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1.17

JANUARY 12, 2016

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Dow Jones
NASDAQ
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FTSE 100
Euro Stoxx50

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NET
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47.930
15.01

57.410
25.750

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P E SO - D O L LA R R AT E S

JANUARY 13, 2016

LATEST BID (0900GMT)

FX
OPEN
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HIGH
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13.2 ctvs. CLOSE P47.545
WEIGHTED AVE. W. AVE. P47.457
30 DAYS TO JANUARY 13, 2016 VOL. $858.80 M

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36.230
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T HURS DAY JANUARY 14, 2 01 6 www.bwo r ld o n lin e.co m

VOL. XXIX ISSUE 119

OIL

JANUARY 12, 2016

PREVIOUS
CLOSE PREVIOUS
DUBAI 26.50 28.10
1.4492
WTI 30.44
1.0858
31.41
BRENT 30.86 31.55
0.6985
1.4227
0.9997

S1/1-12 4 SECTIONS, 28 PAGES

San Miguel brewing up beer deal

By Krista A. M. Montealegre
Senior Reporter

90

DIVERSIFIED
conglomerate
San Miguel Corp. (SMC) has expressed interest to acquire SABMiller PLCs Grolsch and Peroni
beer brands a move analysts
saw as a bid to tap new growth
drivers beyond an already-saturated domestic market.
Anheuser Busch InBev SA,
which agreed to buy SABMiller
PLC for $100 billion plus, has
been seeking potential bidders
for Grolsch and Peroni, sources
close to the process told Reuters
last month.
The two foreign firms are selling the popular beer brands to
win clearance for the merger of
Anheuser-Busch and SABMiller,
according to reports.
Yes, [we will] join [the] bid,
SMC President and Chief Operating Officer Ramon S. Ang said in a
mobile phone message yesterday.
Shares in SMC the parent
firm of San Miguel Brewery, Inc.
(SMB) added P8 or 15.38% to
close at P60 each on Wednesday.
San Miguel will go up against
other foreign suitors, including
Asian brewers Asahi Group Holdings Ltd. of Japan and Thai Beverage PCL of Thailand, for the beer
brands, according to foreign media reports citing people familiar
with the situation.

REACHED ITS PEAK

A dominant force in the local beer

market, SMC is moving to buy
the well-known beer brands at a
time when the countrys biggest
brewer is seeking new sources of
growth.
San Miguel is on expansion
mode and that makes sense because
it has reached its peak domestically, Astro C. del Castillo, managing director at First Grade Finance,
Inc., said in a telephone interview.
SMB controls roughly 90% of
the beer market, said Luis A. Limlingan, business development
head at Regina Capital Development Corp, but noted that consumer preferences are changing.
San Miguel, S1/2

75

60

45

30

BY THE LITER: HOW CHEAP IS GASOLINE?

THE downtrend in world oil prices shows no

signs of stopping as Dubai crude, the
benchmark for local fuel prices, averaged
$29.45 per barrel so far this year an
amount not reached since $26.42 at
end-2003.This roughly translates to a
pump price of P36.775 per liter of gasoline.
How does this compare with prices of
select consumer goods that can also be
measured per liter? Leo Jaymar G. Uy

DISTILLED
WATER

CHAIN STORE
COFFEE
MASS-MARKET
BEER

READY-TO-DRINK
ICED TEA

PREMIUM
BRAND
FRESH MILK

P28.80

P84.50

GASOLINE

15

P23.95

P36.775

NOTES: The price of gasoline was obtained by subtracting P0.15 (the average of the P0.1-P0.2
per liter increase in prices last Monday) from P39.125 (the average of the P33.2-P40.65 per
liter price range prevailing in Metro Manila).

63.425

24.725

1990

19.375 16.95
1991

1992

14.525 14.35 16.325 19.075 18.92

1993

1994

1995

1996 1997

12.315
1998

16.945

69.36

106.765

105.115

86.815

Additional information provided by Timothy Roy C. Medina and Dindo F. Paragas

P288.14
105.15

81.89

80.21
58.925

48.95

47.21
26.42
21.74 23.045

26.125

34.37

ANNUAL AVERAGE PRICE

OF DUBAI CRUDE

29.45

(in USD/barrel)

1999 2000 2001

2002 2003 2004 2005 2006 2007 2008 2009

2010

2011

2012

2013

2014

2015

2016

BUSINESSWORLD GRAPHICS: BONG R. FORTIN

$20 oil no longer a mirage as world confronts 12-year low

THE WORLD mostly ignored Ed
Morse 11 months ago when the
head of commodities research at
Citigroup said oil could drop as
low as $20.
Its paying attention now that
crude has tipped below $30.
Crude futures in the U.S. sank
into the $20s for the first time in
more than 12 years on Tuesday,
hours after BP Plc said it would
slash an additional 4,000 jobs,
Petroleo Brasileiro SA cut its
spending plan and Petroliam Nasional Bhd. warned that it faces
several tough years. Morse, who
wrote in a Feb. 9 research note
that oil could fall perhaps as low
as the $20 range for a while, said

DETROIT

Auto industrys green push

challenged by low gas prices

in Calgary Tuesday that the world

is now confronting $20 oil.
The $20 number is something
you have to talk about, Morse
said. When youve seen a $10
price slide and WTI is trading just
slightly above $30, the likelihood
is fairly great. Clearly oil markets
cannot maintain a price at below
the $30 level for very long. The
question is how much longer.
West Texas Intermediate fell as
low as $29.93 a barrel before settling at $30.44 Tuesday, the lowest
level since December 2003.

FINANCING CHALLENGES

Low prices could cause problems

for U.S. oil companies with cov-

SAN FRANCISCO

enants that specify certain debtto-earnings ratios or interest

coverage, and will make it even
harder for them to obtain financing to continue operating, said
Mark Sadeghian, a senior director
for the energy and commodities
group at Fitch Ratings Ltd.
The Bloomberg Commodities
Index fell to the lowest level since at
least 1991 as demand from slowing
emerging-market economies fails
to keep pace with a flood of supply
from investments made during the
price boom of a half-decade ago.
Malaysia stands to lose 300
million ringgit ($68 million)
for every $1-a-barrel decline in
crude, according to government

NEW YORK

Personal computer shipments

plunge but Apple bucks trend

Beneath the hoods of the cars showing

Last year ended with a record-setting
in Detroit this week lie engines that
drop in personal computer shipments,
are as powerful as ever, but are
with Apple bucking the trend, a
AROUN
smaller and, helped by direct
report found on Tuesday. The
D
THE
injection, guzzle less gas. AutoInternational Data Corp. (IDC)
WORL
D calculated that some 71.9 million
makers have subbed out stainless steel for aluminum and other
personal computers (PCs) were
lighter-weight materials, and added
shipped worldwide in the final quarter of
more gears to let engines run in sweet
2015, a 10.6% drop from the same period a
spot mode more often. S3/3
year earlier. S3/3

Energy, biotech stocks help lift

Wall St. to second day of gains

A late rebound in energy and biotech

shares helped push the S&P 500 to a second straight day of gains on Tuesday, while
Apple and other technology shares also
boosted the market. The Nasdaq snapped
an eight-session losing streak, with the
Nasdaq Biotech Index rebounding late, also
breaking an eight-day run of losses. The
biotech index, among the hardest-hit in
this years selloff, ended up 1.5%. S3/4

Time runs out for BSP charter bill

By Melissa Luz T. Lopez
Reporter

THE CHANCES of Senate action on

a priority legislation to infuse more
funds and give additional powers to
the Bangko Sentral ng Pilipinas (BSP)
are dimming, lawmakers said.
With barely six weeks worth of
legislative sessions left, lawmakers have yet to come up with a final
proposal to fortify the current BSP
charter.

E
ON TEHB
W

P104.55

Proposed changes include hiking

the BSPs authorized capital to P200
billion from the current P50 billion,
the expansion of the authority of the
central bank to obtain data from private entities for statistical and policy
development, and the power to issue
its own debt securities.
Those provisions are seen to improve the central banks financial
sustainability by updating the New
Central Bank Act of 1993, which has
been in place for over 20 years.
The House of Representatives has
passed its version of the bill on Oct.

BEYOND

Sticking with the same

employer isnt out of style
http://goo.gl/jI6SNG

9 as House Bill 5875 just before Congress took a three-week break to give
way to the filing of candidacies for the
May 9, 2016 national polls.
Senate officials, however, said the
bill is facing rough sailing.

estimates. ConocoPhillips is losing $1.79 billion in net income

each quarter for every $10 drop
in prices, according to analysts at
Barclays Plc.
Petrobras, as Brazils statecontrolled oil producer is known,
cut its five-year business plan to
$98.4 billion, the latest adjustment to the original $130 billion
announced last year.
The U.S. Energy Information
Administration reduced its forecast for WTI prices for 2016 by
24 percent to $38.54 a barrel. In
its monthly Short-Term Energy
Outlook, the agency said the oil
market would come back into balance in 2017.

Economy to get a kick as state

spending rises 16% in Q4 Abad
By Keith Richard D. Mariano
STATE SPENDING likely grew at an annualized clip of 16% at best in the fourth quarter of
2015, bolstering chances the economy clocked
a growth rate of 6% for the year, the countrys
budget chief said.
That is highlighted by easily about 13%
increase in infrastructure spending over the
fourth quarter of 2014, Budget Secretary
Florencio B. Abad told reporters late Tuesday.
The budget chief offered a growth range of
10-16% in disbursements for the October to
December 2015 period from the P525.54 billion during the comparable 2014 period.
That pace meant the government had been
sustaining the midteens clip in spending

STUCK IN COMMITTEE

Asked about the bills chances of seeing approval, Sen. Sergio R. Osmea,
III, chairman of the Senate Committee on Banks, Financial Institutions, and Currencies, said via text:
Not enough time.
BSP, S1/2

DISCLOSURES

Cosco Capital, Inc.,

Megaworld Corp.
http://goo.gl/k1tIuB

The call for oil in the $20s has

grown louder. Goldman Sachs
Group Inc. gave a 50 percent
chance of oil falling to $20 in
September and Morgan Stanley said Monday that a strong
dollar could drop oil below $30.
Morse was first with the $20 call,
although he said last February
that it could happen in the first
half of last year followed by the
market balancing.
Right now the real driving
factor is access to capital markets, Sadeghian said by phone
from Chicago. $20 oil just digs
an even deeper hole from where
you need to be before the markets
open up again. Bloomberg

EVENTS CALENDAR

December hot money data

PHL banks real estate exposure
http://goo.gl/9qRlCS

growth in the two quarters before that an

average 12.5% in the second quarter and 19%
in the third quarter, according to data from the
Bureau of the Treasury.
In the first quarter when gross domestic
product (GDP) growth logged a slower-thanexpected 5% government expenditures
grew by just 4.5% to P504.05 billion.
Last week, the government reported state
spending rose by an annual 13% to P1.992
trillion in the eleven months ended November
last year but below a P2.335-trillion goal.
The latest spending data translated to a
narrower year-to-date deficit of P46.545 billion, retreating further from the P283.69billion ceiling designed to spur a 7-8% GDP
growth the official goal in 2015.
Traditionally everybody rushes to close
their books so [they] spend as much at the
end of the year. Especially since next year is
[an] election year and [given the] March 25
election ban, they all want to avoid that, Mr.
Abad said.
The fourth-quarter disbursement represents a very small part of the economys
overall growth, Mr. Abad said. But if it were
to depend on public spending, then we can
project that robust increase.
State spending, S1/2

A NEWSPAPER IS A PUBLIC TRUST

FOLLOW US ON:

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2/S1

THURSDAY, JANUARY 14, 2016

Sn Miguel,

Foray into space

from S1/ 1

the next five years, Mr. Ang had

said in May last year.
SMB is partnering with its key
shareholder Kirin Holdings Co.
Ltd. of Japan to introduce new
non-alcoholic beverage products
including soft drinks in the
Philippines. It has acquired nearly
P400 million worth of assets nonalcoholic beverage assets of sister
firm Ginebra San Miguel, Inc.
SMBs net profit grew by an annual 6% to P9.97 billion in the ninemonths through September. Consolidated revenues rose 4% to P58.8
billion on higher domestic beer sales.
Led by Mr. Ang, the countrys
largest food and beverage company started an aggressive diversification program in 2007 that saw
the conglomerate make a series of
acquisitions in attractive growth
sectors such as infrastructure,
fuel and oil, energy, telecommunications and banking.

State spending,
from S1/ 1

GDP growth had so far been

below goal averaging 5.6% in
the three quarters ended September but while the Development
Budget Coordination Committee
(DBCC) is retaining its targets, Socioeconomic Planning Secretary
Arsenio M. Balisacan earlier said a
6% growth was more realistic.
To realize a slower 6% annual growth, the countrys output
should have increased 6.9% during the three months to December
the fastest since the 7% recorded in the third quarter of 2013.

BULLISH Q4 BET

Mr. Abad, who heads the interagency DBCC, expects the economy to have exhibited a definitely
better performance in the October-December period than whats
seen in the preceding quarter.

When asked about the likelihood that the economy expanded

by 6.9% in the fourth quarter, Mr.
Abad said: May laban (there is a
chance). If I were just to base it
on public spending, I will be more
confident.
An expected surge in private
consumption during the Christmas season and in the run-up to the
May 9 national elections should be
key growth drivers, he said.
The last-quarter hunger is
best in 11 years so people spend
more money on food [and unemployment] even went further
down, Mr. Abad said.
In a recent report, the Social
Weather Stations said involuntary hunger eased in the last
quarter and helped bring the fullyear result to the lowest level in
11 years.

PHOTOGRAPHERS take pictures

of DIWATA-1, Philippines' first
micro satellite for multi spectral
high precision earth observation,
during a media tour at the Japan
Aerospace Exploration Agency
(JAXA) Tsukuba Space Center in
Tsukuba, north of Tokyo, Japan,
Jan. 13.

REUTERS

The domestic market is getting more sophisticated, Mr.

Limlingan said in a mobile phone
message.
We are seeing a change in
preferences and the market is
looking for other options.
San Miguels plan to bid to buy
established beer brands is no
longer surprising since that will
accelerate its expansion.
Mr. del Castillo said: You now
have companies like Emperador,
Inc. of Andrew Tan buying foreign companies overseas. That
was a bit surprising because mabilis (it was done in haste).
With San Miguel, this is not
surprising since it has long been
expanding globally, he added.
SMB is adopting a multibeverage strategy to capitalize
on the faster growth pace of the
non-alcoholic beverage segment
that will add 30% to revenues in

BSP,

from S1/ 1
There are significant objections. It will take time to address
and understand the issues, Mr.
Osmea said.
During the House hearings
on the measure, committee
chairman Batangas Rep. Nelson
P. Collantes (3rd district) said
some lawmakers were initially
apprehensive about provisions
that they deem could accord central bank officials with too much
power.
At the Senate, Mr. Osmeas
committee has not resumed discussions on the measure with
Congressional sessions set for
Jan. 19, coming from a monthlong Christmas break. They will
again adjourn on Feb. 5 as the official election campaign period
starts.
Legislators get back to work
on May 23 through June 10 to
formally close the 16th Congress.
By July, under the helm of a
new president, a fresh set of lawmakers will make the 17th Congress, where all bills -- regardless

of how close they were to enactment in the previous Congress

-- will have to start from scratch
and must be refiled.
Senate President Franklin M.
Drilon also said the BSPs proposal still is far from securing the
Senates full vote.
The bill is still pending in the
Committee on Banks. We cannot
take it up in plenary unless the
Committee submits its report,
Mr. Drilon said separately.
Should the BSPs charter
change bill fail to clear the Senate, it would have to go back to
refiling in both chambers and
again fight its way up to clinch the
go-ahead at the committee level
and on separate second and third
readings in both the House and
Senate, plus a possible bicameral
conference before it can be endorsed for the Presidents signing
into law.
Efforts to fortify the BSPs
powers as the countrys monetary
authority date back to previous
Congresses, but to no avail.

No bill is ever dead. It can be

taken up in the next session in
July. Important bills take many
Congresses to pass, Mr. Osmea
added.

HOPEFUL

Central bank officials, however,

believe that there is still space for
Congress to pass the measure.
BSP Governor Amando M. Tetangco, Jr. said via e-mail: We will
continue to work with the Senate
for the passage of the bill.
BSP Deputy Governor Diwa
C. Guinigundo also said on Monday that the BSP is still hopeful
about the bills passage.
The House has already
completed its own version. We
expect an upward adjustment
on the capitalization of the BSP
from P50 billion to P200 billion,
also the authority of the BSP to
issue its own debt securities thats also another important
amendment to the charter. But
we are waiting for the Senate
version, Mr. Guinigundo told

reporters on the sidelines of a

press forum.
This is an election year, people are busy, Congress and the
Senate are also busy so we are
keeping our fingers crossed.
You need a law - otherwise
there is no authority for the national government, particularly
For the Department of Budget
and Management to give us beyond what is provided for under
the law.
The central bank has remained
in the red for the past five years,
though it has narrowed its losses
to P3.77 billion as of end-November against the end-2010 level of a
P59.04-billion loss.
The BSP charter amendments
form part of the priority reforms
sought by Malacaang, Congress,
and business groups. The proposed legislation is also one of
three reforms earlier named by
credit rater Moodys Investors
Service to ensure creditworthiness of the Philippines beyond
2016.

EDITOR CATHY ROSE A. GARCIA

THURSDAY, JANUARY 14, 2016

Corporate News

S1/3

More listed companies rush to buy back shares

By Krista A. M. Montealegre
Senior Reporter

CORPORATES are rushing to the

stock market to stop the bleeding
of their share prices amid a global
sell-off that has dragged the Philippine stock market to a bear territory.
Filings to the Philippine Stock
Exchange (PSE) showed companies in the main index such as Enrique K. Razon-led Bloomberry
Resorts Corp. and International
Container Terminal Services,
Inc. as well as Lopez-led Energy

Development Corp. have been

buying back their shares of stocks
from the open market since Monday when the benchmark gauge
fell to a nearly two-year low.
Other companies that have
been repurchasing their shares
were Belle Corp., Phinma Corp.
and Splash Corp., according to
regulatory filings.
These companies in a way
think their shares may be at
oversold levels. They think
their shares are undervalued
so they have been buying their
shares to support prices amid
the sell-off, Lexter L. Azurin,
head of research at Unicapital

Securities, Inc., said in a phone

interview.
The share buybacks added
to the rise in the past two days,
Mr. Azurin said, as the Philippine
stock market recovered from a
rout triggered by volatility in Chinese equities amid concerns of
a deep slowdown in the worlds
second-biggest economy.
Yesterday, the 30-company
P S E i n d e x ( P S E i ) s h ot u p
163.58 points or 2.58% to end
at 6,494.13, its biggest one-day
point and percentage increase
since Oct. 2, 2013 when the local barometer climbed 164.42
points or 2.7%.

Victorias Milling profit

rises nearly 10% in Q1

VICTORIAS Milling Co., Inc. (VMC) saw

its first-quarter profit increase by 9.73%
from the previous year.
In a report to the Philippine Stock
Exchange, the sugar producer said it
earned P292.19 million in the three
months ended November 2015, up from
the P266.83 million in the same three
months of 2014.
The September-November period
is the companys first quarter since its
fiscal year ends in August.
The increase in its first-quarter profit
stems from a nearly 2.7% increase in
operating revenue to P1.388 billion in
the current year from P1.352 billion in
the previous year.
Total expenses rose at a slower rate of
1.95% to P989.82 million in the current year
from P970.86 million in the previous year.
VMC said it had paid all its restructured loans in 2013, and redeemed all its
convertible notes except those subject
to mandatory conversion to common
shares amounting to P404.7 million.
Janina C. Lim

TAV Havalimanlari Holding AS,

the operator of Turkeys busiest
airport, is in talks over plans to
invest in projects in the Philippines and Belgrade, two people
with knowledge of the matter
said.
TAV, whose biggest owner is
Aeroports de Paris with a 38%
stake, is looking at committing to
two airport deals coming up for
bid next month, said the people,
who asked not to be named because the plans are confidential.
While TAV may seek operational rights, it may also opt for an
asset acquisition, said one of the
people. The airport in the Philippines would be one of five for

Read the full story by scanning

the QR code with your
smartphone or by typing the link
<http://goo.gl/YITtGd>

Manila Water to provide

services for ALI projects

SEASONED investment banker Roberto

Juanchito T. Dispo has joined the board
of two companies owned by Philippine
billionaire Lucio L. Co.
Mr. Dispo will join the board of Cosco
Capital, Inc. the holding firm for Mr.
Cos consumer-centric businesses as
adviser, effective Jan. 18, the listed firm
told the stock exchange yesterday.
Cosco Capital, Inc. believes that Mr.
Dispos broad experience in investments, strategic acquisition and management including his previous position
as Deputy Treasurer of the Philippines
could provide the board with expert
guidance to be a more competitive
conglomerate in the Philippine market,
the listed holding firm said.
Mr. Dispo, in a mobile phone
message, confirmed he is also set to
be named as adviser to the board of
Philippine Bank of Communications, a
commercial bank controlled by Mr. Co.
Mr. Dispo, who recently retired from
First Metro Investment Corp., has over
17 years of experience in capital raising,
investments, strategic acquisition and
asset management.
His move to Cosco happens more
than a week after he joined the board of
Cirtek Holdings Philippines Corp. as its
adviser and president. Krista Angela
M. Montealegre

A TRADER talks on the phone at the Philippine Stock Exchange in this Jan. 2, 2014
file photo.

which TAV and partners won prequalification status last year, the
person said, declining to specify
a location.
TAV runs Istanbuls Ataturk
airport and 13 other sites in countries including Georgia, Macedonia and Tunisia. Its been seeking
to expand with work abroad after
a competing local group won a
Turkish government contract in
2013 to develop a new, 150-million-passenger airport in Istanbul and run it for 25 years. TAV
also offers duty-free retail, information technology and ground
handling at about 70 airports in
Europe, the Middle East, Africa
and the US.

While Belgrades Nikola Tesla

Airport hasnt released any bid
documents, Serbias government
said in an International Monetary
Organization filing in December
that it has hired advisers to develop
long-term management contracts.
The Serbian Economy Ministrys
press office declined immediately
to comment on Tuesday.
A TAV official, who asked not
to be named because of company
policy, declined to comment on
the airport operators plans.
The company is chasing two
airports for investment, Haberturk reported on Tuesday, citing
TAV Chief Executive Officer Sani
Sener. Bloomberg

Vista Land mulls US dollar note issuance

FULL STORY

Lucio Co taps banker

Dispo as adviser

AFP

Turkish airport operator TAV eyes

investments in Philippines, Belgrade

BRIEFS

MANILA WATER Co., Inc. yesterday said

its subsidiary has signed a memorandum
of agreement with property developer
Ayala Land, Inc. (ALI) and the latters
subsidiaries and affiliates to provide
water and used water services and
facilities to all their projects nationwide.
In a disclosure to the stock exchange,
the company said the objective of the
agreement signed by its unit Manila Water
Philippine Ventures, Inc. was to leverage
on the respective expertise of the parties
in order to provide optimum services and
facilities for their customers and clients.
It added that the Ayala Land group
previously provided in-house water and
used water services and facilities in their
property development projects.
Among the Ayala Land units involved in the deal are AyalaLand Hotels
and Resorts Corp., Alveo Land Corp.,
Avida Land Corp., Amaia Land Corp.,
and Bellavita Land Corp.
Both Ayala Land and Manila Water are
part of Ayala Corp. Victor V. Saulon

Despite the two-day rebound,

the PSEi is still in a bear market, down 20.1% from its peak of
8,127.48 in April 10, 2015.
Local stocks are currently
trading at a price to earnings multiple of 15.3 times 2016 earnings
below the five-year average of
17 times, Mr. Azurin said.
Some stocks have become attractive with the recent sell-off. If
the market falls, companies are the
first one to provide support for the
stocks because they think it has
become cheap, Luis A. Limlingan,
business development head at Regina Capital Development Corp.,
said in a mobile phone message.

Singapores Tallest Building

AFP

A view of Singapores tallest building at Tanjong Pagar Centre is seen

on Jan. 13. At 290 meters, the $2.23-billion mixed-use development by
GuocoLand will be completed in mid-2016. Architectural firm Skidmore,
Owings & Merrill designed the skyscraper.

VISTA LAND & Lifescapes, Inc.

may issue another tranche of its
dollar-denominated notes under
the companys $1-billion mediumterm note program.
VLL International, Inc. (VLLI),
a wholly owned subsidiary of the
property firm of billionaire and former Senator Manuel B. Villar, Jr.,
is considering the offering of U.S.
dollar-denominated notes, subject
to favorable market conditions, the
listed firm said in a disclosure to the
stock exchange yesterday.
The management of Vista
Land and VLLI has yet to determine the terms and conditions
of the offer, the countrys largest
homebuilder said.

PSE receives garnishment

order on Aranetas LBC
THE Philippine Stock Exchange (PSE)
on Wednesday said it received a garnishment order on assets of LBC Express
Holdings, Inc. under the exchanges
control, as part of the P1.8 billion collection case filed by the Philippine Deposit
Insurance Corp. (PDIC) on behalf of the
shuttered LBC Development Bank, Inc.
Please be advised that on January 11,
2016, the Exchange received a Notice of
Garnishment issued on January 8, 2015
[sic] by the Regional Trial Court (RTC),
Branch 143, Makati City, PSE President
and Chief Executive Officer (CEO) Hans
B. Sicat said in a Jan. 12 memorandum.
The Notice of Garnishment effects
garnishment upon all goods, effects,
stocks, interests in stocks and shares,
and any other personal properties of
the Defendants in the possession of
the Exchange or under the Exchanges
control sufficient to cover the amount of
P1,824,686,444, he added.
Mr. Sicat said the notice also instructed
the PSE not to deliver, transfer or otherwise dispose of such property to any
person or entity other than the Deputy
Sheriff of RTC Makati Branch 143.
The PDIC, acting as liquidator of LBC
Bank, is running after the LBC group on
allegations that the company owes its
sister bank P1.8 billion worth of unpaid
service fees.
The Makati court had earlier issued
a writ of preliminary attachment on
LBC Express last Dec. 28, 2015. A writ
of attachment is a court order for the
attachment or seizure of a property, and
is generally used to freeze the assets of
a defendant while awaiting the results
of a legal action to satisfy the plaintiff s
claim and costs of suit.
The defendants in the case include
LBC Development Corp. and LBC Ex-

press, Inc. the listed firms parent

and subsidiary, respectively, as well as
company officials.
LBC Express Chairman, President
and CEO Miguel Angel A. Camahort
said on Jan. 7 that whether or not the
claims against LBC Express are successfully proven, there can be no assurance
that these claims will not cause business
interruptions or reputational harm to
LBC Express Holdings, Inc. and may
ultimately have a material adverse effect on its financial performance and
prospects.
[T]he writ (of preliminary attatchment) is a provisional remedy and the
assets or cash of LBC Express shall be
made to answer only upon final judgment being rendered against LBC Express, Mr. Camahort earlier said.
Shares in listed LBC Express Holdings, Inc. lost 10 centavos or 1.15% to end
yesterdays trading at P8.60 apiece.
Sought for comment, PSE Chief Operating Officer Roel A. Refran said in a
mobile phone reply: It will be the market sentiments on these developments
that will weigh on the price.
Meanwhile, Araneta Properties Inc.
(ARA) said it has not received any notice
of garnishment from the court relating
to its shares owned by LBC Express.
In the event that we receive a notice
of garnishment, said garnishment will
have no material effect on ARAs business, operations and financial condition. There will only be an effect if such
garnishment results in the legal transfer
of the concerned ARA shares from LBC
to another party. In such event, there
may be a change in the list of stockholders of ARA, the company told the stock
exchange on Wednesday. Daphne J.
Magturo

Last June, VLLI raised $300

million from the sale of senior
unsecured notes due 2022, the
first seven-year tenor notes issued by the company under its
debt program.
Order book for the debt securities, which were priced at 7.375%,
reached a record $1 billion, Vista
Land had said.
The new notes were issued as
part of the companys liability
management exercise aimed at
lengthening the maturity of some
$450 million worth of debt.
DBS Bank Ltd. and HSBC acted
as joint global coordinators, joint
lead managers and joint bookrunners for the $300-million notes

issuance, while BDO Capital & Investment Corp. and China Banking Corp. acted as joint domestic
lead managers.
Mr. Villar is consolidating his
residential and commercial leasing businesses under Vista Land
in a deal valued at P33 billion, accelerating its transformation into
one of the Philippines biggest
integrated property developers.
Vista Land grew its ninemonth earnings by 18% to P5 billion from P4.25 billion on higher
sales.
Shares in Vista Land lost five
centavos or 1.10% to close at P4.50
each on Wednesday. Krista A.
M. Montealegre

4/S1

Economy

The

EDITOR TIMOTHY ROY MEDINA

THURSDAY, JANUARY 14, 2016

ADB $400-M loan signals sustained CCT effort

THE HEAD of the Asian Development Bank (ADB) on Wednesday
said its Board will soon greenlight an additional $400 million
for the Philippines conditional
cash transfer (CCT) program.
Based on the positive outcomes of the CCT program, Im
now recommending to the ADB
Board additional $400 million
of financing which is expected to
be approved by the board of ADB
soon, Takehiko Nakao said in his
welcome remarks at the conference on sustaining the gains of the
CCT at the ADB Headquarters.

Mr. Nakao said the ADB approved in 2010 the social protection support project amounting
to $400 million which supported
the governments CCT program
as well.
He said the Pantawid Pamilyang Pilipino Program is helping
to bring about lasting change
by maintaining childrens health
and ensuring their completion of
basic and secondary education.
The goal is to break a vicious
cycle that has trapped millions of
Filipino families in poverty, Mr.
Nakao said.

He said the Department of Social Welfare and Development is

a pioneer of CCT in Asia under
President [Benigno S. C.] Aquino
[III]s leadership, adding that the
program is a model for developing
countries.
Social Welfare Secretary Corazon J. Soliman said the $400 million will take the form of a program
loan payable over 25 years, and
managed by the government to
ensure continued support for 4.6
million beneficiary households.
According to Mr. Aquino:
The preliminary result of the

latest round of assessments

conducted by our National
Household Targeting System
reports that almost 1.55 million
CCT families, or over 7.7 million
of our countrymen, have been
lifted out of poverty.
Given such a development,
our National Economic and Development Authority projects
the sustained reduction in our
poverty incidence in terms of
population: from what used to
be 26.3% in 2009, to anywhere
between 18% to 20% for 2016,
he added.

The budget of the CCT Program increased to P62 billion in

2015, from P10 billion in 2010.
This has allowed us to increase the beneficiaries from
some 786,000 poor households
when we assumed office, to close
to 4.4 million poor households and
homeless families empowered by
the program nationwide,in five
years, he said.
In 2016, the CCT program has
an allocation of P62.7 billion to
cover 4.6 million households.
There is also the possibility that
my successor will opt to put a stop

Promise of cheap power

unfulfilled, experts say
By Victor V. Saulon
FIFTEEN YEARS ON, the deregulation of
the power sector appears to have failed
in its promise to bring down the cost of
electricity in the country, speakers at a
two-day energy conference said.
During their presentations, they
highlighted a comparison of the price
of electricity in the Philippines and
those of its neighbors in the region.
They presented the country as the least
attractive for investors as far as power
costs, and the most punishing for retail
consumers.
Philippines electricity price is
almost twice of the average price of the
region, said Rowaldo R. Del Mundo,
associate professor at the Electrical
and Electronics Engineering Institute of
the University of the Philippines (UP)
Diliman.
The conference was organized by
the Energy Policy and Development
Program, a four-pronged program for
research, policy development and advisory, capacity building, and communication launched in November 2014.
Mr. Del Mundo, who also authored
the Philippine Grid and Distribution
Codes, compared the price of electricity
for the countrys residential, commercial
and industrial users, and in all these
categories the Philippines topped
the charges set in Brunei, Cambodia,
Indonesia, Laos, Malaysia, Myanmar,
Singapore, Thailand and Vietnam.
The UP professors codes were
promulgated by the Energy Regulatory
Commission as part of the technical
implementing rules and regulations of
Republic Act 9136 or the Electric Power
Industry Reform Act of 2001 (EPIRA).
The price of electricity has been
and continues to be recurring consumer
complaint. Consumers were made to
believe that with EPIRA, a decrease in
the price of electricity will occur. The opposite happened, said Reynaldo Umali,
who is serving his second term at the
House of Representatives.
Mr. Umali currently serves as
chairperson of the House Committee

on Energy, co-chairperson of the Joint

Congressional Power Commission and
the Joint Congressional Oversight Committee on Biofuels.
He said EPIRA over time should
have resulted in real competition
among industry participants, which
would have brought down the price of
electricity.
Who was at fault? he said, asking
whether it was the private sector, the
regulators or lawmakers. He added that
finger-pointing at this time would be
counter-productive.
For his part, Economic Planning
Secretary Arsenio M. Balisan said: the
poor pay a high price to meet their
needs for energy.
The cost of energy must fall, he
added.
Mr. Balisacan, who has been directorgeneral of the National Economic and
Development Authority since May 2012,
said the sectors regulators the Department of Energy and Energy Regulatory
Commission should sit down more often
do determine what measures are good
for consumers.
He noted that transmission is in
the hands of the private sector when
it should be a good fit for the public
sector.
The Energy department is coming
up with a new development plan for the
industry that would serve as guide for
the next administration.
The economy should lead the
direction of power, not the other way
around, Mr. Balisacan said.
Energy Secretary Zenaida Y.
Monsada said the industry was facing
various challenges including problems
in electricity transmission in Mindanao,
which could become a national security
concern.
A task force has been created to
respond to the matter.
Aboitiz Power Corp. launched last
week a 300-megawatt baseload power
plant in Davao City that it expects to
contribute to solving the power supply
problem in Mindanao.
Ms. Monsada said the new plant
somehow eases worries about supply in
the area.

to the CCT, leaving the fate of millions of our countrymen in limbo.

If this were to happen, the Philippines would definitely lose its hardearned momentum, he added.
It is my deepest hope that,
coming into the elections, our
people have realized that they
can demand for more good governance, and I believe that they will
choose the right leader one who
has integrity and experience, who
will sustain our gains, and who
will definitely put country above
self, Mr. Aquino said. Kathryn
Mae P. Tubadeza

Local govt
IRA up 10%
this year

PHL aerospace firms hoping

to make a splash in Singapore
FREEPIK.COM

THE PHILIPPINES is ready to

compete in the aviation products
and services market, the Trade
department said in announcing
the countrys participation in a
regional aerospace trade event
next month.
These industries have
charted significant growth and
we see these maturing industries
ready to compete in the global
market, said Ceferino S. Rodolfo,
Department of Trade and Industry undersecretary for industry
development.
The local aerospace industry
is expected to generate export
revenue of up to $1.5 billion in
the next 10 years, the department
said.
As of the third quarter of 2015,
the industry reported export
gains of $309 million, exceeding
2014s $226 million.
Our participation in the Singapore Airshow affirms the confidence and competitiveness of the
local aerospace manufacturing
and aviation industries, said Mr.
Rodolfo, who is also managing
head of the Board of Investment

DoF calls out towns

with weak locally
sourced income
MOST PHILIPPINE cities largely
depended on their internal
revenue allotment (IRA) to fund
public services and other programs in 2014, the Department
of Finance (DoF) said yesterday.
Keith Richard D. Mariano

(BoI), the departments industry

development and investment
promotion arm.
The Singapore trade event
takes place on Feb. 16-21 and is
considered the premier showcase
for the sector in the Association of Southeast Asian Nations
(ASEAN).
Aviation parts and components manufacturers, maintenance, repair and overhaul
providers, airlines, and aviation
training organizations from the
Philippines will participate, the
department said.
Mr. Rodolfo said such a broadening of exposure implements
strategic initiatives outlined in
the aerospace industry road map,
which outlines the interventions
needed for global competitiveness.
The BoI and other government
agencies have guided industries in
drafting their respective road maps.
He said the department will
take advantage of the event and
similar fairs as an opportunity to
create traction for our positioning to be the aerospace manufacturing hub for ASEAN.

FULL STORY

Read the full story by scanning

the QR code with your
smartphone or by typing the
link <http://goo.gl/gcdOjj>

The growth of the aerospace and aviation industry will

mean more export earnings for
the country and more quality
jobs for Filipinos particularly
for the countrys graduates of
aviation-related courses, he
said.
The department cited figures
from the Commission on Higher
Education (CHEd) showing a rise
in the number of graduates of
aviation courses. In 2013, CHEd
tallied 9,453 graduates, up from
6,894 in 2009.
Aerospace parts are made in
Cavite, Laguna, Batangas, Rizal
and Quezon, or the Calabarzon
area. Baguio City also has its
share. Maintenance, repair and
overhaul providers are in Clark,
Pampanga while aviation training is clustered around Central
Luzon.
The Trade department said
the countrys participation in Singapore was organized by the BoI
together with the Foreign Trade
Service Corps and the Civil Aviation Authority of the Philippines.
Victor V. Saulon

Electronics exports
set to beat target after
8.1% rise in 11 months
GROWTH IN ELECTRONICS exports
for the 11 months to November
came in at 8.1%, running well ahead
of the industrys estimates for the
full year of 2015, the Semiconductor
& Electronics Industries in the Philippines, Inc. (SEIPI) said.

FULL STORY

Read the full story by scanning

the QR code with your
smartphone or by typing the
link <http://goo.gl/b56TGK>

LOCAL GOVERNMENT UNITS

(LGUs) will get a 10% year-onyear raise in their aggregate internal revenue allocation (IRA)
this year, according to the Department of Budget and Management (DBM).
The share of 43,593 LGUs
increased to P428.62 billion
from P389.86 billion last year,
following an improvement in
revenue collection, Budget Secretary Florencio B. Abad said in
a statement.
Efficient tax collection and
our policy of building the capacity
of LGUs to serve as partners of
the national government in the
implementation of projects have
made this possible.
The IRA accounts for 14.28%
of the governments comprehensive budget amounting to P3.002
trillion, as outlined under the
2016 General Appropriations Act.
The allocation has grown
steadily from P265.80 billion in
2010 to P286.94 billion in 2011,
P273.31 billion in 2012, P302.30
billion in 2013, P341.55 billion in
2014 and P389.86 billion in 2015.
The Local Government Code
of 1991 stipulates that LGUs share
the equivalent of 40% of the national internal revenue taxes collected three years earlier.
While the law provides for the
quarterly release of the IRA, the
DBM has automatically and comprehensively released the funds
at the start of the every year since
2012.
The DBM and the Department
of Finance have also adopted a
policy to release the IRA directly
from the Bureau of the Treasury
to the bank accounts of LGUs.
The increase in IRA can only
mean more capacity for LGUs to
provide social services and local
infrastructure projects for local
communities, Mr. Abad said.

OPINION

PEZA-registered firms and local business taxes

All PEZA-registered enterprises

ts business permit renewal period
entitled to ITH, 5% GIT and tax and
once again. While some may asduty-free importation, including Logissume that this annual process is a
tics Services Enterprises, are exempted
clear-cut routine devoid of uncertainfrom securing a mayors permit from the
ties, still some Philippine Economic
LGU concerned;
Zone Authority (PEZA)-registered firms
PEZA-registered enterprises availcould be uncertain whether they are reing of ITH are exempted from the payquired by law to secure a mayors permit
ment of all local taxes, licenses, imposts
from the local government unit (LGU)
and fees, including LBT; and
or to pay local business taxes (LBT).
PEZA-registered enterprises
To provide a backdrop for the issue,
availing of the 5% GIT
we combed through the
incentive are exempted
history of policy posifrom the payment of all
tions on the matter and
national and local taxes,
found that PEZA long ago
including LBT.
clarified the question on JOHN PAUL M.
By local taxes, we reliability for LBT under its VARGAS
fer to all taxes, fees and
Memorandum Circular
charges imposed by LGUs pursuant to
(MC) No. 2004-024 dated 24 September
the Local Government Code of 1991,
2004. The rule covers all PEZA-regisincluding LBT.
tered entities, whether enjoying income
From the foregoing, all PEZA-registax holiday (ITH) or the 5% gross intered entities, either under ITH or 5%
come tax (GIT) regime, except those
GIT, are exempted from securing a maywho opted to be taxed under the 30%
ors permit and from payment of LBT.
regular corporate income tax regime.
But what about PEZA-registered entiThis exception also includes those regties currently under or opting to be under
istered as Logistics Services Enterprises
the 30% regular corporate income tax
(formerly classified as Warehousing/
and Logistics Services Enterprises? Are
Logistics Facilities Enterprises) which
they also exempted from securing a mayare now subjected to the 30% regular
ors permit and from payment of LBT?
corporate income tax.
On the requirement to secure a mayNotably, MC 2004-024 is clear with
ors permit, since MC 2004-024 made
regard to the exemptions from mayors
no exclusions, we gather that all PEZApermit and LBT under these conditions:

TAXWISE OR
OTHERWISE

registered entities, including those currently under or opting to be under the

30% regular corporate income tax and
Logistics Services Enterprises are also
covered by the exemption.
As to the payment of LBT, Section 23
of Republic Act (RA) No. 7916 (or the
PEZA Law) provides the exemption by
stating that business establishments
operating within the ecozones shall
be entitled to the fiscal incentives as
provided for under P.D. No. 66 or those
provided under Book VI of Executive
Order No. 226, otherwise known as the
Omnibus Investment Code of 1987.
Section 18 of Presidential Decree No.
66 (the law creating the Export Processing Zone Authority) provides that
any business enterprise engaged in the
production, processing, packaging, or
manipulation of export products shall,
to the extent of their construction, operation or production inside the zone,
be exempt from the payment of any
and all local government imposts, fees,
licenses or taxes except real estate taxes.
Similarly, Article 78 of Executive Order 226 provides that zone registered
enterprises shall, to the extent of their
construction, operation or production
inside the zone be exempt from the payment of any and all local government
imposts, fees, licenses or taxes except
real estate taxes.

You may be asking If the PEZA and

related laws, as well as MC 2004-024 ,
are explicit in granting PEZA-registered
enterprises exemptions from mayors
permit and LBT, why the uncertainty in
its implementation?
To date, there have been no PEZA
Board resolutions or issuances specifically exempting the payment of LBT by
PEZA-registered entities under the 30%
regular corporate income tax including
Logistics Services Enterprises, thus, the
confusion.
In addition, some LGUs have existing Memorandums of Agreement
(MoA) with PEZA requiring registered
enterprises within the jurisdiction of
the LGU to pay regulatory fees. For
instance, the City Treasurers of Makati
and Taguig are authorized to collect
mayors permit fees, garbage fees,
health certificate fees and sanitation
inspection fees from PEZA-registered
enterprises. The authority of PEZA to
enter into such agreement with LGUs
is based on Section 13 of RA 7916 which
expressly vests PEZA with the power
to operate, administer, manage and
develop the ecozone and register,
regulate, and supervise the enterprises
in the ecozone in an efficient and decentralized manner.
By implication, the MoA modified or
amended MC 2004-024 by providing

exceptions to PEZA incentives. It also

created a distinction between PEZAregistered enterprises located in LGUs
with and without MoAs the latter
enjoying more favorable conditions.
Unless and until PEZA clarifies the
matter through a formal Board resolution or issuance rationalizing the MoAs,
the issue on the legality of imposing fees
in connection with the mayors permit
and imposing LBT on PEZA-registered
enterprises remains.
The continued viability of PEZA depends on the influx of investors who
place their trust in the hands of this
government and its systems. We owe
our investors transparency in informing
them at the onset of available incentives
and hidden costs of doing business in
the country.
The views or opinions expressed in this
article are solely those of the author and
do not necessarily represent those of Isla
Lipana & Co. The firm will not accept any
liability arising from the article.
JOHN PAUL M. VARGAS is a
manager at the Tax Services
Department of Isla Lipana & Co.,
the Philippine member firm
of the PwC network.
(02) 845-2728
john.paul.m.vargas@ph.pwc.com

THURSDAY, JANUARY 14, 2016

EDITOR KATRINA PAOLA B. ALVAREZ

Agribusiness

S1/5

W. Visayas bracing for

40% drop in rice yield
By Louine Hope U. Conserva
Correspondent

CARMENCITA A. CARILLO

MUD CRABLETS wil be regularly released into this creek behind the Multi-Species Hatchery of Tagum City.

Crablets released as Tagum boosts

soft-shell crab production, aquaculture
TAGUM CITY Travelers entering Tagum City from Davao City,
about 45 kilometers to the southwest, are greeted by a massive
bronze-colored statue of a traditional bangka boat with fisherfolk
aboard: a symbol of Tagums commitment to develop the aquaculture industry, even as it advances
as the second urban hub in the
Davao Region.
One of the main products being
fostered in the city, the capital of
Davao del Norte, is the high-value
soft-shell mud crab, found both
in crab farms and in the Tagums
protected mangroves.
Last week, the city government
and the Bureau of Fisheries and
Aquatic Resources Region 11
(BFAR-11) released more than 500
mud crablets in the mangrove reforestation area of Tancuan Creek,
in the first Crab Seeding Ceremony.
The newly released crablets were hatched from the P2million Multi-Species Hatchery
in Barangay Liboganon, which
was inaugurated in September
last year, said BFAR-11 Director
Fatma M. Idris during the event.

The hatchery, capable of producing up to 76,800 crablets per

quarter, was funded by BFAR
and is managed by the city government, which also donated
the land as its counterpart for
the project.
Davao del Norte Governor
Rodolfo P. del Rosario said at
the ceremony that mud crabs,
also known as mangrove crabs,
are intended as a major incomegenerating product through both
local and export sales.
The fingerlings from the
hatchery will be distributed to
the fisherfolk so that we will have
sufficient supply of crabs in the
future, Mr. del Rosario said.
Harold S. Dawa, city agriculturist, said some crablets from the
hatchery will also be released into
the wild every production season,
to give fisherfolk along the creek
leading to the Davao Gulf an income opportunity.
Mr. del Rosario noted that
soft-shell crabs, which grow fast
and year-round, are in high demand at local restaurants and
in the international market.

Among the countries already

importing the crabs are Japan,
Hong Kong, Singapore, South
Korea, Taiwan, and the United
States, as well as countries in
Europe.
Mr. Dawa said in just seven
months, the crabs can already
weigh 1.5 to 2 kilograms and can
already be sold at P400-P600/kg.
The propagation of soft-shell
crabs in the province was pioneered by the privately owned AB
Maningo Farm, one of the stops
in the Tagum City River Cruise,
an eco-tourism project led by the
local government.
Mr. Dawa said the hatchery
equipped with a larval tank, algal
tank, a reservoir, its own power
supply system, and a nursery
will also eventually be used to
develop fish species.
Tagum City Mayor Alan L.
Rellon said the ceremonial release signals the beginning of
the envisioned large-scale production of mud crabs and the
citys goal of becoming the crab
capital in southern Mindanao.
Carmencita A. Carillo

Xinjiang cotton, would-be textile hub

at crossroads of Chinas new Silk Road
AKSU, CHINA The Youngor
cotton spinning factory is one of
the biggest employers in Aksu, an
agricultural town on the edge of
the Taklamakan desert in Chinas
restive Xinjiang region.
Youngor, one of Chinas largest
shirt-makers, opened the plant in
2011 to be closer to the main cotton-growing region in Xinjiang.
Soon, it will be joined by others:
Beijing wants to create 1 million
textile jobs in Xinjiang by 2023.
Xinjiang fits into Beijing s
larger vision of shifting labor-intensive industries such as textiles
out of the Pearl River Delta and
into the interior. China is putting
less value on being the worlds
workshop amid labor shortages
and competitive pressures from
Southeast Asia.
The textile hub is also a key
initiative in President Xi Jinpings one belt, one road initiative, the new Silk Road and
economic belt spreading from
Western China to Central Asia
and onwards to Europe.
More immediately, Beijing is
offering the carrot of jobs and
development, even as it wields
a harsh stick against Uighur
separatism.
We must promote employment as a permanent cure to
maintain social stability and
achieve long-lasting peace, and
particularly solve the unemployment problem for peoples in
southern Xinjiang, a 2014 official
document stated in outlining a
massive expansion of Xinjiangs
textile industry.
China says it is fighting an
Islamist insurgency in the deserts, mountains, and forests of
energy-rich Xinjiang. Critics say
the unrest largely stems from repressive Chinese policies against
the Uighurs, a minority Muslim
people who speak a Turkic language and have different customs
from Han Chinese.

MIGRATING TO CITIES

Most Uighurs live in towns and

cities such as Aksu in the poorer southern part of Xinjiang,
where much of the violence has
unfolded.

There, in one of its first serious

attempts to address the economic
factor in Xinjiangs unrest, Beijing is making a clear effort to create more jobs for Uighurs.
Almost all of the 520 employees
at the Youngor factory are Uighurs.
The average factory floor salary
is around 3,000 yuan ($463.18) a
month and comes with food and
lodging compared with roughly
4,000 yuan for textile workers in
the southern China factory belt.
There are still a lot of people
to come out of [Xinjiangs] countryside, said Xu Zhiwu, general
manager at Youngors Aksu factory, referring to government
data that show 2.6 million rural
residents sought work in Xinjiangs cities in 2014.
Xinjiang Youngor Cotton Spinning Co. Ltd., a unit of Youngor
Group, is planning to expand its
factory, built among apple orchards
on Aksus outskirts, Mr. Xu said.
Yarn maker Huafu Top Dyed
Melange Yarn is already at work
on a 5-billion yuan plant outside
Aksu, undeterred by Septembers
attack on a coalmine near the city.
Texhong Textile Group Ltd.,
one of Chinas top spinners, is targeting a 1-million-spindle project
in the region.
The scale of the project has to
be big to ask for more favorable
policy support from municipal
governments, Texhong said in a
stock exchange statement, referring to subsidies Beijing offers to
lure firms to the region.

COTTON TO GARMENTS

More than 60% of Chinas cotton

crop is grown in Xinjiang. Its a
major advantage for companies
that process the fluffy material
into cotton thread to be close to
supplies. Their automated spinning factories also benefit from
electricity prices around half
those in coastal provinces.
Spinning needs relatively few
workers. Creating 1 million textile jobs will require a build-out
of the entire industry chain, from
dyeing and weaving to garment
production. And that poses a far
greater challenge than attracting
more spinners.

Dyeing, bleaching, and washing fabric would demand substantial supplies of water in the arid
region. Much of Xinjiang, including Aksu, is classified as high
risk for water stress by the nonprofit World Resources Institute.
The WRI has designated Shihezi
and Korla, two cities also targeted
for major textile expansion, as
extremely high risk.
Aksu is consulting with textile companies on plans to build
a 50,000-metric-ton waste water
treatment facility to handle discharge from future dyeing operations, said Youngors Mr. Xu, who
has attended recent government
meetings on the issue.
A similar facility is also under discussion for Shihezi, near
Urumqi, but some firms are
wary of proceeding with dyeing
in the area.
We are not sure whether the
capacity of the facility could meet
all the demand and protect the
environment from damage, said
Zhao Yang, general manager of
three Xinjiang spinning factories
owned by Hong Kong-based shirt
maker Esquel.
Compared with Guangdong,
where our fabric mill sites are,
Xinjiangs water is very scarce,
he said.
Xinjiangs location, more than
4,000 kilometers from Shanghai in
the east or Guangzhou to the south,
is also a hurdle for companies rushing to meet tight deadlines for overseas clients, said Mr. Xu.
Like Youngor, Esquel, maker
of mens shirts for brands like
Lacoste, Tommy Hilfiger, and
Ralph Lauren, also has no plans
for downstream operations in
Xinjiang, Mr. Zhao said.
Officials in Xinjiangs capital
Urumqi did not respond to a fax
seeking comment.
President Xi Jinping s One
Belt, One Road plan, announced
in late 2013, aims to restore
Chinas old maritime and overland trade routes. Mr. Xi has said
he hopes to increase trade with
over 40 countries to $2.5 trillion
within a decade. Xinjiang is at the
heart of the new Silk Road
into Central Asia. Reuters

ILOILO CITY Western Visayas,

one of the countrys top four riceproducing regions, is looking at a
worst-case scenario of a 40% decrease in rice output this year due
to the dry spell brought about by
El Nio.
Department of Agriculture
Region 6 (DA-6) Officer-inCharge and Director Roy M. Abaya said this projected decrease is
due to the delay in the scheduled
planting for the cropping season
from November last year to April
this year.

We advised our farmers to delay their planting to cope with the

lack of irrigation and water supply.
The 40% reduction is the worst
scenario if our farmers will not
plant rice. But knowing our farmers, they will still try to look for
ways to continue with the planting.
Only that they should not expect it
to have a good yield, he said.
Based on the forecast of the
Philippine weather agency, Western Visayas will be among the
areas that will experience below
normal rainfall in the coming
months until June.
The region has an estimated annual yield of 3.6-3.7 metric tons per
hectare (MT/ha), less than the national average of roughly 3.9 MT/ha.

Mr. Abaya said the regular 100

cavans/ha yield could be reduced
to 60-70 cavans/ha.
Meanwhile, the official said the
department is now waiting for
the release of the P187-million
additional budget allocated to
Western Visayas to mitigate the
effects of El Nio.
This fund is on top of DA-6s
P1.6-billion budget.
The additional budget will
be used for El Nio alone. It
will be spent on our mitigating
measures such as cloudseeding, water management, small
irrigation facilities, provision
of seeds, and provision of crop
insurance, among others, Mr.
Abaya said.

Ahead of Madrid Fusion, DoT hopes

perks will push halal certification
By Carmencita A. Carillo
Correspondent

DAVAO CITY The Department of Tourism (DoT), on a tight

schedule to get establishments in
four pilot areas halal-certified in
time for the Madrid Fusion event
that the Philippines is hosting in
April, is dangling several incentives under the Philippine Halal
Tourism Project.
The four pilot areas are Metro Manila, Cebu, Boracay, and
Davao City.
Among the incentives lined up
are halal certification to be paid
for under the project fund, inclusion in an information campaign,
and participation in trade fairs
that will help position the establishments in the global halal market, which is projected to grow to
$6.4 trillion by 2018.
We will be providing incentives such as covering all halal
certification fees for a year of
those establishments who will
commit to be halal-certified within 100 days, said DoT Assistant
Secretary Arturo P. Boncato, Jr.,
during the first leg of the Philippine Halal Tourism Project orientation held here Tuesday.
The orientation will also be
conducted in Manila, Boracay
and Cebu within the week.
Mr. Boncato said that by the
end of the road show, the DoT will
have made its pitch to at least 50
tourism-related establishments,
and they are optimistic that most
of these will join the project.
The establishments include
tour operators, hotels, resorts, restaurants, and other facilities such
as those involved in meetings,
incentives, conference and events.
The goal, he added, is to
make the Philippines a Muslimfriendly place by improving halal
facilities across the country and
make halal services available in
tourist destinations.
By the end of the month, the
DoT aims to have the confirma-

CARMENCITA A. CARILLO

USTADZ ALEX M. SULTAN, president of the Halal International Chamber of

Commerce and Industries in the Philippines, discusses the potential of the local
and international halal tourism market at an orientation in Davao City on Jan. 12.
tion of official partners in halal
certification and global promotion,
consolidate and approve the total
project cost, and finalize the list of
participating establishments.
The halal certification process
in all pilot areas is targeted between February and April, including the final inspection of all officially selected establishments, in
time for Madrid Fusion, a major
culinary event that the Philippines is hosting for the second
time this April 7-9.
Mr. Boncato said DoT Secretary Ramon R. Jimenez, Jr. has
agreed to launch a halal food section in this years Madrid Fusion
as part of the promotional efforts
for the local industry.
The Global Muslim Travel Index for 2015, which monitors the
overall performance of the Muslim
travel market, has ranked the Philippines No. 47 based on suitability as a holiday destination, family
friendliness and safety, availability
of Muslim-friendly services and
facilities, and halal-awareness and
outreach to Muslims.
The global Muslim consumer
population is estimated at 1.8
billion and this is expected to increase to 2.6 billion by 2050.
The potential for the halal industry is great, even in the Philippines alone, where at least 10% of
the more than 100 million people
are Muslims, said Ustadz Alex
M. Sultan, president of the Halal
International Chamber of Com-

merce and Industries in the Philippines, during the orientation.

MUSLIM MINDANAO

Mr. Boncato acknowledged that

Mindanao, home of the majority of Muslim Filipinos, needs
an extra push in terms of being promoted as a halal hub
and preferred destination in
the Philippines because of the
Mindanao stigma, conjuring
images of instability and connectivity problems.
As one of the pilot areas of the
Philippine Halal Tourism Project,
Davao City already has its 2010
Halal Ordinance.
However, the Mindanao Islamic Chamber of Commerce
(MICC) believes the city should
further strengthen its position
as a halal-friendly city, through
an executive order (EO) creating the Davao City Halal Industry
Development Council to oversee
the sector.
Marilou W. Ampuan, founder
of MICC and a member of the
board of trustees of the Philippine
Tourism Congress, said the EO is
expected to be signed by Mayor
Rodrigo R. Duterte this week.
The Halal Industry Development Council will be tasked to set
up and manage a unified system
of production, certification and
marketing in coordination with
the Departments of Agriculture,
Science and Technology, Trade
and Industry, and Tourism.

Thailand government promises help

for rubber farmers hit by falling prices
BANGKOK Thailands prime minister
on Monday promised help for farmers
in the worlds top rubber producer and
exporter, amid threats by farmers to
protest if their demands for a guaranteed selling price are not met.
Prices have plummeted to a sevenyear low amid a global commodities
slump, testing the traditional support
from rubber farmers in the south for
the conservative royalist establishment
championed by the generals who seized
power in 2014.
Prime Minister Prayuth Chan-ocha
said the government would buy rubber
at higher-than-market prices, adding
that the state was considering using
rubber for infrastructure projects such as
building roads.
Its not easy, but well try to hurry
up the process, Mr. Prayuth told reporters, adding that farmers who want to

protest could go ahead, despite a ban

on public gatherings.
If you want to demonstrate, you can
demonstrate but dont cause trouble for
the authorities, he said.
The government has already rolled
out several measures to support farmers, but some say the measures are not
enough, with one group threatening to
go on a hunger strike.
Agriculture Minister Chatchai
Sarikalya met with representatives from
around 10 rubber farmer groups on Monday and said the state would buy rubber
directly from farmers by next week. This
should help raise market prices within
one to two months, he said.
Thailands benchmark unsmoked
rubber sheet (USS3) was quoted at
33.57 baht ($0.9250) per kilogram on
Monday, the lowest since dropping to
32.7 baht ($0.90) on Dec. 17, 2008,

according to data from the Rubber

Authority of Thailand.
In November, the government approved measures worth $365 million to
help rubber farmers, paying a direct subsidy of 1,500 baht ($41.36) per rai (0.17
hectares) for up to 15 rai per household.
Last week, the government asked
rubber traders to buy rubber at a rate
of 33 to 34 baht/kg. and not drive down
prices to export at a profit, threatening
to cut export quotas for industry players
who failed to cooperate.
But, farmers say those efforts are not
enough.
Saksarit Sriprasart, leader of a group
of rubber farmers in Thailands south, the
main rubber-growing region, said the
group will stage a hunger strike this week.
If the government responds well,
we will end the strike, said Mr. Saksarit.
If not, we will keep going. Reuters

6/S1

Opinion

#bworldfeed
The White House @WhiteHouse

Were in the middle of the longest streak of

private-sector job creation in history. @POTUS
#SOTU

BusinessWorld @bworldph

Philippine-made mitts for the stars of winter

sports (and Putin too) i via @cathyrosegarcia goo.
gl/uYR6Qc

Jonathan Ravelas @ravelasj

Thats why I stand here confident that the State of

our Union is strong. Obama
So expect more rate hikes! #SOTU

Keith McCullough @KeithMcCullough

96 million dont have a job

46 million are on food stamps
Manufacturing is in a #Recession
#SOTU non-fiction

Nicholas Kristof

@NickKristof
Fair for @POTUS to brag a bit domestically.
Unemployment down by half. Deficits by twothirds. 18 million have gotten health insurance.

Thats the America I know.

Thats the country we love.
Clear-eyed.
Big-hearted
@POTUS #SOTU

Bill Watson

@kw_watson
The #TPP will cut 18,000 taxes on US-made
products. Even better, it will cut US taxes on
foreign goods. http://goo.gl/HrY3tp

Harvard Biz Review @tHarvardBiz

The benefits of having a culture where employees

speak up s.hbr.org/1ZSGqUi

Ethics, product recalls,

and public opinion
B

efore 2015 ended, the incidents of alleged sudden

unintended acceleration
(SUA) related to the Mitsubishi
Montero received a lot of media
attention. The large number of
reported cases prompted complainants to demand a recall of
the popular SUV.
The leading car companies in
the country, including Mitsubishi,
have recalled their vehicles before.
These recalls were all voluntary,
though, and no accidents or untoward incidents triggered them.
The latest high-profile issue is
unique because of the large number of incidents reported all over
the Internet and the more serious
stakes involved. For the company:
reputation, investor returns, and
jobs. For consumers and other
people on the road: physical safety, psychological well-being, and,
sadly, even human lives.
The company has reported
the results of its investigations
into the complaints, bought
back several of the vehicles, and
settled with the owners involved
and made public assurances
that based on its investigations,
the SUA incidents were not
caused by defects in the vehicle
itself. It has also intensified the
offering of safety-oriented services for its customers.
The Department of Trade
and Industry (DTI) did not find
sufficient basis to order a recall.
Instead, it recommended a thirdparty investigation into the complaints to determine more clearly
whether a recall is necessary.
While Mitsubishi is not legally
compelled to recall the Montero pending the results of the
third-party investigation, it must

Bloomberg Markets

World Economic Forum @wef

3 great forces changing #Chinas consumer market

wef.ch/1SE7IRN #economics

BusinessWorld @bworldph

Philippine-made mitts for the stars of winter

sports (and Putin too) l via @cathyrosegarcia goo.
gl/uYR6Qc

RAUL L. LOCSIN
Founder

ROBY ALAMPAY
Editor-in-Chief

BENITO L. TEEHANKEE

Scripts are automatic ways by which managers think about

and decide on every day. While they make work more efficient
in general cases, scripts can cause managers to be insensitive
to the demands of a specific case.
consider whether it should do so
voluntarily for ethical reasons
and to protect its reputation as a
provider of safe vehicles.
Notable companies have dealt
with recall decisions in different
ways with corresponding effects
on their reputations as a result.
Handling recalls is never easy,
and the decision to voluntarily recall or not falls on the shoulders of
responsible managers with input
from technical staff.
In the early 80s, a number of
people in the Chicago area died
from taking Tylenol capsules
that had been laced with cyanide.
Johnson & Johnson, makers of
Tylenol, became the gold standard for recalls when it pulled out
all the market-leading Tylenol
from the US market even though
the tampering had been done after the capsules had left the companys factories.
Other companies responses
have been less than stellar. The
Ford Pinto case in the 70s in the
US is perhaps the most discussed
ethics case in business schools
around the world. In 1972, Lily
Gray was driving a Pinto with
passenger Richard Grimshaw,
a 13-year-old, when they were
rear-ended by another car. Gray
was killed in the resulting fire,
and Grimshaw suffered horrible
injuries. In the suit against Ford,

the courts eventually awarded

Grimshaw $3.5 million in punitive damages.
Dennis Gioia, then the Ford
recall coordinator for the Pinto,
and now a noted management
scholar based at Pennsylvania
State University, explained his
decision not to order the recall
at the time, even after several
incidents of rear-end collisions
involving Pintos resulted in deadly fires: After I left Ford, I now
argue and teach that Ford had an
ethical obligation to recall. But,
while I was there, I perceived no
obligation to recall, and I remember no strong ethical overtones to
the case whatsoever. It was a very
straightforward decision, driven
by dominant scripts for the time,
place, and context.
Scripts, according to Gioia, are
automatic ways by which managers think about and decide on
every day. While they make work
more efficient in general cases,
scripts can cause managers to be
insensitive to the demands of a
specific case.
After growing media coverage and increasing complaints,
the National Highway Traffic
Safety Administration eventually ordered Ford to recall the
Pinto, reversing its initial finding that there was no sufficient
basis for a recall.

A major hat trick

or a political
consequence?

@markets
Chinas exports unexpectedly rebound as yuan
weakness kicks in bloom.bg/1mU2dws

THE VIEW FROM TAFT

n September 2014, more than

two years ago, I started looking for a major hat trick from
the camp of Vice-President Jejomar C. Binay, Sr. This was after the
Senate started its investigation on
the corruption allegations versus
him and other members of his
family, and his alleged wrongdoings while mayor of Makati City.
This was also after the Pulse
Asia survey on presidential
candidates in Sept. 8-15 in 2014
showed Binays vulnerability, as
he dropped 10 points in the polls
to 31% in a span of about 10 weeks
between surveys.
Since then, in fact, Binays rating continued to drop all the way
down to 19% by September 2015.
But it seems he was back in the
game by last December, with 33%.
I remain unclear as to how he
actually managed that comeback
from a skidding trend in over a
two-year period. But one should
give him and his team some credit
for having pulled off a political hat
trick. Although truth be told, this is
not the first time for Binay and his
camp to stage a polling coup. He is
no stranger to upsets, for sure.
Recall that in October 2009, in
a poll for the 2010 presidential
election, then Senator Benigno
S. C. Aquino III polled at 44%,
while Senator Manny B. Villar, Jr.
came in second at 19%, and former
President Joseph E. Estrada was
third at 11%. By election day May
2010, however, Aquino won with
42% of the votes. Estrada upstaged
Villar and came in 2nd with 26%,
and Villar was 3rd with 15%.
Also in October 2009, in the
vice-presidential poll, then Senator
Manuel A. Roxas II was ahead, polling at 37%. Makati Mayor Binay

STATIC

MARVIN A. TORT
The poor, the
underprivileged, and the
marginalized continue to
account for most of the votes
in any election. Candidates
who manage to secure this
sectors loyalty and support
are more likely to win than
those who appeal mainly to
the rich, the youth, or even
the middle class.
was only third at 13%, following
Senator Loren B. Legardas 23%.
But Binay staged a major upset and
eventually won the vice-presidency with almost 42% of the votes, followed by Roxas with almost 40%,
and then Legarda with over 12%.
Both Estrada and Binay had
surged from October 2009 to
May 2010, by 15 and 29 percentage points, respectively. Binay, in
particular, managed a win even
against one who was perceived as
a stronger contender.
And in terms of popularity, President Aquino got just
600,000 more votes than Binay,
who won over Roxas by a relatively small margin of 700,000
votes.
I surmise that many including myself have begun to think
that with the corruption investigation in the last two years, Binay will
find it very difficult to climb back
up. He has just proved us wrong.
In September 2014, I reckoned
he needed to sustain if not improve on his 31%, despite the pos-

sible filing of charges in court, if

he wanted to win the presidency.
This is given the fact that in 1992,
Fidel Ramos needed just 23.58% or
5.3 million votes to become president, and that in 1998, Joseph Estrada needed just 10.7 million votes
to get himself into Malacaang.
At Binays present 33%, considering 55 million voters and 80%
turnout, he is already looking at
getting 15 million votes in May. In
2010, Aquino won with 15.2 million
votes, and Binay with 14.6 million.
There are lessons to be learned
from Binays surge by 29 percentage points from October 2009 to
May 2010, from 13% to 42%.
Similar lessons perhaps can be
seen from his climb back to 33%
last December from 19% in just
over two months. The remaining
question is if he can sustain this
33% or further boost this back to
his 41% (as in early 2014) come
this May 2016.
I still believe that Binay, to win,
must continue focusing on his political roots. He needs to keep his
core supporters. The survey results
in December 2015 show him leading in Metro Manila, Luzon, and the
Visayas. He comes second only to
Davao City Mayor Rodrigo Duterte
in Mindanao. He also continues to
lead in the D and E classes, while
Duterte leads in the ABC class.
It can very well be a case of the
one-eyed being chosen to lead the
blind. After all, with legal questions arising out of the candidacies
of Duterte and Senator Grace Poe,
perhaps some are now switching
candidates, to Binays benefit. Validation of this may become more
evident in the next two surveys, and
as the Duterte and Poe issues progress at Comelec or in court.

Most people have come to believe that the Pinto had a major
design flaw that made it unsafe
and that Ford had knowingly
released the car thinking that it
would be more costly to fix the
flaw than to pay for compensating
possible accident victims. But not
everyone agrees with this interpretation. Gary Schwartz, a law
professor from UCLA, has pointed out that most of the publics
views on the Pinto case are myths.
And this is what makes the recent case infinitely more delicate
than the Pinto case. Social media
has become a real game-changer.
The saying that perception is
reality has never been truer than
today, especially among mediahungry Filipinos. The ever-growing number of damning blog posts
and YouTube uploads related to
Montero SUAs cannot be ignored.
I expect the independent thirdparty investigation to shed light
on what caused the SUAs. We
cannot know if the investigation
will show basis for legal liability of
the company, but it must prepare
for such a possibility. Meanwhile,
the companys continuing ethical duty to protect and inform its
consumers against harm is vital.
Its managers cannot depend on
scripts to deal with this issue given
the importance of preserving the
publics trust. Todays social media
world can be very unforgiving.

BENITO L. TEEHANKEE is associate professor

at De La Salle University.
He is also Vice-Chairman
of the CSR Committee
of the Management
Association of the Philippines.
benito.teehankee
@dlsu.edu.ph

In short, is Binays surge in the

polls from September to December really the result of hard work
by his camp, or simply a natural
consequence of present political
developments? Is he the natural beneficiary of the ongoing
process of political elimination,
perhaps to the frustration of his
fellow candidates Mar Roxas and
Miriam Defensor Santiago?
Or, it may be that Binay is relatively short in height, or that he is
dark-skinned, or that he came from
very modest beginnings. And that
the poor can identify with him: the
seeming underdog. Or, that people
from the D and E classes, particularly from his political bailiwicks of
Makati City, Batangas (his father
side), and Isabela (his mother side)
may speak well of him.
The poor, the underprivileged,
and the marginalized continue
to account for most of the votes
in any election. Candidates who
manage to secure this sectors
loyalty and support are more
likely to win than those who appeal mainly to the rich, the youth,
or even the middle class. This, to
me, is the key to Binays success.
Meantime, Binay still has
much to account for.
The question of whether or not
he stole from public coffers, or
had used his position as a public
official to benefit himself or his
family or associates, must be resolved even before election day.
At the very least, he should get his
day in court to show some proof of
his probable innocence.
In the same manner, his detractors should prove their case against
him. It is time for everybody concerned to finally put up, or to shut
up. And if there will be attempts to
jail Binay before the elections, just
go ahead and please be done with
it. And then, let the Filipino people
decide from there. Only after all
these come to pass that he can get a
truly deserved mandate.

MARVIN A. TORT is a former

managing editor of
BusinessWorld, and a
former chairman
of the Philippines
Press Council
matort@yahoo.com

WILFREDO G. REYES Managing Editor ALICIA A. HERRERA, CATHY ROSE A. GARCIA, RICKY S. TORRE, BETTINA FAYE V. ROC Associate Editors MARIA ELOISA I. CALDERON Editor-at-Large
ROBERT J.A. BASILIO, JR. Opinion and Engagement Editor FRANCISCO P. BALTAZAR Foreign News Editor TIMOTHY ROY MEDINA Online Managing Editor MIRA CATHERINE B. GLORIA Online Editor BRIAN M. AFUANG Visual Editor

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roblem-solving does not always entail

facing the prickly issue. Why not
just sidestep reality and get on with
other unimportant things that are easier to
deal with? Is denial an undiscovered coping
mechanism? Those who hang on to losing
stocks through a volatile market do not want
to recognize the loss right away, preferring to
postpone the inevitable by just putting off the
crucial decision of selling and taking the hit.
Economists call this bias for inaction as loss
aversion, a penchant to avoid a sure (even if
smaller loss) for an uncertain prospect, possibly a bigger loss.
Denial can take other forms too. Sidestepping blame for a debacle is achieved by denying responsibility through simple omission
oh did I forget a candle burning when I left
the house? What razed neighborhood are you
talking about?
Denial as rationalization, for example,
requires an overly elaborate thinking process
to explain an
insane move
as perfectly rational.
A. R. SAMSON
Shouting at
the boss when
he is corWhy do we need to
recting your
embrace reality if we
grammar in a
can avoid its destructive report is not
consequences by
considered
disrespectful.
denying its existence?
It is just a
linguistic argument which has nothing to do
with the sudden dip in your career prospects
in the company? Whats the connection?
Denial derives from Latin de and negare,
meaning, to say no. The act of denial can entail
mentally saying no to a difficult reality.
In John Lanchesters novel, Mr. Phillips
(2000) the eponymous protagonist, Viktor
Phillips is an accountant who has worked
27 years in his company and is inexplicably
redundated, declared in excess and let
go. This is a common enough experience
now that has nothing to do with corporate
loyalty, and everything to do with the bottom line. Mr. Phillips does not accept his
current unemployed status and pretends
he is still following his old work schedule,
waking up early to get dressed for work,
commuting on the same route, filling up his
now empty days with visits to an art gallery,
a bank, tennis court, sometimes sitting on
a park bench with pornographic fantasies.
This sad tale of self-delusion makes this
meandering novel and its main character
truly engaging.
Why do we need to embrace reality if we
can avoid its destructive consequences by
denying its existence? Perhaps, denial is the
best way of moving on without getting stuck
in a state of unyielding depression. There are
proven techniques that help in psychologically
shutting out painful reality.
Financial losses bring in an opportunity for
exercising denial options. I get this monthly
statement on my investment complete with
pie charts and colors, mostly in red. Do I need
to read it carefully and compute how many
new cars the losses are now equivalent to? Is
this kind of worrying and fretting a productive
exercise in creativity?
Instead, when the subject of bad investments comes up, I change the topic and talk
about new restaurants and totally irrelevant
subjects like the composition of a possible
presidents cabinet. These soothingly
trivial pursuits allow me to avoid the issue
of losses, whether real or just paper ones
(which are also real).
In conversations with strangers, the
topics of choice include debates on whether
automated elections are tainted by missing
source codes, and what improvements can
be made in time, excluding going back to the
fully manual option with chalk and blackboard. Why even get into an argument when
you can just avoid the whole conversation,
or at least not get emotionally entangled in
a useless confrontation?
Avoiding the reality of any kind of loss
whether of health, wealth, or a loving relationship fraught with arguments is a form of
detachment. It allows one to be optimistic
even with little or no basis for a rosy outlook.
One can dispense with troubling reality to
wish for a happy ending.
Still, avoiding painful issues can wreak
havoc on those around a person who holds
such a deluded view of the world. Dismissing the existence of a problem lets it linger
unattended, like a bad tooth that just ratchets
up the pain each day. Shunning reality, and its
painful consequences, only means that somebody else has to worry about it too often with
an exasperated sigh.

FENCE
SITTER

BEST-PERFORMING INDUSTRIES

By Matthew A. Winkler

S&P 500 Indices, by sector (Total return since 3/6/09)

WHEN PRESIDENT BARACK OBAMA was elected in November

2008, the US economy was shrinking at a rate unmatched since
World War II. In the seven years between then and his final State of
the Union address Tuesday night, global investors have enjoyed stellar results from the rapidly expanding Obama economy.

in %

Consumer Discretionary
Financials
Info Tech
Industrials
Health Care
Consumer Staples
Materials
Utilities
Telecom Services
Energy
0

50

100

150

200

250

300

350

400
SOURCE: BLOOMBERG

Market prosperity has been built on a solid economic foundation.

The unemployment rate has declined the most in any five-year period
since 1989, from its 10% peak in October 2009 to 5% last December.
The budget deficit as a percentage of gross domestic product has
plummeted 7.7 percentage points from a high of 10.1% in 2010, the
biggest favorable reversal in at least 50 years.
Thats helped propel the value of US companies to half the worlds
publicly-traded equity for the first time since 2001. The 10 companies
with the highest market capitalization are American the first time
thats happened since Ronald Reagan was president.

US politics remains as politically divided as ever, but the recovery has proved bipartisan. Many states led by Republican governors
and legislatures have shown big increases in prosperity measured
by job growth, personal income, mortgage delinquencies, tax
revenues, home prices and corporate equity, according to data
compiled by Bloomberg.
When Obama was elected, the US was losing almost 9% of its GDP,
the biggest quarterly contraction in well over half a century. The
bankruptcy of Lehman Brothers a month earlier pushed the global
financial industry into paralysis and General Motors and Chrysler to
the brink of insolvency.
Only five US firms were among the worlds 10 largest by market
cap, down from nine in 2001. Stocks of American companies made up
less than 40% of the value of the top 500 global equities, the smallest
share in decades, according to Bloomberg data. The US budget deficit
exploded from 4.7% at the end of 2008 to 10.1% of gross domestic
product over the next 12 months.
The stock market bottomed in April 2009, when the government
was starting to restructure the US auto industry and administer
stress tests to determine whether banks could survive another crisis.
The ensuing rally added the most points to the Standard & Poors 500
Index since at least 1927, when Bloomberg started compiling such
data. On a percentage basis, the stock market is up 178% since March
of 2009, the biggest seven-year increase since a comparable rally
ended in April 2001.
Obamas critics are correct to point out that the expansion has
been halting and uneven, accompanied by rising inequality, anemic wage growth and underemployment. Growth has been slower
than after many previous recessions. Its significant, though,
that the three best-performing industries since March 2009 are
consumer discretionary, financial and technology, showing that
Americans are borrowing again and have enough spare cash to
make Amazon, Alphabet, Apple, Berkshire Hathaway, Facebook,
Home Depot, JPMorgan Chase, Walt Disney and Wells Fargo winning investments.

Editorial (+632) 535-9919

editor@bworldonline.com

S1/7

State
of Obamas
Union is
booming

BusinessWorld Publishing Corporation, 95 Balete Drive Ext.,

New Manila Quezon City, Metro Manila, Philippines 1112

Follow us on Twitter:
@twitter.com/bworldph

Avoiding
the issue

US PRESIDENT
BARACK OBAMA
gives his final
State of the Union
address on Jan. 12
at the US Capitol in
Washington, DC.

AFP

The White House @WhiteHouse

Get more content online:

www.bworldonline.com

EDITOR ROBERT J.A. BASILIO, JR.

THURSDAY, JANUARY 14, 2016

Big and small companies, as measured by the Russell 3000

Index, are growing at an annual rate of 15.5% since March 2009 and
outperforming the rest of the world by 7.4%, according to Bloomberg
data. During the 20 years prior to Obamas presidency, the Russells
yearly gain was 4.5% and it outperformed the rest of the world by
3.9% each year.
Whats especially compelling is that US firms are investing in their
growth at a record pace. Capital expenditures of the S&P 500 are
the most since at least 1990, when Bloomberg began compiling such
data, and increased 68% since 2010. The only comparable investment
spree occurred between 1995 and 2000, when the Internet began
transforming US commerce.
American companies also are healthier than they have ever been.
The ratio of net debt to Ebitda (earnings before interest, taxes, depreciation and amortization) of the S&P 500 the most widely-used measure of corporate well-being improved the most during the Obama
presidency and hovers at all-time lows, according to Bloomberg data.
The profitability of these companies, measured by trailing 12-month
gross margins that show how well they can turn revenue into profit, is
rising at the fastest rate compared to global peers since 2006, and they
are outperforming their non-US competitors the most since 2001.

Auto sales climbed to a record in 2015, and GM, Ford and Fiat
Chrysler are selling more vehicles, are more profitable than their
global peers and returning more to their shareholders than they did
in 1994, when they had twice their current share of the US market.
The investment boom continues unabated after an estimated 17.6
million Americans gained some form of health-insurance coverage
following enactment of the Affordable Care Act in March 2010.
Instead of being the economic catastrophe predicted by congressional Republicans, all of whom voted against it, Obamacare proved
benign for US business and health care companies delivered the
best total return (income and appreciation) of any industry since
October 2013, when the law took effect for most people, according
to Bloomberg data.
While their voters remain opposed to Obamacare along with most
of the presidents policies, many Republican-dominated states have
benefited significantly from the recovery, according to data compiled
by Bloomberg. North Dakota, Indiana, Tennessee, Iowa and Utah are
among the 14 most-improved states for economic health since 2009.
Arizona was the biggest beneficiary of declining mortgage delinquencies while North Dakota, with its shale-oil boom, experienced the
biggest increase in home prices and personal income, according to
Bloomberg data.
American companies, helped in part by the strongest dollar and
the weakest oil prices since the 1990s, were more active as acquirers
and sellers of each other in 2015 than at any point during the past decade; $3.2 trillion changed hands, the most mergers and acquisitions
since at least 2003, when Bloomberg began compiling such data. At
the same time, there were only $33.8 billion of initial public offerings
pending, priced or trading last year, the lowest amount since 2009.
That may be a sign of untapped potential. If so, the Obama rebound
isnt over just yet.
BLOOMBERG (With assistance from Shin Pei)

Advertising (+632) 535-9941

advertising@bworldonline.com

Circulation tel. (+632) 535-9940

circulation@bworldonline.com

A.R. SAMSON is chair and CEO of Touch DDB.

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Property&Infrastructure

Singapores CapitaLand Trust

said seeking sale of CBD tower
CAPITALAND
Commercial
Trust, Singapores largest office
real estate investment trust by
value, is selling an office tower in
the city-states central business
district (CBD), according to a person familiar with the transaction.
CapitaLand Commercial is
seeking to sell the 23-storey One
George Street building in the Raffles Place office district, the person said, asking not to be named
as the information is private. The
building, whose tenants include
Royal Bank of Scotland Group
Plc. and Diageo Singapore Pte.,
has 41,564 square meters of lease
area, according to the trusts Web
site. The tower, bought in 2008
for S$1.17 billion ($816 million),
was valued at S$975 million as

of Dec. 31, 2014, the Web site

showed.
CapitaLand Commercial Trust
Management Ltd., the manager
of CapitaLand Commercial Trust,
didnt comment on its plans for
One George Street beyond saying
it adopts an active portfolio management strategy to evaluate plans
for CCTs properties from time to
time, according to an e-mailed
statement in response to a query.
The proposed sale comes as
another prime office tower, Asia
Square Tower 1, has been put up
for sale by BlackRock, Inc., in a
deal that, when concluded, could
make it the biggest office transaction in Singapore. The value of
office buildings in the city-state
fell 0.1% in the quarter ending

BIDDING SCHEDULE

Proponent
Approved Budget
Project Duration
Important Dates

Important Notes

Project

Proponent
Approved Budget
Project Duration
Important Dates

Important Notes

Project
Requirements
Proponent
Approved Budget
Project Duration
Important Dates

Important Notes

Road Upgrading (gravel to concrete) of Aramaywan-BerongPuerto Princesa Road, K0213+130 - K0213+1000 at Aborlan,
Palawan
1. General requirements
2. DPWH contractors registration documents
DPWH-Palawan 3rd District Engineering Office, Puerto Princesa City
P21.63 million
145 calendar days
1. Issuance of Bidding Documents is on January 11, 2016 to February 1, 2016.
2. Pre-bid Conference is on January 20, 2016 at 10:00 a.m.
3. Dropping/Receipt of Bids is until February 1, 2016 at 10:00 a.m.
4. Opening of Bids is on February 1, 2016 at 2:00 p.m.
1. Interested bidders may obtain further information from DPWH-Palawan
3rd District Engineering Office, Puerto Princesa City and inspect the
Bidding Documents from Monday to Friday from 8:00 a.m to 5:00 p.m.
2. A complete set of Bid Documents may be acquired by interested
bidders from the address below, and upon payment of nonrefundable fee of FIVE THOUSAND PESOS (P5,000.00).
The Bidding Documents shall be received personally by the
prospective bidder or his authorized representative indicated in
the Contractors information.
3. It may also be downloaded free of charge from the Web site of the
Philippine Government Electronic Procurement System (PhilGEPS)
and the Web site of the Procuring Entity provided that the bidders
shall pay the fee for the Bidding Documents not later than the
submission of their bids.
4. The DPWH-Palawan 3rd District Engineering Office, Puerto Princesa
City reserves the right to accept or reject any bids, annul the
bidding process anytime before Contract Award, without incurring
any liability to the affected bidders.
Widening of National Road along BCIR w/ Drainage Improvement,
Villanueva Section, Misamis Oriental (K1412+00 - K1414+360), at
Villanueva, Misamis Oriental
1. General requirements
2. DPWH contractors registration documents
DPWH Misamis Oriental 2nd Engineering District, Balase Street, El
Salvador City, Misamis Oriental
P24.50 million
131 calendar days
1. Issuance of Bidding Documents is on January 14-29, 2016.
2. Pre-bid Conference is on January 15, 2016 at 2:00 p.m.
3. Dropping/Receipt of Bids is until January 29, 2016 at 12:00 noon.
4. Opening of Bids is on January 29, 2016 at 2:00 p.m.
1. Interested bidders may obtain further information from DPWH
and inspect the Bidding Documents at the address below from
Monday to Friday from 7:00 a.m to 4:00 p.m.
2. A complete set of Bid Documents may be acquired by interested
bidders from the address below, and upon payment of nonrefundable fee of TEN THOUSAND PESOS (P10,000.00).
The Bidding Documents shall be received personally by the
prospective bidder or his authorized representative indicated in
the Contractors information.
3. It may also be downloaded free of charge from the Web site of the
Philippine Government Electronic Procurement System (PhilGEPS)
and the Web site of the Procuring Entity provided that the bidders
shall pay the fee for the Bidding Documents not later than the
submission of their bids.
4. The DPWH Misamis Oriental 2nd Engineering District, Balase Street,
El Salvador City, Misamis Oriental reserves the right to accept or
reject any bids, annul the bidding process anytime before Contract
Award, without incurring any liability to the affected bidders.
Construction of Flood Control System, Buntun Bridge (Tuguegarao
Side), Buntun, Tuguegarao City, (Sta. 0+(-020) to Sta. 0+178
1. General requirements
2. DPWH contractors registration documents
DPWH Cagayan 3rd District Engineering Office, Tuguegarao City,
Cagayan
P48.017 million
240 calendar days
1. Issuance of Bidding Documents is on January 12-29, 2016.
2. Pre-bid Conference is on January 19, 2016 at 10:00 a.m.
3. Receipt of Bids is until January 29, 2016 at 10:00 a.m.
4. Opening of Bids is on January 29, 2016 at 10:30 a.m.
1. The BAC will conduct the procurement process in accordance
with the Revised IRR of RA 9184. Bids received in excess of the
ABC shall be automatically rejected at the opening of bid. To bid
for this contract, a contractor must purchase bid documents and
must meet the following major criteria: (a) prior registration with
DPWH, (b) a Filipino citizen or 75% Filipino-owned partnership,
corporation, cooperative or joint venture; (c) with PCAB License
applicable to type and cost of contract; (d) completion of a similar
contract costing at least 50% of the ABC within a period of 10
years, and (e) Net Financial Contracting Capacity at least equal
to ABC. The BAC will use non-discretionary pass/fail criteria in
the eligibility check and preliminary examination of bids.
2. A complete set of Bid Documents may be acquired by interested
bidders from the address below, and upon payment of nonrefundable fee of TWENTY-FIVE THOUSAND PESOS (P25,000.00).
The Bidding Documents shall be received personally by the
prospective bidder or his authorized representative indicated in
the Contractors information.
3. It may also be downloaded free of charge from the Web site of the
Philippine Government Electronic Procurement System (PhilGEPS)
and the Web site of the Procuring Entity provided that the bidders
shall pay the fee for the Bidding Documents not later than the
submission of their bids.
4. The DPWH, Cagayan 3rd District Engineering Office, Tuguegarao
City, Cagayan, reserves the right to accept or reject any bids, annul
the bidding process anytime before Contract Award, without
incurring any liability to the affected bidders.

HK to lift public housing

as prices still too high
HONG KONG Chief Executive
Leung Chun-ying said the government raised its target for new
housing supply, dismissing calls
from developers to lift property
curbs as prices are still too high.
We should continue to tackle
the housing problem head-on and
must not concede, Mr. Leung
said in his annual policy speech to
lawmakers on Wednesday. Prices
and rentals are still beyond what
people can afford, he said.
He pledged a higher number
of public housing units, revising
the forecast to 97,100 in the next
five years, up from a previous estimate of 77,100 units, while private
developers may offer 87,000 new
units in the next three to four
years, the most since data were
first complied in 2004.
In the past three years, the
Hong Kong government has tightened mortgage requirements at

LEUNG CHUN-YING
banks and doubled stamp duties,
and it introduced a special tax on
non-resident buyers after property prices soared. Prices peaked
in September last year, up 160%
from December 2008, making the
city in the worlds most expensive
place to own a home.

PRICE WAR

Prices started falling in the

fourth quarter of 2015, when they
dropped 7.5%, as a slowing economy and concerns of rising interest

rates sapped demand. The price

decline will accelerate to 8% this
quarter as developers engage in a
price war, said Nicole Wong, head
of property research at CLSA Ltd.
Ms. Wong discounted Mr.
Leungs comments about leaving
property curbs in place, saying he
may change policy in six months
should prices plunge 15%, leaving the possibility of negative
equity for homeowners who have
borrowed as much as 90% of
property prices by taking second
mortgages offered by developers.
Any correction should not
destabilize society, she said. If
prices fall 15% in six months the
government would have to start a
policy action.
The Hang Seng Properties
Index, which tracks the performance of 10 real estate companies, has fallen 8.3% this year to
date. Bloomberg

Like jail: NY homeless say shelters not the answer

NEW YORK Life on the streets
of New York may be miserable for
the thousands of homeless who
sleep rough, but many are disillusioned by stepped-up efforts to
eradicate a modern-day crisis.
Americas biggest and wealthiest city is a beacon across the world
for financial success and entertainment one of the biggest tourist
draws on the planet, welcoming
56 million visitors last year. It has
more billionaires than any other
city in the world, says Forbes.
And yet 75,000 people are
homeless, according to US government figures the mentally
ill, those who lost jobs in the 2008
global financial crash, employees
who cannot afford skyrocketing
rents, families, and children.
Dozing on benches in Penn
Station, begging on the street or
curled up at the bottom of subway
stairwells, the plight of the citys
homeless is clear for all to see.
The Coalition for the Homeless nonprofit says nearly 60,000
people are in shelters each night
and that, in recent years, homelessness in the city has hit highs
not seen since the 1930s Great
Depression.
The statistics are an embarrassment for Mayor Bill de Blasio,
a progressive Democrat two years
on the job who campaigned to redress the citys colossal inequality
after two decades under Republican mayor Rudolph Giuliani and
billionaire Michael Bloomberg.
His office marked the New
Year by announcing a slew of initiatives, upping the number of
personnel taking people off the
streets when temperatures drop,
increasing the number of beds for
homeless youth, and promising to
double the number of city-funded
drop-in centers.
I am taking the gloves off on
this issue; we are going at this with
everything weve got. We will turn
the tide, Mr. de Blasio promised.

LIKE PRISON

But, its not a problem going away

overnight. Outreach teams took

AFP

Project

Sept. 30 from the previous three

months while shops declined
0.3%, according to the Urban Redevelopment Authority.
Rents in the central business
district fell 4.5% in the three
months ended Sept. 30 from the
previous quarter, according to
Jones Lang LaSalle, Inc. Rents
will trend lower this year as
about 3.07 million square feet of
office supply will be completed,
it said.
The vacancy rate in the CBD
increased to 6.1% in the three
months to September. Vacancies
are expected to rise gradually over
the next few quarters as some occupiers, mainly from the financial
sector, give up space, Jones Lang
LaSalle said. Bloomberg

EDITOR KATRINA PAOLA B. ALVAREZ

THURSDAY, JANUARY 14, 2016

BLOOMBERG

AFP

8/S1

A HOMELESS man looking for

money for a room sits on 5th
Avenue near 42nd Street in New
York on Jan. 4 as he tries to stay
warm in the cold temperatures.
97 people to shelters during one
particularly cold night last week,
out of an estimated 3,000-4,000
believed to sleep rough.
Woah, theres a lot of people
dont like shelters, Eddie, 61, told
AFP as he shuffled down Ninth
Avenue with a walking stick.
When you go in, theyre gonna
screen you like youre in prison;
theyre gonna pat you down.
Last month, New York City
Comptroller Scott Stringer issued
a stinging report about nightmare conditions endured by
children in family shelters run
by the department of homeless
services.
What they gotta do is, instead
of building all these goddam
hotels for the tourists, all these
abandoned buildings should get
the homeless, said Eddie, gesturing at nearby skyscrapers.
Some of those most hardened
to life on the streets say they
loathe shelters, claiming they are
dirty and violent.
Troy, a 48-year-old grandfather
and military veteran, says he hasnt
slept in a shelter for nearly a year.
Sitting on a crate on top of a
piping-hot air vent on a bitterly

cold afternoon in Manhattan, he

compares shelters to being in
jail and prefers life on the streets.
Oh, it depends where you
at! You see where Im at, Ive got
many locations like that, he said,
warming his hands over the hot
air.
The time I go and see my
buddy is when I can take a shower
or I go to the community center
and take me a shower.
Asked what the solution is, he
waved towards a vacant-looking
building prime real estate
saying the city should renovate it
and turn it over to the homeless.

NOT THE MAYORS FAULT

On Monday, Mr. de Blasio announced $8.5 million a year to

finance drop-in centers, which
offer food, showers, medical care,
and advice, acknowledging that
many street homeless dislike traditional shelters.
It is the latest in a series of reforms following a 90-day review,
including 15,000 new supportive
housing units.
I got into an argument with
somebody, and they swung at me,
and I got beat up, said Dashaun

Brown, 38, from Georgia, sheltering in Penn Station for warmth

and remembering his worst shelter experience.
Tall and lanky, and self-conscious about his heavily decayed
front teeth, he says he last had a
job as a teenager, flipping burgers.
The city says it has helped
more than 22,000 people leave
shelters, and expanded homelessness prevention programs and
services to support over 91,000
New Yorkers since July 2014.
Supporters say it is unfair to
blame Mr. de Blasio.
This administration is stepping up to the plate, Democrat
city council member Corey Johnson told reporters last week.
The homeless crisis is not
of the mayors making, he said.
This administration inherited a
goddamn mess.
But, Troys fed up. He wants to
go home to Chicago where he has
family, and a friend has offered to
pay the ticket.
The cost of living out here is
too expensive. I need to be making at least $20 an hour if Im
working for someone just to pay
the rent. AFP

Holcim announces new services, training programs

HOLCIM Philippines, Inc. said
on Wednesday it had launched
first-in-the-country technical
services and training in the local
construction industry to equip its
customers with knowledge and
facilities to further grow their
businesses this 2016.
The company said in a press
release that customers can now
use the companys laboratories
to do product testing for aggregates and admixtures for concrete
production instead of having it
done in the United States and
Singapore. The facilities can analyze concrete performance even
in projects like dams and power
plants, Holcim noted.
The company is also now offering training programs ranging
from basic concrete courses to
topics like concrete placement,

batching plant operations, and

design optimization.
To support our customers
business success, we developed
training programs and testing
and consultancy services to equip
them for business growth and
expansion as construction projects become more sophisticated
in the past two years, Holcim
Philippines Technical Services
Manager Althea Caballero was
quoted saying.
The training to set up and operate a concrete batching plant
includes basic cement and concrete technology, quality control,
health and safety, batch plant operation, concrete mix design, fleet
management, and aggregates.
This training is beneficial
to cement and hardware store
owners or contractors expand-

ing their business into ready-mix

(RMX) concrete manufacturing
and in improving their know-how
of Holcims concrete producer
partners, Holcim Philippines
Technical Services and Product
Development Manager Edwin
Mendoza was quoted saying. It
will help realize the business
goals early, eliminating trial and
error in the first stages of operation.
One of the highlights is the
RMX distribution training, the
delivery of concrete to customers, Mr. Mendoza further said.
The quality of concrete is not
only a function of mixing the right
ingredient, but also the efficient
transport to the site knowing that
the product hardens over time.
Efficient distribution means the
customer receives good quality

concrete with less wastage due to

rejected deliveries.
As part of this service, there
will be monthly follow-up visits
after the training, Holcim noted.
Whereas before, we only had
training on product know-how
and application to support product lines and channels, now, we
have training courses on durable
concrete subjects for contractors
and specifiers or designers, Mr.
Mendoza said in the statement.
The culture of safety and
product quality imparted by the
training will help them get sustainable returns. Holcim Philippines new products, services and
trainings are part of its ongoing
commitment to ensure safety and
success of its customers by giving them ease of mind in their
construction projects, he added.

World

The
EDITOR KATRINA PAOLA B. ALVAREZ

THURSDAY, JANUARY 14, 2016

S1/9

Embrace change, Obama tells US

AFP

HEALTH CARE workers wearing protective suits leave a high-risk area at the
Medicins Sans Frontires Elwa hospital on Aug. 30, 2014, in Monrovia, Liberia.

WHO set to announce

end of Ebola outbreak
THE WORLD Health Organization (WHO) is due to announce
the end of the two-year Ebola outbreak on Thursday, when Liberia
is expected to get the all clear.
The announcement in Geneva
will mark 42 days since the last
Ebola cases in Liberia were tested

negative, the United Nations

agency said in a statement, after
Guinea and Sierra Leone were previously declared free of the virus.
The announcement was previously scheduled for Friday, and no
reason was given for the change.
AFP

Comedian Morales now

president of Guatemala
GUATEMALA CITY Television
comedian Jimmy Morales takes
office as the new president on
Thursday in Guatemala, a country whose pressing problems offer little to laugh about: poverty,
corruption and deadly violence.
The former comic, 46, won
fame on television for playing
a country bumpkin who nearly
becomes president. He has no
previous real-life experience of
elected office.
Analysts say he won the October elections due to public disgust
at corruption in this central country of 16 million people.
There are high expectations
because there is a need for him to
promote changes in the country
and solve peoples problems, said
Jose Carlos Sanabria, a political
analyst at the Research and Social
Studies Association.
Predecessor Otto Perez was
forced to step down as the courts
investigated his alleged role in a
bribery racket in the state customs authority.
Mr. Morales won Octobers
presidential election by a landslide, vowing to fight what he called
the old politics and corruption.
My commitment remains to
God and the Guatemalan people,

the evangelical Christian said after his win.

I will work with all my heart
and strength not to let you down.
In a recent interview, he promised nice surprises.
But, he has given few concrete
details of his policies. Analysts have
warned he lacks a true political base.
Mr. Morales was not even expected to unveil his cabinet until
hours before putting on the presidential sash at his investiture.
That will fuel doubts, skepticism
and criticism, said Mr. Sanabria.
To some extent, he has failed
to make the most of this long
transition period before his investiture, the analyst said.
After the ceremony late on
Thursday, Mr. Morales will have
to get to work fighting Guatemalas pressing problems.
Poverty affects just under 60%
of the population. The homicide
rate is one of the highest in the
region at 35 killings per 100,000
inhabitants.
Despite the circumstances, Mr.
Morales led a light-hearted campaign, cracking jokes at rallies.
For 20 years, Ive made you
laugh, he said. I promise that if
I become president, I wont make
you cry. AFP

WASHINGTON President
Barack Obama told Americans
nervous about terror and a changing economy that they should not
fear the future, in a farewell State
of the Union address on Tuesday
that drew sharp contrast with Republicans.
In a primetime address that
bubbled with 2016 election politics,
Mr. Obama assailed Republicans
for talking up the threat posed by
the Islamic State group and talking
down the American economy.
A self-assured and optimistic
Mr. Obama cast himself as the foil
of foes who warn the country is
going in the wrong direction because of his seven years in office.
Hailing an epoch of extraordinary change laden with risk and
opportunity, Mr. Obama called
for a new moonshot to cure
cancer, a shift away from dirty
energy to power the worlds biggest economy, and for a thaw in
the last remnants of the Cold War
by ending the embargo on Cuba.
Mr. Obama insisted America
has been through big changes
before, as he took thinly veiled
shots at Donald Trump, Ted Cruz,
and other leading Republican
presidential candidates.
Each time, there have been
those who told us to fear the future, who claimed we could slam
the brakes on change, promising to restore past glory if we just
got some group or idea that was
threatening America under control. And each time, we overcame
those fears.
With less than three weeks
until the Iowa caucuses the
first votes cast in the process to
replace him Mr. Obama berated
Republican economic rhetoric,
saying anyone claiming that
Americas economy is in decline
is peddling fiction.
But, some of his toughest
words were for Republican state-

the tenure of the first black

president.
There was only a fleeting reference, and a symbolic empty seat
in the chamber, to gun control
and the awful toll of American
gun violence.

ANGRIEST VOICES

AFP

PRESIDENT BARACK Obama waves as he walks back up the aisle at conclusion of

his State of the Union address on Capitol Hill, Washington, on Jan. 12.
ments over the rise of the Islamic
State group.
He painted the jihadists as
masses of fighters on the back of
pickup trucks, twisted souls plotting in apartments or garages.
He admitted that the extremists, who have overrun large areas
of Syria and Iraq, pose an enormous danger, but made clear:
They do not threaten our national existence.
Our answer needs to be more
than tough talk or calls to carpetbomb civilians. That may work
as a TV sound bite, but it doesnt
pass muster on the worlds stage,
he said pointedly.
Over-the-top claims that this
is World War III just play into
their hands.
And in a volley clearly aimed
at Mr. Trump, Mr. Obama warned
that when politicians insult
Muslims thats not telling it like
it is. Its just wrong. It diminishes
us in the eyes of the world.
The Republican frontrunner
Mr. Trump was not impressed,
describing the speech on Twitter
as really boring, slow, lethargic
very hard to watch!

have agreed that there will be no

further expansion of the search
area, Australias Joint Agency
Coordination Center (JACC),
which is overseeing international
search efforts, said in a statement.
The search has focused on a
remote part of southern Indian
Ocean, where the plane is widely
believed to have gone down.
A piece of the plane found
washed up on the French island
of Reunion in July 2015 provided
the first direct evidence that the
plane had crashed into the sea. No
further trace has been found.
Last May, searchers found the
wreckage of what was believed to
be a 19th-century cargo ship, and
now sonar imagery has identified
what is likely to be a second shipwreck, a steel/iron vessel dating
from the turn of the 19th century,
according to JACC. Reuters

DUBAI Irans Islamic Revolutionary Guard Corps (IRGC) said

on Wednesday it was interrogating 10 American sailors it had detained a day earlier and dismissed
talk of their prompt release.
Iran detained the sailors who
were aboard two US navy boats
in the Gulf in an incident that
rattled nerves days ahead of the
expected implementation of a
landmark nuclear accord.
If, during the interrogation,
we find out that they were on an
intelligence gathering mission,

we will treat them differently,

Guards spokesman Ramazan
Sharif said in an interview with
Tasnim news agency.
Late on Tuesday, a US defense
official had said plans were in
place for Iran to return the sailors
early on Wednesday to a US Navy
vessel in international waters.
But, Mr. Sharif said that was
speculation.
What others say about the
sailors prompt release is their
speculation, and I dont confirm
or deny it, he told Tasnim.

commit physical and sexual assaults, resist police, or damage

property crimes which mostly
carry probationary sentences but
do not trigger expulsion under
current law.
There will certainly be more
deportation orders as a result of
changes to the law because we
are lowering the requirements
for a deportation, Mr. Maas

IRGC Naval Commander Rear

Admiral Ali Fadavi told state
television in an interview that
a US aircraft carrier in the Gulf
had acted provocatively and unprofessionally for 40 minutes
by carrying out air and sea maneuvers after Iran arrested the
American sailors.
He said the sailors were transferred to Farsi island, near where
they had been seized.
Tehran had asked Washington
for an apology for violating Irans
territorial waters, Mr. Fadavi added.

Irans Foreign Minister Mohammad Javad Zarif was in touch

with US Secretary of State [John]
Kerry; Zarif took a firm stance as the
sailors had violated Irans territorial
waters and asked the United States
for an apology, Mr. Fadavi said.
Both US and Iranian officials
have described the sailors, whose
boats may have inadvertently
drifted into Iranian waters, as
safe and well-treated. US defense
officials said nine men and one
woman were aboard the two vessels seized. Reuters

Flooding fears block

Ganges dam project

AFP/JACC

AN UNDATED handout sonar image released by Joint Agency Coordination Center

on Jan. 13 shows an iron- or steel-hulled shipwreck some 3,700 meters below the
surface and believed to have gone down at the turn of the 19th century.

German minister says deportations will increase

BERLIN German Justice Minister Heiko Maas said on Wednesday more foreign criminals would
be expelled once new restrictions
are rolled out in the wake of sexual attacks on women blamed on
migrants in Cologne.
Mr. Maas and Interior Minister Thomas de Maiziere outlined
plans on Tuesday to speed up the
deportation of foreigners who

Tuesdays address was arguably

Mr. Obamas last big opportunity
to sway a national audience and
frame the 2016 White House race.
Around 30 million viewers
were expected to watch live, a nationwide audience that may only
be matched in political terms during the Democratic nominating
convention later this year.
But, it risked being overshadowed by news that 10 US Navy
personnel had been taken to an
Iranian naval base in the Gulf.
Senior US officials said they
had received assurances the
crews would sail onwards come
first light, but Republicans held
up the crisis up as evidence that
Mr. Obama was naive to engage
Tehran.
Overall, it was an unorthodox
speech that eschewed the typical
laundry list of legislative priorities as Mr. Obama tried to lift the
countrys gaze beyond the next
year, and beyond his presidency.
But he also tacitly, and explicitly, admitted mistakes.
There was no mention of the
racial tensions that have dogged

Irans Revolutionary Guards question 10 US sailors

Search for MH370 yields

another old shipwreck
SYDNEY The search for a missing Malaysia Airlines Flight MH370
in the Indian Ocean has turned up
the second centuries-old shipwreck
but no sign of the aircraft that disappeared with 239 passengers and
crew nearly two years ago, searchers said on Wednesday.
Flight MH370 went missing
during a flight from Kuala Lumpur to Beijing on March 8, 2014.
The Australian-led underwater
search, the most expensive ever
conducted, is expected to be completed by the middle of 2016, having
scoured more than half of a planned
120,000 square kilometers of seafloor, the agency overseeing the effort said, ruling out any expansion
of the search without new leads.
In the absence of credible
new information that leads to the
identification of a specific location of the aircraft, governments

LAST CHANCE?

Mr. Obama did take some blame

for Washingtons hyperpartisan
politics.
Its one of the few regrets of
my presidency that the rancor
and suspicion between the parties has gotten worse instead of
better, he said in a moment of
personal candor.
Theres no doubt a president
with the gifts of Lincoln or Roosevelt might have better bridged
the divide, and I guarantee Ill
keep trying to be better so long as
I hold this office.
South Carolina Governor
Nikki Haley said in the traditional Republican rebuttal of Mr.
Obamas address that the presidents record has often fallen far
short of his soaring words.
As he enters his final year in
office, many Americans are still
feeling the squeeze of an economy
too weak to raise income levels.
She also cited chaotic unrest
in many of our cities and the
most dangerous terrorist threat
our nation has seen since Sept.
11.
But Ms. Haley, the daughter of
Indian immigrants, also jabbed
at Mr. Trump over his views on
immigration.
During anxious times, it can
be tempting to follow the siren
call of the angriest voices, she
said.
We must resist that temptation. No one who is willing to
work hard, abide by our laws, and
love our traditions should ever
feel unwelcome in this country.
AFP

told German television channel

ARD.
Germany would still not deport people who come from countries where war is raging or where
they could face the death penalty
or torture, he added.
More than 600 women have
complained of being attacked on
New Years Eve in Cologne and
other German cities. The com-

plaints range from sexual molestation to theft, and police have said
their investigations are focused on
illegal migrants from north Africa
as well as asylum seekers.
The German cabinet still
needs to back the proposed deportation plans before a draft
law it drawn up to go through the
Bundestag lower house of parliament. Reuters

DHAKA Bangladeshs plan to

build a dam on the Ganges River
to ease water shortages in its
southwest coastal region hangs in
the balance as neighboring India
has yet to accept the plan.
Bangladesh started work on
the proposed Ganges Barrage
Project during the tenure of the
previous ruling Awami League
government in the late 1990s.
The country has already
completed a feasibility study
and the design for the proposed
2.1-kilometer-long dam, due to be
constructed at Pangsha in Rajbari
district, about 100 kilometers
downstream from the Farakka Barrage in Indias West Bengal state.
The Ganges, known as the
Padma River in Bangladesh, is
one of the major sources of surface water in the southwest of the
country.
Water scarcity and water salinity made worse by climate
change are common problems
in the region, which is why Bangladesh has given the barrage
project top priority.
Experts say salinity is on the
rise in the southwest due to sealevel rise from global warning.
The proposed dam would release
water through river channels to
help dilute the salt levels.
However, experts say it will be
difficult to push forward with the
project in the absence of support
from India.

INDIAN OBJECTIONS

New Delhi sent a letter to the

Bangladesh government in early
2015, saying Indian technical experts had evaluated project documents sent by Dhaka and were
concerned the dam could cause
flooding in India.
The Ganges flows out of India
on flat terrain from West Bengal. India, in the letter, predicted
that even a slight increase in the
rivers water level would cause
huge submergence in areas of India bordering Bangladesh.
New Delhi asked Dhaka to send
the full feasibility study, including
scientific modelling, so it could be
sure there would be no increase in
water levels on Indian territory.
Bangladesh Water Resources
Minister Anisul Islam Mahmud
told the Thomson Reuters Foundation all the documents requested by India were sent last April,
but New Delhi had yet to respond.
During a visit to India in November, Mr. Mahmud met his Indian counterpart, Uma Bharati, who
assured him of a response soon.
It will be a hard task for Bangladesh to implement the large dam
alone, which is why it has sought cooperation from India, experts say.
The two countries are currently locked in a range of political
squabbles over water, including
over how to share the waters of
the Teesta, another cross-boundary river. Reuters

World

THURSDAY, JANUARY 14, 2016

HKs Leung pushes integration

with China in policy speech
HONG KONGs leader announced
steps on Wednesday to boost integration with China, pinning
the citys future on the success of
Beijings international One Belt,
One Road concept.
Leung Chun-ying, who started
a five-year term as chief executive
in 2012, said during his annual
policy address that Hong Kong
would play a significant role in
promoting the new Silk Road
spreading from Western China to
Central Asia and Europe.
Hong Kong is well-positioned
to capture the wealth of the Belt and
Road, Mr. Leung said. He pledged
HK$1.2 billion ($154.65 million)
for the concept, mostly for scholarships for students from countries
targeted by the program.
He mentioned One Belt, One
Road 40 times in his speech,
which also boosted existing plans
in other areas but lacked sweeping new initiatives.
Four lawmakers were removed
for heckling Mr. Leung during his
speech over a lack of substance and
his failure to mention concerns
over the disappearance of five Hong

Kong booksellers. The five, linked

to the production and sale of works
critical of Beijings leaders, are
widely feared to have been illegally
abducted by mainland agents.
Mr. Leung said that any such
action would be in contravention
of Hong Kongs Basic Law, or mini
constitution, and that he had raised
the issue with mainland authorities.
The policy address has traditionally been a platform for leaders
in the Chinese-controlled city to
hand out billions to the less advantaged or to signal shifts in economic
and other political policies.
With many Hong Kong residents increasingly dissatisfied
with Mr. Leungs administration,
experts expressed surprise at
the dominance of One Belt, One
Road over other issues.
Pro-Beijing politician Regina
Ip said Mr. Leung had overdone
it while skirting key governance
and political issues, particularly
Beijing s ties with Hong Kong,
a former British colony that returned to Chinese rule in 1997
with the promise of wide-ranging
autonomy.

I think [Mr. Leung] ought to

offer stronger reassurances to
Hong Kong people and address
the confidence issues, she said.
James Sung, a political analyst
at City University, said Mr. Leung
seemed determined to show
loyalty to Chinese President Xi
Jinping, and he doubted smaller
businesses would prosper from
Beijings initiative.
Mr. Leung later acknowledged
that some residents neither understood nor were interested in
One Belt, One Road.
One regular Hong Kong University poll ahead of the speech
showed his popularity had
reached an all-time low of 37.5%.
Mr. Leung, who pledged in
2012 to make housing more affordable, said Hong Kongs lack
of affordable property remained a
serious problem.
Prices and rents are still
beyond what people can afford,
and have distorted the values of
the younger generation, he said.
We should continue to tackle
the housing problem head-on and
must not concede.

He said about 97,100 public

housing units will be built over
the next five years. He also boosted spending on public hospitals
and launched a HK$2 billion
matching fund to promote innovative business start-ups.

TURBULENT HISTORY

In tiny Hong Kong, 7.2 million

people are packed into just 30%
of the territory.
Mr. Leung has presided over
some turbulent history as Hong
Kongs relationship to Beijing is
being contested. Pro-democracy
protesters shut down major
roads for 79 days in late 2014
and Mr. Leungs administration
was accused of meddling in academic appointments at the top
university.
Now, the citys economy
whose growth is closely tied to
mainland Chinas is slowing.
The Hong Kong dollars peg
to the US dollar has made it an
increasingly expensive destination for mainland Chinese who
come to shop and buy property.
Reuters

Gunbattle in Afghan city after blast near consulate

JALALABAD Afghan security
forces killed two gunmen barricaded inside a house here on
Wednesday, ending a siege that
followed a suicide attack on the
Pakistani consulate in the city, a
senior official said.
Deputy Interior Minister
Ayoub Salangi said the two militants were killed in a shootout
with heavily armed police units.
Officials said at least seven members of the security forces were
also killed.
The attack, which comes amid
efforts to restart the stalled peace
process with the Taliban and ease
diplomatic tensions between India and Pakistan, resembled an

assault on the Indian consulate

in the northern city of Mazar-iSharif last week.
There has been no claim of responsibility for either attack.
Witnesses in Jalalabad, the
main trade gateway to the Khyber Pass and Pakistan, said heavy
gunfire and a series of explosions
could be heard during the battle,
and residents and children from
a nearby school were evacuated.
There was no immediate comment
from the Pakistani government.
Attaullah Khogyani, a spokesman for the provincial governor,
said a suicide bomber had tried
to join a queue of people seeking
visas to Pakistan and blew himself

up after being prevented from

entering the building.
Two policemen were killed in
the blast, the interior ministry
said in a statement.
Last week, a group of attackers
barricaded themselves in a house
and resisted security forces for
about 24 hours after a suicide attack on the Indian consulate in
Mazar-i-Sharif.
The group responsible for that
attack has not been identified, but
the incident fuelled suspicion in India about militants sponsored from
Pakistan, and it cast a shadow over
the latest effort to improve relations.
Tension between India and
Pakistan has risen since the at-

tack on the Indian consulate and

on an Indian air base that killed
seven Indian military personnel
near their border.
Delegates from Afghanistan,
Pakistan, China, and the United
States also met this week to try
to resurrect efforts to end nearly
15 years of bloodshed in Afghanistan, even as fighting with the
Taliban intensifies.
Pakistan says many Pakistani
Taliban militants, who are separate from but allied with the Afghan Taliban, and are fighting to
bring down the Pakistani state,
have sought refuge in Afghanistan from a Pakistani army offensive. Reuters

AFP

10/S1

The

PAKISTANI SECURITY officials examine the

site of a bomb blast near a polio vaccination
center in Quetta, Pakistan, on Jan. 13.

Suicide bombers strike

Pakistan and Cameroon
QUETTA/DOUALA A suicide
bomber killed at least 15 people,
most of them police, outside a
polio eradication center in Pakistans western city of Quetta on
Wednesday, the latest militant
attack on the anti-polio campaign
in the country.
Militant group Jundullah,
which has links with the Pakistani Taliban and has pledged allegiance to Islamic State, claimed
responsibility for the attack.
The bomb ripped through a
police van that had just arrived at
the center to provide an escort for
vaccination workers engaged in
a drive to immunize all children
under five years old in the underdeveloped western province of
Balochistan.
It was a suicide blast; we
have gathered evidence from the
scene, Ahsan Mehboob, the provincial police chief told Reuters.
The police team had arrived to
escort teams for the polio campaign.
Ahmed Marwat, who identified himself as a commander and
spokesman for Jundullah, said
the group was responsible. We
claim the bomb blast on polio office. In the coming days we will
make more attacks on polio vaccination offices and polio workers,
he said by telephone.
Teams in Pakistan working to
immunize children against the virus are often targeted by Taliban
and other militant groups, who
say the campaign is a cover for
Western spies, or accuse workers

AFP

of distributing vaccines designed

to sterilise children.
The latest attack killed at least
12 policemen, one paramilitary
officer, and two civilians, and
wounded 25 others, officials said.
They estimated the bomb contained about five kilograms.

CAMEROON

In Cameroon, a suicide bomber killed at least 10 people and

wounded at least one in an attack
on a mosque in northern Cameroon on Wednesday, officials in the
Far North region said, in the latest attack linked to an insurgency
by militant group Boko Haram.
The Islamist group, whose
origins are in northeastern Nigeria, has stepped up attacks in
neighboring Cameroon, Chad,
and Niger since last year. Many
of the recent Cameroon attacks
have been conducted by women.
The suicide attack took place
at 5:40 a.m. (4:40 a.m. GMT) in a
mosque at Kouyape. There were
13 deaths, including the man who
blew himself up, and one wounded, said a senior local official who
declined to be identified.
Another senior local official
said at least 10 people died.
Boko Haram has waged a sixyear campaign for an Islamist
state in northeastern Nigeria.
Neighboring countries joined
an offensive against the group
this year and the conflict spilled
across their borders, displacing
tens of thousands of people.
Reuters

China retorts to Japan about

disputed isles in eastern sea
BEIJING Chinas Foreign Ministry warned
Japan on Wednesday not to take provocative
action around a group of disputed islets in the
East China Sea, saying Tokyo would have to accept the consequences.
On Tuesday, Japan said it had told China
that any foreign naval vessel entering Japanese waters for reasons other than innocent
passage will be told to leave by a Japanese
naval patrol, signalling a potential escalation
in a long-running dispute.
Last year, Chinese navy ships sailed near
the disputed isles known as the Senkaku in
Japan and the Diaoyu in China the Japanese
government said.
Asked about the Japanese announcement,
Chinese Foreign Ministry spokesman Hong
Lei said China had the right to carry out normal navigation and patrol activities around
the islands.
We advise Japan against taking provocative acts or doing anything to raise tensions,

otherwise it will have to accept responsibility

for everything that happens, he told a daily
news briefing, without elaborating.
In an editorial on Wednesday, the influential Chinese tabloid the Global Times said if
Japan sent its navy in, China would have to
send in its warships too.
China can send as many warships to the
Diaoyu Islands as Japan does, said the newspaper, which is run by the ruling Communist
Partys official Peoples Daily.
The dispute over the uninhabited islands,
which are under Japanese control, has been
a major sticking point in Japan and Chinas
often contentious relations in recent years.
Late last year, a Chinese coastguard vessel with what appeared to be gun turrets
entered territorial waters claimed by Japan
near the islands, Japans coastguard said,
adding that it was the first such incursion
by an armed Chinese vessel in the area.
Reuters

North Korea faked launch footage

of ballistic missile test experts
SEOUL Footage released last week by North Korea
purporting to show the firing of a submarine-launched
ballistic missile (SLBM) appears to be fake, according to
studies by US experts.
In defiance of a United Nations ban, North Korea has
said it has ballistic missile technology which would allow it to
launch a nuclear warhead from a submarine, though analysis
of North Korean state media images casts doubt on the claim.
North Korea released the submarine launch footage
after it separately conducted a fourth nuclear weapons
test last Wednesday.
North Korean state television aired footage on
Friday of the submarine test said to have taken place
in December. Unlike a previous SLBM test in May, it was
not announced at the time.
South Koreas military said on Saturday North
Korea appeared to have modified the video and edited
it with Scud missile footage from 2014, although an
official told Reuters the ejection technology might have
improved since the May test.
An analysis by the California-based James Martin
Center for Nonproliferation Studies (CNS) shows two
frames of video from state media where flames engulf
the missile and small parts of its body break away.

The rocket ejected, began to light, and then failed

catastrophically, Melissa Hanham, a senior research
associate at the Middlebury Institutes CNS, said in an
e-mail. North Korea used heavy video editing to cover
over this fact.
Ms. Hanham said North Korea state media used different camera angles and editing to make it appear the
launch was several continuous launches, when in fact it
was a single event.
North Korean propagandists used rudimentary
editing techniques to crop and flip old video footage of
an earlier SLBM test and Scud missile launch, the CNS
study showed.
In an analysis on the 38 North monitoring Web site,
John Schilling, an aerospace engineer who is a specialist in satellite and launch vehicle propulsion systems,
said it appeared from the video that the launch was
conducted from a submerged barge rather than a
submarine.
The failed launch, combined with testing from a
barge, shows that North Korea still has a long way to go
to develop this system, he said. An initial operational
capability of a North Korean ballistic-missile submarine
is not expected before 2020. Reuters

Nation

The
THURSDAY, JANUARY 14, 2016

S1/11

Court holds fire on M/V Princess of the Stars case

By Vince Alvic A. F. Nonato
Reporter

THE MANILA Regional Trial

Court (RTC) has not immediately
resolved the Public Attorneys
Offices (PAO) request for the execution of the Sept. 18 decision
ordering the payment of damages
to victims of the M/V Princess of
the Stars tragedy of 2008.
During the Wednesday hearing, RTC Branch 49 Judge Daniel C. Villanueva instead gave
Sulpicio Lines, Inc. and members of the Go family 15 days to
submit a position paper explaining their opposition to PAOs
two motions for execution. PAO
was allowed to respond on an
optional basis.
The execution of the Sept. 18
decision holding the shipping
firm liable for negligence was tied

up over the issue of whether it had

attained finality.
PAO Chief Persida V. RuedaAcosta, on behalf of 71 plaintiffs,
said Sulpicio and the Gos filed an
invalid appeal that should not be
considered. This should render
the decision final and executory,
she argued.
But Sulpicio counsel Ma. Victoria P. Lim-Florido said PAOs
tack contradicted its earlier position as contained in a filing days
earlier.
PAOs Dec. 8 omnibus motion for execution to dismiss defendants notice of appeal with
motion for execution said the
appeals should not be considered
because they did not pay the
docket fees for all of the 71 civil
suits.
Ms. Florido argued that the
Nov. 27 motion for execution
pending appeal based on good
reasons practically recognized

they were able to appeal the RTC

ruling. She said the two motions,
therefore, contradict each other.
The [plaintiffs] should decide
which motion should stand, Ms.
Florido told the court.
She explained they are objecting to both motions being considered because the plaintiff cannot
take one view... and take another.
The two motions are diametrically opposed.
Ms. Acosta responded by saying they would stand by both
motions and leave to the judges
discretion the question of which
remedy to consider.
Plaintiffs cannot put themselves in the shoes of the Presiding Judge. Thats why there are
two motions which are not opposed to each other, said the PAO
chief.
When the defense proposed
PAO submit a position paper
instead to explain what stance

it will take, Ms. Acosta opposed

the suggestion and maintained
these are already all the positions of the parties.
She said tackling this issue by
way of another round of filings
would prolong the agony of the
plaintiffs who are still seeking
compensation almost eight years
after the ferrys sinking.
Why prolong the agony
[when] the court can exercise
its discretion? Ms. Acosta exclaimed. These [motions] are
compatible. Why should the
counsel dictate on us? We will not
let any delay; the people of the
Philippines are clamoring for the
fast resolution of these cases.
Mr. Villanueva still allowed
the submission of the position
paper to put the parties positions
into writing and allow the court to
study the issue.
The next hearing was set on
March 1 indicating that the

nearly-concluded case will go on

in the meantime in spite of the
Court of Appeals (CA) order for
him to voluntarily inhibit.
During the hearing, Mr. Villanueva did not comment on whether he will abide by the CA ruling,
only asking the PAO about its
appeal with the Supreme Court.
Ms. Acosta told the judge he
did not need to follow the inhibition order because there are
good reasons to finish the case
and the appellate court did not
issue a stay order against the proceedings.
To recall, the Manila RTCs
Sept. 18 decision ordered Sulpicio now Philippine Span Asia
Carrier Corp. (PSACC) to pay
around P240 million in damages
to 64 of the 71 plaintiffs. It found
negligence on the shipping firms
part for allowing M/V Princess
of the Stars to set sail along the
Romblon area despite a Signal no.

2 storm warning being hoisted

there.
On Sept. 21, the CA Special Sixteenth Division, through Associate Justice Edwin D. Sorongon,
granted Sulpicios petition for
Mr. Villanueva to recuse himself from the case. The appellate
court affirmed this in a Dec. 18
resolution and ordered the civil
suit reraffled, prompting PAO to
seek recourse from the Supreme
Court.
Only 32 of M/V Princess of the
Stars 851 passengers and crew
members survived the mishap
in the Sibuyan Sea, off San Fernando, Romblon.
The Maritime Industry Authority, on Jan. 23, 2015, canceled the Certificate of Public
Convenience of PSACC, ten
years into the 25-year effectivity. Because of this, the firms
ships are now limited to carrying
cargo.

Sitting
Marinduque
solon wont
yield post

NTC says software

to monitor Internet
speed ready by June

THE CAMP of Marinduque Rep.

Regina Ongsiako-Reyes said she
would not yield her position, despite
the Supreme Courts (SC) order for
House Speaker Feliciano Sonny
R. Belmonte, Jr. to swear in her rival.
This was in spite of the clarification issued by SC Public Information Office Chief Theodore O.
Te on Wednesday, who said the
SCs Tuesday order to install Lord
Allan Jay Q. Velasco in the House
roster is immediately executory.
In May last year, the Commission on Elections (Comelec) affirmed with finality Ms. Reyess
disqualification for her being a dual
citizen, as she had not renounced
her American citizenship.
The SC, voting 8-1-6 on Tuesday, granted Mr. Velascos petition to compel the House Speaker
through a writ of mandamus to
swear him in as Marinduque representative. It said the Comelec
and the SC rulings disqualifying
Ms. Reyes had become final and
executory, and the House Speaker
has the ministerial duty to administer the oath to Mr. Velasco.
In a statement, counsel Herminio Harry L. Roque, Jr. said
Ms. Reyes would stay put as a
congresswoman as they prepare
to appeal the decision through a
motion for reconsideration.
Until the denial of that motion,
Rep. Reyes continues to be the lawful representative of Marinduque
in Congress, Mr. Roque said.
The lawyer also advised
Congress to let Rep. Reyes and
[Mr. Velasco]... fight it out anew
in this years elections instead of
complying with the SCs Tuesday
writ of mandamus. Both politicians are gunning for the position
again for the 2016 elections.
Mr. Roque said only Congress
acting as a whole body not the
House Speaker on his own has
the power to replace its members.
Mr. Velasco is the son of SC
Justice Presbitero J. Velasco, Jr.
(who inhibited from the case) and
Ang Matay Alagaan party-list Rep.
Lorna Q. Velasco. A reelectionist,
he lost the 2013 elections to Ms.
Reyes by a margin of 4,000 votes.
Ms. Reyes was allowed to participate in the elections because her
disqualification was not yet final.
She was proclaimed the winning representative on May 18
that year, as the May 14 resolution had not lapsed into being
executory. In December, the SC
ruled with finality that she should
be disqualified and Mr. Velasco
should be declared the winner.
The House of Representatives
did not abide by the ruling, because it believed the Comelec lost
its jurisdiction when Ms. Reyes
was proclaimed. It said only the
House of Representatives Electoral Tribunal has jurisdiction
over a proclaimed representative.
On Tuesday, Mr. Belmonte
said: once the decision is final,
I will enforce [the SC order].
Vince Alvic Alexis F. Nonato

By Daphne J. Magturo Reporter

BUSINESSWORLD ARCHIVES

Rebel priest shot dead two days after birthday

Fr. Conrado Balweg is shown in this photograph taken in August 1986 as he explains demands of the Cordillera people in
Sadanga, Mt. Province. Agapito Butz Aquino who would be elected senator a year later is shown in the background.
The scene is from the one-hour color documentary entitled Fr. Balweg, Rebel Priest by prize-winning filmmaker, Amable
Tikoy Aguiluz. The films premier was held at the Ayala Museum also in August 1986. Balweg was shot dead on Dec. 31,
1999, two days after he celebrated his 57th birthday, a January 2000 BusinessWorld report said. The New Peoples Army
(NPA) executed the elder Balweg allegedly for crimes against the people, the report said. However, his common-law wife,
Corazon, said her husband was executed by the NPA for embracing peace and renouncing the communist ideology.

INTERNET USERS who suffer

from slow connection will soon
have a software to measure the
speed they get, and they can use
this as evidence to file complaints
against Internet service providers.
It will be operational by June.
It will be available nationwide
and is downloadable anywhere,
National Telecommunications
Commission (NTC) Regulation
Branch Director Edgardo R.
Cabarios told reporters in a recent interview.
If an Internet service provider
advertises its product as broadband, its data connection speed
must not fall below 256 kilobits
per second (Kbps), according to
an Aug. 13 memorandum circular
issued by the agency.
It has been a common complaint that the 256 Kbps minimum speed is slower than in
other countries, and Internet users have urged the regulator to set
a higher standard.
But during a public hearing on
Tuesday, Mr. Cabarios said we
will maintain that.
Internet service providers
should deliver the speed they ad-

vertise at least 80% of the time, or

face penalties for false advertising.
Were measuring your performance against what you promised, Pierre Tito Galla, co-founder of advocacy group Democracy.
Net.PH, told Internet service providers during the hearing.
However, the government admits the penalty is just a slap on
the wrist.
Criminal and administrative
fines currently range from just
P1,000 to P5,000, and P500 to
P300,000, respectively, according
to the Department of Trade and
Industry (DTI).
There is a proposal to amend
that criminal penalties will be
P50,000 to P1 million, and the
administrative penalties are the
same, DTIs Trade Industry Development Specialist Ronald C.
Calderon said in the same venue.
Were still reviewing the proposal.
The measuring tool can be
used to measure data connection of both fixed and wireless
broadband. The NTC will hold a
public bidding to choose the supplier, and initial estimates show
that the device will cost around
P15 million, according to Mr.
Cabarios.

Security officials say southern rebels not linked to Islamic State

ISLAMIC STATE (IS) militants
have no known links with Muslim
rebel groups in the Philippines,
security officials said on Tuesday,
dismissing a video suggesting as
much as propaganda.
A video emerged last week indicating the possible merger of
four Islamist militant groups, including Abu Sayyaf, establishing a
wilayat, or an Islamic State province, in the southern Philippines.

There is no credible, verified

and direct link established and
the possibility of establishing
a satellite is unlikely, military
spokesman Col. Restituto Padilla
told reporters, adding some of
the personalities in the video had
been killed in more recent clashes
with security forces.
The recent pronouncement
of Abu Sayyaf group leader Isnilon Hapilon is part of their

propaganda and does not necessarily reflect the existence of an

ISIS-directed terror operation in
the country.
Hapilon, who has a $5-million bounty on his head, is the
only remaining Abu Sayyaf
leader left alive of the five who
kidnapped 20 hostages, mostly
Western tourists, from Sipadan
island in eastern Malaysia in
2000.

The islands of Basilan and Jolo

are the strongholds of the Abu
Sayyaf, known for kidnappings,
beheadings and bombings. It is
one of the most hard-line Muslim rebel factions in the Muslim
south of the largely Christian
Philippines.
An army intelligence official
also disputed the likelihood of a
wilayat being set up in the southern Philippines.

The local militants are only

interested in making money, and
those attracted to Islamist ideology would rather travel to Syria
and Iraq, especially those from
Malaysia and Indonesia, said an
intelligence official.
What we have in the south
are pure criminals hiding behind
IS masks to gain prominence and
raise more ransom money.
Reuters

SC junks pleas by Pamatong, David, other nuisance bets

AFP

ELY PAMATONG

THE SUPREME COURT (SC) en

banc dismissed on Tuesday the
petitions to overturn the Commission on Elections (Comelec)
resolutions declaring Rizalito Y.
David, Elly V. Pamatong and other nuisance candidates.
SC Public Information Office
Chief Theodore O. Te said on
Wednesday the high court issued
minute resolutions uniformly
affirming that the Comelec did
not act with grave abuse of discretion.
The petitions filed by seven
presidential aspirants and one
vice-presidential hopeful contested the Comelec resolutions
canceling their certificates of
candidacy.
Mr. David, the radio commentator who unsuccessfully petitioned the Senate Electoral Tribunal to oust Senator Grace Poe,

and Elly V. Pamatong, who failed

in his two previous attempts to
be included in the ballot, were
among the seven nuisance candidates whose petitions the SC
denied.
The other five presidential
aspirants were: Ex-Governor
Ephraim Ninoy Baldomero Defino, Buenafe A. Briggs, Juanita
M. Trocenio, Antonio A. Obia,
and Luisito M. Falcon. The SC
also dismissed the petition by
vice-presidential candidate Nid
Anima.
The SC likewise junked similar
petitions by two party-list groups
and two regional parties assailing
the Comelecs dismissal of their
petitions for party registration
and accreditation.
The two party-list groups were:
Mindanao Alliance for Reforms
(MAR), represented by president

Binang S. Jaruni; and Aasenso sa

Barangay (LAKAN), Inc., represented by Ariel S. Arceo.
The two regional parties,
meanwhile, were: Bagong Alyansang Manggagawang Pangtransportasyon Para sa Edukasyon at
Reporma (BAMPER), Inc., represented by president Abraham H.
Bio and secretary-general Richard S. Vitto; and Peoples Movement for Democratic Governance
(PMDG), Inc.
In a related development, the
SC required the Comelec to respond on the separate petitions
by Vieva Farmers Coalition, represented by president Lilia M.
Cruz, and Scholarship ng Masa
Party-list. The poll body was
given 10 days to submit its comment on the two parties request
for a temporary restraining order.
Vince Alvic Alexis F. Nonato

12/S1

Nation

The

EDITOR RICKY S. TORRE

THURSDAY, JANUARY 14, 2016

TUCP leader passes away; factions hint at unity

By Kathryn Mae P. Tubadeza
Reporter

THE TWO FACTIONS of the

countrys biggest labor group
have hinted at the possibility of
reunification, following the death
of another of its pioneering leaders on Tuesday evening.
Trade Union Congress of the
Philippines (TUCP) former president Democrito Kito T. Mendoza died 6:40 p.m. on Tuesday at
the Chong Hua Hospital in Cebu
City, according to a statement
yesterday by the Nagkaisa faction

of the TUCP with which he had

been affiliated.
It is with profound sadness
that the members, officers and
staffs of the Trade Union Congress of the Philippines and
the Associated Labor Unions
(ALU) announce the passing
of its founder and their longtime president Atty. Democrito
Kito Tolo Mendoza, the
statement said. Mr. Mendoza
was 92.
Alan A. Tanjusay, spokesperson of Nagkaisa, said on the heels
of Mr. Mendozas passing: As to
the next set of leaders, the race to
the leadership is very open.

The rule of thumb is that

[whichever] qualified candidate/s
have the majority vote, wins. This is
the essence of the TUCP constitution and by-laws that dictates and
oversees TUCP internal processes
and mechanisms, he said via text.
Mr. Tanjusay said majority of the
TUCP council last Nov. 14 elected
Mr. Mendozas son Raymond Democrito C. Mendoza as acting president, Arnel Z. Dolendo as acting
general secretary, and Esperenza S.
Ocampo as acting treasurer.
They will prepare the organization to hold [the] national convention [which] will [choose the]
next set of officers for the next five

years, Mr. Tanjusay said, adding

the target date for the convention
is in February.
On the other hand, Ruben D.
Torres, who was elected president
this month by the TUCP faction
led by the late former senator
Ernesto F. Herrera, said among
those who are next in line to be
leaders are General Secretary
Rodolfo M. Capoquian, Robrerto
Flores, and Alex Villaviza.
We are calling a convention
on March 13, said Mr. Torres,
a former labor secretary of the
first Aquino administration and
executive secretary of the Ramos
administration.

Mr. Tanjusay said communication lines between the two factions are open.
There are free exchanges of
ideas and positions on how to mend
the rift and come together, he said.
Mr. Torres, for his part, said all
matters are open for discussions.
We strongly advocate unity. We
are continuing our unity discussions, he said in his text message.
This statement departs from
Mr. Torress criticism of the November election as having no
authority.
The leadership dispute has
dragged on for more than four
years now, after the older Mr.

Mendoza revoked his 2011 resignation as TUCP president following Mr. Herreras assuming Mr.
Mendozas position.
The Bureau of Labor Relations
of the Department of Labor and
Employment ruled in Mr. Mendozas favor in a 2012 decision.
But this was voided by a Court
of Appeals ruling the next year
that, in turn, was affirmed by the
Supreme Court.

FULL STORY
Read the full story by scanning
the QR code with your
smartphone or by typing the link
<http://goo.gl/qs6hZ8>

The

LunchGuide

Going out to lunch? Let our directory

of select restaurants help you decide
where to enjoy your next meal.

FLORABEL
L1 North Wing Estancia Mall
Capitol Commons Pasig City
Tel: 638-7527; Telefax: 667-3220
Mobile: (0917) 857-7622 Catering
(0917) 568-1046 Dining Res.
www.florabel.ph
info@florabel.ph; FB/florabel

MR.FRANKS
Central Square BGC Taguig
Tel: 950-8073
Mobile: (0917) 826-3526
info@mrfranks.ph

MARIOS

QUEZON CITY: 191 Tomas Morato

Ave., cor.Scout Gandia, Quezon
City; Tel: 415-3887 / 376-6210 /
372-0360 Fax No.: 372-0352
BAGUIO CITY: Upper Session Rd.,
Baguio City; Tel: (074)442-4241
Fax No.: (074) 442-5445
WE CATER
For those occasions when you
want the best,
call Marios for catering.

CRISOSTOMO

CALIFORNIA PIZZA KITCHEN

MAKATI: Level 2, Greenbelt 5
Makati City
Tel: 401-7160 / 572-5965
2/F Archaeology, Powerplant Mall,
Rockwell Center makati City
Tel: 895-3447 / 895-5250
MUNTINLUPA: Activity Center,
Alabang Town Center Muntinlupa
City. Tel: 850-5771
MANDALUYONG: Level 5, Shangri-la
Plaza Mall, Mandaluyong City
Tel: 687-7841 / 687-7842
QUEZON CITY: Level M3, Trinoma
Mall Quezon City.
Tel: 901-3881 / 901-3882
Ground Floor, Eastwood Mall
Quezon City
Tel: 584-0874 / 584-5150
SAN JUAN: G/F Promenade Mall,
Greenhills Shopping Center, San
Juan City. Tel: 725-7377
MANILA: 3/F Lucky Chinatown,
Binondo Manila.
Tel: 254-3151 / 254-3172
TAGUIG: W Global Center, 30th
Street Corner 9th Ave., Bonifacio
Global City. Tel: 668-3912
OLONGAPO CITY: Ground Level,
Promenade Harbor Point, Rizal
Highway, Subic Bay Freeport
Zone; Tel: (047) 251-1084
/ (047) 251-1085

MINAMISAKI BY ASTORIA
G/F Astoria Plaza 15 J. Escriva
Drive Ortigas Business District,
1600 Pasig.
Tel: 687-1111 loc. 8164/8165
www.minamisakibyastoria.com

QUBIERTOS GRILL & RESTAURANT

HOUSE SPECIALTIES:
Grilled meats and seafoods;
Bagnet; Pinakbet; Laing
Kambing Dishes; and our
new product Authentic Boneless
Cebu Lechon

With Aircon & Non-Aircon

Dining; With Family KTV and
SpaciousFunction Rooms

WE ACCEPT: Delivery, Catering and Special Functions/
Events

VISIT OR CONTAC T US AT:
117 Kalayaan Avenue, Brgy.
Central, Q.C.; Tel: 434-6441
Mobile No: (0916) 454-6000

MANNYS GRILL
BAR & RESTAURANT
#106 Kalayaan Avenue Central
Diliman Q.C. Tel: 434-1619

TAPEO
The Fort Strip 7th Ave Corner 28th
Street Bonifacio Global City Taguig
City. Tel: 556-2668
Mobile No. (0922) 361-1210
FB:tapeo.ph
tapeo.manila@gmail.com

LAGUNA: Solenad,Nuvali,Laguna
Tel: (049) 502-8106
Mobile: 0917-863-2568
crisostomo.nuvali@ymail.com
ALABANG: G/F Expansion Wing
Alabang Town Center Ayala Alabang
Tel: 869-0988; Mobile: 0917-8371345
crisostomo.alabang@ymail.com
PASAY:Second Floor Resortsworld
Manila Newport ,Pasay City
Tel: 846-9275 / 212-1212
Monday -Thursday 11:00 am -12
Midnight; Friday 11:00 am 1:00 am
Saturday 10:00 am 1:00 am
Sunday 10:00 am-12:00 Midnight
crisostomo.newport@ymail.com
CRISOSTOMO BLUEBAY WALK:
Cluster L Unit 104 Bluebay Walk,
Metropolitan Park Avenue, Pasay
City. Tel: 832-6592
Mobile: (0917) 826-2535
bluebay@crisostomo.ph
www.crisostomo.ph
FAIRVIEW: Space UO72 Central
Garden, Fairview Terraces, Bgy.
Pasong Putik, Novaliches, Quezon
City. Mobile: 0917-817-8326
fairview.terraces@crisostomo.ph
LIBIS: 2/F Eastwood Mall Veranda
E.Rodriguez Jr. Avenue
Bagumbayan Quezon City
Tel: 710-1693; 709-2049
Mobile: (0917) 881-4768
eastwood@crisostomo.ph
UP TOWN CTR. KATIPUNAN:
U-B231-B232 UP Town Center
Katipunan Avenue Diliman
Quezon City
Tel: 621-4150; Fax: 990-0287
Mobile: (0917)837-1346
crisostomokatipunan@yahoo.com.ph
uptown@crisostomo.ph

MONGKOK DIMSUM & NOODLES

P1 Level, Powerplant Mall,

Rockwell Center, Makati
City. Tel: 756-5112
Space 2-204 2nd Floor New
Glorietta, Ayala Center,
Makati City.
Tel: 625-5170
3rd Floor, Sta Lucia East
Grand Mall, Marcos
Highway, Cainta Rizal
Tel: 681-7327
4th Floor Robinsons
Galleria, Ortigas Center,
Quezon City.
Tel: 636-6416
6th Level, Shangri-La Plaza,
Mandaluyong City.
Tel: 631-5857
GF Santana Grove, Dr.
A. Santos Ave., Sucat
Paranaque City.
Tel: 828-4831
GF Lourdes Suites Hotel,
8429 Kalayaan Ave., Makati
City. Tel: 897-3888 loc. 101
BDO Corporate Center,
7899 Makati Ave., Makati
City. Tel: 840-7000 loc 1231
The Rockwell Business
Center, Ortigas Ave., Pasig
City. Tel: 661-4152
Vinzon Ave., Daet,
Camarines Norte.
Tel: (054) 721-2418
/ 517-2864
The Plaza At Bauan , J. P.
Rizal St. Bauan Batangas.
Tel: (043) 702-8967

CAF @ SERENADE HALL

MAKATI: Penthouse, Golden Rock
Building 168 Salcedo St., Legaspi
Village, Makati City (Makati Central
Business District; right across the
Indonesian Embassy; with parking along Sotto St. at the back of
the building: or Convergys open
parking with entrance along dela
Rosa Street)
Tel: 816-1564 / 816-2334
Mobile: 0905-4205235 cafe@serenadehall.com
/Serenade Hall
www.serenadehall.com
Open Mon to Fri from 7:00 AM - 5:00
PM Serves All-Day Breakfast, Lunch
& Merienda Dinner by Reservation We Cater We Accept Special
Functions

THE FRAZZLED COOK

No. 78 Scout Gandia Street
Brgy. Laging Handa Quezon City
Tel: 374-68-79
Mobile No.: (0917) 633-3352
www.TheFrazzledCook.net
Instagram: @thefrazzledcook
FB/frazzledcook
Email: frazzledcook@gmail.com

BURGER COMPANY
Scout Reyes, corner Mother Ignacia
Avenue, Barangay Paligsahan,
Quezon City. Tel: 949-2269
FB/BurgerCompanyPH
Twitter/Instagram:
@BurgerCompanyPH

OAKROOM RESTAURANT & BAR

6th Level, Oakwood Premier

Joy~Nostalg Center Manila, 17
ADB Avenue, Pasig City 1600 Tel:
637-7888 / 910-8888 ext. 8604
premiermanila @ oakwoodasia.com;
oakwood.com

ALFREDOS STEAKS

Unit 107-108 Ground Floor

Greenbelt 5 Ayala Center Makati City.
Tel: 710-1696
Telefax: 729-9062
Mobile: (0917) 881-3068
www.felix.ph; FB/felixrestaurant
info@felix.ph

SISAS SECRET

Km 36 Mamplasan, Laguna
Tel: (049) 576-2277; (02) 429-4835
Mobile: 0917-8371347
www.sisassecret.ph

KING CHEF

987-989 Banawe Street

Quezon City.
Tel: 352-7534 /410-4919
/ 441-4177; Fax: 413-6619

MUSEUM CAF

Ayala Museum Complex, Makati

Avenue corner Dela Rosa St.,
Makati City, Philippines 1200
Tel: 757-3000 / 757-6000
/ 391-4197
museumcafe.com.ph
FB:/raintreemcafe

BAR AND RESTAURANT

QUEZON CITY BRANCH:

69 Timog Avenue, corner Sct. Torrillo
Tel: 426-9773
CAINTA BRANCH:
Sta. Lucia East Grand Mall (Back of
Don Henricos). Tel: 571-7531

SUGARLEAF

SAN JUAN: G/F Health Cube

Building, 226 Wilson Street, West
Greenhills, San Juan,
Metro Manila, Philippines
Tel: 661-6639
MAKATI: G/-2/F MEDICard Lifestyle Center, 51 Paseo de Roxas
corner Sen. Gil Puyat
Avenue, Urdaneta Village, Makati
City. Tel: 812-7323
www.sugarleafph.com

PARVATI

TRINOMA: Mindanao Lobby, Trinoma (02) 901.1428 / (0927) 878.0890

BANAWE: G/F 238 Banawe Building, Banawe St. QC (0923) 688-7936
/ (0906) 208-1531

FEZ RESTOBAR
Unit C07-A, Serendra Commercial,
Bonifacio Global City, Taguig.
Tel: 901-1840
FB/fez.restobar; T/ @FezRestobar
Delivery Address: Resto Address

Open: From 7:00 AM- 10:00PM

We are available for delivery and
private functions.
HEAVEN AND EGGS
Unit G4 111 Glorietta 4 Ayala Mall,
Makati City. Tel: (02) 818-2792
Delivery: 87878
glorietta4_heavenandeggs@
yahoo.com
FB: Heaven and Eggs @ Glorietta 4

BULGOGI GARDEN
KOREAN RESTAURANT
125 Kalayaan Ave. Diliman Q.C.
Korean authentic food w/ freshly
made side dishes and serve with
dessert.Try our unlimited sam
gyeop sal every Wednesday 2-5
pm only; We Accept reservation,
parties, in house catering and all
special occasions; dine with us and
contact : (02) 263-5645
Mobile: (0905) 322-3133
(0937)371-9588
Visit also
Maiboo Beauty Spa/SKYRO bar&grill
Write on us
bulgogigarden@yahoo.com
lienyawamus@yahoo.com

JOHNNY ROCKETS
HUAT POT

Taiwanese Style
All You Can Eat Shabu Shabu
for only Php 688+
Unit 2F 07 Metro Pointe Center P.
Guevarra cor. Averilla St.
San Juan City, (near Wilson St.)
Open from 11:00am to 11:00pm
Reserve Now: (0915) 480-5500
650-3091
huatpot21@gmail.com
www.eatoutmanila.com

ELIAS

QUEZON CITY: Level 1 Upper Ground

Floor Robinsons Magnolia Aurora
Blvd. New Manila, Quezon City .
Tel: 546-7977; 961-0339
Mobile: (0917) 586-9895
magnolia@elias.ph
elias.robmag@ymail.com
TAGUIG: 7TH Avenue corner 30th
Street Upper Ground 204 C3
Building Bonifacio High Street
Taguig. Tel: 621-3195; Fax: 621-3276
Mobile: (0917) 817-8290
highstreet@elias.ph

CRYSTAL JADE DINING IN

SEUG 201 Bonifacio High Street
Central7th Avenue Bonifacio
Global City. Tel.: 808-5233

CRYSTAL JADE SHANGHAI DELIGHT

Unit 117 V-Mall Greenhills Shopping Center, San Juan City.
Tel.: 570-5233

PF CHANGS
TAGUIG: 30th st. Corner 9th
Avenue, Bonifacio Global City,
Taguig City
Tel: 664-5956 / 898-7389
MUNTILUPA: Corte, Alabang Town
Center. Tel: 869-7837 / 869-9810
/ 869-9776

ROBINSONS GALLERIA: Level 2,

East Wing, Robinsons Galleria
Edsa Cor. Ortigas Ave. Quezon
City. Tel: 638-4523;
Fax: 638-4867
ROBINSONS FORUM: Upper
Ground Floor, Robinsons Place
Pioneer #30 Edsa Cor.
Pioneer St. Mandaluyong City
Tel: 687-6602; Fax: 687-2691
ROBINSONS MAGNOLIA: Level 2
Aurora Boulevard. cor Dona
Hemady & N. Domingo St. New
Manila, Quezon City. Tel: 961-1451
WALTER MART (MAKATI): Ground
Floor, 790 Chino Roces Ave., Cor.
Antonio Arnaiz,
Makati City
Tel: 889-9948; Fax: 889-9948
Delivery Hotline: 87878
Or log on to: www.citydelivery.
com.ph(Makati, Greenhills and
Ortigas ONLY)
MALATE: Level 1, Padre Faura
Wing, Robinsons Ermita Place,
Manila. Tel: 526-890

BUBBA GUMP SHRIMP CO.

2nd Level, Greenbelt 3, Ayala Center
Makati City Philippines
Tel: (02) 757-51-54; Fax: (02) 729-72-77
Email : customer@bubbagump.com.ph
Website: www.bubbagump.com.ph

CAFEVEGIS A VEGETARIAN CAF

30th st. Corner 9th Avenue, Bonifacio Global City, Taguig City
Tel: 553-5962

MAD FOR GARLIC

30th st. Corner 9th Avenue, Bonifacio Global City, Taguig City. Tel:
808-9517 / 808-9503

ANGELS PIZZA
MAKATI: 1 Constellation st.brgy bel
air Makati ave. Makati City. Tel: 8958888 to 899-3642; Fax: 899-3642
KALAYAAN: 47 puno bldg kalayaan
ave. brgy pinyahan Quezon City.
Tel: 920-2399; Fax: 922-3246
SUCAT: Lot 21 blk 4 presave.
Teoville bf Homes Paranaque.
Tel: 788-00-11 to 12; Fax: 788-0012
ETON: Eton cyberpod bldg
corinthian ortigas ave.cor edsa QC.
Tel: 234-9782; Fax: 234-9782
RECTO: 2070 pinagpala bldg cm
Recto Sampaloc Mla. Tel: 733-4946;
Fax: 733-7946
MALATE: 888 Gateway plaza
Mabini st.Malate Mla. Tel: 522-1935;
Fax: 522-1935
FAIRVIEW: 103 g Commonwealth
ave. Fairview. Tel: 461-7501; Fax:
461-7501
GRANADA: U-34 VMCC Bldg.
Granada St. Brgy. Valencia Q.C
Tel: 661-8533
DAGUPAN: Assada Centre , G/F A.G
1-5 and 1-6, AB Fernandez Ave.
Dagupan City. Tel: (075) 529-1249

FAIRVIEW TERRACES +
WELLWORTH: Ayala Fairview
Terraces, Maligaya Drive,
Novaliches, Quezon City
GREENHILLS: Northeast Square,
47 Connecticut St., Northeast
Greenhills, San Juan City;
Tel. 477-2675
TUSCANY: G/F Unit RA-RAM & RBRBM Bldg. 3 Tuscany at McKinley
Hill; Tel. 837-2675
KATIPUNAN: 225 Katipunan
Avenue Q.C.; Tel. 439-2675
KATIPUNAN TOO: 206 Katipunan
Avenue Q.C.; Tel. 438-2675
TOMAS MORATO: 2nd Level, IL
Terrazzo Tomas Morato, Q.C.;
Tel. 413-2675
AYALA TRIANGLE GARDENS: Ayala
Triangle Gardens, Ayala Ave.
Makati City; Tel. 756-2675
ALABANG TOWN CENTER: New
Wing Alabang Town Center,
Alabang Muntinlupa City;
Tel. 828-2675
MARKET! MARKET!: G/F Fort
Bonifacio Taguig
SM NORTH EDSA: The Skygarden,
SM North Edsa, Q.C.; Tel. 455-2675

CAFE VIA MARE

Makati Greenbelt 1 Tel: 815-1918

The Landmark Tel: 817-9720
Paraaque BF Homes Tel: 4036223 Quezon City Landmark
Trinoma Tel: 441-0643/441-0557
Eastwood Mall Tel: 709-3006 /
709-3005

CORAZON

PIZZA PEDRICOS

GMA & LUZON BRANCHES:

Central Mall Bian Cherry Antipolo Ever Commonwealth Ever
Recto Ever Sucat Funranch
Garden Plaza Greenhills Shopping Center Isetann Recto Jackman Caloocan Market! Market!
Pioneer Supermarket Puregold
Balintawak Puregold Blumentritt
Puregold Cabanatuan Puregold
Guiguinto Puregold Lipa Puregold Naga Puregold Pagsanjan
Puregold Palawan Puregold San
Pablo Puregold Tagapo Robinsons Forum Shopwise Alabang
Shopwise Araneta Shopwise
Commonwealth Shopwise Imus
Shopwise Libis Shopwise, Pacita
SM Baguio SM City Bacoor SM
City Naga SM City Sta. Rosa SM
Las Pinas SM Mall of Asia SM
Megamall Carpark SM Megamall
Foodcourt SM Muntinlupa (Tunasan) South Supermarket Sta. Rosa
Super 8 Baclaran Super 8 Visayas
Waltermart ERod Waltermart Sta.
Rosa Waltermart Tanauan
VISAYAS BRANCHES:
Argao Cebu Boracay Station 2
Dream 21 / China Town Bacolod
Emall Ground Floor Emall Food
Court Fiesta Mall Tabunok Fooda
Mango Gaisano Cordova Gaisano
Casuntingan Gaisano Grand Mactan SMKT Gaisano Savers Mart
Gaisano South Colon Gaisano
Island Mall Mactan Gaisano Minglanilla Gaisano Tisa La Nueva
Supermarket Lee Plaza Dipolog
Lopues East Bacolod G. Metro
Ayala G. Metro Colon Metro Store
Lapu-Lapu Park Mall Robinsons
Bacolod Shopwise Cebu Robinsons Dumaguete SM Cebu
SM Bacolod SM Terminal South
Central Super Metro Mandaue
MINDANAO BRANCHES:
Abreeza Mall City Triangle Gaisano Grand Digos Gaisano Grand
Illustre Gaisano Grand Kidapawan
Gaisano Grand Marbel Gaisano
Grand Panabo Gaisano Grand Toril
Kabacan Cotabato KCC Mall of
Gensan LTO Ecoland NCCC Catitipan NCCC Center Point NCCC
Main NCCC Mall NCCC Panacan
Puregold CDO Puregold Lanang
Robinsons Cybergate Rustans
Centrio Shopwise Limketkai SM
Davao SM Gensan SM Lanang
Tacurong Public Market Time
Square.

CHEF JUMBO GRILL

A. LUNA: Zappys Bldg. 711-B

A. Luna St., Cor. P. Gomez St.,
Barangay Hagdang Bato Itaas,
Mandaluyong City
BONI: 468 Boni Avenue, Cor.
Ballesteros St., Bgy. New Zaniga,
Mandaluyong City
BARANGKA: 1087 San Rafael Street,
Barangay Plainview, Mandaluyong city
VRP: Stall 1, VPVD Carpark, Sierra
Madre Street, Brgy. Highway Hills,
Mandaluyong City
AGLIPAY: 196 Aglipay Street, Brgy.
Poblacion, Mandaluyong City
For order and delivery:
Tel: (02) 576-4055
Mobile: (0925) 350-0055

MY SINGAPORE
Unit 256 2nd Floor SM Megamall
Bridgeway.
Tel./Fax: 470-4546
Mobile: 0917-4721282
FB/mysingaporefoodstreet
www.mysingaporefoodstreet.ph

BORNGA
Unit 5 & 6 2nd Floor Alphaland
Makati Place Mall, Ayala Ave. Extension, corner Malugay St., Makati City
Tel: (02) 519-6980
Mobile: (0905) 318-8282
(0928) 678-8282
FB/BorngaMakati

BIG DS SMOKEHOUSE

Shangri-la Plaza Mall Unit 4026 Level

4 East Wing Edsa ,Mandaluyong City
Tel: 687-1955; Mobile: 0917-8178298
www.corazon.ph
corazon.shangrila@yahoo.com.ph

Moomba Plaza Mother, Ignacia.

Avenue, Quezon City.
Tel: 374-5598; Telefax: 431-9431

1032-34 Belen Street

Paco, Manila 1007 Philippines
Tel: 521-2371 to 75
Fax No.: 521-2393
frontdesk@oasispark.com
www.oasispark.com

SANDWICHEESE!

For extraordinary sauce salads &

sandwiches visit Banapples little
brother just next to the original
Banapple in Katipunan
225 Katipunan Avenue, Brgy. Milagrosa, Quezon City; Tel. 440-3677
Market! Market! BGC

BANAPPLE

MR. CHOI KITCHEN

GYU-KAKU
EASTWOOD MALL: Ground Floor,
Eastwood Mall Veranda, Eastwood
City, Libis, Quezon City.
Tel: 470-2117/ 470-2208
TOMAS MORATO: 205 Jr Building 1
Tomas Morato Avenue Barangay
Laging Handa, Quezon City.
Tel: 352-0693
ROBINSONS GALLERIA : Level 2
Veranda, Robinsons Galleria, Edsa
Cor. Ortigas Ave. Quezon City. Tel:
477-6501
BURGOS CIRCLE: Unit Ws-1 Burgos
Circle Forbes Town Center, Rizal
Drive Cor. West Crescent Park, Fort
Bonifacio, Taguig 1634.
Tel: 836-9546
ALABANG TOWN CENTER : Lower
Ground Floor, The Street Of The
Alabang Town Center, Alabang
Muntinlupa City. Tel: 478-9297
HARBOR POINT SUBIC: Space No.
1122, Ground Floor, Harbor Point
Mall Rizal Highway, Cbd, Subic Bay
Freeport Zone 2200
Tel: (+6347) 478-9297
www.johnnyrockets.com.ph
FB/johnnyrocketsphil
T/ JohnnyRockets01

CAFETERIA BY CHEF FLORABEL

Lower Ground Floor
Asan Hospital and Medical Center
2205 Civic Drive Muntinlupa
1780 Metro Manila
Tel: 833-7131; 771-9000 loc. 8089
Mobile: (0917) 881-5668
asian.cafeteria@gmail.com

Can find THE FAMOUS RAISIN

AND BANANA BREAD of
BAGUIO COUNTRY CLUB.

THE OASIS PACO PARK HOTEL

GOLDEN BAY SEAFOOD RESTAURANT

Block A2, CBP, Diosdado Macapagal

Boulevard Pasay City. Tel: 556-7525

Experience Fusion of Different

Cuisines
BREAKFAST all day 50% off
Fresh Brewed Coffee EVERYDAY
from 2:00PM onwards Must try
our UNLIMITED STEAK.
Beat the record of Five(5) refills
and its all FREE

Tomas Morato Ave. Quezon City

Tel: 374-3576 / 412-7137; Tele fax:
413-7820

FELIX

ARACAMA FILIPINO CUISINE

Unit C-1 The Fort Entertainment

Center, 26th Street corner 5th Avenue, Bonifacio Global City, Taguig
1634. Tel: 519-6815
Hours:
Lunch 11am-2pm
Dinner 5-10pm
Live Music / lounge / Club :
10pm onwards
Dining Reservations:
(0917) 874-7738
Lounge Reservations:
(0917) 861-2702
Events/Marketing:
dawn@aracamamanila.com

HEAVEN & EGGS

MARKET ON 5TH AVE.

G/F Medical Arts Building
St.Lukes Medical Center
Global City Taguig
Tel: 403-3545 / 403-9574
Mobile: (0917) 854-1020
Open from 7am-9pm Mon-Fri
Info@marketon5thave.ph

DULCINEA

MAKATI: Glorietta 4 2/F Ayala Center San Lorenzo Village, Makati Tel:
817-7074 Greenbelt 5, G/F Ayala
Center Makati City Tel: 752-7110
Rockwell Powerplant Tel: 756-5043.
MUNTILUPA: Casa Susana Building,
Madrigal Ayala Alabang, Muntinlupa City. Tel: 842-4381.
QUEZON CITY: 282 Tomas Morato
Avenue, Brgy. Sacred Heart, Q.C.
Tel: 920-7892 to 93 ALI MALL U/G
Araneta Center 709-2674 LIBIS
(East wood) City Walk 1 E astwood
Libis (0926) 698-4718.
MANDALUYONG : SM Mega mall
Mega Atrium 4/F. Tel: 634-0612

IHOP

TAGUIG: 30th st. Corner 9th Avenue, Bonifacio Global City, Taguig
City. Tel: 808-9589 / 808-9515
QUEZON CITY: UP Town Center Katipunan Ave. Diliman, Quezon City

MORELLIS GELATO

MAKATI: Power Plant Mall, Rockwell Drive Corner Estrella st. City
of Makati.
MANDALUYONG: Mid-level 2/3,
East Wing, Shangri-la Plaza EDSA
Corner Shaw Boulevard
Mandaluyong City. Tel: 654-4062

BANZAI

Building J By The Bay Leisure Park

Seaside Blvd. SM Mall of Asia
Complex Pasay City.
The newest, all authentic ,all
unlimited Japanese Buffet
Mon-Fri Eat & Drink all you can
(Dinner) public holiday not
included; Sat-Sun Eat & Drink all
you can (lunch & Dinner) public
holiday not included
Buffet for Kids children below 4.5
Ft Php 499, below 3.5 Ft. FREE
Left over price Php 1,288
It can accommodate 350 to 400
pax in one seating; For table
reservations and corporate
bookings Please call
(0917) 706- 7328 or 552-7368

QUEZON CITY: 2F POS Building,

Scout Madrinan, Corner Tomas
Morato, Q.C. Tel: (632) 376-6139
Mobile: (0915) 487-8153 /
Store Hours: Sunday Thursday
12nn-11pm; Friday Saturday
12nn 1am
2F City Walk 2, Eastwood City, Baranggay Bagumbayan, Q.C.
Tel: (632) 650-4742
Mobile: (0915) 487-8153
Store Hours: Sunday - Thursday
11:30 am - 11pm; Friday - Saturday
11:30am - 2am
FB/bigdsmokehouse
Instagram: #bigdsmokehouse
#ribsthatrock
T/BigDsmokehouse

AKIRA
ART OF SUSHI & TEPPANYAKI
Ground Floor, Alphaland Makati
Place, Malugay St.corner Ayala Avenue Ext.Makati. (Across The Columns & Makati Fire Station, near
RCBC & Makati Med)1st Restaurant conceptualized by World
Renowned Industrial Designer,
Kenneth Cobonpue.
For inquiries & reservations,
call Mobile: (0917) 706-7328

CHEFS QUARTER
MANILA: Level 1 Midtown Wing,
Robinsons Place Manila, Adriatico
cor Pedro Gil Sts., Ermita Manila
Tel: 382-3449 / 381-7716
Telefax: 567-1910
FB/CHEFS QUARTER (MALATE
BRANCH)
MEGAMALL: Level 3 Mega Atrium,
SM Megamall, Mandaluyong City
Tel:401-3658
Telefax: 706-5336
FB/CHEFS QUARTER (MEGAMALL
BRANCH)
FOR CATERING INQUIRIES PLEASE
CONTACT: (0926) 743-8863 / (0920)
924-3044

MOOMBA
Mother Ignacia Street corner Roces
Avenue Tel: 431-9431

TERRAZ MEETINGS & BISTRO

3rd Floor Zuellig Building
Makati Avenue, corner Paseo de
Roxas Avenue, Makati City.

If you would like to be listed in this directory, please contact the Circulation Department at 535-9901 or e-mail: circ@bworldonline.com

S2/1

VOL XXIX ISSUE 119 ISSN0116-3930

w w w . b w o r l d o n l i n e . c o m S2/1-8 STOCK MARKET WORLD SPORTS ARTS & LEISURE

EDITOR BETTINA FAYE V. ROC

THURSDAY
JANUARY 14, 2016

Banking&Finance

BUSINESS
NEWSPAPER
OF 2014
AND 2015
Awarded by

ROTARY
CLUB OF
MANILA

EastWest gets license for insurance firm

MARKET WATCH
LENDING RATES

TUESDAY, JANUARY 12, 2016

High Low
UNIVERSAL BANKS

LOCAL BANKS
Asia United Bank
7.0000 6.2500
Banco de Oro Unibank
6.8360 4.0000
Bank of the Philippine Islands 6.8000 4.0000
China Banking Corporation
8.0000 4.2500
Reporter
Development Bank of the Phils. 7.5000 4.5000
East West Bank
6.2500 4.2500
Land Bank of the Philippines
7.6667 4.6667
MetroBank and Trust Co.
7.5000 5.0000
EAST WEST Banking Corp.
Philippine National Bank
8.4000 7.4000
(EastWest Bank) has secured the
Philippine Trust Co.
7.0000 4.5000
Rizal Commercial Banking Corp. 7.7500 5.7500
final regulatory approval needed
Security Bank Corporation
7.0000 5.2500
to put up its planned joint venUnion Bank of the Philippines 8.5000 6.5000
United Coconut Planters Bank 7.0000 5.0000
ture life insurance company with
AVERAGE
7.3716 5.0941
Belgium-based insurer Ageas

BRANCHES OF FOREIGN BANKS
Insurance International N.V.
ANZ Bank
6.0000 2.7000
Deutsche Bank
6.2500 3.2000
(Ageas).
Hongkong & Shanghai Bank
9.7500 2.9000
The Insurance CommisING Bank
5.6000 3.6000
Mizuho Corporate Bank Ltd.
6.8360 1.7000
sion (IC) recently granted a life
Standard Chartered Bank
4.6600 3.5550
insurance license to EastWest
AVERAGE
6.5160 2.9425

COMMERCIAL BANKS
LOCAL BANKS:
Bank of Commerce
6.7500 4.2500
BDO Private Bank
6.8360 4.0000
Phil. Bank of Communications 7.0000 5.0000
Philippine Veterans Bank
7.3250 4.8250
Robinsons Bank Corp.
7.5000 4.7500
AVERAGE
7.0822 4.5650

BRANCHES OF FOREIGN BANKS
Bangkok Bank
7.5000 4.5000
Bank of America
6.8360 4.8360
READ MORE magazines, dont be
Bank of China
6.0000 2.8000
afraid of your boss, use less jargon
Bank of Tokyo-Mitsubishi
5.7500 3.7500
Cathay United Bank Co., Ltd.
and send press releases before
Citibank, N.A.
5.9200 2.7500
5:30 p.m.
Industrial Bank of Korea-Manila
JPMorgan Chase Bank *
6.8130 6.8130
Thats some of the advice ReKorea Exchange Bank
8.0000 4.5000
serve Bank of India (RBI) GoverMega Intl. Comml. Bank Co. Ltd. 8.0000 3.5000
AVERAGE
6.8524 4.1811
nor Raghuram Rajan shared with

SUBSIDIARIES OF FOREIGN BANKS
the regulators 17,000 employees
Chinatrust Bank
7.9720 6.9720
in a memo that gives a glimpse
Maybank
7.0000 6.0000
AVERAGE
7.4860 6.4860
into his efforts to change the culGENERAL AVERAGE
7.0714 4.5205
ture at the 80-year-old institu* as of January 8, 2016

By Imee Charlee C. Delavin

Ageas Life Insurance Corporation (EastWest Ageas Life), a joint

venture of EastWest and Ageas
Insurance International NV
(Ageas), the Gotianun-led lender
said in a disclosure yesterday.
While the license grants permission to underwrite life insurance, EastWest Ageas Life still
has to wait for Bangko Sentral ng
Pilipinas (BSP) clearance of the
bancassurance business within
EastWest premises, it added.
Last Oct. 22, the listed lender
announced that the Securities
and Exchange Commission (SEC)

issued a Certificate of Incorporation dated Oct. 20 signifying its

approval of the Articles of Incorporation and By-Laws of the new
life insurance firm following the
BSPs approval of its initial equity
investment in the life insurance
company, which it announced in
a separate filing to the stock exchange on Oct. 7.
Last May, the listed lender announced that it has entered into a
joint venture agreement with the
Belgium-based insurer Ageas to
up a new life insurance company
in the Philippines.

The new insurance company

will enable EastWest Bank to
offer life insurance products to
its customers and increase its
revenue base and market share,
the listed lender said in an earlier
disclosure to the Philippine Stock
Exchange.
EastWest Bank earlier said
the initial paid-in capital of the
joint venture will be P2 billion,
with the two companies having
an equal shareholding of 50%
each in EastWest Ageas Life. The
bank said then that it will get approximately 50% income share

from the life insurance company

and the partnership will be for
a 20-year exclusive distribution
agreement.
The bank said yesterday it has
tapped Hans Loozekoot from
Ageas to be CEO of EastWest
Ageas Life, and charted the strategy of the new life insurer to tap
the millennial market.
The Philippines is basically
a one product market for life insurance as over 75% of all such
products sold here are single
premium Universal Life InsurInsurance, S2/3

Source: BSP

FOREIGN INTEREST RATES

Percent per annum

LIBOR (US$) Nov. 16

Dec. 14

Jan. 11

90-days

0.3641 0.5178 0.6221

180

0.6028 0.7485 0.8513

SIBOR (SG$) Nov. 10 Dec. 08 Jan. 05

90-days 1.0723 1.0783 1.1913
180

1.1290 1.1303 1.2534

FOREX RATE

WEDNESDAY, JANUARY 13, 2016

s
13.2
ctvs

Sept Oct Nov Dec Jan

PDS weighted
average rate

Current: P47.457
Volume: $858.80M
Previous: P47.325

INTERBANK RATES
TUESDAY, JANUARY 12, 2016
DEMAND RATE

HIGH: 2 9/16% LOW: 2 1/2% AVE.: 2 17/32%

tion.
The 2,500-word New Year
e-mail, obtained by Bloomberg,
came about eight months before
his three-year term is set to expire.
The wide-ranging comments
from Rajan, once the International Monetary Funds chief
economist and a professor at the
University of Chicago, show steps
hes taking to modernize the central bank apart from overhauling
monetary policy.
He appeared to draw upon
past speeches where hes railed
against oligarchs and corrupt
politicians, urging staff to get
tougher on companies that dont
comply with regulations.
If we are to have strong sustainable growth, this culture of
impunity should stop, Rajan

PESO CROSS RATES

one unit of currency
Philippines
Australia
Bahrain
Canada
Hong Kong
source: BSP
Japan
Saudi Arabia
Singapore
Switzerland
United Kingdom
United States
EMU

EXCHANGE RATES

DAILY VOLUME

P21.040 B

Sept Oct Nov Dec Jan

T-BILL 91-DAY

MONDAY, DECEMBER 7, 2015

January 10, 2011 December 7, 2015

Average yield

Current: 1.836
Previous: 1.773
(November 2, 2015)

EMPLOYEE EVALUATIONS

Most of the memo focused on

procedures within the central
bank, and suggested more change
is coming to things like employee
evaluations that heap praise on
most people.
If we demand more of the
regulated, we should not be found
wanting ourselves, Rajan wrote.
Unfortunately, our performance
evaluation system did not help us
identify who needed motivation
and improvement, and how they
could be helped to do so. Almost
everyone was deemed excellent,
ranging from those who gave
their heart and soul for the Bank
to those who shirked all responsibility or duty.

Alpana Killawala, the central

banks spokeswoman, didnt immediately respond to an e-mailed
query on Tuesday night.

NO SILOS

Rajan thinks out of the box,

said Arvind Mayaram, a former
Finance Ministry official who has
worked closely with Rajan, referring to the memo.
It only shows his impatience
with the manner in which things
have happened.
Rajan called on his colleagues
to break down silos in the workplace and meet lower-level staff
more regularly to explain decisions.
Customers should be given
clear answers, he said, urging employees to avoid hiding behind
opaque rules.
It means fast responses to the
queries that come to your desk,
recognizing that cooperation will
be amply repaid, he wrote.
He coaxed staff to be more curious about the world and pledged
to improve career planning support. The institution must develop the skills to monitor new
trends, he said.
Rajan, S2/3
Source: BSP

WEDNESDAY, JANUARY 13, 2016

Phil Aussie Bahrain Canadian HKong Japan Saudi Spore Swiss

UK
US EMU
peso
dollar
dinar
dollar
dollar
yen
rial
dollar
franc
pound
dollar
euro
1.0000 0.0303 0.0079 0.0301 0.1640 2.4876 0.0793 0.0304 0.0212 0.0146 0.0211 0.0195
33.0274 1.0000 0.2622 0.9957 5.4164 82.1577 2.6176 1.0035 0.6996 0.4831 0.6979 0.6428
125.9682 3.8141 1.0000 3.7976 20.6583 313.3537 9.9838 3.8274 2.6684 1.8424 2.6618 2.4517
33.1709 1.0043 0.2633 1.0000 5.4399 82.5147 2.6290 1.0078 0.7027 0.4852 0.7009 0.6456
6.0977 0.1846
0.0484
0.1838
1.0000
15.1684
0.4833
0.1853
0.1292 0.0892
0.1288
0.1187
0.4020 0.0122 0.0032 0.0121 0.0659 1.0000 0.0319 0.0122 0.0085 0.0059 0.0085 0.0078
12.6173 0.3820
0.1002
0.3804
2.0692
31.3863 1.0000 0.3834
0.2673
0.1845 0.2666 0.2456
32.9126 0.9965 0.2613 0.9922 5.3975 81.8721 2.6085 1.0000 0.6972 0.4814 0.6955 0.6406
47.2070 1.4293 0.3748 1.4231 7.7418 117.4303 3.7415 1.4343 1.0000 0.6905 0.9975 0.9188
68.3704
2.0701
0.5428
2.0612
11.2125 170.0756
5.4188 2.0773
1.4483 1.0000
1.4447 1.3307
47.3250
1.4329
0.3757
1.4267
7.7611 117.7239
3.7508
1.4379
1.0025 0.6922 1.0000
0.9211
51.3808 1.5557 0.4079 1.5490 8.4263 127.8129 4.0723 1.5611 1.0884 0.7515 1.0857 1.0000

MONEY QUOTATIONS
Sept Oct Nov Dec Jan

wrote in the memo, which was

first reported on by the Economic
Times newspaper. We cannot be
seen as a paper tiger.
Rajan and Prime Minister
Narendra Modi have adopted
a tough-love approach to state
banks, insisting on more management discipline in return for capital injections. In its quest to clean
up bad loans, the government has
pledged to tighten bankruptcy
laws that it says favor debtors.

NEW YORK-one US$ expressed in respective

unit of foreign currency
EMU
1.0853/57
United Kingdom
1.4445/47
Canada
1.4267/70
Switzerland
1.0025/29
Japan
117.73/74
India
66.93/95
Mexico 17.8900/00
Denmark
6.8727/37
Norway
8.8732/62
Sweden
8.5231/60
Singapore
1.4379/82
Australia
0.6984/89
New Zealand
0.6534/44
Hong Kong
7.7626/38
S. Africa
16.6459/59
Hungary
291.35/75
Israel
3.9365/65
Iceland
130.15/48
Czech Koruna
24.881/911
LONDON - one pound sterling expressed in
respective unit of foreign currency at 1637 GMT
US
1.4471 1.4472
Swiss France
1.4551
1.4554
Japan 171.1700 171.21
Norway 12.8520 12.874
EURO
1.3378 1.3388
Canada
2.0570 2.0582
Denmark 9.9839 9.9882
Sweden
12.3761 12.3840
JAPAN-in per unit of foreign currency
UK
0.5840 0.5842
Switzerland 0.8499 0.8509

BW FILE PHOTO

RBIs Rajan to central bank staff: read,

get tough, send press releases earlier

THRIFT BANKS non-performing loans went up slightly at end-November

alongside an expansion in their lending books.

Thrift banks bad loans

up slightly at end-Nov.
By Melissa Luz T. Lopez
Reporter

SOURED DEBTS held by thrift

banks went up as of November
from a year ago alongside an
increase in total loans handed
out by the lenders, data from
the Bangko Sentral ng Pilipinas
(BSP) showed.
Latest available data from the
central bank showed non-performing loans (NPLs) which
are debts left unsettled at least 30
days past their due date stood at
P32.055 billion as of November,
up from the P25.991 billion seen
a year ago and from Octobers
P30.301 billion.

BSP REFERENCE RATE

Relative to the thrift banks

loan portfolio, bad loans held by
thrift banks stood at 4.7%, inching up from the 4.35% recorded
a year ago and from Octobers
4.51% share.
The thrift lenders posted a bigger NPL ratio as they broadened
their lending activities in the period, based on the central bank
data.
The NPL ratio is a key indicator of the quality of assets held by
the banking industry.
Thrift banks are financial entities involved in collating savings
from depositors which are put up
for reinvestment.
Some examples include savings and mortgage banks, private
Loans, S2/3

Source: BSP

WEDNESDAY, JANUARY 13, 2016

Equivalent Equivalent Equivalent Equivalent Equivalent Equivalent

of foreign
of US$1 of foreign
of RPP in of foreign
of EURO

currency in
in foreign currency in
foreign currency in in foreign
Currency
US Dollar
currency
RP peso
currency
EURO
currency

Convertible currencies with BSP
US dollar
1.000000
1.000000
47.3250
0.021130
0.9211
1.085700
Source: REUTERS
Japanese yen
0.008494
117.730162
0.4020
2.487562
0.0078
127.811861
TUESDAY, JANUARY 12, 2016
UK pound
1.444700
0.692185
68.3704
0.014626
1.3307
0.751506
Hongkong dollar
0.128848
7.761083
6.0977
0.163996
0.1187
8.426233
SINGAPORE-in S$ per unit of foreign currency
Forwards & Deposits (Singapore)
Swiss franc
0.997506
1.002500
47.2070
0.021183
0.9188
1.088414
US
1.4328 1.4336
One month
1.0000
1.1200
Canada dollar
0.700918
1.426700
33.1709
0.030147
0.6456
1.548968
UK
2.0734 2.0747
Two months
1.0600
1.1800
Singapore dollar
0.695459
1.437899
32.9126
0.030384
0.6406
1.561127
Australia 1.0093 1.0105
Three months
1.1200
1.2500
Australia dollar
0.697885
1.432901
33.0274
0.030278
0.6428
1.555701
Per 100
Six months
1.1800
1.3100
Bahrain dinar *
2.661769
0.375690
125.9682
0.007939
2.4517
0.407887
Hong Kong
0.1847
0.1848
Nine months
1.2500
1.3700
Kuwait dinar
N/A
N/A
N/A
N/A
N/A
N/A
Japan
1.2109 1.2120
One year
1.3100
1.4300
Saudi Arabia rial
0.266610
3.750797
12.6173
0.079256
0.2456
4.072242

Brunei dollar
0.693049
1.442899
32.7985 0.030489
0.6383
1.566556
MONEY RATES
LIBOR RATE -London Interbank Offered
Indonesia rupiah
0.000072 13888.888889
0.0034 294.117647
0.0001 15151.515152
Prime rate-charged by large
Rates charged in US$ for Eurodollar loans
Thailand baht
0.027533 36.320052
1.3030
0.767460
0.0254 39.432177
comml banks to their best corp. borrowers;
Rates fixed at 11:00 a.m. London time
U. A. E. Dirham
0.272301
3.672407
12.8866
0.077600
0.2508
3.987130
Broker Loan Rate-charged to broker on stock
One Month
0.4240
E.M.U. euro
1.085700
0.921065
51.3808
0.019463
1.0000 1.000000
exchange collaterals; Federal Funds-reserves
Two Months
0.5146
South Korea won
0.000827 1209.189843
0.0391 25.575448
0.0008 1312.335958
traded among comml banks for overnight use
Three months
0.6221
China yuan **
0.152077
6.575616
7.1970
0.138947
0.1401
7.139135
Prime rate
3.2500
Six months
0.8513

Discount 0.7500
One year
1.1536
Broker Loan Rate
2.0000
Others (Not Convertible with BSP)
Argentina peso
0.073905
13.530884
3.4976
0.285910
0.0681 14.690544
Federal Funds Rate
0.2500
GOLD BULLION
Brazil real
0.246853
4.050994
11.6823 0.085600
0.2274
4.398156

WORLD BULLION-in US$ per troy
Denmark kroner
0.145503
6.872711
6.8859
0.145224
0.1340
7.461684
EURODOLLAR DEP (New York)
ounce, rupees/10 gms, won/gram
India rupee
0.014951
66.885158
0.7076
1.413228
0.0138 72.616368
One month
0.3800
0.4800
Ldn morning fix
1094.85
Malaysia ringgit
0.226809
4.408996
10.7337
0.093165
0.2089
4.786842
Two months
0.4500
0.5500
Ldn aftrn fix
1085.40
Mexico new peso
0.055897
17.890048
2.6453
0.378029
0.0515
19.423133
Three months
0.5700
0.7000
London close
108.00
.22
New Zealand dollar 0.652997
1.531401
30.9031
0.032359
0.6015
1.662640
Four months
0.6300
0.7300
New York
1085.80
1086.30
Norway kroner
0.112699
8.873193
5.3335
0.187494
0.1038
9.633633
Five months
0.6800
0.8000
Zurich
1,085.80 1,086.30
Pakistan rupee
0.009540 104.821803
0.4515
2.214839
0.0088 113.804484
Six months
0.8000
0.9000
Bombay 24 carat
20/
0.00
South African rand 0.060004
16.665556
2.8397
0.352150
0.0553 18.093653
Nine months
0.9500
1.1000
Karachi 24 carat
0.00
0.00
Sweden kroner
0.117328
8.523115
5.5525
0.180099
0.1081
9.253519
One year
1.1000
1.2500
Dubai 24 carat
0.00
0.00
Syria pound
0.004551 219.731927
0.2154
4.642526
0.0042 238.549618
MONEY RATES (London)
US Gold Prices ($/Troy ounce)
Taiwan dollar
0.029980
33.355570
1.4188
0.704821
0.0276
36.213515
Euro$ Depo
Engelhard gold (bullion)
1089.5
Venezuela bolivar
0.159129
6.284210
7.5308
0.132788
0.1466
6.822772
One month
0.5700
0.6800
Engelhard gold (fabricated)
1171.21
SDR Rate = $1.38215 SDR GOLD Buying: $1,085.55 SILVER Buying:
$13.80
Three months
0.5700
0.6700
Handy & Harman (base price)
1085.4
* Various banks in Bahrain as quoted in Reuters Screen
Six months
0.8000
0.9000
Handy & Harman (fabricated)
1204.794
** Asian Time Closing Rate as of January 12, 2015
One year
1.4000
1.6000
Krugerrand 1074.2 1077.2

Stock Market

The

2/S2

EDITOR BETTINA FAYE V. ROC

THURSDAY, JANUARY 14, 2016

Stocks surge as markets cheer China trade data

main gauge to its lowest level in
nearly two years before staging a
two-day technical rebound.
What also helped the rally
was the trade figure in China,
which unexpectedly improved,
Mr. Azurin said.
Data from Chinas Finance
Ministry showed the countrys
exports rose 2.3% in December
from a year earlier in yuan terms
a turnaround from a 3.75% decline in November suggesting
that the weakening yuan may be
helping prop up demand for Chinese products.

age increase since Oct. 2, 2013

when the local barometer climbed
164.42 points or 2.7%.
The all-shares index surged
78.85 points or 2.16% to finish at
3,724.31.
There was momentum from
[Tuesdays] rise so some investors took advantage of that and
bought beaten-down stocks in the
past few weeks, Lexter L. Azurin,
head of research at Unicapital
Securities, Inc., said in a mobile
phone message.
The PSEi was coming off a fourday losing streak that dragged the

By Krista A. M. Montealegre
Senior Reporter

PHILIPPINE STOCKS scored

their best day in more than two
years following a surprise improvement in Chinas trade data,
as calmer conditions returned
to regional markets after several
days of wild swings.
The Philippine Stock Exchange
index (PSEi) shot up 163.58 points
or 2.58% to end at 6,494.13, its biggest one-day point and percent-

Foreign investors returned to

buying territory, with net purchases logged at P250.06 million
a reversal of the net outflows
of P69.10 million in the previous
session.
The Philippine market is
poised to test the resistance level
at 6,600 the main indexs previous support level which was
breached last week, analysts said.
We are not of the woods yet.
Theres still that uncertainty in
China. That will still be the story
in the coming days, Unicapitals
Mr. Azurin said.

up by 234.19 points or 2.29% to

10,424.47.
Likewise, financials gained
25.45 points or 1.75% to 1,478.88;
mining and oil rose 139.70 points
or 1.52% to 9,329.68; and services
added 14.54 points or 1.04% to
1,405.20.
Value turnover improved to
P6.22 billion yesterday after
644.38 million shares changed
hands, from Tuesdays P4.70 billion.
Advancers dominated decliners, 109 to 71, while 32 issues were
flat.

Investors have seen a little

stability after Chinas betterthan-expected trade data. However, we should take this export
data with caution, as some analysts said it might be fake trade
activities, Joylin F. Telagen,
equity research analyst at IB
Gimenez Securities, Inc., said in a
mobile phone message.
All subindices were sharply in
the green.
Holding firms advanced 169.79
points or 2.82% to 6,182.40; property jumped 71.56 points or 2.78%
to 2,645.48; and industrial went

Philippine Index Charts

WEDNESDAY, JANUARY 13, 2016

INDUSTRIAL: 10,424.47

FINANCIAL: 1,478.88

25.45
A

234.19
A

PSE TURNOVERS AND AVERAGES

OPEN
FINANCIAL
1,458.87
INDUSTRIAL
10,217.95
HOLDINGS
6,061.20
PROPERTY
2,600.10
SERVICES
1,393.52
MINING
9,206.05
ALL SHARES
3,662.88
PSEI
6,371.94
ADVANCES: 109 DECLINES:
ODD LOTS VOLUME:
ODD LOTS VALUE:

HOLDINGS: 6,182.40

HIGH
LOW
1,482.47
1,458.87
10,424.67
10,216.50
6,207.42
6,060.08
2,651.08
2,600.10
1,410.53
1,393.52
9,443.22
9,205.98
3,726.49
3,662.88
6,506.91
6,371.94
71 UNCHANGED: 32

FINANCIAL
INDUSTRIAL
HOLDINGS
PROPERTY
SERVICES
MINING
SME
ETF
GRAND TOTAL

3,677,801.00
210,453.95

Volume
81,908,000
71,000,000
54,661,000
44,000,000
43,660,000
30,600,000
24,600,700
23,314,000
19,714,000
19,679,700

Stocks
Manila Mining Corp. B
San Miguel Corp.
I-Remit, Inc.
AgriNurture, Inc.
The Philodrill Corp.
MEDCO Holdings, Inc.
Roxas Holdings, Inc.
Empire East Land Holdings, Inc.
Megaworld Corp.
Global-Estate Resorts, Inc.

Volume
7,300,000
693,270
10,000
1,000,000
6,600,000
90,000
15,000
12,000
81,908,000
3,736,000

LAGGARDS

Stocks
Bogo Medellin Milling Co.
Philippine Realty and Holdings Corp.
Starmalls, Inc.
Oriental Pet. and Minerals Corp. A
Leisure and Resorts World Corp.-Warrants
DFNN, Inc.
Benguet Corp. B
Manulife Financial Corp.
AbaCore Capital Holdings, Inc.
Premiere Horizon Alliance Corp.

Volume
800
510,000
3,000
3,000,000
195,000
351,700
1,000
230
3,880,000
50,000

PHL ABROAD JANUARY 12, 2016

Volume
50,010
2,905,794
396,469

PLDT
Manulife Financial Corp.
Sun Life Financial, Inc.

Stock

VOLUME
VALUE (P)
11,406,134
989,560,727.05
68,825,124
901,344,266.50
97,954,188 1,065,722,544.59
198,202,399 2,233,951,363.36
128,937,140
939,217,166.19
137,163,151
71,363,334.57
1,882,300
21,954,816.00
10,810
1,136,985.00
644,381,246 6,224,251,203.26
3,251,967,072.34
3,001,903,340.45

Stocks
SM Prime Holdings, Inc.
Ayala Land, Inc.
Bank of the Philippine Islands
Megaworld Corp.
Globe Telecom, Inc.
Ayala Corp.
Security Bank Corp.
Universal Robina Corp.
Banco de Oro Unibank, Inc.
Phil. Long Distance Telephone Co.

LEADERS

Issue
Manila Broadcasting Co.
Far Eastern University
Puregold Price Club, Inc.

TOP 10 IN VALUE

TOP 10 IN VOLUME

DIVIDEND UPDATE

169.79

TOTAL FOREIGN BUYING:

TOTAL FOREIGN SELLING:

Stocks
Megaworld Corp.
Abra Mining and Industrial Corp.
SM Prime Holdings, Inc.
Pacifica, Inc.
Premium Leisure Corp.
Manila Mining Corp. A
Metro Pacific Investments Corp.
Bloomberry Resorts Corp.
Ayala Land, Inc.
D and L Industries, Inc.

High
$41.55
$13.49
$28.45

Cash
P0.0625
P12.00
P0.30

Close
0.012
60.00
1.81
4.32
0.011
0.440
4.80
0.74
3.88
0.95
Close
38.65
0.350
4.50
0.0091
1.59
5.55
5.32
600.00
0.305
0.410

Low
$40.68
$12.92
$27.50

Ex-date
16-Dec.-15
22-Dec.-15
05-Jan.-16

Value
1,122,055,000
604,283,000
364,390,000
307,773,000
273,330,000
264,809,000
226,050,000
225,086,000
189,317,000
177,304,000

Net
0.002
8.000
0.180
0.400
0.001
0.040
0.400
0.060
0.300
0.070

%
20.00%
15.38%
11.04%
10.20%
10.00%
10.00%
9.09%
8.82%
8.38%
7.95%

Net
-10.750
-0.040
-0.300
-0.0006
-0.090
-0.300
-0.280
-30.000
0.150
-0.020

Close
$40.82
$13.21
$28.07

Record
21-Dec.-15
29-Dec.-15
08-Jan.-16

%
-21.76%
-9.09%
-6.25%
-6.19%
-5.36%
-5.13%
-5.00%
-4.76%
-4.69%
-4.65%
Source: PSE
Change
($0.47)
($0.10)
$0.10

Payable
15-Jan.-16
15-Jan.-16
18-Jan.-16

SCHEDULE OF MEETINGS
Date Company
JANUARY
29
Primex Corp. (Annual)

FEBRUARY
02
Victorias Milling Co., Inc. (Annual)

Time & Place

3:00 p.m. Pasig Room, Valle Verde Country Club,

Capt. Henry Javier St., Pasig City

8:00 a.m. Victorias Golf & Country Club,

Victorias City, Negros Occidental
NOTE: These schedules are subject to change without any further notice.

MUTUAL FUNDS

WEDNESDAY, JANUARY 13, 2016

NAV
One Year Three Year Five Year
per share Return
Return* Return*
%
%
%

STOCK FUNDS
Primarily invested in Peso securities
ALFM Growth Fund, Inc. *
227.77
ATRKE Alpha Opportunity Fund, Inc. *
1.0414
ATRKE Equity Opportunity Fund, Inc. *
3.3299
First Metro Save & Learn Equity Fund, Inc. *
4.7948
PAMI Equity Index Fund, Inc.* ********
42.8526
Philam Strategic Growth Fund, Inc. *
468.68
Philequity Dividend Yield Fund., Inc. *
1.0856
Philequity Fund, Inc. *
31.0639
Philequity PSE Index Fund, Inc. *
4.2155
Philippine Stock Index Fund Corp. *
705.83
Soldivo Strategic Growth Fund, Inc. *******
0.7923
Sun Life Prosperity Phil. Equity Fund, Inc. *
3.4805
Sun Life Prosperity Phil. Stock Index Fund, Inc.* *******
0.8167
United Fund, Inc.*
2.8585
Exchange Traded Fund
First Metro Phil. Equity Exchange Traded Fund, Inc. * *** 103.4399
Primarily invested in foreign currency securities
ATR KimEng Asia Plus Recovery Fund, Inc. **
$0.8095
BALANCED FUNDS
Primarily invested in Peso securities
ATRAM Dynamic Allocation Fund, Inc.* ****
1.6483
ATRKE Phil. Balanced Fund, Inc. *
2.0248
Bahay Pari Solidaritas Fund, Inc.*
1.9165
First Metro Save & Learn Balanced Fund, Inc. *
2.5043
NCM Mutual Funds of the Phils., Inc.* *****
1.7154
One Wealthy Nation Fund, Inc.*
0.9273
PAMI Horizon Fund, Inc. *
3.4083
Philam Fund, Inc. *
15.3018
Sun Life of Canada Prosperity Balanced Fund, Inc.*
3.4158
Sun Life Prosperity Dynamic Fund, Inc. *
0.8776
Primarily invested in foreign currency securities
Cocolife Dollar Fund Builder, Inc. *
$0.03539
PAMI Asia Balanced Fund, Inc. *
$0.834
Sun Life Prosperity Dollar Advantage Fund, Inc. *
$2.979
BOND FUNDS
Primarily invested in Peso securities
ALFM Peso Bond Fund, Inc. *
322.7
ATRAM Corporate Bond Fund, Inc.*
1.9126
Cocolife Fixed Income Fund, Inc. *
2.5442
Ekklesia Mutual Fund, Inc. *
2.0408
First Metro Save & Learn Fixed Income Fund, Inc. *
2.202
Grepalife Bond Fund Corp. *
1.3304
Grepalife Fixed Income Fund Corp. * *****
P1.5898
Philam Bond Fund, Inc. *
3.98
Philequity Peso Bond Fund, Inc. *
3.4464
Soldivo Bond Fund, Inc. *******
0.9147
Sun Life Prosperity Bond Fund, Inc. *
2.695
Sun Life Prosperity GS Fund, Inc. *
1.5196
Primarily invested in foreign currency securities
ALFM Dollar Bond Fund, Inc. *
$419.8
ALFM Euro Bond Fund, Inc. *
206.06
ATR KimEng Total Return Bond Fund, Inc. **
$1.0955
First Metro Save and Learn Dollar Bond Fund, Inc. * ****** $0.0243
Grepalife Dollar Bond Fund Corp. *
$1.7184
MAA Privilege Dollar Fixed Income Fund, Inc.
N.S.
MAA Privilege Euro Fixed Income Fund, Inc.
N.S.
PAMI Global Bond Fund, Inc. *
$1.0555
Philam Dollar Bond Fund, Inc. *
$2.1221
Philequity Dollar Income Fund, Inc. *
$0.0555023
Sun Life Prosperity Dollar Abundance Fund, Inc. *
$2.8533
MONEY MARKET FUNDS
Primarily invested in Peso securities
ALFM Money Market Fund, Inc. *
114.36
Philam Managed Income Fund, Inc. *
1.1553
Sun Life Prosperity Money Market Fund, Inc. *
1.1404

PROPERTY: 2,645.48

Y-T-D
Return
%

-14.03%
-37.34%
-24.73%
-14.84%
n.a.
-15.06%
-14.35%
-16.9%
-13.82%
-13.92%
-16.64%
-15.58%
n.a.
-13.79%

0.15%
-5.34%
-2.74%
-1.01%
n.a.
-3.45%
n.a.
1.61%
2.44%
2.03%
n.a.
-2.02%
n.a.
-5.01%

4.95%
n.a.
4.06%
6.81%
n.a.
4.92%
n.a.
9.26%
9.7%
9.88%
n.a.
6.51%
n.a.
0.19%

-7.79%
-10.96%
-9.1%
-9.16%
-8.49%
-7.5%
-7.73%
-8.42%
-8.92%
-9.34%
-7.59%
-9.39%
-8.85%
-9.22%

-12.98%

n.a.

n.a.

-9.3%

-18.49%

-6.72%

-6.49%

-9.44%

-15.14%
-14.3%
-6.42%
-11.49%
-8.98%
-11.53%
-10.15%
-10.26%
-9.72%
-13.08%

0.08%
0.62%
1.67%
-2.75%
-2.71%
n.a.
-3.43%
-3.03%
-0.72%
n.a.

6.69%
4.93%
6.61%
5.03%
4.03%
n.a.
3.62%
4.37%
5.9%
n.a.

-5.39%
-5.25%
-4.29%
-6.88%
-4.24%
-7.4%
-4.44%
-4.39%
-5.1%
-5.49%

2.17%
-15.54%
-6.03%

1.15%
-7.32%
0.74%

3.57%
-3.78%
2%

0%
-5.88%
-4.36%

0.86%
-3.77%
4.95%
0.35%
0.47%
-3.05%
-3.18%
-1.82%
-1.09%
-5.14%
-0.67%
-1.8%

2.42%
2.9%
5.22%
3.21%
5.82%
-0.11%
0.01%
2.16%
4.26%
n.a.
1.81%
0.68%

4.05%
3.99%
6.06%
5.52%
8.39%
3.1%
2.78%
4.92%
5.78%
n.a.
3.72%
2.84%

-0.02%
-0.27%
0.09%
0.11%
-0.11%
-0.33%
-0.39%
-0.03%
-0.92%
-0.26%
-0.29%
-0.26%

2.58%
-0.06%
2.67%
0.83%
0.73%
N.S.
N.S.
-6.64%
0.77%
1.36%
2.16%

1.73%
1.83%
0.86%
n.a.
0.99%
N.S.
N.S.
-4.59%
0.59%
1.02%
-1.06%

3.83%
2.86%
1.79%
n.a.
4.51%
N.S.
N.S.
-1.84%
3.16%
3.66%
2.37%

0.35%
0.01%
0.16%
0%
0.47%
N.S.
N.S.
0.57%
0.65%
0.07%
0.58%

1.19%
0.02%
1.33%

1.38%
0.29%
0.28%

2.09%
0.88%
0.31%

0.11%
-0.16%
0.07%

* - NAVPS as of the previous banking day. ** - NAVPS as of 2 banking days ago

*** - Listed in the PSE.***** - Manage by BDO Private Bank starting September 1, 2015 (Formerly Manage by PAMI).
****** - Inception date is October 8, 2014. **** - Formerly, Optima Balanced Fund, Inc.
******* - Launch date is May 5, 2015. ******** - Launch date is June 16, 2015

SERVICES: 1,405.20

71.56

MINING & OIL: 9,329.68

14.54

ALL SHARES: 3,724.31

139.70

PSEi: 6,494.13

78.85

163.58

Volume

Open

High

Low

Close

Prev Net Foreign

Close Trade (peso)
Buy(sell)

52Wk 52Wk MktCap Stock Stocks

High
Low (Pmil) Code

21,400
1,932,480
4,334,440
86,700
49,400
2,169,660
22,600
52,740
300
45,900
1,674,380
100,150

45.75
96.2
83.1
36.4
17.2
71
15.76
49.9
98.9
32.1
134.1
56.95

45.9
98.9
84.9
36.4
17.2
73.95
15.76
49.9
99
32.1
135.4
56.95

45.2
96
83.1
35.95
17.08
71
15.68
49.5
98.9
31.9
134.1
56.5

45.85
98
84.9
36.05
17.08
72.2
15.68
49.55
99
31.95
135
56.9

45.9
95.9
83.1
36.4
17.16
69.95
15.8
50
98.9
32.1
134
56.6

421,165
(12,639,989)
82,011,840
(264,346)
44,008,427
(1,792,451)
606,810
5,881,561
(650,288)

5.88
0.134
0.4
8.79
31.9
0.55
1.87
3.4
0.98
22.95
8.49
1.5
8.59

3.52
0.073
0.212
4.78
23.45
0.35
1.35
3.02
0.68
17.46
3.89
0.65
4.5

52,000
12,000
7,000
10,000
90,000
230
154,000
5,590
20
81,000

2.16
2.5
6.64
1.82
0.44
630
0.91
273
1,328
1.54

2.25
2.5
7
1.84
0.44
630
0.91
274
1,328
1.6

2.05
2.45
6.6
1.61
0.44
600
0.91
272.4
1,328
1.54

2.1
2.45
7
1.81
0.44
600
0.91
272.4
1,328
1.54

2.2
2.41
7
1.63
0.4
630
0.9
275
1,325
1.6

(26,560)
15,700

67.8
7.57
0.71

43.23
93
80.05
36.05
17.08
69
14.32
49.5
85
29.25
120
49.8

22,251 AUB
357,247 BDO
333,580 BPI
66,827 CHIB
25,620 EW
229,608 MBT
8,412 PBB
61,895 PNB
23,785 PSB
44,727 RCB
81,382 SECB
60,220 UBP

Banks
Asia United Bank Corp.
Banco de Oro Unibank, Inc.
Bank of the Phil. Islands
China Banking Corp.
East West Banking Corp.
MetroBank and Trust Co.
Philippine Business Bank
Philippine National Bank
Philippine Savings Bank
Rizal Commercial Banking
Security Bank Corp.
Union Bank of the Phils.

8.7
2.55
9.8
2.34
0.73
850
1.21
361.2
1,560
3.2

2.1
2.17
6.12
1.15
0.35
600
0.9
272.4
1,000
1.43

550 AGF
5,298 BLFI
351 FFI
I
1,108
308 MED
1,183,145 MFC
1,932 NRCP
19,989 PSE
813,174 SLF
6,467 V

Other Financial Institutions

AG Finance, Inc.
BDO Leasing & Fin., Inc.
Filipino Fund, Inc.
I-Remit, Inc.
Medco Holdings
Manulife Financial Corp.
National Reinsurance Corp.
The Phil. Stock Exchange, Inc.
Sun Life Financial, Inc.
Vantage Equities, Inc.

2.27
46.5
8.96
31.2
106.2
343.8
33
10.62
4.16
2.47

1.24
39.1
5.2
20.15
59.35
260.4
20
5.85
3.15
1.66

Electricity, Energy, Power & Water

7,801 ACR Alsons Cons. Res., Inc.
466,000
298,023 AP Aboitiz Power Corp.
490,000
106,445 EDC Energy Devt. (EDC) Corp. 12,650,500
74,866 FGEN First Gen Corp.
1,562,100
32,868 FPH First Phil. Hldgs. Corp.
316,600
347,823 MER Manila Electric Co.
58,040
50,630 MWC Manila Water Co.
782,400
PCOR
55,313
Petron Corp.
2,994,900
5,429 PNX Phoenix Petroleum Phils.
281,000
9,828 TA Trans-Asia Oil and Energy
512,000

1.28
40.5
5.57
20.2
60.3
304.4
24
5.85
3.63
2

1.28
40.5
5.76
20.7
60.3
310
24.75
6.1
3.8
2.04

1.23
39.95
5.56
20.2
59
304.4
24
5.85
3.63
2

1.24
40.5
5.68
20.45
59.35
308.6
24.65
5.9
3.8
2.02

1.25
39.95
5.55
20.15
60.3
304.8
24
5.85
3.68
2

3,961,765
23,686,887
634,360
(6,318,059)
(1,706,880)
10,282,165
2,735,547
18,150
-

5.15
63.5
100
20.55
15.09
11.43
11.9
15.7
235.8
60
34.4
210
4.94
6
7.08
0.203
230
0.86

1.25
38.65
71.55
14.96
9.49
7.04
6.99
10.52
180
38.5
16.6
115
3.19
3.86
3.8
0.129
173.6
0.56

2,686
232
2,825
33,392
22,969
52,286
135,086
3,256
219,282
42,629
18,046
20,000
11,783
13,512
5,528
249
397,033
1,644

Food, Beverage & Tobacco

Agrinurture, Inc.
1,000,000
Bogo Medellin Milling Co.
800
Central Azucarera De Tarlac
1,000
Century Pacific Food, Inc.
3,834,900
Del Monte Pacific Ltd.
190,400
D and L Industries, Inc.
19,679,700
Emperador, Inc.
1,157,300
Ginebra San Miguel, Inc.
200
Jollibee Foods Corp.
661,400
Macay Hldgs., Inc.
200
Maxs Group,Inc.
669,100
San Miguel Pure Foods Co., Inc. 47,050
Pepsi-Cola Products Phils.
5,457,000
RFM Corp.
5,236,000
Roxas Hldgs., Inc.
15,000
Swift Foods, Inc.
50,000
Universal Robina Corp.
1,249,270
Vitarich Corp.
126,000

4.06
38.6
100
15
11.82
7.3
8.36
11.6
199
39.9
16.8
120
3.21
3.88
4.8
0.137
175.1
0.6

4.4
38.65
100
15
11.9
7.46
8.8
11.6
205.2
39.9
16.8
120
3.33
3.88
5
0.137
182
0.6

4
38.6
100
14.96
11.52
7.3
8.36
11.6
199
39.9
16.58
120
3.18
3.85
4.8
0.137
175.1
0.58

4.32
38.65
100
14.96
11.82
7.32
8.38
11.6
205
39.9
16.6
120
3.19
3.86
4.8
0.137
182
0.59

3.92
49.4
95
15
11.92
7.04
8.36
11.8
199
38.5
16.6
120
3.19
3.87
4.4
0.137
175.1
0.6

(645,490)
46,701,838
2,063,044
(32,276,873)
650,033
43,054,604
476,448
(363,600)
(106,180)
577,840
6,850
46,962,535
-

12.9
70
2.34
11.16
15.18
25.6
8.6
12.28
1.7

8.05
34
1.19
4.54
12
8.6
5.21
10.1
0.98

Construction, Infrastructure & Allied Services

1,984 ABG Asiabest Group Intl., Inc.
5,300
10.2
773 CA Concrete Aggregates A
100
35
2,070 DAVIN Da Vinci Capital Hldgs., Inc. 1,048,000
1.8
5,523 EEI EEI Corp.
5,293,900
5.35
92,265 HLCM Holcim Philippines, Inc.
200
14.3
12,262 LBC LBC Express Hldgs., Inc.
54,600
8.8
13,269 MWIDE Megawide Const. Corp.
12,400
5.5
3,002 PHN Phinma Corp.
15,100
11.22
1,450 VUL Vulcan Industrial Corp.
273,000
1.01

10.2
35
1.87
5.35
14.3
8.8
5.53
11.58
1.04

9.92
35
1.8
5.32
14.3
8.6
5.5
11.22
1

9.92
35
1.84
5.33
14.3
8.6
5.53
11.58
1

10.08
34
1.8
5.35
13.9
8.7
5.5
11.6
0.98

111,620
913,541
-

3.2
2.69
6
4.07

1.53
1.3
1.61
1.4

Chemicals
1,388 CROWN Crown Asia Chemicals Corp.
6,826 EURO Euro-Med Lab. Phil., Inc.
2,077 MVC Mabuhay Vinyl Corp.
4,420 PPC Pryce Corp.

370,000
11,000
1,000
45,000

2.15
1.66
3.14
2.16

2.24
1.66
3.14
2.25

2.11
1.66
3.14
2.16

2.2
1.66
3.14
2.21

2.2
1.66
3.01
2.19

2,250

65.8
7
3.82
4.4
2.96
32.09

40
5.1
0.43
3.5
1.39
16.4

Electrical Components & Equipment

14,247 CIC Concepcion Indl. Corp.
43,100
9,693 IMI Integ. Micro-Electronics
52,900
1,893 ION Ionics, Inc.
1,359,000
330 PMPC Panasonic Mfg. Phils. Corp.
2,000
3,096 PSPC Phoenix Semicon. Phils. Corp. 129,000
7,451 TECH Cirtek Hldgs. Phils. Corp.
172,100

44
5.28
2.24
4
1.4
18.2

44
5.28
2.28
4
1.44
18.2

41.95
5.11
2.2
3.9
1.4
17.78

41.95
5.22
2.21
3.9
1.43
17.78

41.95
5.1
2.2
4
1.45
17.78

599,885
(417,360)
-

2.65

1.56

2.5

25,280

1,534

SPH

Other Industrials
Splash Corp.

289,000

2.56

2.6

2.48

2.52

0.32
673
55.45
15.02
6.2
1.07
7.6
11.82
4.2
5.25
0.196
1,292
5.35
9.61
64.2
0.61
5.85
13.8
5.17
0.029
1.71
1.03
1.09
781
52
62.95
0.26
0.182
0.237

0.32
682
57.1
15.14
6.2
1.07
7.6
12.08
4.4
5.25
0.196
1,312
5.35
9.83
67.5
0.64
5.85
14.16
5.27
0.03
1.74
1.03
1.09
812
60
64.95
0.27
0.182
0.237

0.3
670
54.95
14.9
6.12
1.07
7.56
11.82
4.2
5.25
0.193
1,292
5.2
9.61
64.15
0.6
5.76
13.8
5.16
0.028
1.7
1.03
1.08
781
52
62.9
0.26
0.18
0.23

0.3
670
56.1
14.9
6.12
1.07
7.58
12.02
4.4
5.25
0.193
1,299
5.2
9.81
66.45
0.62
5.76
14
5.25
0.029
1.74
1.03
1.09
810
60
63.35
0.27
0.18
0.235

0.2
30.65
1.13
2.49
0.61
0.112
5
0.47
0.42
21.4
0.74
1.58
0.89
6.9

0.2
31.1
1.13
2.49
0.64
0.112
5
0.49
0.42
22.25
0.74
1.62
0.99
6.9

0.2
30.25
1.09
2.4
0.6
0.112
5
0.47
0.41
21.4
0.74
1.58
0.89
6.8

0.2
30.6
1.09
2.42
0.61
0.112
5
0.48
0.41
21.7
0.74
1.6
0.95
6.8

0.49
821
59
27.3
7.24
1.62
9.72
16
4.85
6.6
0.42
1,446
6.88
9.96
75
0.89
9.18
16.84
5.44
0.057
2.35
1.68
1.31
970
80.75
123.9
0.62
0.28
0.37

0.3
660
51.95
14.6
6.12
0.9
6.5
10.7
3.6
2.76
0.176
1,097
5.18
4.9
62.1
0.54
5.14
9.89
4.21
0.028
0.65
1.02
1.09
769.5
44
62.9
0.25
0.162
0.21

972
415,139
311,594
153,020
15,300
3,214
55,984
159,595
40,997
1,536
355
226,416
3,203
6,769
475,971
459
26,489
151,499
146,398
1,160
4,119
720
1,985
650,475
142,712
21,088
421
589
643

ABA
AC
AEV
AGI
ANS
APO
COSCO
DMC
FDC
FJP
FPI
GTCAP
HI
IPM
JGS
LIHC
LPZ
LTG
MPI
PA
POPI
PRIM
SGI
SM
SMC
TFHI
UNI
WIN
ZHI

Holding Firms
AbaCore Capital Holdings,Inc. 3,880,000
Ayala Corp.
392,800
Aboitiz Equity Ventures
1,237,620
Alliance Global Group, Inc.
3,099,900
A. Soriano Corp.
8,400
Anglo-Phil. Hldgs. Corp.
4,000
Cosco Capital, Inc.
5,210,600
DMCI Hldgs., Inc.
3,559,600
Filinvest Devt. Corp.
292,000
F&J Prince Hldgs. Corp.A
300
Forum Pacific, Inc.
20,000
GT Capital Hldgs., Inc.
100,370
House of Investments, Inc.
25,500
IPM Hldgs., Inc.
1,988,500
JG Summit Hldgs., Inc.
1,712,130
Lodestar Invest. Hldg. Corp. A 123,000
Lopez Hldgs. Corp.
791,900
LT Group,Inc.
2,346,000
Metro Pac. Inv. Corp.
24,600,700
Pacifica, Inc.
44,000,000
Prime Orion Phils., Inc.
1,045,000
Prime Media Hldgs., Inc.
21,000
Solid Group, Inc.
80,000
SM Investments Corp.
138,820
San Miguel Corp.
693,270
Top Frontier Inves. Hldgs., Inc.
67,040
Unioil Res. And Hldgs. Co.
500,000
Wellex Industries, Inc.
1,490,000
Zeus Hldgs., Inc.
370,000

0.28
41
1.45
4.72
1.15
0.164
5.43
1.03
0.6
25.35
0.96
2.09
1.78
10.4

0.18
30
1.03
2.42
0.55
0.1
4.65
0.47
0.38
7.26
0.67
1.56
0.88
6.05

1,064
449,686
1,702
25,449
1,057
1,523
9,600
5,626
2,791
48,385
10,860
38,800
10,437
37,522

ALCO
ALI
ARA
BEL
BRN
CEI
CHI
CPG
CYBR
DD
ELI
FLI
GERI
HOUSE

Property
Arthaland Corp.
Ayala Land, Inc.
Araneta Properties, Inc.
Belle Corp.
A Brown Co., Inc.
Crown Equities, Inc.
Cebu Hldgs., Inc.
Century Prop. Group, Inc.
Cyber Bay Corp.
DoubleDragon Prop. Corp.
Empire East Land, Inc.
Filinvest Land, Inc.
Global-Estate Resorts, Inc.
8990 Hldgs., Inc.

500,000
19,714,000
10,000
7,020,000
537,000
300,000
1,000
2,090,000
250,000
2,424,300
12,000
14,081,000
3,736,000
20,900

WEDNESDAY, JANUARY 13, 2016

49.87
123.7
107
44.58
26.13
99.8
19.2
87
108.1
48.5
177
71.95

ANI
BMM
CAT
CNPF
DMPL
DNL
EMP
GSMI
JFC
MACAY
MAXS
PF
PIP
RFM
ROX
SFI
URC
VITA

PROVIDED BY TECHNISTOCK

PHILIPPINE STOCK EXCHANGE

52Wk 52Wk MktCap Stock Stocks
High
Low (Pmil) Code

0.32
(180,000)
660
28,737,690
55
(6,715,736)
14.78
12,153,258
6.2
(18,450)
1.08
7.59
1,637,816
11.74
2,613,084
4.2
1,192,690
5.2
0.2
1,287 (106,200,650)
5.4
117,000
9.82
64.15
15,431,389
0.62
5.8
(833,090)
13.72
59,894
5.14
13,862,377
0.029
1.71
1.03
1.1
775
68,799,460
52 (11,435,084)
62.9
(3,387,318)
0.26
0.18
138,600
0.235
(25,300)
0.2
30
1.12
2.49
0.62
0.112
4.76
0.47
0.39
21.15
0.68
1.58
0.88
6.9

(52,741,425)
(3,972,590)
12,200
11,200
24,000
6,977,080
(5,936,610)
(3,500)

Volume

Open

High

Low

Close

Prev Net Foreign

Close Trade (peso)
Buy(sell)

Megaworld Corp.
MRC Allied Industries, Inc.
Phil. Estate
Primex Corp.
Robinsons Land Corp.
Philippine Realty & Hldgs.
Rockwell Land Corp.
Shang Properties, Inc.
Sta. Lucia Land, Inc.
SM Prime Hldgs., Inc.
Starmalls, Inc.
Suntrust Home Dev., Inc.
Vista Land & Lifescapes

81,908,000
80,000
1,580,000
16,100
1,565,900
510,000
164,000
13,000
55,000
54,661,000
3,000
205,000
5,406,000

3.64
0.075
0.22
8.6
23.45
0.39
1.3
3.17
0.74
19.82
4.5
0.76
4.55

3.88
0.075
0.221
8.6
24.2
0.39
1.4
3.18
0.76
20.9
4.5
0.81
4.6

3.63
0.075
0.211
8.45
23.3
0.35
1.3
3.17
0.74
19.8
4.5
0.76
4.32

3.88
0.075
0.212
8.45
23.7
0.35
1.4
3.18
0.76
20.65
4.5
0.76
4.5

3.58
0.073
0.221
8.45
23.45
0.39
1.39
3.15
0.74
19.82
4.8
0.76
4.55

(333,960)
(22,111,390)
197,080
(3,983,870)
(4,500)
(11,874,490)

49
5.95
0.48

Media
50,878 ABS ABS-CBN Corp.
21,880 GMA7 GMA Network, Inc.
1,615 MB Manila Bulletin Pub. Corp.

35,340
39,200
30,000

60
6.48
0.48

60.1
6.51
0.48

59.75
6.45
0.48

59.8
6.51
0.48

60
6.47
0.49

2,702
4.89
3,200

1,681
1.91
1,920

226,591
5,757
419,148

160,820
686,000
91,110

1,686
4.42
1,935

1,711
4.54
1,962

1,686
4.42
1,935

1,707
4.45
1,940

1,681 (46,099,790)
4.42
133,280
1,930 (31,108,660)

7.33
0.4
1.9
1.03
23.1
4.8

4
0.122
1.2
0.41
12.1
1.2

Information Technology
1,385 DFNN DFNN, Inc.
625 IS Island Info. and Tech., Inc.
931 ISM ISM Comm. Corp.
971 NOW Now Corp.
29,248 WEB Philweb Corp.
973 YEHEY Yehey! Corp.

351,700
1,530,000
348,000
3,135,000
69,100
51,000

5.85
0.125
1.31
0.65
20.1
3.5

5.87
0.128
1.32
0.66
20.4
3.5

5.55
0.124
1.3
0.64
19.9
3.4

5.55
0.128
1.3
0.64
20.4
3.5

5.85
0.125
1.31
0.65
20
3.5

(813,480)
(38,850)
(315,147)
-

11.32
14.48
98.4
117.8
1.69
2.48
5.28

3.82
10.9
76
58
0.77
1.8
4.33

15,851
21,960
48,173
120,219
582
2,812
108,039

2GO
ATI
CEB
ICT
LSC
MAC
PAL

Transportation Services
2Go Group, Inc.
Asian Terminals, Inc.
Cebu Air, Inc.
Intl. Cont. Terml. Serv., Inc.
Lorenzo Shipping Corp.
Macroasia Corp.
PAL Hldgs., Inc.

19,800
500
345,260
547,580
6,000
2,000
38,000

6.5
11.4
76.5
58.8
1.05
2.27
4.4

6.5
11.4
79.5
60.4
1.05
2.28
4.4

6.48
10.98
76.5
58.55
1.05
2.27
4.35

6.48
10.98
79.5
59.1
1.05
2.28
4.35

6.5
10.98
76.5
58.8
1.08
2.24
4.38

(7,350,837)
(15,283,542)
30,800

1.26
0.12
2
0.4

1.02
0.037
1.49
0.165

390
480
933
800

ACE
BHI
DWC
WPI

Hotel & Leisure

Acesite (Phils.) Hotel Corp.
Boulevard Hldgs., Inc.
Discovery WorldCorp.
Waterfront Philippines, Inc.

1,000
5,000,000
8,000
10,000

1.13
0.039
1.49
0.32

1.13
0.04
1.49
0.32

1.13
0.039
1.49
0.32

1.13
0.04
1.49
0.32

1.12
0.04
1.5
0.32

(19,500)
-

12
12.5
0.74

9.5
11
0.4

3,564
8,328
4,011

CEU
IPO
STI

Education
Centro Escolar University
1,100
iPeople, Inc.
3,500
STI Educ. Systems Hldgs., Inc. 1,740,000

9.5
11.8
0.41

9.57
11.8
0.41

9.5
11
0.41

9.57
11.12
0.41

9.5
11.12
0.4

222,750

3.51
3.44
0.0086 0.0085
18
18
6.83
6.8
1.54
1.55
0.46
0.45
3.75
3.52

(58,313,830)
82,825,681
(7,837,160)
(48,600)
(533,110)

125,089
638
306
2,732
97,024
1,723
8,563
15,150
6,799
596,356
37,917
1,710
56,282

MEG
MRC
PHES
PRMX
RLC
RLT
ROCK
SHNG
SLI
SMPH
STR
SUN
VLL

GLO
LIB
TEL

Telecommunications
Globe Telecom, Inc.
Liberty Telecoms Hldgs.
Phil. Long Dis. Tel. Co.

13
3.44
0.016 0.0053
21
17.12
11.48
6.8
12.86
1.54
1.98
0.45
7.57
3.19

Casinos & Gaming

38,662 BLOOM Bloomberry Resorts Corp. 23,314,000
3.5
3.56
3.44
258 EG IP E-Game Vent., Inc.
1,000,000 0.0086 0.0086 0.0086
5,372 LOTO Pacific Online Sys. Corp.
16,300
17.8
18
17.8
8,195 LR Leisure and Resorts Corp.
12,000,100
6.78
7.1
6.78
8,691 MCP Melco Crown Resorts Corp. 7,088,000
1.55
1.59
1.54
14,549 PLC Premium Leisure Corp.
43,660,000
0.45
0.47
0.45
59,085 RWM Travellers Intl. Hotel Grp., Inc. 810,000
3.53
3.8
3.53

5.06
4.01
43
89
140.6
11.26

3.14
3.57
30
61.8
83.5
2.44

1,137
12,243
88,492
90,164
46,302
8,481

0.83
0.73
7.23

0.41
0.41
4.12

3,077
816
5,940

3.4
1.6
0.007 0.0038
10.22
3.9
8.5
5.32
0.97
0.49
1.14
0.53
9.26
5.62
3.47
0.48
0.47
0.26
0.3 0.153
0.32
0.18
0.018 0.0097
0.019
0.01
6.41
1.57
4.17
2.35
16.02
4.38
0.8
0.5
2.57
1.05
9.4
4.11
168.4
111.1

Retail
Calata Corp.
38,000
Metro Retail Stores Group, Inc. 2,048,000
Puregold Price Club, Inc
1,362,700
Robinsons Retail Hldgs., Inc.
448,740
Philippine Seven Corp.
4,870
SSI Group, Inc.
15,147,000

3.08
3.62
31.35
65
100
2.47

3.16
3.67
32.2
65.1
101
2.58

3.07
3.56
31.35
64.4
100
2.43

3.16
3.57
32
65.1
101
2.56

3.15
3.6
30.75
65
101
2.44

9,240
338,580
29,152,310
1,026,282
476,950
(5,636,730)

Other Services
2,750,000
APC APC Group, Inc.
PHA Premiere Horizon Alliance Corp. 50,000
1,535,000
SBS SBS Phil. Corp.

0.41
0.41
4.75

0.41
0.41
5.14

0.41
0.41
4.75

0.41
0.41
4.95

0.41
0.43
4.74

(149,550)

Mining
10,587 APX Apex Mining Co., Inc. A
32,000
1.75
1.75
1.7
837 AR Abra Mng. and Indl. Corp. 71,000,000 0.0043 0.0043 0.0041
8,348 AT Atlas Cons. Mng. & Devt.
13,000
4.22
4.22
3.99
413 BCB Benguet Corp. B
1,000
5.34
5.34
5.32
2,040 COAL Coal Asia Holdings, Inc.
64,000
0.52
0.53
0.51
1,495 CPM Century Peak Metals Hldgs.
730,000
0.55
0.55
0.53
471 DIZ Dizon Copper Silver Mines
19,900
6
6.08
5.92
8,559 FNI Global Ferronickel Hldgs., Inc. 3,034,000
0.5
0.52
0.49
893 GEO GEOGRACE Res. Phils., Inc.
620,000
0.27
0.27 0.245
4,715 LC Lepanto Cons. Mng. A
6,850,000
0.16
0.16 0.153
3,801 LCB Lepanto Cons. Mng. B
30,000
0.16
0.185
0.16
1,558 MA Manila Mining Corp. A
30,600,000
0.01
0.01 0.0099
1,245 MAB Manila Mining Corp. B
7,300,000
0.011 0.012 0.011
2,860 MARC Marcventures Hldgs., Inc.
285,000
1.58
1.58
1.55
2,384 NI Nihao Min. Resources
12,000
2.6
2.6
2.36
33,427 NIKL Nickel Asia Corp.
2,633,000
4.39
4.5
4.35
536 OM Omico Corp.
117,000
0.51
0.51
0.51
3,022 ORE Oriental Peninsula Res.
1,099,000
1.06
1.1
1.05
20,305 PX Philex Mining Corp.
311,000
4.15
4.19
4.11
137,869 SCC Semirara Mng. and Power Corp. 404,730
127
130.7
127

1.7
1.7
0.0042 0.0043
4
3.93
5.32
5.6
0.51
0.5
0.53
0.55
5.95
5.92
0.49
0.5
0.26
0.26
0.153 0.159
0.185
0.18
0.01
0.01
0.012
0.01
1.57
1.58
2.36
2.4
4.4
4.38
0.51
0.51
1.05
1.06
4.11
4.15
129 125.6

8,090
(5,330)
7,950
(75,500)
(1,459,440)
34,170
(103,610)
5,067,310

Oil
1,092 OPM Oriental Pet. & Min. Corp. A 3,000,000 0.0091 0.0091 0.0091
2,111 OV The Philodrill Corp.
6,600,000
0.01
0.011
0.01
1,355 PERC Petroenergy Res. Corp.
20,000
3.33
3.33
3.03
2,091 PXP Philex Petroleum Corp.
24,000
1.21
1.23
1.21
490 TAPET Trans-Asia Petroleum Corp.
77,000
1.93
1.96
1.92

0.0091 0.0097
0.011
0.01
3.3
3.25
1.23
1.21
1.96
1.95

(41,160)

0.014
0.022
5.92
5.3
12.26

0.008
0.009
3.2
1.2
1.93

532
1.14
115.9
1,064
104.1
106.8
1,170
85.6
89.05
85
80
80.85

500
1.02
102.5
1,005
103
105.7
1,016
76
78.9
77
76
78

68
7.4

48.5
5.92

4.7

1.59

131

4.49
4.22
17.24

2.64
2.59
8.4

1,028
578
23,598

132

102.9

10,510
1,749
4,400
15,360
1,301
799
3,059
7,307
21,084
7,057
10,586
17,777

CAL
MRSGI
PGOLD
RRHI
SEVN
SSI

Preferred
Ayala Corp. Class B series 1 Pref. 1,710
Leisure & Resorts World-Pref. 732,000
Megawide Const. Corp.-Perp. Pref. 1,000
San Miguel Purefoods Perp. Pref. 2 135
Phoenix Petroleum-Non-Voting 3A 4,500
Phoenix Petroleum-Non-Voting 3B 3,800
Petron Corp.-Perpetual Pref. 2B
100
San Miguel Corp. Series 2-B Pref. 3,200
San Miguel Corp. Series 2-C Pref. 20,830
San Miguel Corp. Series 2-D Pref. 11,600
San Miguel Corp. Series 2-E Pref. 13,600
San Miguel Corp. Series 2-F Pref. 87,730

525.5
1.07
110
1,023
104.1
106
1,063
80.8
82.6
79
78.9
79.6

525.5
1.07
110
1,024
104.1
106.5
1,063
80.8
82.6
79
79
79.6

525.5
1.06
110
1,023
104.1
106
1,063
80.8
82.5
79
78.9
79.5

525.5
1.06
110
1,024
104.1
106.5
1,063
80.8
82.5
79
79
79.6

525
1.07
109
1,024
104
106.8
1,065
80.9
82.55
78.2
79
79.6

(416,400)
31,890
(564,158)
-

44,190
4,500

61.2
6.4

61.2
6.4

59
6.4

59.55
6.4

59
6.4

(1,309,313)
-

Warrants
LRW Leisure & Resorts World-Wrnts. 195,000

1.67

1.75

1.42

1.59

1.68

5,800

Small and Medium Enterprises

Alterra Capital Partners, Inc.
78,000
Italpinas Devt. Corp.
268,000
Xurpas, Inc.
1,536,300

3.18
2.79
13.42

3.3
2.79
13.8

3.18
2.58
13.42

3.3
2.61
13.72

3.15
2.63
13.42

7,095,996

104.9

106

104.5

106

103.5

ACPB1
LRP
MWP
PFP2
PNX3A
PNX3B
PRF2B
SMC2B
SMC2C
SMC2D
SMC2E
SMC2F

Phil. Deposit Receipts

19,628 ABSP ABS-CBN Hldgs. Corp. PDR
5,417 GMAP GMA Hldgs., Inc. PDR

ALT
IDC
X

Exchange Traded Funds

1,261 FMETF First Metro Phil. Equity ETF

10,810

THURSDAY, JANUARY 14, 2016

Banking&Finance

S2/3

Peso hits new trough as market

stays cautious amid China woes

AFP

A BANK EMPLOYEE counts peso notes in Manila in this Dec. 16, 2011 photo. The
peso hit a new six-year low yesterday.

data from the Philippine Dealing

& Exchange Corp.
Traders attributed the continued slide of the peso to persisting
worries over China, which is dragging sentiment in the region and
causing safe-haven buying.
Were still testing highs on the
back of a strong dollar sentiment
and weaker EMs (emerging markets) on concerns over China, a
trader said.
We continue to see risk aversion and safe-haven buying... it
looks like P48-per-dollar is not
far away anymore.
Another trader said: The peso
depreciated but not as much as
expected, on account of the better-than-expected Chinese trade
report, which showed exports and
imports declining at a slower pace
in December 2015.

Persistent concerns over the

health of the Chinese economy after a series of currency interventions from government authorities also kept the local currency
weak against the US dollar, the
trader added.
For today, a trader noted that
the peso may remain weak due
to the financial turmoil in China
and the weakening in global oil
prices.
Profit taking, however, may
potentially limit the pesos depreciation. The lack of major
economic data releases may keep
exchange rate movements minimal, the trader added.
A trader said the peso could
move within the P47.45 to P47.60per-dollar band today, while another put support at P47.30 and
resistance at P47.65.

The peso missed a regional

rally as emerging Asian currencies rose on Wednesday thanks to
Chinas stronger-than-expected
December trade data and persistent efforts to calm the yuan, even
as traders and analysts expected
the renminbi to weaken over the
long term.
Chinas yuan also eased although the central bank kept its
daily guidance rate steady again
in a bid to stop the currencys
slide.
The won and the Malaysian
ringgit advanced on Wednesday
as investors covered short positions in the two worst-performing regional units so far this year
on data showing Chinas exports
and imports shrank much less
than expected. Imee Charlee
C. Delavin with Reuters

Growth in life insurance sector premiums expected

Insurance,
from S2/ 1

ance contracts. Our approach is

different. We believe in building and nurturing relationships
for life with our customers. We
will focus on offering insurance
solutions which are relevant for
the relatively young customers
of EastWest. Young people are
generally more concerned with
having a safety net. Therefore,
we will provide advice on access
to healthcare, childrens education, home loan protection and
planning for the longest holiday
of their life retirement, Mr.
Loozekoot was quoted as saying.
The partnership with EastWest Bank, he noted, will bring
complementary skills to the company.
EastWest Bank President and
CEO Antonio C. Moncupa Jr. said
he is very optimistic about the
joint venture, noting it enhances
EastWests value proposition to
customers.
Bancassurance is a vital
strategy for us as it makes us a
truly one-stop shop for our clients financial and insurance
needs. We are confident that the
diversification of our products
to include protection solutions
will enhance our competitive
edge, increase customer loyalty,
and create greater value for our
customers while expanding our
revenue stream, Mr. Moncupa
was quoted as saying.

THE PESO slumped to another

six-year low against the dollar
yesterday on continued risk aversion amid persisting worries over
the health of the Chinese economy.
The local currency closed at
P47.545 against the greenback on
Wednesday, 10.5 centavos weaker
than its P47.44-per-dollar finish
the previous session.
The pesos latest close is again
its worst finish since it finished
at P47.63 a dollar on Nov. 5, 2009.
The peso opened the session
slightly stronger at P47.35 versus
the greenback, which was already
the local units strongest intraday
level. Its weakest point was logged
at P47.55 against the foreign unit.
Dollars traded fell to $858.8
million from the previous sessions $988 million, according to

The newly formed insurance

company is seen to benefit from
EastWests customer base and
large network consisting of 433
branch stores. On the other hand,
Ageas said it contributes its vast
experience in bancassurance
from its successful businesses in
Asia and Europe.
Insurance Commissioner Emmanuel F. Dooc, for his part, yesterday said EastWest Ageas Life
is a welcome force in developing the insurance industry in the
Philippines.
There is strong commitment
evidenced by the joint ventures
P2-billion capitalization which
is double our minimum requirement. The focus on protection
products for youth and the mass
market will help in the financial
inclusion of Filipinos and will
give them a better future, Mr.
Dooc said.
The Gotianun-led bank posted
a P1.3-billion net income in the
January to September period,
lower by 21% from the year-ago
level amid depressed trading
gains and higher provisions, despite the expansion of its core
businesses. The listed lender
posted a net income of P2.073 billion in 2014.
EastWest Bank shares closed
at P17.08 apiece yesterday, down
0.47% from its previous days
P17.16 per-share close.

THE LIFE insurance sector is

seen to have grown its total premiums in 2015 from the year
prior, a top official of a life insurer
said, citing growth in both regular
and single pay premiums.
Definitely theres gonna be
growth compared to 2014... theres
gonna be growth last year compared to 2014, Manufacturers
Life Insurance Co. (Philippines),
Inc. (Manulife Philippines) President and CEO Ryan Charland told
reporters when asked for his outlook on the performance of the
life insurance industry last year.
I actually think youll see pick
up in regular and single pay [although] regular is up in the second half compared to single pay,
he added.
The Philippines insurance industry reported a total premium
income of P188.96 billion in 2014.

The life insurance sector booked

P157.83 billion in total premiums
while the non-life sector posted
P31.13 billion in total net premiums written during the period.
The industrys total income
from premiums for the January
to September period jumped
29.75% to P172.40 billion. The
life insurance sector showed a
strong performance in the first
nine months, with total premiums expanding 33.16% to P145.48
billion, while the non-life sector
saw total net premiums for the
nine-month period at P26.92 billion, up 13.97%.
Insurance Commissioner Emmanuel F. Dooc earlier said the
industry could post a P240-250
billion premium income in 2015,
a little over the P200-billion target earlier set by the regulator
which was the highest premium

production of the industry thus

far given the encouraging figures seen in the first half of 2015.
Given the current trend, the
industry could also grow its premium income to P300 billion by
this year and to around P500 billion in 2019.
Moving forward, the Manulife
executive noted that health-related products are seen increasing
their contribution to total premiums earned by insurers.
I absolutely think the takeup
of health products will increase
its share in premiums, Mr. Charland said.
For Manulife in particular, he
said the launch of its ManulifeMOVE a program that rewards
customers with discounted premiums for living a more active
lifestyle is seen to start contributing to its sales this year.

The new approach to insurance is designed to appeal to an

increasingly tech-savvy customer
base who are conscious about
staying active and healthy, he
noted.
ManulifeMOVE can make
contribution to us this year thats
why we launch it this early, Mr.
Charland said.
For his part, Jason Dehni,
Chief Marketing and Distribution Officer of Manulife Asia was
quoted as saying: Across Asia,
Manulife is focused on helping
its customers live a more active
lifestyle in an accessible, simple
and engaging way.
We are excited to launch
ManulifeMOVE in the Philippines on the heels of its successful
launch in Hong Kong and Macau,
he added. Imee Charlee C.
Delavin

Loans,

from S2/ 1
development banks, stock savings
and loan associations and microfinance thrift banks.
These smaller banks likewise
hand out short-term credit and
offer financing options for businesses, particularly for smalland medium-scale firms.
These banks total loans as of
end-November stood at P681.405
billion, 14.18% higher than the
P597.124 billion they lent out a
year ago.
Non-performing assets held
by banks which represent bad
debts and foreclosed properties,
to name a few hit P53.626 bil-

lion, up 17.09% from November

2014s P45.798 billion.
Coverage for soured loans also
slipped by end-November to log
at 72.02% against the 74.7% seen
the year prior.
The thrift lenders, however,
were able to hike their cover
against expected credit losses as
loan loss reserves rose by nearly
a fifth to P23.087 billion from last
years P19.416 billion.
The BSP monitors the loan
quality of Philippine banks as
among its initiatives in keeping
high standards for credit risk
management.

Rajan,

from S2/ 1
If we do not expand our
responsibilities, others will fill
them, Rajan said.
Rajan didnt shy away from
controversial topics. He made the
case that the central bank should
be willing to hire outside experts
if the required skills arent available in-house, a touchy topic
among rank-and-file staff who
went on strike in November
for the first time since 2009 to
protest institutional reform and
demand better pensions.

MEDIA STRATEGY

This is one area where I feel protectionist attitudes in the organization are strong and require to
be debated, Rajan said.
Rajan wrote about the need
to improve communication with

the wider world, referring to an

instance when the central bank
was branded as anti-technology
for seeking to close a loophole
that allowed ride-hailing application Uber to permit simpler payments. Press releases should get
to the point quickly and reach
journalists before 5:30 p.m. to get
into the newspapers the next day,
Rajan said.
Some in the Bank disdain
communication. Why not let our
achievements speak for themselves?, they might say, Rajan
wrote.
Unfortunately, in this world
where the press is more attentive and the public more hungry
for news, we either should shape
news or we will be shaped by it.
Bloomberg

AFP

THE MetLife building in New York City.

MetLife weighs splitting off US retail business

METLIFE Inc., the largest US life
insurer, plans to separate much
of its domestic retail business
as Chief Executive Officer Steve
Kandarian works to shrink the
company amid tighter government oversight. The stock rallied
in extended trading.
The insurer is weighing a
possible sale, spinoff or public
offering of the operation, New
York-based MetLife said Tuesday
in a statement. The new company
would have about $240 billion of
assets and accounts for approximately 20% of MetLifes operating earnings, according to the
statement.
MetLife joins General Electric
Co.s finance unit in seeking to
simplify operations after being
designated by a US panel as a
non-bank systemically important
financial institution (SIFI), a tag
that can lead to stricter limits on
the balance sheet. Kandarian has
sought to reverse that designation in court.
The retail business, as part
of a SIFI, faces higher capital
requirements that could put it
at a significant competitive disadvantage, Kandarian said in the
statement.
Even though we are appealing
our SIFI designation in court and

do not believe any part of MetLife

is systemic, this risk of increased
capital requirements contributed to our decision to pursue the
separation.
MetLife rallied 6.6% to $44.76
at 6:28 p.m. in New York on the
announcement, which was after
the close of regular trading. The
company had dropped 13% this
year through Tuesdays close after slumping 11% in 2015.
MetLife would retain units
providing workplace benefits
and property-casualty coverage
along with the corporate benefit
funding division that offers pension and retirement products.
Kandarians company also plans
to keep operations in Asia, Latin
America, Europe the Middle East
and Africa.

GROWTH PROSPECTS

The retail unit slated for separation is a provider of variable annuities, where results can be tied
to fluctuations in stock markets
and interest rates. The new company would also include life insurance entities. MetLife didnt
outline a timetable for the plan,
saying the completion of a transaction could depend on market
conditions, and also regulatory
approvals.

Breaking off a retail unit would

leave MetLife with a regulated
set of businesses, but less heavily
regulated than retail products,
David Havens, a debt analyst at
Imperial Capital, said in a note.
It should also leave MET with
a large international portfolio
that has good long-term growth
prospects.
The insurer said Executive
Vice President Eric Steigerwalt
will lead the new company. He
previously ran the domestic retail business and was named in
November as interim head of US
operations, which added responsibility for segments including
group coverage and workplace
benefits.
Under a prior management
structure, all operations in the
Americas were overseen by William Wheeler, the insurers former chief financial officer. Wheeler departed last year and became
president of Athene Holding Ltd.,
the insurer with ties to Apollo
Global Management LLC.
Maria Morris, executive vice
president and head of global
employee benefits, was named
interim head of the remaining
parts of MetLifes US businesses,
according to John Calagna, a
spokesman for the company. Os-

car Schmidt will continue to lead

Latin American operations.
MetLife is among four nonbank companies that were named
SIFIs by the Financial Stability
Oversight Council. That panel was
created by the 2010 Dodd-Frank
law and charged with monitoring
potential threats to the financial
system after the near collapse
in 2008 of companies including
insurer American International
Group Inc., which required a US
bailout.

GE, AIG

GE has been divesting finance operations and has said it will apply
to drop its tag as a SIFI. Prudential Financial Inc., the secondlargest US life insurer, in 2013
opted against filing a lawsuit to
overturn its SIFI status.
AIG, also a SIFI, has been facing pressure from activist investor Carl Icahn to break up into
three separate businesses one
offering property-casualty coverage, another selling life insurance and a third backing mortgages. Icahn has said the risk tag
is intended to be a tax on size and
AIGs businesses would be worth
more to shareholders if theyre
not part of a systemically important company. Bloomberg

Sports
World

4/S2

EDITOR FRANCISCO P. BALTAZAR

THURSDAY, JANUARY 14, 2016

Third times a charm for Alaska Aces?

Reporter

FOR THE third time in four conferences the Alaska Aces will play
in a Philippine Basketball Association (PBA) finals and they are
hoping it is going to be a charm
after being denied a title in the
previous two.
In yet another dominant showing Tuesday night, the Aces completed a turnaround in form and
eliminated the GlobalPort Batang
Pier, 118-89, in their best-of-seven
PBA Philippine Cup semifinals in
five games.
The victory was the fourth
straight for the Aces after a flat
performance in the series opener
where they were beaten 107-93 by
the port masters, who made their
maiden final four appearance in
their young PBA existence.
In the series clincher, Alaska
was once again in its defensive
best, holding GlobalPort to below
90 points for the fourth consecutive time, while being crisp and
fluid on offense anchored on a
balanced attack.

THE ALASKA ACES will play in their

third PBA finals in four conferences.

ALVIN S. GO

By Michael Angelo S. Murillo

Six players finished in double

figures for Alaska, with guards
Ping Exciminiano and Chris
Banchero leading with 18 points
apiece while veteran big man
Sonny Thoss and explosive forward Calvin Abueva ended up
with 14 each.
Vic Manuel and Cyrus Baguio,
meanwhile, scored 10 points
apiece.
The Game Five romp catapulted the Aces to their 29th finals
appearance in their long PBA
history and gave them the opportunity to add up to their 14 league
titles, second all-time.
They now await the winner
of the other semifinal series between the San Miguel Beermen
and Rain or Shine Elastopainters
in a best-of-seven finals beginning next week.
I really want four victories
in the next series, a relieved
Alaska coach Alex Compton said
after their series-clinching win,
referring to the number of wins
needed to claim the title after
being denied of a championship
twice last year.
In last years Philippine Cup,
Alaska came within one win away

from a title, losing to San Miguel,

4-3, in a best-of-seven series, and
was swept by the Beermen, 4-0,
in the season-ending Governors
Cup.

Coach Compton lauded his

wards for showing no complacency and for raising their level
of play as their semifinal series
went along.

Equally excited and happy was

team owner Wilfred Uytengsu,
who also spoke in the postmatch
press conference and underscored how this latest finals ap-

pearance affords them a chance

for redemption.
He, however, did not express
directly any preference on whom
they want to face in the championship series, believing either way
they have to work hard to succeed.
I dont care who we play as long
as we win, the Alaska owner said,
adding, Whether its San Miguel or
Rain or Shine, its going to be hard.
Barging into yet another finals,
Alaska further highlighted its
status as one of the better teams
in the league right now, one local
basketball analyst said.
Alaska was dominant and the
semifinal series with GlobalPort
highlighted the teams depth,
chemistry and experience...,
Levi Verora, Jr. of online site Tiebreaker Times said in an interview
with BusinessWorld.
With the play the Aces are
displaying, the analyst expressed
bullishness that they could finally
break through this time around.
Alaska will have one of the best
rosters in the finals. They have a
lot of weapons on both ends. It is
doable, but Rain or Shine and San
Miguel are both talented and deep
as well, Mr. Verora said.

Fit and happy Azarenka primed for Aussie Open run

AFP

I was hurt the whole year actually, she added of her troubled
2015 campaign.
There was not a moment
where I felt good. (Now) I have no
pain. There was a lot of medication last year which made me feel
crazy actually at some moments.
I dont respond well to medication. It was a constant battle
with pain, with my own fear. Like,
is it going to hurt again?
I dont want to go through
that. But it took me to a point
where I decided, Ok, I got to stop
and try to figure out and actually
change my life around the tennis
court.
Nicknamed Vika and renowned in the past for fiery oncourt outbursts, Azarenka is now
coached by Wim Fissette after
splitting with longtime mentor
Sam Sumyk and said it had taken
time to adjust.
I had a lot of changes last year,
so it took a little bit of time to regroup, reorganize, mature a little
bit, understand how to organize
yourself, she said, adding that
she was once again enjoying her
tennis.
I think being an athlete we
always think about physical
performance tennis and tactical performance. I think mental
preparation is very important
feeling happy on the court.
We have such a long season.
To have that sense of just enjoyment, joy on the court, I think is
important, too. AFP

AFP

WORLD NUMBER ONE Serena Williams

MELBOURNE Rejuvenated
former world number one Victoria Azarenka believes she is
primed for a solid run at the
Australian Open after an injurywracked two years, with the painfree star happy and in form.
The Belarusian won the opening Grand Slam of the season
at Melbourne Park in 2012 and
defended the title the following
year before injuries stalled her
high-flying career.
She struggled with foot and
knee problems in 2014 and only
played nine tournaments, also battling depression and a split from
long-term boyfriend Stefan Gordy,
better known as Redfoo, the US
musician and reality TV star.
Then a painful thigh strain in
2015 sent her spiraling down the
world rankings.
But she is again fighting fit and
won the build-up Brisbane International last weekend, dropping
just 17 games in four matches for
her first title since Cincinnati in
August 2013, propelling her back
into the world top 20 at number
16.
It sets her up as a legitimate
threat at the Australian Open,
starting Monday, with a host of
other top players struggling with
injuries or illness.
Definitely a lot more comfortable, a lot more calm, a lot
more aware. Happy. Very happy,
Azarenka told the Herald Sun late
Tuesday as she prepares for another title shot.

A FILE PHOTO taken on Jan. 9 shows Victoria Azarenka of Belarus lifting the
trophy after winning the Brisbane International tennis tournament.

MELBOURNE World number

one Serena Williams insists she is
fit and ready for a tilt at a seventh
Australian Open title, downplaying a knee injury that forced her
out of the Hopman Cup.
The world number one retired
due to soreness in her left knee
during a singles match on Jan. 6
at the mixed-team tournament in
Perth, casting doubt over her ability to defend her title at the opening Grand Slam of the season.
But the 34-year-old told the
Melbourne Herald Sun she was
ready for it.
My body is feeling great now,
she said.
Obviously I had a hiccup but
right now it is doing much better.
Ive had a few days of training so
its looking good.
The 34-year-old, who battled
knee problems in the latter half of
2015 and has barely played since
October, trained at Melbourne
Park on Monday.
I know what I need to do
on and off the court to win big
tournaments, she added to the

newspaper late Monday. That is

what I like to do.
At the time of her retirement
in Perth, Williams said: I just
have some inflammation thats
been going away very slowly.
Its still there, its going away,
but just needs a little more time. A
little rest, a little treatment.
Melbourne Park has been a
happy hunting ground for the
American 21-time major winner.
She won the Australian Open
for the first time way back in 2003,
and made it title number six last
year when she toppled archrival
Maria Sharapova in the final.
Williams owned womens tennis in 2015, winning three Grand
Slams (Australian Open, French
Open and Wimbledon) and triumphing in 53 of the 56 matches
she played.
She was on track for a rare
calendar-year Grand Slam until
she was beaten by Italian Roberta
Vinci in the US Open semifinal in
early September, before bringing
an early halt to a season that took
a heavy physical toll. AFP

BELEN, ARGENTINA Carlos

Sainz moved atop the overall standings of the Dakar Rally in winning
Tuesdays ninth stage as Sebastien Loeb fell further behind after
struggling in sandy conditions.
The stage around Belen was
cut short because of searing heat
and the many difficulties encountered by competitors between
Belen and Fiambala.
For the motorbikes the stage
was halted after 179 kilometers
(km) of the days planned 436-km
run with the riders continuing on
in convoy to the finish line, apart
from some 30 competitors who
had already reached that point.
For cars the race was also
shortened to the 179-km mark, of
the planned 396 km, of which 285
km were timed. Temperatures
were between 37 and 40 Celsius
(98-104 Fahrenheit).
Spanish veteran Sainz, driving a Peugeot, held off the Minis
of Erik van Loon and Mikko
Hirvonen by 10 and 17 seconds,
respectively.
It was a very demanding
course, physically speaking, with
a lot of off-road, navigation and
vegetation, said Sainz.

AFP

Serena Williams says

shes feeling great for Dakar: Sainz takes control, Loeb suffers in the sand
2016 Australian Open

PEUGEOTs Spanish driver Carlos Sainz and co-driver Lucas Cruz (L) drive past
Peugeots Stephane Peterhansel and co-driver Jean Paul Cottret of France while
they repair their vehicle during the Stage 9 of the 2016 Dakar Rally around Belen,
Argentina, on Jan. 12.
It was very hot, the 2010
winner added shortly after being
cooled down with blocks of ice.
Stephane Peterhansel, who
finished 9:12 behind Peugeot
teammate Sainz, lost the command of the overall standings to
the Spaniard, the latter now leading the Frenchman by 7:03.
After rolling his Peugeot on
Monday, Loeb struggled in the
dunes, becoming stuck in the
sand on several occasions.

The nine-time world rally

champion from France eventually limped home in 18th spot, one
hour 13 minutes behind Sainz.
It was very tough and very
sandy in places, Loeb said. We
wanted to try to follow the roadbook closely so as not to get lost.
In the end, there were some
spots we couldnt pass. The sand is
so soft, we got stuck several times.
Its a bit depressing, but its a
learning process.

After the arrival of just 10 motorbikes at the finish line, Australian KTM rider Toby Price, the
overall race leader, had clocked
the fastest time of three hours 55
minutes 51 seconds.
But organizers could decide to
recalculate the times at the 179km mark where Price also had the
best time.
There was more drama for departing French competitor Lionel
Baud.
On Saturdays stage seven,
Baud hit and killed a 63-year-old
Bolivian shepherd, an accident
that saw the tearful Frenchman
withdraw from the grueling
event.
But on Tuesday a convoy leading Bauds car back to Buenos Aires was hit by a goods lorry in an
accident also involving four other
vehicles, the Cadena 3 television
station reported.
An Argentinian car driver was
reported killed in the accident.
Wednesday s 10 th stage is
from Belen to La Rioja, with
similarly hot temperatures
predicted and the notorious
Fiambala dunes to be negotiated. AFP

Sports

World
THURSDAY, JANUARY 14, 2016

Cavs edge Mavs

on James heroics

In form Spieth
dethrones Tiger
in Golf Digest
money ranking
NEW YORK Reigning Masters and US Open champion
Jordan Spieth topped the Golf
Digest 50 money list revealed
on Tuesday while Tiger Woods,
who topped the first 13 lists,
settled for third place.
Woods, whose run to 14
major titles from 1997 to 2008
boosted prize money and television rights fees, has struggled
with injuries and turned 40 two
weeks ago with a back injury
and no timetable for his return
to competition.
World number one Spieth,
22, made more than $53 million in combined winnings and
endorsement deals to top the
magazines list of 2015 golf
revenue producers, with $30
million from sponsor Under
Armour boosting Spieths total.
Spieth had five PGA triumphs, including the two major
wins.
At $48.5 million with only
$ 5 5 1 ,0 0 0 i n p r i z e m o n e y,
Woods trailed 45-year-old Phil
Mickelson and finished just
ahead of 26-year-old Northern
Ireland star Rory McIlroy.
Arnold Palmer, the 86-yearold legend whose popularity
and skill made him a pioneer
in golf endorsement deals and
branding, was fifth with fellow retired icon Jack Nicklaus
sixth.
Australias Jason Day was
seventh with American Rickie
Fowler eighth.
Japans Hideki Matsuyama
was 22 nd , 12 spots ahead of
countryman Ryo Ishikawa.
New Zealands Lydia Ko,
the LPGA teen star who dominated the season, was 47 th, one
spot behind Kiwi mens golfer
Danny Lee and one ahead of
South Korean mens standout
Bae Sang-Moon. AFP

S2/5

DALLAS Lebron James scored

27 points as the Cleveland Cavaliers snatched a thrilling overtime
victory from the Dallas Mavericks
on Tuesday.
James led the scoring for
Cleveland after the Cavaliers had
trailed for much of the contest as
the Mavericks raced into an early
23-7 lead.
The pivotal moment in a
110-107 win for the Cavaliers
their eighth consecutive victory came with 13 seconds to
go in overtime, when Kyrie Irving
nailed a long-range three-pointer
to seal the win.
It capped a remarkable transformation in fortunes for the
Cavaliers, who struggled to find
the basket all night, with Irving
and Kevin Love both missing a
succession of attempts.
Clevelands winning streak
might have come to an end had
Dallas veteran Dirk Nowitzki not
squandered a gilt-edged opportunity in the closing seconds of
regulation.
Nowitzki looked certain to
score after finding himself isolated with Cleveland guard Iman
Shumpert. But Shumpert managed to strip Nowitzki and the
chance was gone.
A nerve-jangling final quarter saw the lead change 10 times,
while the game was tied three
times in the final two minutes.
Cleveland now lead the Eastern Conference standings with a
record of 27-9, ahead of the Toronto Raptors (24-15).
REUTERS, JEROME MIRON-USA TODAY SPORTS

CLEVELAND CAVALIERS guard Kyrie Irving (2) shoots over Dallas Mavericks guard
Deron Williams (8) during the second half at the American Airlines Center. The
Cavaliers defeat the Mavericks 110-107 in overtime.

DURANT LATE SHOW

In Minneapolis, Kevin Durant

underscored his importance to
the Oklahoma City Thunder once

again with a 30-point haul which

helped see off the Minnesota
Timberwolves.
Durant reeled off 12 points in
the final three minutes to steer
the Thunder safely to a 101-96
victory which left them with
the third best record (27-12) in
the Western Conference behind
Golden State and the San Antonio
Spurs.
However, Durant was unhappy
that he left it late to deliver the
goods.
Ive got to get it going there in
the first three quarters, Durant
said.
Cant just come out and try to
save the game and make shots in
the fourth. Ive got to get it going
early.
Russell Westbrook added 22
points for Oklahoma City, narrowly missing out on a triple
double with 11 assists and seven
rebounds.

SAN ANT0NIO SPURS

San Antonio meanwhile extended their winning streak to

nine games after a scintillating
31-point performance from Tony
Parker helped the Spurs to a 10999 victory over the Detroit Pistons.
LaMarcus Aldridge weighed in
with 22 points and 13 rebounds
while shooting guard Manu Ginobili finished with 15 points and
five rebounds as the Spurs improved to 34-6.
Veteran center Tim Duncan
added 14 points and nine rebounds with Boris Diaw supplying 12 points.
French star Parker, 33, described his performance as a blast
from the past.

Spurs coach Gregg Popovich

revealed he had placed the onus
of the scoring on Parker during
the game.
At the start of the third quarter, I told him, Were going to
need you to score. Youve got all
kinds of opportunities.

ROCKETS 107, GRIZZLIES 91

James Harden scored 25 points

and Terrence Jones added 20 off
the bench to lead the Houston to
its fourth straight win.
The Rockets connected on
18 three-pointers, including
four by Harden, and enjoyed a
decisive edge on the board to
snap their losing streak against
Memphis.

KNICKS 120, CELTICS 114

Kristaps Porzingis poured in 26

points to lead New York to the
victory.
The Knicks won for the fifth
time in their last seven games
despite the loss of Carmelo Anthony, their leading scorer, who
left the game with a sprained right
ankle after a collision late in the
first half with a referee.
The veteran small forward was
having a good offensive night,
finishing with 17 points, four
rebounds and three assists in almost 18 minutes.

BUCKS 106, BULLS 101

Jimmy Butler scored 30 points

but it was not enough for Chicago Bulls. Giannis Antetokounmpo led the Bucks with 29
points, and Khris Middleton
added 16, including five over the
final 2:30 of the fourth quarter as
the Bucks mounted a late rally.
AFP/Reuters

OPINION

Pan-Am college championship

Final Top Standings
Pan-American Intercollegiate
Chess Championship
Sheraton Cleveland Airport Hotel
Dec. 28-30, 2015

the head coach of the Texas Tech Knight

Raiders chess team. Under her tutelage
and guidance the school became a powerhouse and won the Final Four in 2011.
After this big success the trouble started Polgar asked for a $1-million budget
per year for the next five years to continue
FINAL TOP STANDINGS
the program. Texas Tech balked at the
(ratings are US, not FIDE)
huge capital outlay and Polgar brought
Texas Tech A. GM Yaroslav Zhereher program, including the players, over
bukh 2697, GM Elshan Moradiabadi 2663,
to Webster University in St. Louis. True
IM Andrey Gorovets 2636, GM Andrey
to her word Webster UniBaryshpolets 2631, IM
versity rose from obscurity
Luis Carlo Torres 2411.
and won all three Pan-Ams
University of Texas
in their teams existence and
Rio Grande Valley A. BOBBY ANG
was the Final Four ChamGM Anton Kovalyov
pion from 2013-2015.
2703, GM Andrey StuWebster University
On the other hand Texas
kopin 2662, GM HoldTech had to start over again.
en Hernandez 2600, has been dethroned
The second story is the
IM Guillermo Vazquez as the Pan-American
2511, IM Fe Ynojosa Intercollegiate Champion. Philippines Wesley So. He
accepted a scholarship with
Aponte 2473.
Webster University in AuWebster University
gust 2012 and was an important part of the
B. GM Ilya Nyzhnyk 2725, GM Alex
championship teams above. After several
Shimanov 2681, GM Andre Diamant
tournament successes Wesley decided to
2568, GM manuel Leon Hoyos 2531.
focus full-time on chess and resigned his
Columbia University A. FM Arthur
scholarship with Webster. They parted
Shen 2475, FM Kyron Griffith 2396, Aarunder less than amicable circumstances.
on Jacobson 2263, Alexander Fabri 2224
The two stories intersected in this
Webster University A. GM Le Quang
years Pan-American Intercollegiate
Liem 2803, GM Ray Robson 2752, GM
Championship, as Webster University
Vasif Durarbayli 2707, GM Fidel Corsorely missed Wesleys point-making
rales Jimenez 2584.
ability and Texas Tech under its new
University of Texas at Dallas B.
coach GM Alexander Onischuk was surGM Gil Popilski 2692, GM David Berecprisingly strong and figured in a quadruzes 2575, GM Valentin Iotov 2570, GM
ple tie for 1st place with the University
Nadezhda Kosintseva 2523, IM Zurab
Javakhadze 2485
of Texas Rio Grande Valley A, Webster
Total of 42 participants
University B, and Columbia UniverTime Control: 90 minutes play-tosity A. Bragging rights as the Pan-Am
finish with 30-second increment added
champion went to Texas Tech based on
after every move starting move 1.
superior tie-break points.
Webster University has been deWebsters A team had never lost a
throned as the Pan-American Intercolmatch in their history but this year was
legiate Champion. This competition is
held to a draw by Texas Tech and lost to
open to all Universities and Colleges in
the B Team of University of Texas at
North America, Central America, South
Dallas and tumbled down to fifth place.
America and the Caribbean. It is held over
It was Websters B team which saved
six rounds and the winning team is conthe day by tying for first although they
sidered to be the top college or university
were third place on tie-breaks. The good
team in Pan-America. The top Four US
thing is that the top four teams automatSchools advance to the Presidents Cup,
ically qualified for the Final Four so at
also known as the Final Four of College
least Webster University is represented.
Chess to determine the US National ColWesley Sos replacement in the Weblege or University Champion.
ster team, Azeri GM Vasif Durarbayli,
There are two stories here today. Back
had a rough tournament and lost two
in 2007 GM Susan Polgar signed on as
crucial games.

CHESS PIECE

In round 3 Webster was upset by UTD

and the following game had a lot to do
with that. GM Nadezhda Kosintseva is
the older of the Kosintseva sisters (the
other being GM Tatiana). The two of
them have won many prizes in womens
tournaments and were mainstays in
the Russian Womens national team.
In January 2013, citing psychological
incompatibility with their coach GM
Sergei Rublevsky, both sisters quit the
Russian team and never played for it
again. This was a huge blow because at
that time they were nos. 1 and 2 in their
countrys ranking list, but that is a story
for another time.
Nadezhda married GM Leonid Kritz,
became a mother and moved to the
United States. Here she shows that her
chess is still in tip-top shape.
***
Durarbayli, Vasif (2707) Kosintseva, Nadezhda (2523) [E05]
2015 Pan-American Intercollegiate Chess Cleveland Ohio (3),
28.12.2015
1.d4 Nf6 2.Nf3 d5 3.g3 e6 4.Bg2
Be7 5.00 00 6.c4 dxc4 7.Qc2 a6
8.a4 Bd7 9.Qxc4 Bc6 10.Bg5
We are still in one of the main lines of
the Catalan. By the way, a known mistake
here is 10.Nc3? as after 10...b5! 11.Qd3 b4
12.Nb1 Be4 13.Qd1 c5 Black is doing very
well. Sveshnikov, E (2560)-Ivanchuk, V
(2475) Pinsk 1986 01 38.
10...a5 11.Nc3
This is a typical tabiya in the Catalan:
White will exchange on f6 and then go
for e2e4 to get superiority in the center.
Black though has the two bishops. The
coming middle game is difficult for both
sides as White tries to make something of
his center while Black tries to neutralize it.
11...Na6 12.Bxf6 Bxf6 13.e4 Nb4
14.Rfd1 b6 15.Qe2
Maybe 15.Ne1 followed by d4d5 is
more forceful, but it is hard to see how it
will play out.
15...Bb7 16.Rac1 Re8 17.h4 h6
18.Qe3 Rc8 19.Qf4 Ba6 20.Bf1 Bxf1
21.Kxf1 c6 22.Qe3 Qc7 23.Kg2 Red8
24.Rd2 Qb8 25.Rcd1 Be7 26.Qe2 Bf6
27.Nh2 c5 28.d5 exd5 29.Nxd5 Nxd5
30.Rxd5 Re8 31.b3 Rc6 32.Qc4 Rce6
33.Re1 Qb7 34.Nf3 Qc6 35.Qd3 Be5
36.Rd8 Rxd8 37.Qxd8+ Kh7 38.Qd5
Qc7 39.Rd1 Qe7 40.Qa8 g6 <D>

POSITION AFTER 40...G6

Now the exciting part starts.

41.h5! gxh5 42.Rd5?
[42.Nxe5 Rxe5 43.Rd8 (threatening
mate with 44.Rh8+ Kg6 45.Qg8+ Kf6
46.Rxh6#) 43...Qf6 44.f4 Black is in
trouble]
42...Bf6 43.Rf5 Kg7
[43...Rxe4?? 44.Rxf6]
44.Nd2
Now Kosintseva says my turn!
44...h4! 45.Rf4?
Durarbayli is still in attack mode. He
should actually go defensive already
with 45.Rf3.
45...Bg5 46.Rg4 h5 47.gxh4 hxg4
48.hxg5 Qxg5 49.Nf1 Qf4 50.Ng3
Qf3+ 51.Kg1 Kh7 52.Qd5 Rh6! 53.Nh5
g3 54.Nxg3
Of course not 54.fxg3?? Rxh5.
54...Rf6 55.Nf5 Rxf5!
This had to be calculated to the end.
5 6. Q x f 5 + Q x f 5 5 7. ex f 5 Kg 7
58.Kg2 Kf6 59.Kg3 Kxf5 60.Kf3 Kf6
61.Kf4 Ke6 62.Ke4 f6 63.Kf4 Kd5
64.Kf5 c4 65.bxc4+ Kxc4 66.Kxf6
b5 67.axb5 Kxb5 68.f4 a4 69.f5
a3 70.Ke7 a2 71.f6 a1Q 72.f7 Qg7
73.Ke8 Kc6 0-1
[73...Kc6! 74.f8Q (74.Ke7 Kd5 75.Ke8
Ke6 and wins) 74...Qd7#]
In the last round Webster A was in
a must-win situation but the 24-year
old Ukrainian GM Andrey Baryshpolets
crushed their chances with a sudden
attack from the Black side of the Berlin.
***
Durarbayli, Vasif (2707) - Baryshpolets, Andrey (2631) [C67]
2015 Pan-American Intercollegiate Chess Cleveland Ohio (5),
29.12.2015

1.e4 e5 2.Nf3 Nc6 3.Bb5 Nf6 4.00

Nxe4 5.Re1
This line is supposed to be even more
drawish than its cousin 5.d4 Nd6 6.Bxc6
dxc6 7.dxe5 , the so-called Berlin Wall.
5...Nd6 6.Nxe5 Be7 7.Bf1 Nxe5
Not a new move at all. Adolf Andersen (yup! the author of the Immortal
and Evergreen games) used to play this
in the 1860s.
8.Rxe5 00 9.d4 Bf6 10.Re1 Nf5 11.d5
[11.c3 d5 12.Bd3 looks more logical]
11...Re8 12.Nd2 Rxe1 13.Qxe1 d6
14.Ne4 Bd4 15.c3 Bb6
White has forced this bishop to go to
where it wants to go in the first place.
16.Bf4 Bd7 17.Bd3 Ne7 18.c4 Ng6
19.Bg5 Qf8 20.Qc3 f5 21.Nd2
[21.Ng3 gives Black the tempo to
push his pawn all the way to f3]
21...Ne5 22.Bf4 Re8 23.b4 Qf6
24.Bxe5
[24.c5?? Nf3+]
24...Rxe5 25.Qc1 c5 26.Nf3 Re8
27.a3 f4 28.h3 g5 29.Rb1 h5 30.bxc5
Bxc5 31.Rxb7! g4! 32.Rxd7
Forced. Knight moves result in instant annihilation.
32.Nd2 Bxf2+! 33.Kh1 (33.Kxf2 Qd4+
34.Kf1 Qxd3+ 35.Kg1 Qe3+ 36.Kh1 (36.
Kf1 g3) 36...Qe1+ is a rout) 33...Re1+;
32.Ne1 Bxf2+ 33.Kxf2 Qh4+
34.Kf1 gxh3 35.gxh3 Bxh3+
32...gxf3 33.Qc2 Re1+ 34.Bf1
[34.Kh2 fxg2 35.Kxg2 f3+ 36.Kg3 h4+
37.Kg4 Rg1+ 38.Kh5 Qg5#]
34...Rxf1+! 35.Kh2
[35.Kxf1 Qa1+]
35...fxg2 36.Qh7+ Kf8 37.Rd8+
Qxd8 38.Qh8+ Ke7 39.a4 01
Webster B was the one who qualified for the Final Four, but under the
rules of the tournament they can change
the line-up and the players from A can
play for B. I wonder which team which
show up for the Final Four?

BOBBY ANG is a founding member of the National

Chess Federation of the Philippines (NCFP) and its
first Executive Director. A Certified Public Accountant
(CPA), he taught accounting in the
University of Santo Tomas (UST)
for 25 years and is currently Chief
Audit Executive of the Equicom
Group of Companies.
bobby@cpamd.net

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15 J. Escriva Drive, Ortigas Business District, Pasig City
Tel.: (+632) 697-1111, 335-1111
Email: sales@astoriaplaza.com
astoriahotelsandresorts.com

LUXENT HOTEL
51 Timog Avenue, South Triangle, Quezon City 1103
Telephone: (63)(2) 8637777 Fax: (63)(2) 4113030
www.luxenthotel.com Email: sales@luxenthotel.com
Facebook: www.facebook.com/luxenthotel

ATRIUM HOTEL
Taft Avenue, cor. Sen. Gil Puyat Ave., Makati City
Tel: (632) 5520351 atriumhotel-manila.com

MADISON 101 HOTEL + TOWER

No.1 Madison st., cor. Aurora blvd
New Manila, Quezon City
(02) 723-1111 / 0936-9119039
www.facebook.com/madison101ph
Email: inquiry@madison101.com.ph

AZUMI BOUTIQUE HOTEL

2205 Market Street, Madrigal Business Park Phase III
Alabang,Muntinlupa City,Philippines
Tel No: (632) 869 9888
E-mail: sales@azumi.ph

MANILA CROWN PALACE HOTEL

1726 Adriatico St. cor. Alonzo St., Malate, Manila
Tel: (632) 328-2828
Cel. No. +63 917-8127483
Email: manilacrownpalacehotel@gmail.com
www.manilacrownpalacehotel.com

BAYVIEW PARK HOTEL MANILA

1118 Roxas Boulevard cor. United Nation Avenue, Manila
Tel: (632) 247 9000 (632) 526 1555 (632) 522 3040
Fax : (632) 522 3040
Email:bookings@ bayviewparkhotel.com
www.bayviewparkhotel.com

MARCO POLO ORTIGAS MANILA

Meralco Avenue, Ortigas Center,
Pasig City, Metro Manila
Tel: (632) 720-7777
Email: manila@marcopolohotels.com
www.marcopolohotels.com www.mpmdining.com

BRENTWOOD SUITES
#6 Dr. G. Garcia Street, Baranggay Paligsahan, Quezon City
Tel: (63) (2) 927 8888 Fax : (63)(2) 921 6970
Mobile : 09178487612
www.brentwoodsuites.com.ph
reservations@brentwoodsuites.com.ph

MARRIOTT HOTEL MANILA

No. 10 Newport Blvd.,
Newport City Complex, Pasay City
Tel.:(02)9889999 Fax:(02)836 9998
www.marriott.com/mnlap

BEST WESTERN PLUS

Antel Hotel
7829 Makati Avenue, Makati City
Tel: (63 2) 403-0888 / 403-0808
Fax: (63 2) 403-0854 / 403-7572
Email: reservations@antelhotel.com
www.antelhotel.com

WHAT SURPRISES YOU? Something new at every turn.

MIDAS HOTEL AND CASINO
at 902.0100 or email your
reservationsat info@midashotelandcasino.com
Be inspired and surprised about our hotel
at midashotelandcasino.com
2702 Roxas Blvd., Pasay City, Philippines

CROWNE PLAZA MANILA GALLERIA

Ortigas Ave. cor. ADB Avenue, Ortigas Center, Quezon City
Tel: (632) 6337222 Fax: (632) 6332824
Email: mnlcp@ihg.com
www.crowneplaza.com/cpmanila

MIRAMAR HOTEL
1034-36 Roxas Blvd. Corner UN Ave. Ermita, Manila
Tel. No.: (632) 532. 4484-86 Fax: (632) 526. 1866
Mobile No.: 0915 446 21 15 / 0998 572 67 02
Email: reservations@miramarhotel.ph
www.miramarhotel.ph Facebook: Miramar Hotel Manila

CASA PURA
55 Scout Santiago cor., Sct. Rallos Sts,
Barangay Laging Handa, Quezon City
Tel: (632) 3732384 / (632) 4151658
Email:casapuramail@gmail.com casapura.com.ph

OAKWOOD PREMIER JOY~NOSTALG CENTER MANILA

CSB HOTEL
International Conference Center, Arellano Ave., cor Estrada
St., Malate, Manila
Tel: (632) 400 3333 Fax: (632) 4007401
Email: sales@benilde.edu.ph
www.csbhotel.com

17 ADB Avenue, Ortigas Center Pasig City 1600, Philippines

THE OASIS PACO PARK HOTEL

#1032-34 Belen Street, Paco, Manila
Tel.: 521-2371 to 75 Fax.: 521-2373
www.oasispark.com

EASTWOOD RICHMONDE HOTEL

17 Orchard Road Eastwood City, Bagumbayan, Quezon City
Tel: 570-7777
www.richmondehotel.com

ORCHID GARDEN SUITES

620 P. Ocampo St., Malate, Manila City
Tel:(632) 5239836
www.orchidgardenhotel.com

F1 HOTEL MANILA
32nd Street, Bonifacio Global City
Tel: (632) 928 9888 / (632) 908 7888
Email: inquiry@f1hotelmanila.com f1hotelmanila.com
Like us on Facebook : facebook.com/f1hotelmanila
Follow us on Twitter: f1hotelmanila

ROYAL BELLAGIO HOTEL MAKATI

5010 P. Burgos Street, Makati City,
Metro Manila, Philippines
Tel: +(632) 899-5555 Fax: +(632) 659-4887
Email: inquire@royalbellagio.com
www.royalbellagio.com

FERNANDINA 88 SUITES HOTEL

222 P. Tuazon Blvd., Cubao, Quezon City, Philippines
Tel:(632) 9116954 or 65
www.fernandina88.com.ph

TORRE VENEZIA SUITES

170 Timog Avenue corner Scout Santiago Street,
Barangay Laging Handa, Quezon City 1103, Metro Manila, Philippines
www.torreveneziasuites.com
Tel.: +63 (2) 332 1658 to 60 | Fax: +63 (2) 332 1621
Email: sales@torreveneziasuites.com
Like us on Facebook: facebook.com/torreveneziasuites
Follow us on Instagram: torreveneziasuites

FERNANDINA GARDEN SUITES

608 G. Araneta Ave., Quezon City
For Inquiries and Reservations:
Tel.: (02) 438-6686, (02) 438-6688
Email: inquire@amci.ph www.fernandinagardensuites.com

TAGAYTAY CITY | BATANGAS

HOTEL KIMBERLY
MANILA and TAGAYTAY
www.hotelkimberly.com
Tel: 521-1888 (Manila)
(046) 483-8888 (Tagaytay)

MAGALLANES SQUARE HOTEL

Magallanes Square Complex

Tagaytay City
Tel: (046) 5440062 (046) 4133918
Mobile:09228043129 09237192576 09175047820
Email: magallanessquarehotel@yahoo.com

CANYON WOODS RESORT CLUB

ONE TAGAYTAY PLACE
HOTEL SUITES
#445 Tagaytay-Calamba Road,
Barrio Sungay West, Tagaytay City
Tel: (+632) 584 4111 584 4156
Mobile: 09228348874
E-mail: reservations@onetagaytayplace.com
www.onetagaytayplace.com

CANYON COVE HOTEL & SPA

Far East Road Piloto Wawa Nasugbu, Batangas
www.canyoncove.com.ph
Corporate Hotel Sales Office
(632) 892-9827 loc. 248, 253, 257
Makati Central Reservations Office Numbers:
(632) 840-2290,840-2365, 840-2204, 840-2327,
840-2417, 840-2446, 840-2406 Fax No: 817 -5473
canyoncoveres@gmail.com
lizette.villanueva@g2globalinc.com

Diokno Highway, Brgy San Gregorio,

Laurel, Batangas
www.canyonwoods.com
Corporate Hotel Sales Office
(632) 892-9827 loc. 248, 253, 257
Makati Central Reservations Office Numbers:
(632) 840 2290, 840-2365, 840-2204, 840-2327,
840-2417, 840-2446, 840-2406 Fax No: 817 -5473
canyonwoodsres@gmail.com
lizette.villanueva@g2globalinc.com

NORTHERN LUZON

BORACAY ISLAND

AZALEA HOTELS & RESIDENCES BAGUIO

CANYON DE BORACAY

#7 Leonard Wood Loop, Baguio City

T: (074) 424-8710
Email: reservations@azalea.com.ph www.azaleabaguio.com

Station 2 Alice in Wonderland St Manggayad,

Barrio Manoc-Manoc, Boracay Island, Malay,
Aklan Philippines
www.canyondeboracay.ph
Corporate Hotel Sales Office
(632) 892-9827 loc. 248, 253, 257
MAKATI CENTRAL RESERVATIONS OFFICE
(632) 840-2290,840-2365, 840-2204, 840-2327,
840-2417, 840-2446, 840-2406
Fax No: 817 -5473
canyondeboracayres@gmail.com
lizette.villanueva@g2globalinc.com

MANILA CENTRAL SALES AND RESERVATIONS

1725 M. Adriatico Street, Malate Manila
(+63) 450 1151, 450 8012, 450 1127
0917 861 1641, 0919 994 4140

SOUTHERN LUZON
MISIBIS BAY

ASTORIA BORACAY

Cagraray Island, Bacacay, Albay

Manila Sales Office: Unit 1109, Tektite West
Tower, Exchange Road, Ortigas Center, Pasig
City, Philippines
Tel: +63 2 661 8888 (Trunkline)
Tel: +63 2 637 4959
local 3023 (Direct Line)
Email: reservations@misibisbay.com
www.misibisbay.com

Station 1 ,Boracay Island

Malay Aklan, 5608 Phils.
D/L(+63 36) 288.1111
T: (+632)687.1111 loc. 8110
E: sales@astoriaboracay.com
W: www.astoriaboracay.com

AZALEA HOTELS & RESIDENCES

BORACAY
Station 2, Boracay Island
Mobile: 0917 861 1639
Email: reservations@azalea.com.ph
www.azaleaboracay.com.ph

PALAWAN

MANILA CENTRAL SALES

AND RESERVATIONS
1725 M. Adriatico Street, Malate Manila
(+63) 450 1151, 450 8012, 450 1127
0917 861 1641, 0919 994 4140

ASTORIA PALAWAN

Km 62 North National Highway Barangay

San Rafael, Puerto Princesa City, Palawan
T: (+687.1111 Loc. 8302
E: sales@astoriapalawan.com
W: www.astoriapalawan.com

WESTERN VISAYAS

BOHOL

PUNTA BULATA RESORT & SPA

ASTORIA BOHOL

Cauayan, Negros Occidental 1007 Philippines

Tel: (034)4335160/(034)4730235
Mobile:09209003558
Email: info@puntabulata.com
ayusparesort@gmail.com

ZAMBOANGA CITY
GARDEN ORCHID HOTEL
Governor Camins Avenue,
7000 Zamboanga City, P.O. Box 100
Tel: +63 62 991-0031 to 34;
Fax: +63 62 991-0035
Email: reservation.gardenorchidhotel
@gmail.com

Barangay Taguihon,
Baclayon Bohol 6301 Phils.
T:(+038) 540-9880 (+632)335-1123
E: sales@astoriabohol.com
W: www.astoriabohol.com

DAVAO CITY
MARCO POLO DAVAO
C.M. Recto St., Davao City,
Philippines
Tel: (+6382) 221-0888
Fax: (+6382) 225-0111
www.marcopolohotels.com

THE PINNACLE HOTEL AND SUITES

Sta. Ana Avenue, Davao City

Tel: (082) 300-5885 / 221-3025 / 300-1881
Mobile: (+63) 932 870 8621 /
(+63) 927 235 5885 / (+63) 947 375 2508
info@thepinnaclehotel.com
www.thepinnaclehotel.com

If you would like to be listed in this directory, please contact the Circulation Department at 535-9901 or e-mail: circ@bworldonline.com

EDITOR ALICIA A. HERRERA

S2/7

THURSDAY, JANUARY 14, 2016

INSTAGRAM ACCOUNT @ MARGARITAFORES

Off the beaten path:

Dining at Congressional Avenue Ext.

Originally, we wanted Makati,

but the space wasnt available
at the rate that we wanted, he
added. We felt that this was the
best way that we can start our
business, that was economical,
he said, pointing out that Messrs.
Valera and Umali are new business owners. Ideally, we would
want to be open in SM or TriNoma, because that gets the most
foot traffic, said Mr. Alcalde on
opening new locations.

By Joseph L. Garcia

Fors named
Asias Best
Female Chef
MARGARITA ARANETA FORS,
the chef restaurateur behind
Chibo, Lusso and Grace Park, a
catering company Cibo di M, has
been named Asias Best Female
Chef by the award-giving body
behind the Asias 50 Best Restaurants list.
I feel like Miss Universe!
an obviously shocked and elated
Ms. Fors said upon learning the
news. She quickly followed it up
with a quip Dont take it away
later! alluding to the Miss Columbia-Miss Philippines mix-up
at the latest Miss Universe beauty
pageant.
She later send a tweet saying:
MaramingSalamat @Asias50Best @TheWorlds50Best for
this incredible honor.Am blown
away!Truly humbled&grateful.
My PHILIPPINES,this is foryou.
Ms. Fors is the first Filipino
chef to receive the honor. She
will receive her award at the
Asias 50 Best Restaurants 2016
ceremony in Bangkok, Thailand,
on Feb. 29.
The Asias 50 Best Restaurants list is published by William
Reed Business Media which also
publishes The Worlds 50 Best
Restaurants, launched in 2002,
and Latin Americas 50 Best Restaurants, launched in 2013.
The Worlds 50 Best Restaurants list is an annual snapshot
of the opinions and experiences
of almost 1,000 international
restaurant industry experts.
Asias 50 Best Restaurants was
launched in 2013 and is created
by the Diners Club Asias 50 Best
Restaurants Academy, a group of
over 300 leaders in the restaurant
industry across Asia.
The video of Ms. Fors reaction upon receiving the news can
be seen at https://goo.gl/GqKyrl.

CONGRESSIONAL Avenue Extension doesnt really ring a bell

for most people its a highway
connecting the University of the
Philippines-Katipunan Area to
Tandang Sora and Congressional Avenues via a fly-over. Many
small residential villages, as well
as the back gates and secondary
phases of larger residential villages are located here.
Due perhaps to its proximity to
the C5 gateway near Katipunan on
one end, and the entrance to the
North Luzon Expressway not too
far away, not to mention the mine
of universities, schools, and offices
nearby, the recently developed
area has experienced an increase
in development, with restaurants
popping up almost next to each
other. One is Guisados, a Mexicaninspired restaurant.
A huge tin sign leads to the
restaurants small dining area
which could probably sit just
around 20 to 30 people. A mix of
the rustic, the industrial, and the
kitschy meet in the restaurants
interiors, featuring solid, stark
wooden benches, strung-up red
lights, colander-covered ceiling
lamps, and commemorative car
plates all sitting within strict gray
walls. What appears to be a black
light also hangs from the ceiling
of corrugated tin. At least for the
night BusinessWorld visited, a
serving of 1980s hits by Madonna
and The Pretenders blaring from
the speakers completed the effect: cozy, kitschy, but manly, and
the drab color palette makes the
place appear large. While this
writer was waiting for his orders,
every vacated table was almost
immediately occupied again, and
all this on a Monday night.
That evening, this writer ordered a Pork Carnitas taco (P80,
while a promo for three is at P225).
Other options for the tacos included Beef Barbacoa, Chicken, Pork
Belly, Chorizo, and Chicharon.
For the main course, we ordered
a quarter-kilo slab of Roasted Pork
Belly (P250) and a side of Mexican
Dirty Rice (P65). A server dressed

JOSEPH L. GARCIA

Reporter

BOX PARK

PORK BELLY at Guisados

PORK CARNITAS at Guisados

URBAN EATS

in denim cutoffs and a bandanna

around her head suggested washing it all down with local beer, so
we went ahead and got some.
The Pork Carnitas pork
slowly cooked in beer, orange juice,
and milk (according to the menu
and the restaurants general manager, Eric Alcalde), wrapped in two
soft corn tortillas attacked the
palate with a surge of great taste,
and without any shame. It tasted
very straightforward yet complex,
with a play of sweet, savory, and
mildly spicy flavors accenting
strong, well-textured meat. The
taco was served with three options
for (homemade) salsa: a mild salsa
verde, a fresh flirtatious red salsa,
and a nasal passage-clearing spicy
version of the red. The taco as an
appetizer only served to excite this
writer for the main course, the

pork belly with the side of dirty

rice. The rice, a melange of mushy
kidney beans and fluffy rice, woven
together with cilantro and red salsa
was filling and tasty, and the pork
belly well, wow. Think of noisy,
crispy crackling skin, gooey, sticky,
melting fat (New Years resolutions
be damned), with a smoky, sweetish, and spicy flavor permeating
from skin to flesh. The quarter-kilo
slab apparently serves two to three
people, but whos counting?
Applause goes to the two owners, JP Valera and Jellone Umali,
both from Texas, according to Mr.
Alcalde who apparently also helped
with some of the recipes, himself
hailing from California. I live, like,
maybe 20 minutes away from the
border, and I go down to Mexico all
the time, said Mr. Alcalde. We all
loved Mexican food, he added.

PHL franchise of Singaporean restaurant

prides itself on serving authentic Italian food
THE RICH texture of Italian food
brings comfort to many, and for new
Bonifacio Global City (BGC) restaurant Casa Italia, it tries to go all out in
presenting authentic Italian food with
very little fuss and all of the character.
During its Dec. 10 opening, the restaurant served guests beef lasagna,
pizza, chicken cannelloni, fish with
a tomato-based sauce, and a roasted
chicken with potatoes, studded with
spices. Most of the dishes were very
filling and tasted familiar, punctuated
by piquant notes that professed the
dishes to be as closely Italian as possible. Highlights downstairs include
long pizza and gelato counters.
Casa Italia is a restaurant concept
based in Singapore, with 13 branches
there. While its logo says that it has
been around since the 1960s, it actually
opened in 2010 but its recipes come
from the Italian-born founders greatgrandmother in Italy, who had once operated a small gelateria (ice cream shop)
said Jay Tan, chief executive officer of
Waterwoods Group, which has the Casa
Italia franchise in the Philippines.
He said the pizza is made by a fellow
who had served pizza to the likes of
Madonna and U2. Were as authentic
as you can get, said Mr. Tan. Their
coffee, he pointed out, is meticulously

Despite having an authentic

Tex-Mex (but not yet quite Mex)
flavor, it is something familiar
to the Filipino palate, probably
thanks in part to the use of all
local ingredients. Aside from the
price constraints of importing ingredients, Mr. Alcalde says, Our
chef he wants to appeal to the
appetite of the Filipino.
Its our shared history... so we
share the same palates, he said
on executing Mexican food with
Filipino ingredients. He warned,
however, Being that were [in]
a [tropical] climate, and Mexico
[has] an arid climate the ingredients are going to be different.
Right now, our owners feel like
this is a good place said Mr. Alcalde on Guisados location in what
could be considered a backstreet.
Its expanding, its growing.

Sudoku Pacific

FOOD PARKING LOTS

About two blocks away from

Guisados are two food lots filled
with small food stalls. Box Park
and Urban Eats (which sit side by
side) seem to be taking advantage
of the streets location, following a pattern seen in some establishments in Teachers Village in
Quezon City (also blessed with a
proximity to homes and universities) in which food trucks or food
stalls are lined up in what look
like parking lots, providing cheap,
quality eats.
From Box Park, try a fragrant
pad thai from a stall called Thai
Food (pretty straightforward) for
P100. Pork Folio offers, of course,
pork dishes for about P150, while
bow-tied servers wait for you at
an ice cream and waffles stall. At
Urban Eats, try pizza, fries and
ribs from Frizzed Bar, or homey
pan de sal burgers (especially the
bacon cheese melt) from Pan de
Burger. Thai food and Japanese
food are also available in Urban
Eats, and both Box Park and Urban Eats feature bars, which seem
to be populated by either skateboard-toting teens or their
fathers. Most of them play around
in the P100 and above price range,
although parking is a bit difficult.
Down at Urban Eats, which
mostly feature new concepts, the
Farinas Empanada chain makes an
appearance initially a surprise,
until one discovers that the Urban
Eats food lot is owned by Hazel
Farinas, co-owner of the Farinas
Empanada chain (the other owner
is her husband, she said). Actually,
feel ko, Congressional [Avenue
Extension] iyong next Maginhawa
(I feel that Congressional Avenue
Extension is the next Maginhawa), said Mrs. Farinas.

Complete the grid so that every row, column

and 3x3 box contains every digit from 1 to 9 inclusively.

ROAST CHICKEN with potatoes

1/14 DIFFICULTY RATING

sourced, using only 100% Arabica

beans from Honduras, Guatemala,
and Brazil, and nowhere else.
The restaurant in BGC is its first
outside Singapore, said Mr. Tan, although it plans to open other branches within the Southeast Asian region.
A second branch in the Philippines is
being planned in SM North EDSA.
In Singapore, its offerings are limited to gelato and panini, but in the Philippines, it has pasta dishes and main
courses. Mr. Tan said that almost all of
the ingredients are imported (98%),
and even the furniture comes from
Italy. The only thing not Italian here is
our heart: were Filipino, said Mr. Tan.

Since he prides himself on the

authenticity of his Italian restaurant
franchise, he was asked how hard it is to
find an authentic Italian restaurant in
Manila. Name one, he answered slyly.
Its hard. Usually, when you think of
authentic Italian food its expensive
I wouldnt go there on a regular basis.
Casa Italias offerings can start at a
little above P100 (gelato) or a little above
P200 for the main courses. I want
everyone to say, Im going to go back
here, he said. Ayoko iyong, Ay, pupunta ako doon like once in two months
lang kasi ang mahal (I dont want people
saying that theyll come here once in two
months because its expensive). JLG

Magnum,

from S2/ 8
a toppings combination of sea salt, Oreo cookies and queso de bola
next time.)
As an added treat for ice cream lovers, Magnum Manila MOA will be
hosting a #MagnumPleasureHour where patrons have the chance to eat ice
cream for free said Ms. Huang. On Jan. 22, 23, 29, 30, Feb. 5 and 6, customers

can line up to the store between 6 p.m. to 7 p.m. and share the promo photo
found on Magnum Twitter and Instagram accounts to claim their prize.
The Magnum Pleasure Store is a global concept that started in
Paris, London, Hamburg, and Istanbul, and is now making sweet, albeit
short, journeys around the world. Nickky Faustine P. de Guzman

Crossword
ACROSS
1 Group of players
5 Grapevine talk
11 Geometry calculation
12 Individually
13 Gallup concern
14 Vacillate
15 Suffers from the heat
17 Corp. VIP
18 Worried
22 Texas player
24 Hayek of Frida
25 Letter after upsilon
26 Near-eternity
27 Roof overhangs
30 Bulletin board
items
32 Refine ore
33 Umps cry
34 Crescents ascent
38 Playwright Pinter
41 Kitchen sight
42 Doted on
43 Woodwind part
44 Egg buys
45 Invites

WEDNESDAYS PUZZLE ANSWER

By Thomas Joseph

DOWN
1 Tube tops
2 In (aligned)
3 Choosy
4 More statuesque
5 Fence feature
6 Met shows
7 Afternoon break
8 Ready to go
9 Road hazard
10 Individually
16 Not to mention
19 Nonessential courses
20 In a frenzy
21 Salon offerings

WEDNESDAYS ANSWER

22 Big galoots
23 Counterfeit
28 Writer Leonard
29 Taken the wrong way
30 Great weight
31 Dawn goddess

2016 Universal Uclick

35 Bookies concern
36 Hunt for
37 Goals
38 Owned
39 Hubbub
40 Cartoonist Chast

1-14

@MAGNUM_PH INSTAGRAM ACCOUNT

8/S2

THURSDAY, JANUARY 14, 2016

Texas Roadhouse, Dennys,

and Moes opening this year
THREE POPULAR US restaurants Dennys, Moes Southwest Grill, and Texas Roadhouse
are coming to the Philippines
this year.
The restaurants will be
brought here by The Bistro
Group, which already holds the
Philippine franchise for TGI
Fridays, Buffalo Wild Wings,
Bulgogi Brothers, and Italiannis,
among others. Store openings for
previously held concepts are also
being planned for this year.
Dennys (founded in 1953) has
about 1,700 locations worldwide,
from the US to Japan, while Texas
Roadhouse (founded in 1993) has
more than 400 locations, stretching from the US to the Middle
East. The youngest player in this
trio, Moes, was founded in 2000
and already has more than 500
locations, including some outside
the US, in places like Turkey and
Russia. Dennys is known as an
all-day diner, Texas Roadhouse is
a steakhouse, and Moes ventures
into Southwestern territory with
Mexican-American dishes.
The Bistro Group started more
than 20 years ago with TGI Fridays. Last year, it opened the first
Buffalo Wild Wings restaurant in
the Philippines and in Asia.
While the company acquired
the concepts last year, Bistro
Group President and COO Jean
Paul Manuud said that they are
opening this year since the locations for these three brands had
just recently materialized. Thats
why were just opening this year.
He was referring to the Uptown
Mall in Bonifacio Global City,

BISTRO GROUP President and COO Jean Paul Manuud

which had only been recently
built. You see the buildings, the
cranes... a lot of things are happening in this area that [are] still
unserved, or underserved... we feel
our presence here would do very
well to tap this market, he said.
Bringing foreign food concepts
to the country brings with it some
challenges and some new ground
to play around and explore: for
example, rice is offered at Buffalo
Wild Wings in the Philippines,
but not in the US. We are not

changing the concepts, were

not changing the recipe; but we
tweak... [its] palate, Mr. Manuud
told BusinessWorld at the sideline
of a press conference last Tuesday. I call it, operating globally
with a regional relevance.
[As] Filipinos, we like strong
flavors, we like salty; we like spices, you know? So in that aspect,
we tweak [the recipe]... a little bit,
in [the] spice or salt level, but we
keep the same ingredients and
recipes, he added.

The palate of Filipinos has

evolved... Filipinos are welltraveled, he said, discussing the
changing palates of the Filipino
consumer, now more attuned to
global cuisine. As a company, we
strive hard to evolve [our concepts] also... we have maturing
brands like [TGI] Fridays, but
we continously evolve that brand
as far as product offerings, the
look of the restaurant [are concerned]... its also very important... [to]... tap the milennials.
Of the many restaurant concepts in The Bistro Groups portfolio, Mr. Manuud only recalls
one being a homegrown brand:
Krazy Garlik. Most of the other,
he said, are concepts from Japan,
Korea, and Singapore, among other countries. We will continue
to expand these restaurants and
open more restaurants. As we do
that, we are focusing on acquiring more... Western or American
brands, said Mr. Manuud.
What we have realized is [that]
our strength is more on execution.
We are very strong in executing
brands... [that] have [an existing]
culture, [which] have systems already, rather than developing our
own homegrown concepts.
Theres so much stress; we
stress our people. Theres so
much birth pain [that goes] into
it, he said about developing
homegrown concepts. Our core
competence is not to develop
concepts or restaurants. We are
very rock solid [in] execut[ing]
concepts, meaning, we are more
successful when its franchise[d]
concepts. Joseph L. Garcia

Make your own ice cream bar

CHOCOLATE IS love. And chocolate, like
love, is sweeter the second time around.
Magnum Manila proves this and offers more with the opening of its
second pop-up ice cream parlor at SM
Mall of Asia.
After Magnum Manilas flagship
store at SM Aura closed down on July 26
last year all Magnum Pleasure Stores
around the globe shut down after a year
or so the second concoct-your-own
ice cream store comes back with more
toppings to choose from. It opened to
the public on Dec. 19.
While first store in Taguig was a restaurant with other choices on the menu
besides ice cream, the store at MOA is
smaller and specializes only in sweets.
This is how the Magnum Pleasure Stores
around the world work, said brand manager Andrea Huang. The ambiance may
have changed, but the flavors didnt.

CHOOSE YOUR FLAVORS

How does the make-your-own-Magnum

work? Customers are asked to choose a
naked bar, which comes in vanilla or
Belgian chocolate flavors. To clothe
to the naked bar, choose from white
chocolate, milk chocolate, or dark
chocolate coatings.
One then has to choose from among
18 toppings: pistachio nuts, dried rasp-

berries, chili flakes, queso de bola, dried

mangoes, Nerd candies, dark chocolate
crunchies, white chocolate crunchies,
corn flakes, potato chips, sea salt flakes,
Graham crackers, Oreo cookies, Parmesan popcorn, marshmallow, caramel
balls, dried almonds, and pastillas (milk
candies). The customer can only choose
three toppings. An order costs P120.
Finally, one has to choose among
white, milk, or dark chocolate drizzle.
Then an M shaped coin is put on top.
Voila! Its ready to eat.
The flavors go from conventional to
unusual and gourmet. But I assure you,
there are no bad combinations, Ms.
Huang told BusinessWorld. She said she
like hers dark, with dried raspberries,
pistachios, and pastillas on top.
This writer tried an unconventional
combination. Who knew dark chocolate
ice cream with chili flakes, Parmesan
popcorn, and Nerd candies go well
together? The sour Nerd candies
complement the sweetness of the ice
cream bar. The Parmesan popcorn adds
a tinge of salt and the chili flakes adds a
spicy punch.
The best thing about creating your
own ice cream is you have something
to look forward, especially during summertime. (This writer plans to try
Magnum, S2/7

VOL XXIX ISSUE 119 ISSN0116-3930

Thursday, January 14, 2016
In partnership with
Brought to you by

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Hollywood shoots for

stars with virtual reality
By Matthew Garrahan and Tim
Bradshaw

When 21st Century Fox released

The Martian last autumn, audiences flocked to watch Matt
Damon portray a scientist left
to fend for himself after being
marooned on the red planet.
This year, fans of the film will
have the chance to go one step
further: they will be able to try
on Mr. Damons spacesuit for size
by donning a virtual reality (VR)
headset and buying an immersive
experience developed by Foxs
innovation lab.
The project is a blend of interactive video game and old-fashioned film storytelling.
It is also one of the first commercial VR efforts to come out of
Hollywood, an industry looking
to create new revenue streams
as it grapples with the transition from physical media, such
as DVDs and Blu-rays, to a more
digital-centric business model.
The Martian VR launch is also
indicative of how media companies are circling a technology that
has generated the most enthusiasm in the video gaming industry.
It is a new platform and could
be a new form of media, says
Mike Dunn, worldwide president
of Fox Home Entertainment.

We didnt want this to be a

marketing tool. We want it to be a
commercial endeavor that we can
sell. In order to do that consumers have to want to use it again
and again.
The Martian is Foxs second VR
project after the company produced a short companion piece to
its film Wild last year.
Other studios are also ramping up their VR production. Sony
Pictures has developed a piece
pegged to the home entertainment release of its film The Walk
and produced another to promote Goosebumps, a recent film
starring Jack Black.
The premiere of The Martian
VR experience at the Consumer Electronics Show this
week underlined the event as a
coming-out party for the new
technology. Attendees formed
long queues to try the latest
games from Oculus Rift, the VR
company Facebook bought for
$2 billion in 2014, and ride a
virtual roller coaster complete with moving chairs at
Samsungs Gear VR stand.
But there was widespread surprise when Oculus announced at
CES that its Rift headset would
cost $599, far higher than the
$350 price at which Oculus had
sold prototype headsets to de-

velopers. This comes on top of

having to buy a compatible PC,
which start at about $1,000.
Oculus Rift is priced well
above video game consoles, says
Colin Sebastian, an analyst at
Baird research.
As such, we expect the installed base of high-end VR
platform to ramp up gradually,
and not penetrate the mass market likely until 2017-18 as price
points fall below $400.
Film and television content
could play as big a role as video
games in pushing adoption of
the new technology, according
to Mike Vorhaus, president of
Magid Advisors, a research company that surveyed consumers
about VR. Film and television
ranked as most popular forms of
potential VR entertainment
even among gamers.
VR technology has won admirers from across the media spectrum. Laura Desmond, global
chief executive of Starcom Mediavest Group, the marketing and
advertising group, says brands
are preparing to jump into the
new technology but trying to
figure out how to use it most effectively.
They are curious about it and
they are engaging with content
producers, she says.

There are small pilot tests going on across our client base.
The New York Times has developed VR projects backed by
advertisers. In November it gave
away 1m Google Cardboard VR
headsets with its Sunday edition
and it has produced nine films:
four were made by its editorial department and five were
branded content productions
developed with advertisers,
including GE and the Mini car
group.
We c a n t e l l c o m p e l l i n g
and immersive stories with
this technology, says Mark
Thompson, chief executive, who
pointed to the VR films commissioned by the paper, such as
a piece from a refugee camp for
Syrian refugees.
Weve shown that we can get
people to use the VR devices in
ways which work for them and
which work for our advertisers.
Media groups are beginning to
back their interest in VR with
hard cash. Walt Disney was
among several companies in September to invest in a $65-million
fundraising round for Jaunt, a
Silicon Valley-based VR group.
Thomas Tull, founder and chief
executive of Legendary Entertainment, the studio behind the
Hollywood, S3/2
AFP

Post-industrial revolution
By Ed Crooks

General Electrics latest technology for

boosting manufacturing productivity is a
gadget that feels like it would be more at
home in an amusement arcade or theme
park than in an industrial laboratory.
At the groups global research center in
Niskayuna, New York, you can enjoy the
sensation of flying around its steam turbine
plant in Schenectady, six miles away.
A virtual reality 3D scan of the plant, accurate to every last machine tool and piece
of pipework, is projected onto a screen and
special glasses. Using a PlayStation-style
controller, you can move around the factory floor, swooping over assembly lines or
hovering over a stack of components.
The system is a lot of fun to use, but the
intent behind it is entirely practical: to allow
GEs engineers to work on design, layout and
workflow at its plants without actually being
there. If they want to move in a piece of new
equipment, for example, they can use the
simulation to see if it will fit. The systems
for collecting and analyzing manufacturing
data fitted in at least 75 of GEs 590 plus
factories can cut costs by 15% or more, say
company executives.
The technology is just one part of a radical overhaul designed to transform the
123-year-old group into what Jeff Immelt,
chief executive since September 2001, calls
a digital industrial company. At its core is
a drive to use advances in sensors, communications and data analytics to improve performance both for itself and its customers.
GEs products such as aero engines, power
generation equipment, locomotives and
medical scanners are being made part of the
internet of things intelligent connected
devices that can transmit information and
receive instructions and the company
is building new capabilities in software to
understand and manage those machines.
The potential rewards for success are
enormous for a group that has sold off large
chunks of its business to refocus on its industrial operations.
It is a major change, not only in the
products, but also in the way the company
operates, says Michael Porter of Harvard
Business School. This really is going to be a
game-changer for GE.
If it fails, however, it could prove a decisive
factor in hastening a further break-up of the
group.
The power of the industrial internet of
things is only just starting to be explored.

Companies in areas from manufacturing to

energy, transport, and mining collect huge
volumes of data, but use only a fraction of it.
If GE can succeed in finding ways to use
that information to cut its costs and raise
the productivity of its products and services,
it could gain a critical competitive advantage
over rivals such as Siemens, Mitsubishi,
United Technologies and Rolls-Royce. It
also aims to create an important new source
of income from cutting costs and boosting
productivity for other companies, even if
they are not using GE equipment.
Entering this world, however, is also
bringing GE new competition. In setting
itself up as a software business that can
help other industrial groups reap the benefits of the internet of things, GE will be
taking on Microsoft, Amazon, IBM, Oracle
and SAP.
GE is drag-racing with the best technology companies in the world, says Frank Gillett of Forrester Research. Kudos to them
for trying, but I think they will find it harder
than they think.
Getting out of finance
In April, GE embarked on one of the most
radical changes in its history, saying it would
sell about 90% of GE Capital, the financial
services unit that just a couple of years ago
provided about half the groups $14-billion
earnings.
That decision was welcomed by analysts
and investors its shares, after lagging behind the wider market for most of Mr. Immelts tenure, have risen 17% in the past 12
months. The crisis of 2007-09, which forced
GE to cut its dividend and lose its triple-A
credit rating, convinced many of the businesss potential for disaster.
The regulation that followed, placing additional burdens on GE as a systemically
important financial institution, meant that
even in good times the returns on capital
looked unattractive.
Yet while financial services might have
been a dangerous artificial stimulant, there
is a big question about how fast GE, can grow
without them.
When Jack Welch, Mr. Immelts predecessor, took over GE in 1981, it was viewed by
many as a GDP company: the kind of big,
boring business that grows only as fast as the
gross domestic product.
To avoid that tag Mr. Welch pushed into
financial services and other businesses
that could grow more rapidly. Without that
Revolution, S3/2
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S3/2 Thursday, January 14, 2016

The Financial Times Limited [2012]. All Rights Reserved. Not to be redistributed, copied or modified in anyway. (The client) is solely responsible for providing this translated content and the Financial Times Limited does not accept any liability for the accuracy or quality of the translation.

Hollywood,
from S3/ 1

Godzilla and Pacific Rim films,

put money into Magic Leap,
which is developing immersive
VR experiences.
Elisabeth Murdoch, the former
head of TV production company
Shine, is one of several people to
have invested in Vrse, a technology group started by VR pioneer
Chris Milk.
Mr. Milk says Vrse, which
includes a production studio
and viewing technology, is aiming at an untapped market of
hundreds of millions of smartphone owners.
What we need is a breadth
of content that we dont have in
cinematic VR right now, he says.
That is the missing piece of the
puzzle.

Much of the investment from

Hollywood has come in the form
of promotions for theatrical releases or experiments in the new
medium, which were distributed
for free.
VR production costs are typically higher than making a regular short film or music video, according to Mr. Milk.
What youre not seeing is
anyone making cinematic virtual
reality where there is a path to
recoup the investment, he says.
That is the way that good
television is funded [and] that is
what Fox has planted a flag with
The Martian. They as a studio
have now financed something
that they expect to recoup their
investment on, he added.

Thats a shift in the tides and

its needed for the industry to
blossom.
Mr. Milk, a friend of James
Murdoch, Foxs chief executive,
showed a VR demo to a group
of the media groups executives
last year.
Mr. Murdoch is a convert to the
potential of VR.
There are filmmakers who talk
about virtual reality as sort of an
empathy machine, and I think
thats a very powerful notion, he
said recently.
We will have entertainment
thats indistinguishable from reality really soon.
Mr. Milk says Fox and Annapurna Pictures, the company
behind films including Joy and

American Hustle, are the most

ambitious in Hollywood in their
VR experiments.
Whats really interesting
about The Martian experience is
that they plan to charge for it,
he says.
For some analysts, Hollywoods
role in bringing VR technology to
the masses is inevitable.
What Hollywood brings to
this is massive expertise in
traditional storytelling and
a huge library of intellectual
property, says Dan Cryan, a
senior analyst with IHS, the
research firm.
VR is a new medium that brings
together Hollywood and
video games in a way that
we havent seen before.

Ground control
Virtual reality technology can immerse the user into a different
time or place.
And what could be more different than a trip to Mars?
The new VR project from 21st Century Fox was created in conjunction with Ridley Scott, who directed The Martian.
The films VR experience gives the user a set of challenges
similar to those tackled by Matt Damons character in the movie,
such as driving a Mars rover over the planets rocky surface.
Mr. Scott produced the VR project. Having his thumbprint on
it connects it tightly to the movie, says Mike Dunn, worldwide
president of Fox Home Entertainment.
The studio plans to build a release slate of VR films and has
licensed 100 titles to the Oculus platform.
Two years ago VR was looked at very much as a games
platform, he says.
But its going to be much more than that.

WWW.GE.COM

Revolution,
from S3/ 1

business, GE faces the prospect

of returning to GDP rates of
growth.
With a market capitalization of
$250 billion GE is one of the most
valuable brands in the world. The
group employs over 300,000 people and its most profitable sectors
last year were power equipment
and aviation which both contributed about $5.5 billion.
However, the slowdown in the
world economy, and the fall in
commodity prices that has hit
GEs businesses providing equipment for oil production and
mining, mean that the groups
earnings per share are expected
to have dropped by 21% last year.
Brian Langenberg, an industrial analyst who chairs the business school at Aurora University
in Illinois, expects GEs organic
sales growth from now on to be in
line with global GDP, forecast by
the International Monetary Fund
to be 3.6% this year.
The industrial internet, however, offers GE a hope of escaping
that uninspiring prospect. The
falling cost and rising power of
sensors, communications devices
and data processing mean that just
about any product can be made
capable of sending and receiving
information and commands. The
internet of things is best known
today for consumer applications
such as fridges that can order your
groceries. The more important
applications, however, are likely
to be in industry.

By 2025 the economic benefits

of the internet of things could be
$11.1 trillion a year, according to
the McKinsey Global Institute.
It estimates that about 40% of
those benefits could come in factories and work sites such as oilfields, with transport and urban
infrastructure accounting for a
further 30%.
Big business
Marco Annunziata, GEs chief
economist, believes that as companies work out how to exploit
the potential of the new technologies, it could unleash a new productivity revolution in industry.
Since 2010 productivity in US
manufacturing has stagnated,
rising just 1% a year compared
with the annual 4% growth in
the previous two decades. Mr.
Annunziata says the industrial
internet could help bring back
those higher rates of growth.
The first ICT revolution came
in the 1990s: using computers
as ways to gather and organize
information. Now we are literally
making machines more intelligent, he says.
This tying together of the digital and the physical is something
we have never seen before.
He cites mining companies,
under huge pressure to cut
costs because of weak commodity prices, as an example
of businesses that are keenly
interested in the potential of
the technology.

They already record large

amounts of data Teck Resources of Canada says it has
200 sensors on every mining
truck and if they can analyze it
properly they can discover ways
to improve efficiency, such as
predicting more precisely when
failing parts need to be replaced,
reducing the time when expensive machinery sits idle.
GE says that at one of its mining
customers, trucks that were previously available for use 70% of
the time are now available 85%.
Jim Heppelmann, chief executive of PTC, a software company
that works with GE and other
manufacturers, says that sort of
boost to productivity represents
a critical competitive advantage.
If you have a 10% to 20% cost
advantage on a product with 3% to
5% margins, youre going to walk
all over the competition, he says.
GE executives believe it can be
in the vanguard of this revolution. The company is spending $1
billion a year to boost its digital
capabilities, hiring 1,000 software
engineers and data scientists and
setting up a new data analytics
center in San Ramon, California,
just across San Francisco Bay
from Silicon Valley.
In the next month, it is expected to launch Predix, its software
platform for managing and analyzing industrial data.
In industry, there is a lot of
stuff that people dont know how
to find and dont know how it

is performing, says Beth Comstock, who leads new business

development at GE. We can analyze how it is performing, [and]
we can predict what will happen.
That analysis will be applied to
both GE products and to those
made by other companies. A
modern locomotive is a rolling
data center, as Mr. Immelt puts
it. By analyzing that data and
cross-referencing with its rail
traffic management system, and
sending instructions to trains,
GE can squeeze out an extra mile
per hour of speed for US railway
operators worth $200M per year
in extra profits.
Similarly, Toshiba is working on
a pilot project with GE to develop
an application for installing, operating and maintaining lifts.
GE expects the use of Predix to
grow rapidly, with 500,000 products under management by next
year. Ms. Comstock argues that
many customers will want GE to
provide them with an integrated
package of products and services
to deliver specified outcomes,
with data analysis a central part
of the package.
So far GE is the industrial company that has made the strongest
commitment to the industrial internet, although other manufacturers such as Bosch of Germany
and Frances Schneider Electric
have also been starting to explore
it. Siemens, GEs main European
rival, has announced only tentative initiatives.

Friends and family

GE accepts it is facing stiff
competition in data analysis
from specialized software companies. It argues, however, that
rivals start from a position of
weakness because they do not
have the same understanding of
industrial machines.
The domain knowledge for
this is hard to come by. It is held
by a small number of people,
says Bill Ruh, head of GEs global
software operations. We are the
best of the best, because of what
weve done in combining physics
and analytics.
For all Mr. Ruhs confidence,
grafting a world-class software
business onto an industrial conglomerate is not easy.
In its attempt to rebrand itself
as the digital company thats also
an industrial company, GE has
been running adverts showing a
young software engineer trying
to explain his new job at the company to family and friends.
In one, his friends are unimpressed by what he does for
power plants and hospitals, but
enthuse over another engineer
who is working on the app where
you put fruit hats on animals.
It is funny because it is true: the
gulf between the cultures of Palo
Alto, California and GEs headquarters in Fairfield, Connecticut
is wide.
They should not underestimate the challenge of reinventing
themselves as a digital company,

Mr. Heppelmann says. Silicon

Valley is a very special place in
terms of its culture, its star system, its remuneration. Thats
something GE cant bring.
It is not just in terms of recruitment that Silicon Valley poses a
threat to GE.
GE is in a race to capture customers before the likes of Amazon get better at meeting industrial requirements, and before
customers get comfortable about
using them, says Mr. Gillett.
Establishing General Electric
as a leading company in the
industrial internet would be a
crowning achievement for Mr.
Immelt, who for much of his time
at the top of GE has labored in
the shadow of Mr. Welch. If the
strategy fails, however, it will be
his failure.
The arrival of its first activist
investor Nelson Peltzs Trian
Fund Management last year revealed a stake of just under 1%
could also prove problematic.
While broadly supportive of Mr.
Immelt, Trian has urged him to
do more to raise profit margins,
and it is clear that its amicable
tone could sour.
If the costly bet on the industrial internet fails, then so will
GEs dreams of achieving growth
through technological leadership.
A less glamorous future of
deeper cost cuts, lower levels of
investment and perhaps
a further breakup would
await.

EDITOR FRANCISCO P. BALTAZAR

THURSDAY, JANUARY 14, 2016

World Business

S3/3

Personal computer shipments plunge but Apple bucks trend: IDC

SAN FRANCISCO Last year
ended with a record-setting drop
in personal computer (PC) shipments, with Apple bucking the
trend, a report found on Tuesday.
The International Data Corp.
(IDC) calculated that some 71.9
million PCs were shipped worldwide in the final quarter of 2015, a
10.6% drop from the same period
a year earlier.

The PC market faced challenges including competition

from smartphones and tablets,
and people waiting longer to buy
new machines, according to IDC.
The PC market remains competitive and the economic environment weakened further with
the recent drop in the Chinese
stock market, IDC Worldwide
PC Tracker Vice-President Loren

Loverde said in a statement.

However, PC replacements
should pick up again in 2016, particularly later in the year.
Mr. Loverde expected an increase in the pace of businesses
upgrading to computers powered
by new-generation Windows 10
software.
Consumers should also be motivated to upgrade to new PCs

for security and performance

improvements, according to IDC.
The free upgrade path to Windows 10 allowed some consumers
who might otherwise have shopped
for new PCs during the holiday
season to obtain a new PC experience, said IDC devices and displays
research director Linn Huang.
Additionally, the launch of the
iPad Pro may have siphoned off

some consumer interest in traditional PCs.

Chinese computer maker
Lenovo maintained its top position in the market, shipping
nearly 15.4 million PCs in the final
quarter of last year, according to
IDC.
US rivals HP and Dell were
second and third, shipping approximately 14.3 million and 10.2

million PCs respectively, the report showed.

Apple saw its position improve,
with shipments climbing 2.8% to
some 5.66 billion in a year-overyear comparison, according to
IDC.
The report listed Apple and
Asus as essentially tied for four
place in the market in the quarter.
AFP

Can car crashes

become thing of past?
Automakers say its
closer than you think
DETROIT Automakers are
imagining a world where nobody
dies in car accidents and they
say it is closer than most people
think.
While they maintain that the
real solution to a crash-free world
lies in self-driving cars, a host
of high-tech safety features are
making drivers safer and better
in the meantime.
The long-term vision is that
cars shouldnt crash, Volvo
spokesman Jim Trainor said on
Tuesday on the sidelines on the
Detroit auto show.
Volvo which has built its
reputation on safety leadership
has set a goal that by 2020 nobody
will be killed or seriously injured
in its new cars.
The past decade has seen dramatic development by various automakers in the field of collisionavoidance technology.
Blind-spot detectors now
watch for oncoming vehicles,
adaptive cruise controls reduce
speed based on cars ahead, and
camera systems warn drivers
when they drift out of their lanes.
Detectors can even pick up on
a drowsy drivers subtle changes
in behavior to indicate its time
for a break.

FRUSTRATION-FREE IS KEY

The key to making new safety features desirable to drivers is ensuring that they assist rather than
irritate, Mr. Trainor said.
If it false brakes too often,
people get frustrated and they
turn the system off, he told AFP.
We need to calibrate the system
so it gives the driver every last
possible moment to take action.
In addition to accident avoidance, Volvo is developing systems
that reduce injuries when crashes
are inescapable.
Among these is a rear impact
mitigation system which senses
if a car is approaching too quickly
and preconditions the interior
for impact by tightening seatbelts
and engaging brakes.

SAFETY FOR THE MASSES

Initially reserved for high-end

luxury vehicles, the cost of safety
technology is falling and finding
its way into lower-priced automobiles.
The new Ford Fusion, which
the automaker introduced at the
Detroit auto show on Monday,
contains 20 driver-assistance
technologies including a pedestrian-detection system and a
steering wheel that vibrates if a
driver begins drifting from the
lane.

As we release more vehicles I

think youll anticipate a lot of migration across the lineup, Ford
spokesman John Cangany told
AFP.
Genral Motor (GM) unveiled
a new rear-door monitor in its
GMC Acadia crossover on Tuesday that reminds drivers to check
the back seat for children before
leaving the car.
The safety feature will eventually be included in all of its models.
Too many children are accidentally left behind in vehicles,
Mark Reuss, head of product
development at GM, said while
introducing the feature.
GM is the first automaker to
use the alert system and is working on technology that can detect
if a child is left behind.
About 30 to 40 children die every year in the United States from
heat stroke after being left in a
hot vehicle, most because their
distracted parents simply forgot
they were still in their car seats.
Obviously we want to protect
our customers, Rich Latek, who
heads marketing for GMC, told
AFP.
Were really looking at a goal
to end up with zero collisions and
zero fatalities. Its a lofty goal but
its something thats possible with
the technology thats out there.
Meanwhile Toyota recently introduced a new suite of features
called Safety Sense which will be
offered on nearly all models by
2017.
When first introduced on Lexus vehicles it cost an additional
$6,000. Toyota has now managed
to bring the price down to $300 to
$630, spokesman Mike Kroll said.

SCANDALS HIT CONFIDENCE

Despite the science fiction-like

advancements in safety technology, a slew of scandals has undermined trust in the reliability of
vehicles.
Monday saw the first civil trial
over a deadly ignition switch defect which GM hid from safety
regulators for more than a decade and is linked to at least 124
deaths.
Automakers are still working
to replace potentially explosive
air bags by Japanese supplier
Takata in 19 million vehicles in
the United States.
And Fiat Chrysler and Toyota
have each become embroiled in
scandal and handed millions
upon millions of dollars in fines
over improperly handling or even
covering up defects in millions of
vehicles. AFP

REUTERS

THE CHARGING PORT on a BMW 330e is shown as the car is displayed at the North American International Auto Show in Detroit, on Jan. 12.

Auto industrys green push

challenged by low gas prices
DETROIT Beneath the hoods
of the cars showing in Detroit this
week lie engines that are as powerful as ever, but are smaller and,
helped by direct injection, guzzle
less gas.
Automakers have subbed out
stainless steel for aluminum and
other lighter-weight materials,
and added more gears to let engines run in sweet spot mode
more often, so that their cars and
trucks can save money on fuel
and emit less climate-harming
pollutants.
But with gasoline prices now
nearly half of what they were just
two years ago, the question is, do
consumers care?
Or will a surge in sales of higher
fuel-consuming cars and trucks,
especially sport utility vehicles
(SUV), erase recent efficiency
gains on US roads?
The improvements to gasoline-based internal combustion
engines that automakers have
made show how greater efficiency has been mainstreamed
throughout the industry, and
not just on the electric and hybrid cars that steal most of the
glory.
Under pressure from government regulation, fuel economy in
US cars has risen 26% since 2004,
according to the Environmental
Protection Agency (EPA).

SIGNS PROGRESS IS FLAGGING

Yet there are signs of flagging

progress. Fuel economy for the
fleet overall was unchanged at
24.3 miles per gallon in 2014, the
last year with full data, according
to the EPA report.
Data from the University of
Michigan Transportation Research Institute suggest fuel economy fell in 2015, with a significant
drop in the last months of the year.
With gasoline prices so low,
customers appear less pressured
to buy more fuel-efficient cars,
not to mention electrics and hybrids.
Of the 17.5 million cars US automakers sold in 2015, less efficient
pickup trucks and SUVs dominated the market and grew much
faster in sales than other types.
You hear a lot of noise about
demand for hybrids not being
so big, Honda Executive VicePresident John Mendel said at a
launch Monday of its Ridgeline
pickup truck.
When (gasoline) was four or
five bucks a gallon, everybody
was clamoring for anything a
hybrid, something to take the
sting out.

FOCUS SHIFTS TO SUVS, PICKUPS

To boot, Bill Fay, group vicepresident and general manager at

Toyota, said his company has low-

REUTERS

fruit have been implemented,

said Wade Newton, a spokesman
for the Alliance of Automobile
Manufacturers.
You need more and more
advanced technology to meet
ever-increasing fuel economy
standards, Mr. Newton said.
Others say there is still lots of
potential.
Theres lots of room to get
efficiency from these engines
before we get rid of the internalcombustion engine, said General
Motors Executive Vice-President
Mark Reuss on Tuesday at a
launch of the new GMC Acadia
SUV, which weighs 700 pounds
(318 kilograms) less than the version it replaces.
Still, automakers say they are
not counting on the government
to walk back the fuel targets.
Its a poor bet to base your
business case on somebody
changing the rules at the last
minute, noted Honda Executive
Vice-President John Mendel.
Toyota, which has enjoyed the
profitable surge in truck and SUV
sales, has also unveiled a revamped
Prius and in October launched the
Mirai, a fuel cell vehicle.
Were starting to get ready for
a world that doesnt have any more
gas engines by 2050, Mr. Fay told
AFP. Long way away but investing in that today. AFP

Google reveals self-driving car slip-ups in test period

SAN FRANCISCO Google on Tuesday said that while
its self-driving cars have safely driven more than a million miles, there have been times when humans have
had to take over to avoid crashing.
System anomalies caused drivers to take the
wheel 272 times in California test cars in the 14 months
leading up to December, Google said in a report to the
California Department of Motor Vehicles.
The test period saw cars travel more than 420,000
miles (676,000 kilometers) across the state.
There were an additional 69 occasions when drivers
seized control from automated systems based on their
own judgment calls, according to the report.
The most common cause for intervention occurred
when technology did not properly sense a real-world
situation, the report indicated.

FORD MOTOR CO. Chief Executive Mark Fields holds up a new Velodyne LIDAR
sensor at the Ford press conference at the Consumer Electronics Show in Las
Vegas, on Jan. 5. Ford said it will begin using a new, lower cost LIDAR sensor
made by California-based Velodyne. The high cost of such sensors, which act as
the eyes of a self-driving car, is one of the main technical obstacles to widespread
commercialization of self-driving vehicles, industry executives say.

ered production of some fuel-efficient models, while taking steps

to lift output of SUVs and pickups.
Government pressure since the
late 2000s to improve fuel consumption has spurred the gains.
President Barack Obama has set
the goal of cars getting 54.5 miles
per gallon (4.36 liters per 100 kilometer) in 2025, compared to about
29 miles per gallon in 2014.
Compliance is determined on
gains of individual models and
also whether the average efficiency of an automakers overall fleet
is improving enough.
Trucks and SUVs are not expected to get the same mileage as
sedans and subcompacts, only to
improve their mileage each year.
The result has been not only
an unprecedented number of hyper-efficient electric and hybrid
vehicles in the US fleet, but also
the significant improvements in
gas-powered cars.
But with trucks and SUVs now
dominating sales, automakers
have to keep improving the performance of those vehicles.
Some industry officials gripe
that many of the easiest and
cheapest changes have already
been made, and meeting the 2025
targets will be hard.
Achieving gains has become
more difficult now that the easiest changes the low-hanging

TREND LOOKS GOOD

Google then plays out these situations on a simulator

to reveal whether the vehicle would have hit something
had the human not taken control, according to Chris Urmson, head of the Internet giants self-driving car team.
Simulations determined that 13 of the 69 driverinitiated disengagements would have resulted

in crashes if the car had been steering, the report

indicated.
Two of the incidents involved traffic cones and
three were blamed on reckless driving by someone in
another vehicle.
Eight of the near-misses took place over the 53,000
miles traveled in California in 2014, while only five happened as the cars logged a hefty 370,000 miles during
the 2015 part of the trial, according to Mr. Urmson.
This trend looks good, he said.
Mr. Urmson cautioned, however, that the number
could actually rise as Google self-driving cars are tested
in trickier environments such as dangerous weather or
traffic.
On our test track, we run tests that are designed to
give us extra practice with rare or wacky situations, Mr.
Urmson said.
Engineers also use a powerful simulator to generate
scenarios and variations on circumstances.
Thanks to all this testing, we can develop measurable confidence in our abilities in various environments, Mr. Urmson said.
This stands in contrast to the hazy variability we
accept in experienced human drivers never mind the

16-year-olds we send onto the streets to learn amidst

the rest of us.
Mr. Urmson was not ready to declare self-driving
cars safer than those controlled by humans, but
believed Google was making progress toward getting
them to market.

DRIVERS STILL NEEDED

California Department of Motor Vehicles (DMV) officials

last month proposed self-driving car regulations that would
mandate that a person be able to take the wheel if needed.
California has the potential to set precedent with its
rules for self-driving cars, and the proposed regulations were seen as sure to slow down the technologys
progression as it heads mainstream.
DMV got it exactly right and is putting our safety
first, said John Simpson, director of nonprofit Consumer Watchdog Privacy Project.
How can Google propose a car with no steering
wheel, brakes or driver when its own tests show so
many failures, he added.
Overall Googles self-driving vehicles have logged
more than 1.3 million miles (two million kilometers), the
company said. AFP

World Markets

4/S3

EDITOR WILFREDO G. REYES

THURSDAY, JANUARY 14, 2016

Energy, biotech stocks help lift

Wall St. to second day of gains
A LATE REBOUND in energy and
biotech shares helped push the
S&P 500 to a second straight day
of gains on Tuesday, while Apple
and other technology shares also
boosted the market.
The Nasdaq snapped an eightsession losing streak, with the
Nasdaq Biotech Index rebounding late, also breaking an eightday run of losses. The biotech
index, among the hardest-hit in
this years sell-off, ended up 1.5%.
Crude oil prices ended lower
after another roller-coaster session, but the S&P 500 energy
index reversed course to end up
0.4%, while shares of Exxon Mobil
jumped 2% to $75.20 and Chevron rose 1.7% to $82.15.
Technical indicators also suggested a rebound was in order,
DOW JONES

NASDAQ COMPOSITE

30 days to JANUARY 12, 2016

OPEN:

even if it is just short-lived, analysts said.

This looks to me like a technical bounce. The markets very
oversold, said Bruce Zaro, chief
technical strategist at Bolton
Global Asset Management in Boston. Until investors can fundamentally get their heads around
oil at this price, the market will
react to oil and China.
Stocks had their worst fiveday start to a year ever following mounting investor concerns
about declining oil prices and a
China-led slowdown in global
growth.
The Dow Jones industrial average on Tuesday was up 117.65
points, or 0.72%, to 16,516.22, the
S&P 500 gained 15.01 points, or
0.78%, to 1,938.68 and the Nasdaq

16,419.11 CLOSE: 16,516.22

FTSE

30 days to JANUARY 12, 2016

DJ EURO STOXX

OPEN: 4,681.54 CLOSE: 4,685.92

OPEN:

HIGH:

4,714.80 NET:

HIGH: 5,985.80 NET:

LOW: 16,322.07 PREV: 16,398.57

LOW:

4,618.03 PREV: 4,637.99

47.93

5,871.83 CLOSE: 5,929.24

LOW:

57.41

5,866.67 PREV:

5,871.83

OPEN: 17,499.12 CLOSE: 17,715.63

OPEN: 1,904.33 CLOSE: 1,916.28

HIGH: 3,099.54 NET:

37.17

HIGH:

17,717.75 NET:

496.67

HIGH:

1,921.00 NET:

3,027.49

LOW:

17,414.55 PREV: 17,218.96

LOW:

1,902.49 PREV: 1,890.86

LOW:

3,019.68 PREV:

ASIA-DUBAI

NEW YORK-WTI

(JANUARY CONTRACT)

LONDON-BRENT

(FEBRUARY CONTRACT)

(FEBRUARY CONTRACT)

DOLLARS PER BBL

30 days to January 12, 2016

30 days to January 12, 2016

DOLLARS PER BBL

DOLLARS PER BBL

30 days to January 12, 2016

Jan.
6
7
8
11
12
$/bbl 30.20 27.20 29.20 28.10 26.50

Jan.
6
7
8
11
12
$/bbl 33.97 33.27 33.16 31.41 30.44

Jan.
6
7
8
11
12
$/bbl 34.23 33.75 33.55 31.55 30.86

Average (Jan. 4-12)

Average (Dec. 1-31)

Average (Jan. 4-12)

Average (Dec. 1-31)

Average (Jan. 4-12)

Average (Dec. 1-31)

$29.26
$34.64

$33.57
$37.33

$33.94
$38.86

Source: REUTERS

picks up as oil prices near big a

options level, as buyers and sellers defend their interests. More
than 15,000 contracts traded on
Tuesday and 18,000 contracts
traded on Monday for the February contract, more than doubling
Fridays volumes.
US West Texas Intermediate
crude (WTI) fell 97 cents to settle
at $30.44 a barrel, a 3.1% loss,
after touching a low of $29.93,
which was last seen in December
2003.

The momentum is too strong

to the bearish side, even if fundamentally nothing has changed,
said Dominick Chirichella, a senior partner at Energy Management Institute.
With prices now below breakeven costs for many producers,
particularly in the once-thriving
US shale patch, and the costly Canadian oil sands producers barely
making $15 a barrel, an extended
slump has caused financial pain
to flare across the world, threat-

LME FINAL CLOSING PRICES, US$/MT

Peso/100kg

Buyer/Seller

Lag/Qzn/Luc

3,300/3,380

Coconut Oil - Crude

64.50/65.50

COCONUT OIL (PHIL/IDN),$ per ton,

CIF Rotterdam
Feb. 16/ March 16

1,140.00

March 16/ April 16

1,142.50

COCONUT OIL (US)-cents/lb

CASH

3 MOS

ALUM. H.G.

1,457.00

1,450

ALUM. Alloy

1,600.00

1,610

COPPER

4,355.00

4,352

LEAD

1,597.00

1,607

NICKEL

8,180.00

8,240

13,500.00

13,450

1,453.50

1,468

Crude CIF, NY Nola March / April

TIN

Crude FOB rail Nola March

ZINC

LIFFE COFFEE

LIFFE COCOA (Ldn)-10 MT-/ton

New Robusta 10 MT - $/ton

High
Low

Sett

Psett

Mar.

1450

1432

1448

1444

May

1479

1461

1477

1473

July

1507

1491

1507

Sept.

1533

1517

1533

High

Low

Sett

Psett

Mar.

2079

May

2083

2044

2063

2068

2047

2066

1502

July

2070

2084

2048

2067

1528

Sept.

2070

2079

2044

2062

2065

Nickel hits 12-year low

on high inventories

25.42

LONDON Nickel prices slid

to their weakest levels in over 12
years on Tuesday, amid worries
about high inventories, while
copper sunk to fresh six-and-ahalf year lows on persistent worries over Chinas economy.
Data on Tuesday showed another increase in refined nickel
inventories on the London Metal
Exchange (LME) to 437,334 tons,
a gain of 11% over the past month.
Weak demand from the stainless steel sector, the dominant
source of demand for nickel, and
a glut of supply have hammered
prices.
Analyst Ash Lazenby at HSBC
said the bank slashed nickel price
forecasts by 22%-34% for 201618, saying nickel ore stockpiles
were high at 773,000 tons and will
take about three years to halve.
We cut our price forecasts reflecting a protracted recovery as
a result of slow supply discipline
and heightened inventory levels.
LME three-month nickel,
which was the worst performer
on the LME last year with losses
of over 40%, tumbled to $8,120 a
ton, the lowest since May 2003,
before paring losses to close at
$8,220, a decline of 0.6%.
Base metals have been hit by
relentless selling pressure on
fears over economic and demand
growth prospects in top consumer China.
Benchmark LME copper hit
another multi-year low, ending

Oil trades below $30/barrel for first time in 12 years

NEW YORK Oil fell briefly below the widely watched $30-perbarrel level on Tuesday, extending a sell-off that has sliced almost
20% off prices this year amid
deepening concerns about fragile
Chinese demand and the absence
of output restraint.
Prices settled down 3%, a
seventh straight daily decline
for oil. Traders have all but given
up attempting to predict where
the new year rout will end, with
momentum-driven dealing and
overwhelmingly bearish sentiment engulfing the market. Some
analysts warned of $20 a barrel;
Standard Chartered said fund
selling may not relent until it
reaches $10.
By Tuesday, the crash had become almost self-fulfilling, with
speculators too afraid to buy for
fear of being burned by another
false bottom. The slide appeared
to first accelerate when it broke
below the $32 area around 9 a.m.
EDT (1400 GMT).
The $30 mark is both a psychological and financial threshold. In
recent days, traders have poured
money into $30 put options
for expiration in February and
March. Hedging activity usually

FOOD
COCOA ICCO Dly (SDR/mt)
2,131.45
COCOA ICCO $/mt
2,953.28
COFFEE ICA comp 79 cts/lb
109.33
COFFEE mild arabica NY cts/lb
143.44
COFFEE mild arabica Bmen/Hburg 141.31
COFFEE robusta NY cts/lb
82.17
COFFEE robusta Le Havre/Marseilles 73.54
SUGAR ISA FOB Daily Price, Carib. port cts/lb 13.92
SUGAR ISA 15-day ave.
14.52
GRAINS
(FOB Bangkok basis at every Thursday)
FRAGRANT (100%) 1st Class, $/ton
789
FRAGRANT (100%) 2nd Class, $/ton
761
RICE (5%) White Thai- $/ton
366
RICE (10%) White Thai- $/ton
363
RICE (15%) White Thai- $/ton
362
RICE (25%) White Thai- $/ton (Super) 358
BROKER RICE A-1 Super $/ton
329

LONDON METAL EXCHANGE

MANILA COPRA (based on 6% moisture)

30 days to JANUARY 13, 2016

OPEN: 3,026.70 CLOSE: 3,064.66

200.8
355.35
389.85
42.5
13.5
8.95
87
61
49
34.03
41.9
473.45
476
841.3
844
1,074.2
22.5
7
510
630

COCONUT

KOSPI

30 days to JANUARY 13, 2016

TUESDAY, JANUARY 12, 2016

METAL
COPPER Merchant,US cts/lb
COPPER No. 2 Refined, US cts/lb
COPPER Bare Bright,del US cts/lb
LEAD battery scrap, del US cts/lb
LEAD Premium, del US cts/lb
ALUMINUM Premium, del US cts/lb
ALUMINUM Alloy, spot, US cts/lb
ALU Mixed Clips, del US cts/lb
ALU Turnings, del US cts/lb
TIN Premium/Grade A, US cts/lb
TIN Premium/Low Lead, US cts/lb
PALLADIUM free $/troy oz
PALLADIUM JMI base, $/troy oz
PLATINUM free $/troy oz
PLATINUM JMI base $/troy oz
KRUGGERAND, fob $/troy oz
NICKEL Premium, del US cts/lb
ZINC Premium, del US cts/lb
IRIDIUM, whs rot, $/troy oz
RHODIUM, whs rot, $/troy oz

gained 7.6% to $45.19 after it said

it plans to separate a substantial
portion of its US retail business.
Earnings of S&P 500 companies are forecast to have declined
4.7% in the fourth quarter from a
year earlier, according to Thomson Reuters data. It would be the
second straight quarterly profit
decline for S&P 500 firms. Volume remained heavy. About 9.0
billion shares changed hands on
US exchanges, above the 7.5 billion daily average for the past 20
trading days, according to Thomson Reuters data. Declining issues
outnumbered advancing ones on
the NYSE by 1,600 to 1,470, for a
1.09-to-1 ratio on the downside;
on the Nasdaq, 1,417 issues rose
and 1,412 fell for a 1-to-1 ratio favoring advancers. Reuters

225-NIKKEI

30 days to JANUARY 12, 2016

30 days to JANUARY 12, 2016

117.65

HIGH: 16,591.35 NET:

composite added 47.93 points, or

1.03%, to 4,685.92.
Apple ended up 1.5% at $99.96
after Bank of America Merrill
Lynch analysts upgraded their
rating on the stock, while Intel
rose 1.9% to $32.68 after J.P. Morgan gave upbeat comments on the
stock.
Shares of Alcoa dropped 9%
to $7.28, a day after it posted a
quarterly net loss.
Health insurer Anthem, Inc.
finished up 5.6% at $135.60 per
share after it gave a profit forecast. It boosted shares of other
health insurers, including UnitedHealth, which gained 2.4% to
$112.26.
After the bell, shares of Ford
Motor fell 3.1% to $12.45 after it
forecast results, while MetLife

SPOT PRICES

ening corporate bankruptcies

and fiscal strain.
Benchmark Brent crude fell
69 cents settle at $30.86, after
bottoming at $30.34.
Prices firmed early in the day
after a deadly suicide bombing
rocked central Istanbul and Nigerias oil minister said a couple
of Organization of the Petroleum
Exporting Countries (OPEC)
members had requested an emergency meeting.
But they then nose-dived anew
after the United Arab Emirates
oil minister quashed talk of a possible meeting, saying the group
strategy was working. OPEC
has rejected calls by some of its
members to curb output, opting
instead to pump full throttle to
defend market share rather than
shore up prices.
Oil has tumbled nearly 17%
this year alone, the worst sevenday run since the financial crisis.
The long list of negative factors
also includes the weakening
economy and ailing stock market of no. 2 consumer China, the
rising US dollar which makes oil
more costly and the surprising resilience of US shale drillers in the
face of the price slide. Reuters

down 0.7% at $4,355 a ton, its

weakest since May 2009.
Copper briefly moved into positive territory during the session
as some investors bought back
short positions to lock in profits, traders said, but those gains
evaporated as other speculators
resumed the selling.
A revival of manufactured exports in China, which accounts
for nearly half of global copper
demand, may need a weaker yuan,
analysts say. But Chinas central
bank has other ideas, stepping
up efforts to curb bets against the
yuan. China needs to let the currency find its own level, which
could result in stronger growth
and commodity demand further
down the road, said Danske Bank
analyst Jens Pederson.
A firmer US currency also
undermined demand for metals
as it makes dollar-denominated
metals more expensive for nonUS firms.
Traders say a seasonal lull in
demand ahead of Chinas Lunar
New Year holiday was making the
weak outlook appear even worse.
Three-month aluminum,
which has been the best LME performer this year, finished down
0.8% at $1,450 a ton, the lowest
since Dec. 1 last year.
Lead bucked the weaker trend
and closed up 0.4% at $1,607,
while zinc ended 1% weaker at
$1,468 and tin dropped 1.7% to
$13,450. Reuters

Price of bullion falls as equities rebound in Europe, dollar rises

NEW YORK/LONDON Gold
fell for a third straight session on
Tuesday as a rebound in European and US stock markets undermined the metals appeal as a
haven from risk, and as the dollar
strengthened against a basket of
currencies.
Spot gold was down 0.3% at
$1,090.30 an ounce at 2:39 p.m.
EST (1939 GMT), while US gold
futures for February delivery

settled down 1% at $1,085.20 an

ounce.
The metal pared losses as US
and European shares came off
their highs when depressed oil
prices failed to sustain a rally,
while the US dollar rose for the
third straight session. The rise in
stocks suggested risk appetite is
recovering after last weeks rout.
(Were) looking for gold to
perhaps get down to the $1,055-

$1,060 level as we expect a bounce

in the equity markets to continue
on account of earnings that likely
will be no worse than estimates,
stabilizing macro readings from
a number of countries, including
China... and a possible jump in
oil, said INTL FCStone analyst
Edward Meir.
The metals early January rise
ran out of steam late last week
after prices hit resistance at their

lifted prices to two-month highs.

But generally, (we expect) gold
to be below $1,000 this year. The
market will be focused on what
the Fed decides.
Holdings of the worlds largest gold-backed exchange-traded
fund, New York-listed SPDR Gold
Shares, rose 2.1 tons on Monday,
data from the fund showed.
Among other precious metals,
palladium took the biggest dive,

100-day moving average. Gains

have been capped by concerns
over higher US interest rates.
Since the US Federal Reserve
raised rates in December, attention has shifted to how many
hikes will follow in 2016.
The Chinese stock market
crash and the unease its created...
lifted gold prices higher, Natixis
analyst Bernard Dahdah said,
referencing last weeks rally that

sliding 6.3% to a five-and-a-half

year low of $449.55 an ounce
before paring losses to $473.40
an ounce. Concerns over China
have continued to dominate pricing trends across industrial and
PGM metals since the start of the
year, Citi Research said in a note.
Silver was down 0.3% at $13.82
an ounce, while platinum was
down 1.2% at $832.95 an ounce.
Reuters
Source: REUTERS

US COMMODITY FUTURES
30 days to JANUARY 12, 2016

30 days to JANUARY 12, 2016

Dollars per ounce

CLOSE:
NET:
PREV:

OPEN:
HIGH:
LOW:

1,093.80
1,098.50
1,084.00

CLOSE:
NET:
PREV:

30 days to JANUARY 12, 2016

Dollars per ounce

1,085.60
-10.90
1,096.50

OPEN:
HIGH:
LOW:

13.86
13.86
13.71

CLOSE:
NET:
PREV:

OPEN:
HIGH:
LOW:

1.96
1.96
1.95

CLOSE:
NET:
PREV:

30 days to JANUARY 12, 2016

OPEN
HIGH:
LOW:

114.50
115.30
113.60

CLOSE:
NET:
PREV:

114.35
-0.10
114.45

OPEN:
HIGH:
LOW:

14.25
14.27
13.93

CLOSE:
NET:
PREV:

(MARCH CONTRACT)

30 days to JANUARY 12, 2016

30 days to JANUARY 12, 2016

US cents per pound

US cents per pound

US cents per pound

1.95
-0.01
1.97

WHEAT

(MARCH CONTRACT)

(MARCH CONTRACT)

30 days to JANUARY 12, 2016

Dollars per ounce

13.74
-0.12
13.86

COCOA

SUGAR

(MARCH CONTRACT)

(JANUARY CONTRACT)

30 days to JANUARY 12, 2016

Dollars per ounce

837.50
-7.50
845.00

COFFEE

COPPER

(JANUARY CONTRACT)

(JANUARY CONTRACT)

(JANUARY CONTRACT)

845.60
845.60
832.80

SILVER

GOLD

PLATINUM

OPEN:
HIGH:
LOW:

TUESDAY, JANUARY 12, 2016

14.05
-0.10
14.15

OPEN:
HIGH:
LOW:

2,875.00
2,892.00
2,852.00

CLOSE:
NET:
PREV:

Dollars per bushel

2,860.00
-42.00
2,902.00

OPEN:
HIGH
LOW:

470.25
483.25
462.50

CLOSE:
NET:
PREV:

481.25
12.25
469.00

S4/1

www. bwo r l d o n l i n e.co m

THURSDAY
JANUARY 14, 2016
VOL XXIX ISSUE 119
ISSN0116-3930

FINEX INAUGURAL
MEETING AND
INDUCTION
CEREMONIES 2016

spe ci a l f ea t u re

Heightening financial inclusion

THE FINA NCI A L Executives
Institute of the Philippines
(FINEX) holds its annual Inaugural
Meeting and Induction Ceremonies
today i n celebration of it s 4 8t h
founding a nniversa r y on Friday,
January 15, 2016. George S. Chua,
this years elected president, chose
Supporting Financial Inclusion for
all Filipinos as FINEXs overa ll
t h em e f or 2 016 t o u n d er s c or e
t he ne e d for mor e F i l ipi nos t o
be included a nd involved in the
countrys financial system.
It will enable more Filipinos to
participate in the development of the
Philippines not only as a beneficiary
but a lso as a contributor to this
development, Mr. Chua recently
told BusinessWorld in an email. As
people know how to manage their
finances, they are able to make more
intelligent decisions in terms of
investments and savings.
According to him, the lack of
job opportunities and government
policies that do not encourage or
deter economic growth such as the
high tax rate, high cost of utilities,
and the lack of infrastructure are
among the key factors that hinder
the country from being financially
inclusive.

To address these, Mr. Chua said

FINEX equips finance professionals
with the skills and network needed
to do their jobs well, and in turn, this
enables them to thrive in their field
and contribute to the profitability and
productivity of their companies.
This results to their growth and
expansion which provides for more job
opportunities for Filipinos, he said.
Of course, FINEX can also provide
training and seminars to help educate
the general public on basic financial
knowledge such as budgeting, savings,
and investments.
For his part, Ronald S. Goseco, this
years elected executive vice president,
believes financial inclusion is crucial
to include the vast majority of our
Filipino population in the economic
growth and promise of our national
development.
The base of the economic pyramid
could provide the greatest impetus to
the economic growth of the country. If
this base prospers, the countrys growth
is amplified, Mr. Goseco also said in
an email. We have to provide financial
and market opportunities to allow this
segment of the population to participate
in the economic benefits of the country.
Like Mr. Chua, he said that FINEX
helps manage these concerns by

prov iding tra ining for f ina ncia l

competence.
Mr. Chua pointed out that the
organization would like to provide
more activities for its members not
only for their professional growth
but also their personal development,
so they are planning to hold more
outdoor activities this year.
We have many activities lined up
like our Monthly General Membership
Meeting with guest speakers, our
FINEX Week and Convention, golf
tournaments, sports and recreational
activities, cultural events, seminars,
Family Day, and other joint activities
with other organizations.
Last year, FINEX championed the
theme Building Bridges Towards
Sustainable Development and held
a myriad of successful activities both
for members and the general public. In
a message published online in August
2015, outgoing FINEX president

Jaime E. Ysmael outlined some of

the recent accomplishments of the
group, including holding its Annual
SME Day with host Senator Paolo
Benigno Bam Aquino to celebrate
the National SME Month; hosting the
third SME Forum under the theme
SMEs = Inclusive Growth, which the
United States Agency for International
Development (USAID) sponsored;
holding the Mid-Yea r Economic
Briefing, which hosts three economic
briefings each year; and hosting the
11th Parangal Golf Tournament in
honor of Bangko Sentral ng Pilipinas
Governor Amando M. Tetangco.
FINEX a lso sponsored a
session during the 7th Corporate
Treasury and CFO Summit, titled
Forgetting the numbers: W hat it
takes for finance executives to focus
on the bigger picture, which had
pa r ticipa nts Mt. Grace Hospita l
CFO Ted Constantino, Ayala Corp.

AYALA AD
9x27 FC

CFO TG Limcaoco, Shell Philippines

Exploration Finance Director Jeng
Pascual, and Seaoil Philippines CFO
Mark Yu as panelists.
FINEX is a non-stock, non-profit,
non-political association that was
forma lly orga nized a nd founded
on January 15, 1968 by 12 financial
executives: Elmer D. Aguilar, Reneo
A. Albano, Edgardo Bacani, Romeo
Y. Co, Romeo C. Esteban, Ramon K.
Ilusorio, Jaime Y. Ladao, Vicente J.
Muro, Vicente Pacis, Jr., Joaquin R.
Olao, Antonio Sta. Ana, and Arsenio
J. Vistro.
Today, it is an institution known
to carr y out initiatives aimed at
fulfilling the objectives upon which
it was established, including its
primary goal of being the lead national
organization of finance professionals
and practitioners dedicated to the
advancement of financial knowledge
and expertise.

2/S4

special feature

FINEX INAUGURAL MEETING

AND INDUCTION CEREMONIES 2016

THURSDAY, JANUARY 14, 2016

Messages

The Bangko Sentral ng Pilipinas (BSP) extends its warmest greetings to the Financial
Executives Institute of the Philippines (FINEX) as you celebrate your 48th Founding
Anniversary and hold your Inaugural Meeting and Induction Ceremonies for 2016.
The BSP is pleased that FINEX has chosen Supporting Financial Inclusion for All
Filipinos as theme for these events.
As a longtime advocate of financial inclusion, the BSP welcomes the efforts of FINEX to
extend benefits from the formal financial system to as many Filipinos as possible.
With your intimate knowledge of finance and your broad membership base, FINEX is in a
strategic position to become proponents of financial inclusion in the sectors and industries
that your members represent.
Your decision to promote this advocacy is indeed very timely as it is in line with multisector efforts to improve the well-being of the unbanked under the National Strategy for Financial Inclusion.
The BSP looks forward to collaborating with FINEX in this regard.

AMANDO M. TETANGCO, JR.

Governor
Bangko Sentral ng Pilipinas
With great delight, I extend my congratulations to the Financial Executives Institute of the
Philippines (FINEX) as you celebrate your 48th founding anniversary this January.
I commend your organizations theme this year which aims to highlight the need to
support the push towards financial inclusion in the Philippines. Promoting financial inclusion
is a noble advocacy for it showcases the collective effort of the government and its partner
organizations to bridge the gap between the rich and the poor.
Please continue to be a good partner in promoting this advocacy through educating the
public and promoting financial literacy. For our part, the Commission will remain true to our
mandate to supervise and regulate the corporate and capital market infrastructure of the
country and to promote and ensure the protection of the investing public. In doing this, we
hope to create a good environment that will foster the creation of more micro, small, and
medium enterprises, and to shield the hard-earned money of investors from scams.
Again, congratulations and mabuhay!

My Friends,
It is truly an honor for me to have been elected as the President of FINEX for 2016.
Having been a member since 1992 and as a Life Member, I have many fond memories of
our organization and of course the many wonderful friends that I have gotten to know and
cherish throughout this time. FINEX is like a family to me where we not only nurture our
professional development but also our personal growth.
For 2016, our theme is Supporting Financial Inclusion for all Filipinos, to highlight
the continuing difficulties that many Filipinos face in terms of economic hardship brought
about by unemployment, underemployment and the lack of proper understanding of
fundamental financial principles such budgeting, savings and investments. Our objective
is of course to be part of the solution by doing our job as finance professionals in ensuring
the efficient financial management of our respective organizations so that we can generate more job opportunities
for Filipinos.
Our thrust also includes financial education that will not only cater to the needs of CFOs and Finance Directors
but also to have seminars and programs that will appeal to the grass roots so that they do not become victims of
various pyramiding scams and also learn how to manage their funds properly so that they can look forward to a
comfortable retirement. We would also like to be more involved in the development of MSMEs. Perhaps through
our FINEX Foundation for Entrepreneurship, Inc. we can institute more programs that will provide mentoring and
financial education particularly in the areas of budgeting, forecasting, project feasibility and credit and collection.
As a Presidential Election year, 2016 promises to be an exciting year full of hope. While FINEX is a nonpolitical organization and does not endorse any political candidate, we are aware of the impact that government
rules and regulations, legislation and court rulings will have in business, particularly in accounting and tax
matters. This is another area where FINEX can provide some technical assistance and support to whoever will
be elected into office.
It is my pleasure to be your President for 2016 and I will do my best to serve you.
Thank you for your support and confidence in me. Mabuhay ang FINEX!

GEORGE S. CHUA
President
FINEX

TERESITA J. HERBOSA
Chairperson
Securities and Exchange Commission

2016 FINEX Committees

COMMITTEES
Affiliates
ASEAN
Economic Integration

LIAISON DIRECTOR
Esther P. Magleo

CHAIRMAN
Persie Torregoza

Gaudencio
S. Hernandez, Jr.

Benedicta Du-Baladad

Audit
Capital Markets
Development
CFO of the Year
CFO of the Year Search and Selection

Eusebio V. Tan

Jaime Villegas

Consuelo D. Garcia
Grace P. Tiongco

Senen Matoto
Melito Salazar, Jr.

Grace P. Tiongco

Elections
Ethics
Finance
FINEX Week/Annual
Conference
Golden Jubilee

George S. Chua
Valentin A. Araneta
Erdulfo S. Sison

Ma. Teresita
Dimaculangan
Jaime Ysmael
Alfredo Javellana II
Exequiel Lampa

Esther P. Magleo
George S. Chua

Norie Bordador
Gregorio Navarro

CO-CHAIRMAN

VICE CHAIRMAN

Abelardo Cortez

Judith Lopez

COMMITTEES
LIAISON DIRECTOR
Good Governance
Florencia G. Tarriela
Information & Communications
Technology
Peter Wallace
International Relations
Edith D. Dychiao
Judicial Reforms
Peter Wallace
Junior FINEX
Edith D. Dychiao
Membership
Ronald S. Goseco
National Affairs
Edith D. Dychiao
Professional Development Carmen V.F. Serina
Programs and Meetings
Ronald S. Goseco
Media Affairs
Jaime E. Ysmael
Speakers Bureau
Grace P. Tiongco
Sports and Wellness
Cecilio Paul
D. San Pedro
Tax and Legal
Eusebio V. Tan
Ways and Means
Erdulfo S. Sison
Secretariat
Ronald S. Goseco

CHAIRMAN
Hilaria Concepcion

CO-CHAIRMAN

Reynaldo Lugtu, Jr.

Rosanna Quito
Santiago Dumlao, Jr.
Rene Jazmines
Stephanie Zulueta
Eduardo Yap
Ma. Victoria Espao
Loretta Mangilit
Wilma Miranda
Marybeth Delgado

VICE CHAIRMAN

Marilou Cristobal
Antonino Inumerable

Arthur Chung
Euney Marie Mata-Perez
Franklin Ysaac

George Chua elected FINEX President,

aims to push financial inclusion
By Raoul Villegas

CHINA BANK AD
5x24 FC

GEORGE CHUA likes to ride bikes. He likes

them all small ones, in-between ones, and big
ones. One thing you have to remember when
you ride bikes fast is that youve got to plan
ahead. You have to know the route and you have
to know the proper safety procedures. Thats the
paradox of being a good bike rider: these guys
arent reckless they plan ahead to be safe.
Thats the same kind of discipline that Chua
brings to his FINEX Presidency. He thinks
ahead, and he implements his plan. He scored
an landslide victory at the presidential elections
held at the board level last year and he takes over
from Jimmy Ysmael, the outgoing President.
Ysmaels theme for his presidency was
Building Bridges Towards Sustainable Development, a reflection of the outward looking
point of view given the impending ASEAN
integration. Chuas them is Supporting Financial Inclusion for All Filipinos. In a way,
Chua is building a bridge to his fellow Filipino
by offering them the tools and the education to
stave off financial ignorance.
I think it is about time that we focus on
really doing something for the Filipino people
as financial executives, Chua says. Every few
months people are victimized by pyramiding
scams, and people are taken advantage of by
unscrupulous money lenders.
The 2014 Findex Database shows that only
31% of Filipinos have access to the formal
banking system. The remainder are unbanked. This also means that the majority
of Filipinos lack basic financial literacy. Chua
talks about his theme passionately because
for those Filipinos with jobs, most live from
paycheck to paycheck. Shouldnt we look
closer to home first? he asks. Lets reach out
to our neighbors and make sure that we do our
civic duty closer to home.
Chuas concern for the common Pinoy
stems from his belief in the power of individuals to get things done. One may view him as an
optimistic pragmatist. I come from a family
of entrepreneurs, he explains. My parents
and grandparents were businessmen. I always felt it was my responsibility to get things
done. He believes that one of the highest
imperatives of the private sector is to provide
jobs to people qualified to do them.

There is a big multiplier effect in manufacturing. There are upstream industries

and downstream industries, he says. The
value chain is longer, with more value added
opportunities. He believes people need jobs,
not handouts.
Chua believes in the power of the individual, and he also believes in the power of
business to get things done. He also happens
to be the President of the Federation of Philippine Industries (FPI). While he is now in the
automotive sector, as President of Bayan Automotive Industries Corp (BAIC), he started
out as a banker. He spent 15 years as a banker
before moving to the corporate side.
My career has been more evolutionary he
says. I have held CFO positions in the past,
and I advanced to COO and CEO in my career.
He credits having gone through the finance
function, and into general management, with
giving him a broad based knowledge across
industries and functions.
Chua dispels any notion of being satisfied
with the status quo. Theres an old saying
that if something isnt broken, dont fix it he
states. He maintains this generally accepted
piece of wisdom is false. If it is the case we
will never progress, he says. Maybe you need
to fix what is broken first, but when everything is running smoothly, maybe you need to
think about whether you can do more. Chua
believes that one has to set the pace, to be the
example for others to follow.
In his career, he believes his best work has
been done during times of distress. My greatest achievements have been turning around
companies, he reveals. I have restructured
companies, stopped losses from recurring,
and made firms profitable again. He does not
claim a secret formula or process for achieving
corporate turnarounds. The first thing to do
is to assess the situation properly he explains.
Go out into the field, keep an open mind, and
see everything yourself. Only then will you get
the proper baseline information.
Given that, he is an empiricist, observing what is, rather than what he wants it
to be. Biases cloud peoples judgment
Chua explains. I try to assess the location of the bottlenecks, whether it is due to
wrong people or flawed processes. I try to
concentrate resources where they are most
effective. Our country needs more people
like George Chua.

THURSDAY, JANUARY 14, 2016

FINEX INAUGURAL MEETING

AND INDUCTION CEREMONIES 2016

2016 FINEX Board of Directors

special feature

S4/3

2016 FINEX Foundation Board of Trustees

GEORGE S. CHUA
President

RONALD S. GOSECO
Executive VP

ESTHER P. MAGLEO
VP Internal Affairs

EDITH D. DYCHIAO
VP External Affairs

JAIME E. YSMAEL
Chairman

GEORGE S. CHUA
Vice Chairman

ATTY. FRANCISCO ED. LIM

SHERISA P. NUESA

Corporate Secretary

Treasurer

CONSUELO D. GARCIA
VP Capital Markets

FLORENCIA G. TARRIELA
VP Corporate Governance

CARMEN V.F. SERINA

VP Professional Development

ERDULFO S. SISON
Treasurer

JAIME Y. LADAO
Corporate Auditor

ADOR A. ABROGENA
Trustee

ATTY. BENEDICTA DUBALADAD

Trustee

OMAR T. CRUZ
Trustee

ATTY. EUSEBIO V. TAN

Corporate Secretary

VALENTIN A. ARANETA
Director

GAUDENCIO
S. HERNANDEZ, JR.
Director

CECILIO PAUL
D. SAN PEDRO
Director

VICTOR P. DELA DINGCO

Trustee

EDUARDO V. FRANCISCO
Trustee

VICTOR Y. LIM, JR.

Trustee

CONCHITA L. MANABAT
Trustee

GRACE P. TIONGCO
Director

PETER WALLACE
Director

JAIME E. YSMAEL
Director

ANTONILO D. MAURICIO
Trustee

UNION BANK AD
9x27 FC

EDMUNDO S. SORIANO
Trustee

BENITO G. SOLIVEN III

Trustee

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