Opinion BusinessMirror
A10 Monday, October 20, 2014
Editor: Alvin I. Dacanay
editorial Why CNN Philippines and H&M are important
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WO events occurred very recently that clearly showed how the Philippines has changed, and will continue to change, for the better in the future. But first, a brief digression: Several months ago, Nine Media Corp., operator of television station 9TV, formerly known as RPN-9, became part of the ALC Group of Companies. Former Ambassador Antonio L. Cabangon Chua, the BusinessMirror’s chairman emeritus, is now the chairman of Nine Media. Last week it was announced that, beginning in January 2015, 9TV will be rebranded as CNN Philippines. The new station will allow CNN International programs to be aired on free television, as well as provide Filipino content to CNN International. CNN is the undisputed leader in global news gathering and reporting, and is available in more than 200 countries and territories. Also last week, Swedish multinational retail-clothing company Hennes & Mauritz AB (H&M) opened its first store in the Philippines, specifically in SM Megamall. H&M has stores in 54 other countries. The company generated over $20 billion last year and employs more than 100,000 people worldwide. Its fastfashion concept quickly brings clothing designs from the catwalk to the retail market. The first of six H&M stores opened to long lines of eager shoppers, despite the fact that many of the company’s offerings are very expensive, by local standards. Furthermore, the store is not some small cubicle-type operation in an expensive mall; the H&M store in Megamall measures 3,000 square meters. CNN Philippines and H&M have only one thing in common: They are both very significant and important global brands. It took H&M about four years to finally begin operations here, and this is not some joint venture with a local partner or made possible through a licensing agreement. H&M’s monetary investment is really insignificant in its big financial picture. However, a publicly listed company like H&M does not want to go back to its shareholders with a line like this: “Our stores in the Philippines? Big mistake. Sorry.” On the other hand, CNN has no financial interest in CNN Philippines, as foreigners cannot own local media. CNN will actually be paid for training local production and reporting staff. But CNN has something even more important than money at stake: its name and reputation. Imagine what would happen if there was a “CNN Thailand” during the recent military coup. It would have been shut down or taken over. Its broadcasts would have been censored. That is something CNN would never accept. Several Filipinos may have risen to great heights in international news organizations, but having CNN Philippines means Filipinos working for a Philippine company based in the Philippines, but representing and wearing the CNN logo. While the service crew at the local McDonald’s wear a multinational brand, a bad burger in Baguio City does not affect a customer in London. Bad reporting by CNN Philippines would affect the CNN brand in Atlanta, Washington, New York and elsewhere. H&M allows a high-quality global brand to come to Filipino consumers. CNN Philippines allows our country to become global news watchers and use international standards of journalism. All these considered, we must say that last week was a pretty good week for the Philippines.
BusinessMirror A broader look at today’s business Ambassador Antonio L. Cabangon Chua Founder Publisher Editor in Chief
T. Anthony C. Cabangon Jun B. Vallecera
News Editor City & Assignments Editor Special Projects Editor
Dionisio L. Pelayo Vittorio V. Vitug Max V. de Leon
Online Editor
Ruben M. Cruz Jr.
Research Bureau Head Creative Director Chief Photographer Editorial Consultant Chairman of the Board & Ombudsman President VP-Finance VP-Corporate Affairs VP Advertising Sales Advertising Sales Manager Circulation Manager
Dennis D. Estopace Eduardo A. Davad Nonilon G. Reyes Romeo M. del Castillo Judge Pedro T. Santiago (Ret.) Benjamin V. Ramos Adebelo D. Gasmin Frederick M. Alegre Marvin Nisperos Estigoy Aldwin Maralit Tolosa Rolando M. Manangan
The importance of following Lotto-ticket guidelines Atty. Jose Ferdinand M. Rojas II
RISING SUN
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AST week it was reported that a man had tried to claim a P12.39-million Lotto jackpot prize from the Philippine Charity Sweepstakes Office (PCSO) with a ticket so badly damaged that it was unreadable. In an affidavit submitted to the PCSO, Antonio Mendoza said he had bought a Lotto ticket from an outlet in Calaca town, Batangas province, for the October 2 Lotto 6/42 draw, with three six-number combinations. “ The following morning,” he said, “it [came] to my knowledge that I won in the said draw, but to my shock,” his oneyear-old granddaughter “accidentally crumpled” the ticket. Mendoza’s daughter ironed the ticket, but “to her amazement and dismay, the number appearing thereon got ‘blackened,’ rendering the numbers unreadable.” Lotto tickets are printed on thermal paper, which easily reacts to heat. The PCSO has strict guidelines for ticket-validation procedures, among them: “No ticket, no vali-
Is Asia ready for another wild ride? William Pesek
BLOOMBERG VIEW
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regional offices n DXQR - 93dot5 HOME RADIO CAGAYAN DE ORO STATION MANAGER: JENNIFER B. YTING E-MAIL ADDRESS: homecdo@yahoo.com ADDRESS: Archbishop Hayes corner Velez Street, Cagayan de Oro City CONTACT NOs.: (088) 227-2104/ 857-9350/ 0922-811-3997 n DYQC - 106dot7 HOME RADIO CEBU STATION MANAGER: JULIUS A. MANAHAN E-MAIL ADDRESS: homecebu@yahoo.com ADDRESS: Ground Floor, Fortune Life Building, Jones Avenue, Cebu City CONTACT NOs.: (032) 253-2973/ 234-4252/ 416-1067/ 0922-811-3994 n DWQT - 89dot3 HOME RADIO DAGUPAN STATION MANAGER: RAMIR C. DE GUZMAN E-MAIL ADDRESS: homeradiodagupan@ yahoo.com ADDRESS: 4th Floor, Orchids Hotel Building, Rizal Street, Dagupan City
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dation;” “Check the original ticket for signs of mutilation, i.e., torn tickets, or signs that it has been exposed to heat, water [or] oil prior to validation in the terminal;” and “ticket validation can be done through the use of the ticket [inserting it in the input hopper] or through the keyboard by entering the ticket serial number [TSN].” The TSN is among the information printed on a Lotto ticket. It is the 16-character alphanumeric code found on the lower-right portion, and is unique for each ticket sold. The other data are the name of the game (Megalotto 6/42, Grand Lotto 6/55 and so on), the chosen six-number combinations, the price paid for the ticket, the terminal code, the Lotto agent code, the draw code, the draw date, and the date
and time the ticket was purchased. There is also a bar code number that contains all the above information. As per the existing validation process of the PCSO, “online or system validation of winning tickets will be [done] through…either the TSN [manual entry or keyboard entry of TSN into the lottery terminal], or BCN [bar code scanning through the lottery terminal’s scanner].” In the case of Mendoza’s ticket, nearly all the information was unreadable by visual examination and by machine. If, at least, the TSN had remained readable, the code could have been keyed into a terminal, and the ticket could have been validated. The back of each PCSO Lotto ticket lists several game rules, one of which is this: “Prizes will not be paid if the ticket is altered, defaced, torn, damaged or has failed any of the validation tests of the PCSO.” That makes it clear to Lotto players that a damaged ticket will not be accepted. In addition to the game rules and reminders printed at the back of each Lotto ticket, the PCSO regularly reminds the public on the nightly live televised game draws to “take good care of your tickets. Do not allow them to get wet or be exposed to heat. Lotto
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ROM Ebola to debt to deflation, fear once again stalks the global economy. With bewildering speed, concerns about credit defaults, slowing demand and political instability have eclipsed exuberance over America’s falling jobless rate and Alibaba’s record-breaking initial public offering. The most-asked question isn’t where to make profits, but where to find a safe haven from the coming storm. Could it be Asia again? Sadly, unlike during the most recent global recession, even this region finds itself in an increasingly dangerous position this time around.
That’s not to say Asia doesn’t have enviable fundamentals. Even with China’s worsening data, the stalling of “Abenomics” in Japan and structural headwinds that challenge officials almost everywhere, Asia may yet ride out renewed turbulence better than the West, just as it did in 2008. If one thinks of investment destinations as beauty contestants, Asia is still, hands-down, the least ugly candidate. But the region’s growth over the last six years has been driven more by asset bubbles than genuinely
sustainable economic demand. Already, we are seeing structural slowdowns from Seoul to Jakarta. These strains will become even more pronounced as Europe’s debt troubles reemerge and the United States Federal Reserve’s record stimulus loses potency. Asian policymakers also have less latitude going forward to support growth. “A full recovery of demand in the West, sufficient to pull Asia out of its malaise, remains a distant prospect,” says Qu Hongbin, Hong Kongbased co-head of Asian economic
research at HSBC Holdings. “Rather, reviving growth in Asia, whether in China, Japan, India or anywhere in between, requires deep structural reforms: pruning subsidies, spending more on quality infrastructure, boosting education, opening further to foreign direct investments and, perhaps, most important of all, introducing greater competition in local markets. These are politically tough choices to make. But they will grow only more difficult the longer they are put off.” Admittedly, Asia has done considerable heavy lifting since the region’s own crisis in 1997. For a reality check, I consulted with Callum Henderson of Standard Chartered in Singapore, who arguably published the first comprehensive history of that period, Asia Falling. One parallel between then and now worries Henderson: a huge devaluation in the Japanese yen that pressured exchange rates around the region. But the differences are far more striking. Asian currencies are now generally unpegged; many governments have sizable current-account surpluses and huge foreign-exchange-reserve cushions; and the investor base now reflects longer-term real money, as opposed to fickle “hot” money. While risks abound, Hender-
tickets are heat-sensitive.” To make it easy to remember how to treat your Lotto tickets, think of them as cash or some other important document, like a passport. Keep your Lotto tickets in your wallet or in some other safe place where they cannot be exposed to heat, water or other things that can damage them, or be lost or stolen. nnn
THE Sixth ManilART, Manila’s hottest contemporary art fair that opened at the SMX Aura Convention Center in Taguig City on October 16, closed on October 19 on a positive note. The art fair showcased Philippine contemporary art, and 28 of the best galleries in the country participated in it. Works from Europe and Southeast Asia were displayed during the fair. One of the most popular events at ManilART was the walking tour, which provided in-depth information about the featured works, galleries and artists—a true learning experience for all those who wanted to know more about contemporary Philippine art. Atty. Jose Ferdinand M. Rojas II is the vice chairman and general manager of the Philippine Charity Sweepstakes Office.
son concludes, “This is not 1997.” Still, those risks are flaring up in hurry. What worries economist Glenn Maguire of Australia & New Zealand Banking Group in Hong Kong is how rapidly commodity prices are receding from the gains of recent years (commodity prices, in general, are at a five-year low). “Certainly, the global or regional economy does not seem to be slowing as quickly commodity prices are falling,” Maguire points out. Asia did a remarkable job steering around the worst of Wall Street’s crash in 2008. But it did so with fiscal stimulus and monetary policy that stretched national balance sheets and boosted asset prices in artificial and unsustainable ways. “We are stuck in a narrow and disappointing growth range across Asia,” Hongbin says. “The temptation is to blame the West for its tired consumers. But that is to miss the real problem. Slowing productivity growth is what really ails the region, prompting its dependence on credit to sustain demand.” Asia may, indeed, look like the least ugly region as global markets cascade lower. But it is high time policymakers looked into the mirror and addressed their own economic blemishes.