home to Finale Art File, Vinyl on Vinyl, and NOVA Gallery Manila.

Mr. Corsini said that the gallery’s name came from a random play on words. “We did not want to use a real word. We [just] wanted to come up with something new,” he said, adding that it may mean “Modern Decade” or “whatever [you] want.”

THE FIRST EXHIBITION
Modeka’s ongoing first exhibit is named after Robert Frost’s 1923 poem “Nothing Gold Can Stay.”

According to the curatorial notes by Gwen Bautista, the exhibit examines “the idea of impermanence as we struggle from what is deemed as the impalpable human desire for mortality and the difficult truth characterized by the nature of things — that in our world, nothing will remain forever.”

There are four featured artists from the Philippines — photographer Mark Nicdao is showing Portal 1.1 : KRMNNH, a portrait of a woman protruding from a 1930s-style frame and easel; painter Jono Pisano has two oil paintings of contrasting warm and cool tones titled Ku-Ring-Gai 2000 and Out of Nothing; mixed media artist Lynyrd Paras is presenting a sculpture called You are No King to Me featuring a crowned skull with knives pierced through both eyes covered in gold; and artist collective 13 Lucky Monkey presents Immerse, an intricate sculpture of a naked body beside an octopus.

The featured international artists include British painter and sculptor Sinta Tantra, Indonesian painter Ronald Apriyan, Malaysian medical doctor and painter Caryn Koh, and Indonesian painter Dedy Sufriadi.

Aside from shows, Mr. Corsini noted that the gallery hopes to work with emerging artists and host solo shows, as well as exhibitions for artist groups. The venue will also host workshops, lectures, and live performances.

Nothing Gold Can Stay runs until Jan. 31 at Modeka Creative Art Space, located at Warehouse 20A La Fuerza 1, 2241 Don Chino Roces Ave., Makati City. It is open Monday to Saturday from 10 a.m. to 7 p.m., and Sunday 12 p.m. to 6 p.m. For more information, visit www.modeka.space/. — Michelle Anne P. Soliman

Megaworld unit expects P1-B sales from planned residential development

GLOBAL-ESTATE Resorts, Inc. (GERI) is embarking on a new residential project at the boundaries of Laguna and Cavite, which it expects will raise P1 billion in sales once completed.

The listed subsidiary of Megaworld Corp. said in a statement Tuesday it is launching the Upland Villas—rows of two-story townhouse and duplex villas—within the 26-hectare Pahara residential village located in the 561-hectare Southwoods City.

Pahara residential village and Southwoods City are both operated by Megaworld.

GERI will offer 65 units in the new development, and each of it will have its own living and dining areas, maid’s room, bathrooms, bedrooms and a lanai.

The project is scheduled for completion by 2024.

“…since we have easily sold out the lots of Pahara, this is an opportunity to own a property within this sought-after village inside Southwoods City,” Megaworld Global-Estate, Inc. Vice-President for Sales and Marketing Mary Rachelle I. Peñaflorida said in the statement.

Residents of Upland Villas will have exclusive access to the amenities of the Pahara residential village, which includes a clubhouse, swimming pool, fitness center, jogging paths, children’s playground, multi-purpose function area, yoga and reflexology garden, meditation and aromatic gardens and landscaped open spaces.

The two-story townhouse and duplex villas will also feature a modern and tropical architecture surrounded by flower and herb gardens.

“Set within the exclusive enclave on the hills of Southwoods City, Upland Villas is a unique residential offering where one can relax and enjoy the beauty of its natural surroundings,” Ms. Peñaflorida added.

GERI currently has three residential developments in Southwoods City equivalent to 2,237 units. It also has two office towers in the area through Megaworld Premier Offices.

The company’s attributable net income in the first nine months of 2019 increased 9% to P1.36 billion, while the attributable net income of its parent Megaworld rose 14% to P12.8 billion.

At the close of trading on Tuesday, shares in GERI at the stock exchange dipped 0.93% to P1.07 each, while shares in Megaworld fell 2.71% to P4.30 each. — Denise A. Valdez

‘Green swan’ climate event could trigger global crisis

CLIMATE CHANGE may pose risks to the financial system, as this could trigger a “green swan” event. — PIXABAY.COM

CLIMATE CHANGE threatens to provoke “green swan” events that could trigger a systemic financial crisis unless authorities act against such risks, according to the Bank for International Settlements (BIS).

The analysis by officials at the Basel-based institution — often described as the central bank for central banks — adapts the “black swan” concept devised by Nassim Nicholas Taleb to describe adverse events outside the scope of regular expectations with wide-ranging or extreme impacts.

“Green swans or ‘climate black swans’ present many features of typical black swans,” said the authors, who include BIS Deputy General Manager Luiz Pereira da Silva. “Traditional approaches to risk management consisting in extrapolating historical data and on assumptions of normal distributions are largely irrelevant to assess future climate-related risks.”

Green swans are different from black swans because there is some certainty that climate change risks will one day materialize, which could endanger humanity more than financial crises, and they threaten even more complex and unpredictable chain reactions, the authors wrote.

The paper, published just after the world’s warmest decade on record, adds to a growing body of central bank-related analysis calling for authorities to better prepare for finance-related risks stemming from climate change.

Bank of France Governor Francois Villeroy de Galhau, in an introduction to the paper, argued that “in order to navigate these troubled waters, more holistic perspectives become essential.”

The analysis reiterates often-made arguments that central banks alone can’t provide the needed solutions, but also acknowledges that climate change may lead such institutions into uncharted waters where traditional models will tell them little about the scope of the crisis at hand and careful decisions must be taken on how to engage.

“If they sit still and wait for other government agencies to jump into action, they could be exposed to the real risk of not being able to deliver on their mandates,” the authors argued.

Many central banks already contribute to the effort by monitoring climate-related risks through stress tests, incorporating environmental, social and governance criteria in pension funds, or working with banks on disclosing carbon-intensive exposure to assess potential financial-stability risks. Mr. Villeroy says that’s simply not enough however.

“The stark reality is that we are all losing the fight against climate change,” Mr. Villeroy said, advocating two solutions the European Central Bank could discuss in its upcoming strategy review: integrating climate change in all economic and forecasting models, and overhauling the collateral framework to reflect climate-related risks.

“If central banks are to preserve financial and price stability in the age of climate change, it is in their interest to help mobilize all the forces needed to win this battle,” he said. — Bloomberg

Keeping things abstract

DR. MENELINE WONG began painting in 2017 thanks to the influence of a friend and quickly found renown.

In 2018, she won second place in the nonrepresentational category of the GSIS National Art Competition with her work titled Oro. It was that piece where she admitted that she made a mistake.

“So everytime I make an artwork, I always think that a mistake is not always wrong. A mistake can actually be good,” Ms. Wong told BusinessWorld.

Ms. Wong is one of the nine featured artists in the 12th installment of Conrad Manila’s series “Of Art and Wine.”

Abstract Views, a collection of 24 artworks, was launched at Conrad Manila’s Gallery C on Jan. 6.

Curated by Nestor Jardin and Lara Latosa, the exhibit features works by Dr. Wong, architect and sculptor Richard Buxani, mixed media artist Melbourne Aquino, painter Rick Lozada Hernandez, abstract artist Fitz Herrera, pointillist artist Binong Javier, environmental advocate and artist Lara Latosa, geometric abstractionist Aner Sebastian, and painter Michael Pastorizo.

As co-curator, Ms. Latosa paired the artworks according to the artists’ thematic similarities: word art as seen through Melbourne Aquino’s “lettering abstraction” with socio-political themes and Rick Lazada Hernandez’s work with inscriptions of “love”; texture through Fitz Herrera’s colorful patchwork on A Rush of Paint to the Head series and Binong Javier’s pointillist method of meticulously aligned drips of acrylic; fluidity through Dr. Wong’s mixture of vibrant colors and Lara Latosa’s wave movement; and patterns and reflections through Aner Sebastian’s geometric images and Michael Pastrizo’s Pink, Orange, and Green stalactite-like strokes.

“[The exhibit] shows your commonality as artists make you cohesive as a group, but [also] still shows each artist’s diversity,” Ms. Latosa told members of the press during the launch.

Ms. Latosa recalled that she started painting as a hobby and began with raindrops as the subject of her works. She eventually evolved to painting waves as her signature subject — an image which she associates to her life’s ups and downs.

“How you interpret your emotions into a canvas,” she noted, “is what makes an abstract artist unique from others.”

“When you get to know the artists, doon nagkakaroon ng value ’yung abstract (that’s how an abstract painting gains its value),” Ms. Latosa said.

The exhibit will be on view until March.

For inquiries on the paintings and exhibit, contact (8833-9999 or 7501-3270 to 71) or e-mail conradmanila@conradhotels.com or altromondoart@gmail.com. — Michelle Anne P. Soliman

Gokongwei’s Robinsons Land joins gender-equality index

ROBINSONS Land Corp. (RLC) has been recognized by Bloomberg for providing a workplace that promotes gender equality and advancing women.

In a statement Tuesday, the Gokongwei-led property firm said it has been included in Bloomberg’s Gender-Equality Index (GEI) for 2020, joining a list of 325 organizations across the world.

“Robinsons Land Corporation was included in this year’s index for scoring at or above global threshold established by Bloomberg to reflect high level of disclosure and over-all performance across the frameworks’ five pillars: Female Leadership and Talent Pipeline; Equal pay and Gender Pay Parity; Inclusive Culture; Sexual Harassment Polices; and Pro-Women Brand,” it said.

The 2020 index has not been uploaded on Bloomberg GEI’s website as of Tuesday, but RLC said another unnamed listed company from the Philippines made the list. This has been identified on Wednesday as SM Investments Corp.

RLC noted it earned a score of 48.06% in female leadership and talent pipeline, as its women-to-men ratio in leadership positions is 50:50, and seven in 11 of its employees are women.

The company said being recognized by Bloomberg means it has one of the best-in-class policies and benefits to support gender equality.

“…this places RLC alongside some of the biggest and most successful companies in the world with a combined market capitalization of USD 12 trillion,” it said, specifically naming multinationals Unilever, Procter & Gamble, Visa, Nestle, L’Oreal, Lenovo, JPMorgan & Chase, ING, Ford Motor Company, Adidas, and The Coca-Cola Company that made the 2019 Bloomberg GEI.

RLC also noted that Bloomberg GEI is the “world’s only comprehensive investment-quality data source on gender equality.” Bloomberg started tracking gender equality in companies since 2016, but its 2020 index is the first time a Filipino firm made the list.

A recent report by World Bank on gender equality in laws and regulations affecting women’s economic opportunity gave the Philippines a score of 81.3, higher than the global average of 75.2.

In line with this finding, RLC said companies in Bloomberg’s GEI “have shown that they are closing the gap and promoting a culture of inclusivity driving firms’ commitment to building gender-equal communities and workplaces.”

Earnings of RLC in the first three quarters of 2019 grew 12% to P7.31 billion, amid a 40% jump in total revenues to P31.18 billion.

Shares in the firm at the stock exchange gained 80 centavos or 3.05% to P27 apiece on Tuesday. — Denise A. Valdez

JPMorgan Chase says ‘oui’ to Paris expansion post-Brexit

JPMORGAN Chase & Co. is looking to expand to Paris. — REUTERS

PARIS — JPMorgan Chase & Co. is the latest investment bank to significantly expand its Paris hub as part of plans to relocate some services from London after Britain’s exit from the European Union (EU), snapping up new premises in the French capital.

JPMorgan would have said “No” to a Paris move back in 2016, its French executive told Reuters, but government-led labor law and taxation reforms made it review its stance.

The US bank said it plans to buy a building in central Paris from France’s BNP Paribas to house up to 450 staff in coming years, allowing it to keep operating in the EU once the current unfettered two-way direct access between Britain and the bloc comes to an end in December following a Brexit transition period.

The expansion is expected to make the French capital, where it currently has 260 staff, its second-largest base in Europe behind London, where there are 10,000 staff, JPMorgan said.

It currently has 600 staff in Luxembourg and 450 in Frankfurt.

The bank will initially transfer sales teams, followed by trading staff depending on the timing of Britain’s full withdrawal from the EU, Kyril Courboin, JPMorgan’s CEO of France, told Reuters.

“Paris is going to be the second pole for our market activities in Europe,” he said. “London will still be number one because we are only transferring euro activities.”

He declined to disclose the purchase price of the new building, which is close to JPMorgan’s existing Paris offices on the prestigious Place Vendome.

The move is part of a wider trend of banks shifting selected activities to euro-zone cities ahead of Brexit, without calling into question London’s dominance as Europe’s premier financial center.

MORE TO FOLLOW?
Large international banks and investors could relocate around 4,000 jobs to Paris, the French financial lobby Paris Europlace said, citing data from “Choose Paris Region,” which helps international companies set up business in Paris.

“In addition to the new announcements made by American banks…Asian investors, from Hong Kong and Singapore…confirm their wish to strengthen their activities in Europe, in particular in Paris,” Arnaud de Bresson, chief executive of Paris Europlace, told Reuters.

Wells Fargo, which currently has three job openings in Paris, said in October it had chosen the city as its European hub for post-Brexit trading activities. Bank of America also plans to move more than 400 jobs into a new office in central Paris.

An Elysee official said JPMorgan was one of several large banks who have been considering a move to Paris, without naming others, leaving open the possibility that more jobs will be relocated to the “city of lights.”

The building purchase by JPMorgan was announced on Sunday as part of the “Choose France” drive, an annual investment event created by President Emmanuel Macron to draw business leaders to France en route to the World Economic Forum in Davos each January. — Reuters

Art & Culture (01/22/20)

2 exhibits at Silverlens

SILVERLENS has opened two exhibits to start the year: Eric Zamuco’s Cosmic Grounds and Syaiful Garibaldi’s Sudor. Cosmic Grounds takes off from the objects the artist stumbled upon during his routes around his neighborhood and family province. In the two years since his last exhibit, the artist has slowly built a personal archive of items found while he was in transit — a broken vase, a headless heron, a termite-eaten pillar, and roofing shingles, among others. While not initially drawn to the material himself, Zamuco’s fascination with the objects came from their discarded and shattered state. For Sudor, Garibaldi introduces a new body of work that looks at the corporeal from the perspective of human perspiration under different environmental conditions. Under high magnification, the skin’s surface appears like mysterious, extraterrestrial landscapes, with emergent bodies of water that ebb and flow. The two exhibits are on view until Feb. 15 at Silverlens, 2263 Don Chino Roces Ave. Ext., Makati City. For inquiries, contact info@silverlensgalleries.com or call 8816-0044.

Francisco at Robinsons

IN CELEBRATION of National Arts Month, Robinsons Land Corp. will hold two major events: the formal launch of ARTablado (art + entablado) and the one-man exhibit of Angono’s Carlo “Totong” Francisco II, from Feb. 1 to 15 in Robinsons Galleria. Regular patrons of Robinsons Galleria will be able to view not only paintings in the new space, ARTablado, but other forms of art, be it sculptures, the spoken word and others. In February, ARTablado presents Revival, Mr. Francisco’s one-man exhibit. The artist, who hails from Angono, Rizal, is the grandson of the renowned muralist and National Artist, Carlos “Botong” Francisco. What differentiates him from his grandfather is his style, having been deeply influenced by Abstract Expressionism. This is first solo exhibit since 2011. As part of Revival, for the first time, some of the most cherished art pieces of Botong Francisco, such as framed sketches, will be displayed in Robinsons Galleria. Revival will run from Feb. 1 to 15 at the Level 3, Veranda of Robinsons Galleria.

Aussie printmaker in Manila

CHILD’S PLAY, one of the most popular works of Australian master printmaker, curator, and educator Michael Kempson was recently gifted by the artist to the De La Salle-College of Saint Benilde. The collection, a 17-piece set of etching and aquatint prints that tackle the geopolitical issues of the 21st Century, features adorable animals as commercialized national symbol of different countries. Child’s Play was initially installed as part of the By Hand: Rediscovering the Art of Printmaking travelling exhibit by Benilde Center for Campus Art in 2018 before finding its home at the newly renovated office of the School of Diplomacy and Governance of the College. Kempson is currently a Senior Lecturer and Convenor of Printmaking Studies at the University of New South Wales Art & Design in Sydney, Australia and a visiting Professor at the Xi’an Academy of Fine Art in Xian, China. He was the International Member-at-Large for the US-based Southern Graphics Council International from 2014 to 2016. His works have been showcased in 26 solo exhibits and has participated in over 200 group exhibitions around the world.

Full cast of The Band’s Visit

ATLANTIS Theatrical Entertainment Group has announced that musical theater performers Jep Go, Dean Rosen, Steven Conde, Rhenwyn Gabalonzo, and Leanne Mamonong complete the cast of the Tony and Grammy Award-winning musical The Band’s Visit which opens in March at the Carlos P. Romulo Auditorium, RCBC Plaza, Makati. They join previously announced cast members Menchu Lauchengco-Yulo, Rody Vera, Mark Bautista, Nino Alejandro, Reb Atadero, Bibo Reyes, Jill Peña, Maronne Cruz, and Floyd Tena. The Band’s Visit opened on Broadway in 2018 and went on to win 10 Tony Awards including Best Musical. Based on the acclaimed film, The Band’s Visit tells the story of an Egyptian Police Band that arrives in Israel to play a concert. After a mix-up at the border, they are sent to a remote village in the middle of the desert. With no bus until morning and no hotel in sight, these unlikely travellers are taken in by the locals and their lives become intertwined in the most unexpected ways. It features music and lyrics by David Yazbek and a book by Itamar Moses, and will mark its International Premiere in Manila. It runs from March 13 to 29 at the Carlos P. Romulo Auditorium, RCBC Plaza, Makati City. Tickets are now available at www.ticketworld.com.ph.

SMC waives toll fees at SLEx for relief operations

VIEW of a portion of South Luzon Expressway (SLEx) at Bilibid area, Muntinlupa City as of April 2014. — WIKIPEDIA.ORG

SAN MIGUEL Corp. (SMC) said no fees would be collected at the South Luzon Expressway (SLEx) and Southern Tagalog Arterial Road (STAR) for vehicles involved in relief operations in areas affected by the Taal Volcano eruption.

In a statement e-mailed to reporters on Tuesday, SMC said it has “waived” toll fees at the two toll gates it operates “for both government and private vehicles involved in ongoing relief efforts, following the eruption of Taal Volcano.”

SMC also announced last week that it would not collect toll fees from “southbound government vehicles” that carry volunteers, equipment, and relief supplies.

“Private vehicles being used to deliver relief goods were also allowed to pass for free, with proper advance coordination with tollway management,” it added.

Vehicles that carry relief goods can now pass through the toll gates for free without the need for advance coordination with the SMC tollway management.

SMC said they can stop at the following sites for inspection: SLEX Southbound (Petron Silangan/KM 44, Mayapa Entry, Batino Entry, Calamba/Real Entry); STAR Southbound location (Sto. Tomas Entry); and all STAR Northbound entry locations (Batangas, Ibaan, Lipa, Toribio, Malvar, and Tanauan).

SMC President Ramon S. Ang said: “This is part of our wide-ranging efforts across the San Miguel Group to help our countrymen, through our own relief operations, and by supporting and enabling others who also want to help.”

“Yet again, we are seeing the best of Filipinos—helping and lifting each other up in times of great need,” Mr. Ang added.

Renato U. Solidum, Jr., director of the local volcanology agency, has warned of a sudden explosive eruption as gas continued to build up beneath Taal Volcano.

Taal Volcano in Batangas province forced thousands of residents to flee after it emitted a thick ash column on Jan. 12.

The ashfall covered cities near the capital, forcing financial markets to suspend trading and the Manila airport to close.

About 50,000 families in Batangas, Quezon, Laguna and Cavite had been affected by the eruption as of 6 a.m. of Monday, according to the local disaster agency’s report. — Arjay L. Balinbin

Chinese regulator tightens overseas derivative trading rules for state-owned firms

SHANGHAI/SINGAPORE — China’s state asset regulator on Monday urged central government-owned companies to better manage risks in overseas derivative trading as it increases regulatory oversight to prevent future trading losses.

The State-owned Asset Supervision and Administration Commission (SASAC) said as of now Beijing-controlled state companies can only use financial and commodities derivatives to hedge risks, and any form of speculative activities are banned.

On its website, SASAC said firms must set up an effective risk-management system, and report derivative trading activities to the regulator on a regular basis.

SASAC said it is strengthening its rules after finding unidentified cases of mismanagement regarding overseas derivative trading, such as “irregular procedure of trade executions, incentive-motivated speculation, and delay and inaccurate reporting (of trading positions).”

“Companies’ derivative businesses have undergone new trends and new changes in recent years, the current regulatory mechanism may be outdated to meet the real demands,” the regulator said.

The new rules come a year after state refiner Sinopec Corp. lost nearly $700 million in late 2018 in one of China’s largest derivatives trading losses in nearly a decade.

Sinopec has so far provided no further details beyond suspending two senior officials and blaming “inappropriate trading strategies” in crude oil hedging. It didn’t immediately respond to requests for comment on the new SASAC rules.

Under the new rules, SASAC caps hedging volumes at 90% of companies’ annual turnover of physical transactions and production. Hedging activities for trading purposes should not exceed 80% of the physical volumes under the new regulations.

A Beijing-based official at one state company, who declined to be named as he’s not authorized to speak to the media, welcomed the change.

“The new rules reflect an improvement by removing previous archaic regulations (in 2009) which set rigid, text-book style restrictions in hedging volumes and products that are in reality hard to achieve,” he said.

SASAC also called on companies to set up an internal risk management system comprising three layers: the company’s board of directors, the designated business subsidiary and the team that carries out the actual trades. — Reuters

How PSEi member stocks performed — January 21, 2020

Here’s a quick glance at how PSEi stocks fared on Tuesday, January 21, 2020.

 

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