01:04.0
They are set to rebound from Friday's sell-off as traders anticipate a slew of company earnings and economic data this week
01:10.5
for insight into the direction of central bank policy.
01:15.0
Taking a look now at the board, shares in Australia, Japan, and South Korea are on the rise.
01:21.1
Futures for Hong Kong also pointing to a positive open.
01:24.2
The sense of calm follows last week's slump in Asian stocks.
01:28.7
Due to growing Middle East,
01:29.9
tensions as well as the Federal Reserve's reluctance to cut rates anytime soon.
01:35.5
Also on tap for release this week,
01:37.5
China loan prime rates as well as inflation readings in Australia and Malaysia.
01:43.6
Bank of Indonesia will also announce a policy decision just as the currency comes under pressure.
01:51.3
Now, here's a quick recap of what happened on Wall Street last week.
01:55.4
U.S. equities sold off sharply last Friday, April 19th,
01:59.3
sending $1.5 billion to the U.S. economy.
01:59.9
The tech stocks to their biggest weekly loss in 17 months.
02:03.8
The tech-heavy Nasdaq fell more than 2%,
02:06.2
its longest losing streak in more than a year.
02:10.2
The broad S&P 500 also closed nearly nine-tenths of a percent,
02:14.4
slipping below the 5,000 level.
02:17.0
Both clinched their sixth straight negative days,
02:20.4
mainly attributed to the decline in chip and tech-related stocks.
02:25.3
Meanwhile, a rally in bank holding firm American Express
02:28.2
kept the Dow afloat.
02:29.9
The market drop also came amid fears
02:32.6
the U.S. Federal Reserve could push back rate cuts
02:35.4
as well as growing concerns over growing tensions in the Middle East.
02:41.5
So after 22, record closes for the S&P 500 in the first quarter.
02:46.9
We have now had six straight down as of right now, subject to change.
02:50.7
We've had six down days in a row,
02:52.7
the longest losing streak of the year for the markets.
02:55.1
We're about 5% off the highs on the S&P.
02:58.2
Obviously this week,
02:59.9
top of mind for the markets has been the direction of Fed policy
03:03.5
and clearly the recent geopolitical conflict in the Middle East.
03:10.2
Let's take a look at U.S. futures now.
03:12.4
They're pointing to a slightly higher open
03:14.0
amid the anticipated earnings report of some tech mega caps.
03:20.6
Here's a look at the local corporate headlines
03:22.9
we're watching out for this morning.
03:24.8
BDO Securities secures shareholder approval
03:28.0
for the lender's merger.
03:29.9
With SM Keppel Land,
03:31.6
the C-Family's banking arm says
03:33.5
it met the required two-thirds vote among owners
03:36.7
of its outstanding capital stock
03:38.5
during its shareholders meeting last Friday.
03:42.1
BDO is the surviving entity of the merger
03:44.4
which is still subject to regulatory approvals.
03:47.7
The bank previously shelled out over 8 billion pesos
03:50.8
to buy out SM Keppel Land shares
03:53.0
from Singapore's Keppel Group,
03:55.1
its partner, operator of the Podium Complex in Ortigas.
03:59.9
Next to Petron Corporation,
04:02.5
it says it has completed a redemption
04:04.5
of its Series C fixed bond rates.
04:07.5
The bonds were issued in 2018 and matured today.
04:11.5
Now, aggregate principal amount was at 13.2 billion pesos.
04:16.5
And in case you missed it,
04:18.2
East West Bank nets 6.1 billion pesos
04:21.4
in net income in 2023.
04:23.3
Now, that figure is higher by 32% year-on-year
04:27.0
on the back of continued consumer loan growth,
04:29.9
and strong deposit generation.
04:32.7
Net revenues of the Gutianon-led bank
04:34.8
also climbed to 35.7 billion pesos.
04:38.4
Its total assets, meanwhile,
04:39.9
grew by 10% last year to 464 billion pesos.
04:47.5
Now, a recent survey conducted by recruitment firm Robert Walters
04:51.8
shows more employers are inflating job titles in the country
04:56.0
in a bid to attract and even retain talent.
04:58.7
Now, this practice of inflating or exaggerating job titles
05:03.1
is done by companies which may not accurately reflect
05:06.3
the responsibilities or even the salary for the position.
05:10.9
To discuss the so-called job title inflation,
05:13.7
we have with us Jason Mendoza.
05:15.3
He's the manager of Human Resource and Industrial
05:18.2
at Robert Walters Philippines.
05:20.0
Hi, Jason. Welcome to Market Edge.
05:23.0
Hi, Stanley. Good morning.
05:24.4
Good morning to you.
05:25.1
Now, job title inflation is an exaggeration,
05:28.7
a source of one's job description.
05:31.4
Tell us just how pervasive or widespread
05:34.6
is it in modern organizations and even in the Philippines?
05:40.1
So, in the recent years,
05:41.4
we have seen a specific number of amount of increase
05:45.7
in specific job titles,
05:48.7
mainly covering leads or even managers
05:52.0
that are not basically aligned with the specific job titles.
05:56.0
Now, there are reports here in the Philippines
05:58.7
about job title inflation.
06:01.1
It's not actually here in the Philippines,
06:03.3
but more countries in Southeast Asia.
06:05.7
In fact, there are also studies in Middle East,
06:10.9
specifically in Dubai, and even in the U.S., actually.
06:14.5
Okay. It seems like it's a global phenomenon of sorts.
06:18.5
Global phenomenon.
06:18.9
Right. Just how loaded are these titles versus reality?
06:22.5
I mean, maybe you can share with us examples
06:24.9
on how absurd sometimes these titles can get.
06:32.5
you're applying for a position on...
06:34.4
Normally, you would...
06:36.9
The one who would greet you would be your receptionist.
06:40.4
An inflated job title for a receptionist
06:42.5
could be a manager for first impression.
06:51.1
Or basically, a director for customer success
06:53.6
would be your customer service representatives.
06:57.4
So, these are pretty much...
06:58.7
These are pretty much common practices these days.
07:00.9
And we know for a fact that job title inflation
07:03.8
is a motivational tool used by companies and organizations
07:07.6
to boost the morale
07:08.6
without really having to spend so much on pay raises
07:11.9
and even company benefits associated with an actual promotion.
07:16.6
Now, there's a study at Robert Walters Philippines about this.
07:20.1
Is job title inflation really working now based on that premise?
07:25.3
It depends on where you're going to look at.
07:28.7
If you're going to talk about talent attraction,
07:33.6
you have some success.
07:36.8
employees, once they got onboarded to a company,
07:40.4
it's not that, you know,
07:42.0
they're going to stay with the company for long term.
07:45.4
That's your goal, right?
07:47.5
The problem actually relies heavily on
07:50.5
how are you going to retain these employees
07:52.6
considering that their title is inflated.
07:59.8
because you have to make sure that you fill in those gaps,
08:04.9
be able to make sure that they are actually skilled enough.
08:08.6
And that's where the human resources would fall into play.
08:14.5
Talent management, leadership development,
08:16.5
or even succession planning, actually.
08:19.1
On the retention part, Jason,
08:22.4
it's reality that workers may eventually lose interest or motivation
08:28.2
Well, reality sets in that there is little or no commensurate compensation behind these titles.
08:34.2
Isn't that more detrimental now to companies in the long run in terms of, you know, image?
08:42.2
Not only is that detrimental to the company,
08:44.2
but also to the employee itself, right?
08:46.8
Once they realize that the position that they applied for
08:52.2
doesn't have a really strategic position in the organization,
08:55.6
that's where actually the problem.
08:58.2
The company relies heavily upon once they've...
09:01.7
It's set into them that, you know, it's not a very strategic position.
09:08.7
And once they move out of their current company in an inflated job title,
09:13.2
there could be a possible mismatch of their specific position in their current organization
09:19.0
versus what's actually available in the market.
09:22.5
Now, let's talk about the Filipino.
09:24.0
I don't know how unique the Filipino is as against other nationalities.
09:28.2
You know, the Filipino amor propio, if you will.
09:32.2
Filipinos would most likely welcome titular honors.
09:37.2
Now, must job title inflation be working quite well in the Philippines in that sense?
09:41.2
What are you finding out?
09:44.2
Based on our survey, actually, on the LinkedIn poll that we did,
09:48.2
92% of the respondents actually agreed that they're going to apply for a recession,
09:55.7
even if it's inflated.
09:58.2
Meaning, they are really considering these specific titles,
10:03.2
even if they're not sure whether there's specific increase in their salary
10:09.2
or it holds specific position in the organization.
10:14.2
Now, what's your advice to organizations and companies then regarding job title inflation?
10:20.7
I mean, there could be instances like new jobs or even new responsibilities and functions
10:26.2
that require some sort of...
10:30.2
So, if we're talking about talent attraction, actually, it depends on the company
10:36.2
if they find it very effective for them.
10:39.2
But my advice is for them to be able to make sure that they are also invested
10:44.2
on the employee journey, not only in terms of the attraction,
10:48.2
but also from onboarding up until the offboarding.
10:52.2
They have to make sure that they have the right skill set.
10:55.2
I'm talking about human resources.
10:58.2
To be able to make sure that they actually fill those gaps
11:03.2
where these specific skills that these employees needs to fill in
11:08.2
for them to be able to further in their career within their organization
11:11.2
to make sure that while success and talent attraction is there,
11:16.2
there's also success and retention.
11:20.2
Lastly, you know, Jason, fancy titles may work for the older generation,
11:25.2
but we have Gen Cs right now entering the workforce.
11:27.2
This new breed of workers may prioritize, you know,
11:31.2
compensation and other benefits and their actual value to the organization
11:36.2
than the labels that accompany the position.
11:39.2
Now, what is the future now for job title inflation
11:42.2
for a generation that sees little use for it?
11:48.2
Interestingly, Stanley, we have seen Gen Cs who are the most actually attracted
11:55.2
to these specific jobs.
11:57.2
And we have, we can foresee that, just based on our study,
12:02.2
this job inflation would still be here.
12:06.2
So we just have to be very careful in talking about the candidates
12:11.2
in making sure that they know what specific positions they're applying.
12:16.2
They ask for job descriptions, and also, they align their goals
12:21.2
with the specific job positions that they're applying.
12:25.2
Their goals, where they would want to be in the next few years
12:30.2
that they are going to be connected with these specific organizations.
12:34.2
Very interesting discussion there.
12:35.2
Jason Mendoza, Manager of Human Resources and Industrial
12:39.2
at Robert Walters Philippines.
12:41.2
We hope to check how this evolves in the future.
12:44.2
Thank you so much.
12:45.2
Thank you so much.
12:47.2
Moving on, the Philippines becomes the first state
12:50.2
to sign the Rapid Response Option Agreement with the World Bank.
12:54.2
the country can now immediately liquidate funds
12:57.2
to address emergency needs such as healthcare, shelter, and food
13:01.2
in times of crisis.
13:03.2
This positions the Philippines at the forefront of disaster response
13:07.2
as it remains one of the most disaster-prone nations in the world.
13:11.2
The agreement is part of World Bank's program
13:14.2
aimed at empowering countries to deploy resources
13:17.2
from their existing bank portfolio more effectively
13:20.2
to deliver a swift response when crises occur.
13:24.2
The Philippine Energy Department rules out sabotage
13:29.2
in the recent power plant failure in the country.
13:32.2
Luzon and Visayas were repeatedly placed under red and yellow alerts last week
13:37.2
due to forest outages and weak capacity of power plants.
13:41.2
But the DOE says the incidents were mainly due to the high electricity demand
13:46.2
in the country amid the extreme heat.
13:49.2
The demand is really high.
13:52.2
The need for marketing and marketing of the insufficiency of guys
13:55.2
is extremely high.
13:56.2
But these are not the tools to put basic energy life on track.
13:58.2
At technical figures following the 67 projects
14:02.2
have left opportunities to Season 6 trouble before us.
14:07.2
the fights on gramOH-3 can only still run through the Biden administration.
14:10.2
But it did not work so far through the developing years.
14:13.2
Cockpit nations have already been support restaurants
14:16.2
toئ flash pet banks along with organizations
14:18.7
and boards ofèle haries to control and adapt them.
14:20.2
The agency also sees better power conditions this week thanks to the continuing restoration of power transmission services in some of the affected areas in the country.
14:39.0
Heads up motorists, a mixed bag of price adjustments in petroleum products set this week following four straight weeks of fuel price hikes.
14:46.9
Kerosene prices will drop by 1 peso and 10 centavos while diesel will be cheaper by 95 centavos per liter.
14:55.3
As for gasoline, it will increase by 55 centavos per liter.
15:02.0
Philippine Transport Authority is eyeing the possible addition of a dedicated motorcycle lane in EDSA.
15:08.1
To combat the heavy traffic, Transportation Chief Jaime Bautista says they are looking at putting the motorcycle lane beside the bicycle lane.
15:16.9
This, as he says, around 170,000 motorcycle riders pass through EDSA daily.
15:25.3
The plan comes as the government ramps up efforts to combat traffic congestion in the Philippines, which it says results in nearly 5 billion pesos in losses every day.
15:37.0
President Ferdinand Marcos Jr. orders the Agriculture Department to relax the importation process of agricultural products,
15:44.7
as well as the removal of non-targeted products.
15:46.9
This, as the President moves to boost local supply and address rising commodity prices in the country.
15:54.9
Non-tariff barriers include quotas, import licensing systems, regulations, and red tape that restrict or delay the entry of imports.
16:05.1
The Sugar Regulatory Administration was also ordered to allow more traders to participate in its import program.
16:12.0
A surveillance team was also created to monitor the import and distribution of imported products.
16:16.9
The team will include members from the Departments of Agriculture, Finance, Interior and Local Government, and the Philippine National Police, among others.
16:33.0
The World Bank begins today a three-week review of two agriculture projects.
16:38.4
It is co-funding in the Philippines.
16:39.9
The Agriculture Department says the three-week mission will assess the implementation of initiatives under the Philippines'
16:46.9
Rural Development Project.
16:49.3
It will also look into the agency's financial management and procurement, among others.
16:55.0
The two projects are in Visayas and Mindanao.
16:58.0
These aim to provide financial and infrastructure support to agriculture and fishery-related enterprises,
17:04.9
as well as establish climate resilience rural infrastructure.
17:10.5
The Philippine government seeks to convert to tourism assets several buildings at the Presidential Palace complex,
17:17.9
President Marcos spoke with the initiative in a video blog over the weekend.
17:23.9
He said the renovations will help provide venues for meetings by foreign investors and visitors in the Philippines.
17:31.9
The buildings up for renovation include the Goldenberg and La Peral mansions.
17:36.9
The Palace did not say how much the government is spending for the initiative.
17:42.9
Our visit is important.
17:44.9
The feeling of Manila is very important.
17:46.9
We welcome them here.
17:47.9
So that we can be strong in our cooperation, in our agreements, in our partnerships with other countries.
17:59.9
Now, here's a look at other stories we're tracking today at 3 in the afternoon.
18:03.9
The Philippine Trade Department and the National Price Coordinating Council will hold a meeting
18:08.9
to discuss possible adjustments in the suggested retail prices for basic necessities and prime commodities.
18:16.9
We will also monitor the start of Balikatan exercises between the Philippines and the US.
18:22.9
Also on deck today, updates on the two-day state visit of the Amir of Qatar to the Philippines.
18:33.9
Up next, the opening numbers at the Philippine Stock Exchange with Christina Gabaldon of Metro Bank Trust.
18:38.9
Market Edge will be right back.
18:46.9
Here's a watching Market Edge.
19:07.9
The mayor of Pugugarao City defends the presence of Chinese students in Cagayan Province.
19:12.9
Here's a watching Market Edge.
19:15.9
A vessel spotted near Palawan ahead of the annual joint military drills of the Philippines and the US.
19:22.9
And Israel's Prime Minister vows to fight any possible sanctions against the country's military over alleged rights violations.
19:32.9
And it's just in.
19:33.9
The Securities and Exchange Commission files a criminal complaint against the MFT Group led by CEO Maria Francesca Tan,
19:41.9
Foundry Ventures and its officers and agents,
19:44.9
over alleged unauthorized solicitation of investments.
19:47.9
Based on complaints, the group had solicited investments supposedly for start-up companies
19:53.9
in exchange for a guaranteed return ranging from 12 to 18 percent per annum.
19:58.9
The group had also allegedly issued post-dated texts that were never paid.
20:04.9
Now the filing of criminal cases came, or charges, after the SEC issued a cease and desist order in January,
20:12.9
directing all MFT Group executives to stop their unregistered investment solicitation activities.
20:22.9
Philippine shares notched their third weekly loss last week.
20:25.9
The main index kicks off from 6443.
20:28.9
Joining us this morning to help us set up for trade this week,
20:32.9
Christina Gabaldon, Deputy Head of Investment Management Division for Metro Bank Trust.
20:37.9
Hi, Christina. Happy Monday.
20:39.9
Hi, Stanley. Good morning.
20:41.9
Good morning. It's great to talk markets to you today.
20:44.9
Now we're observing a rapid resetting of rate cut expectations both in the US and in the Philippines.
20:51.9
Now, how do you manage investment outlook when there are just too many unknowns and so much moving parts?
20:58.9
So our current interest rate cut expectation is 75 bps still,
21:04.9
but that is under review given the latest Fed cut expectation.
21:10.9
If you look at the Fed rate cut probabilities,
21:14.9
probability of a 25 basis points cut in September is now at 46.8%.
21:21.9
So for us, we have different index level targets depending on the rate cut scenario.
21:27.9
For geopolitics, however, it is harder to forecast that.
21:31.9
So we play it defensive via cash.
21:34.9
And we also only stay invested in asset classes or securities.
21:39.9
Or securities that we have high conviction on.
21:42.9
All right. So 75 basis points, don't you think that's still a bit optimistic
21:47.9
considering even the Banco Central was saying there may be cuts but in really small sizes?
21:53.9
That's true. So we have different ranges.
21:57.9
So if we're talking about a 25 basis points cut, we're looking at an index level of 6,800.
22:05.9
All right. All right.
22:07.9
Now, when you look at the market now with its major retracements in the 6,400 levels,
22:13.9
are investors still at risk of catching falling knives if they enter the market today?
22:20.9
So with how fluid geopolitical risks are, there is that risk of black swans coming out of nowhere.
22:29.9
However, we also do not want to miss opportunities in the market.
22:35.9
So let's switch to a more defensive play to manage potential risk.
22:39.9
Like if you look at bond yields right now, it's doing 6.7 to 6.8 percent.
22:44.9
Some might find that attractive and would want to lock in at those rates.
22:50.9
Stocks on the other hand look quite cheap again at around 11.3 times PE multiple.
22:57.9
Okay. Now, Christina, we could be marking another losing week this week at least.
23:02.9
What kind of bottom now are you looking at?
23:05.9
Because we seem to show that we can really hit 62, even 6,300 very easily.
23:11.9
Yeah. So for us, the bigger concern would be the impact of currency.
23:17.9
So any weakness in the forex could have a multiplicative effect on the PSEI.
23:25.9
In the past, we have seen foreign investors get out of the market because of foreign exchange issues.
23:32.9
So possibilities are there.
23:35.9
But the key of that 6,200 or 6,300 level given the risk of scenario, yeah, very much possible.
23:43.9
And we're looking at that level as the support.
23:46.9
All right. You talked about currency.
23:48.9
Now, what's your outlook now for this week for the peso, which has shown some weakness in the past week?
23:55.9
So we're looking at resistance of 58, support at 56 level.
24:04.9
All right. Now, Christina, sell in May and go away expected to really pare down volumes at the Philippine Stock Exchange.
24:12.9
What does this do now to our trading momentum with many expected to stay on the sidelines again?
24:19.9
So turnover has been subdued and will continue to be, not because of reasons why the adage was probably developed.
24:29.9
Right now, we're living in non-standard times.
24:33.9
With heightened geopolitical risk.
24:37.9
For the past three years, liquidity has dried up compared to pre-pandemic activity.
24:43.9
But it has more or less remained stable throughout a year.
24:50.9
But if certain initiatives such as bringing down commission rates and lowering of the sales tax happens,
24:58.9
there might be some volume improvement in the market.
25:02.9
As it won't be too costly to do a round trip or to trade.
25:06.9
All right. Now, given all you mentioned and given all the potential positives, you know, the cuts on the taxes and commissions,
25:16.9
what other concerns worry you the most trading this kind of market?
25:22.9
For me, it would be earnings disappointment.
25:26.9
Inflation could bite into consumption.
25:30.9
GDP falling under expectations.
25:34.9
Companies being unable to pass on higher cost to consumers.
25:39.9
Thereby, deteriorating the margins and putting their top line numbers at risk.
25:45.9
In the past four years, earnings recovery have been strong.
25:51.9
And the consumers fairly resilient.
25:58.9
will there be a breaking point for the household wallet?
26:02.9
Yeah. You spoke about earnings.
26:04.9
Now, do you still see those increases, those increments for earnings this year as something that's exponential
26:10.9
given that you're already coming from higher basis for most corporates?
26:14.9
So, yeah, it's true.
26:16.9
So, earnings growth expectation for this year for us is muted at 6%.
26:23.9
All right. So, it's 6% for 2024.
26:27.9
Okay, Christina, we're running some sort of a series on the Fund Managers Association of the Philippines in connection, of course, with the anniversary.
26:35.9
Tell us a bit about your group, FMAP, now.
26:39.9
Okay. So, it's our 17th year anniversary.
26:43.9
And this week is FMAP week for us.
26:48.9
So, the Fund Managers Association of the Philippines, our organization, is composed of investment managers,
26:55.9
management firms in the Philippines.
26:58.9
Our members include fund managers and those that give investment advice.
27:02.9
We aim to promote the interests of the investment management industry, such as capital, through things like capital market reforms.
27:13.9
We are in constant communication with different regulators to enhance and develop our markets.
27:20.9
We also conduct different events to elevate the funds.
27:25.9
We are also involved in the professional development of its members.
27:28.9
So, like recently, we had this event.
27:32.9
It's called the IFC's Executive Trading under the Capital Markets Workstream of its 30 by 30 zero program.
27:41.9
It tackled what are green, social, sustainable, sustainability-linked investments.
27:48.9
Okay. Okay. This would be your 27th year, I suppose?
27:54.9
17th. All right. 17th year.
27:57.9
Now, how has the organization evolved since its inception way back?
28:04.9
Oh, a lot of developments.
28:07.9
So, right now, beginning from a long time ago, we are more in touch with regulators.
28:18.9
And we have helped certain initiatives.
28:23.9
Some initiatives pushed through.
28:26.9
And do you expect or envision more members in the future?
28:31.9
How is the organization growing?
28:33.9
And what kinds of institutions would you prefer to be part of the group?
28:38.9
So, we want institutions that give investment advice and to be part of FMAP.
28:51.9
And we can further develop the professional development of our members.
28:58.9
All right. On that note, Christina Gabaldon, Deputy Head of Investment Management Division for Metro Bank Trust.
29:03.9
Thank you so much for joining us today.
29:05.9
Congratulations with FMAP.
29:07.9
Thank you. Thank you so much, Stanley.
29:09.9
Have a great day.
29:11.9
Moving on, time to zip through the top headlines from major business papers from Business World.
29:16.9
The Philippine government's debt service bill is down in February.
29:20.9
It fell by 22% or P293 billion year-on-year.
29:26.9
Debt repayments, however, were up from the P159 billion in January.
29:32.9
From Business Mirror, the Philippines approved P607 billion worth of investments from January to April.
29:40.9
This was higher by 15% from last year, the bulk of which will go to renewable energy.
29:46.9
And from the Philippine Daily Inquirer,
29:49.9
a stockbrokers group seeks a delay in the removal of the minimum commission fees on stock trades.
29:55.9
Past BDI made the appeal to the Securities and Exchange Commission to ensure brokers' and investors' welfare amid challenging market conditions.
30:05.9
We're taking a quick break.
30:08.9
Coming up, a talk on copyright issues with the Intellectual Property Office of the Philippines.
30:14.9
Market Edge will be right back.
30:19.9
Then, Market Edge will be right back.
30:22.9
This is Market Edge at 8 p.m.
30:25.9
A show like this is
30:35.9
brought to you by
30:39.9
May God bless you.
30:40.0
May God bless you.
30:44.4
May God bless you.
30:45.2
May God bless you.
30:49.9
Thank you for watching!
31:19.9
Thank you for watching!
31:49.9
Thank you for watching!
32:19.9
After the Democratic Majority Senate takes up the package on Tuesday.
32:25.5
Painful shortages in weapons and manpower have pushed Ukraine's fighting forces close to a breaking point,
32:32.4
raising the risk of a Russian breakthrough.
32:36.1
Meanwhile, TikTok reportedly preparing to remove a key executive responsible for convincing the U.S. government
32:42.9
that the company is addressing national security concerns about its connections to China.
32:48.4
Bloomberg reports,
32:49.9
the company is eyeing to push out Erich Andersen,
32:53.3
the U.S.-based general counsel for TikTok and its Chinese parent company ByteDance.
32:59.2
The move comes after the U.S. House approved a bill requiring ByteDance to sell the popular social media app for SeatBand in the U.S.
33:09.0
In other news, layoffs under Swiss banking giant UBS will reportedly take place in five waves this year, starting in June.
33:17.3
Now, UBS earlier announced its plan to...
33:19.9
...cut costs by more than $10 billion following its takeover of Credit Suisse.
33:26.2
As many as 35,000 jobs could be affected by the move.
33:31.3
And finally, Tesla slashing the price of its full self-driving assistance software by a third in the U.S.
33:38.7
from $12,000 to just $8,000.
33:41.3
The CEO, Elon Musk, has struggled to achieve the goal of self-driving capability with the technology under growing regulatory...
33:49.9
...legal scrutiny.
33:51.4
Tesla has also been cutting prices on its auto lineup in major markets like China,
33:56.6
as it grapples with falling sales and an intensifying price war for electric vehicles.
34:04.4
Now, recently, music copyright infringement has been in the spotlight in the Philippines.
34:09.2
This after Australian singer-songwriter Lenka filed a copyright complaint against Filipina pop singer Shaira's viral song, Celos,
34:18.7
due to supposed similarities...
34:19.9
...in their music.
34:21.6
Now, as more artists release their creative work every day, how can they ensure originality and avoid legal issues,
34:29.8
especially amid the continuously evolving technology?
34:33.6
Well, to talk to us more about this issue, we have with us Emerson Cuyo, Bureau of Copyright and Related Rights Director...
34:40.2
...at the Intellectual Property Office of the Philippines, or IPO, PHL.
34:44.6
Hi, Emerson. Welcome to Market Edge.
34:47.7
Thank you very much and good morning, Stan.
34:49.9
And good morning to all listeners of your program.
34:53.8
All right. Good morning to you, too.
34:55.2
Now, for those who are unaware of Filipina pop singer Shaira's case, can you perhaps first walk us a bit through it?
35:05.9
Okay. So, when we talk of music copyright, a music or a musical composition is a work protected by copyright.
35:17.0
So, basically, the copyright owner...
35:19.9
...will be the composer of the song.
35:21.5
In this case, the original song is apparently composed by Lenka.
35:28.3
So, the first principle is that, of course, the copyright owner has all the right to allow, prohibit, or, in fact, to license and permit others from using or exclude others from using the said work.
35:45.0
So, a derivative work, on the other hand, is a work that is also protected.
35:49.9
So, a derivative work is a work that is also protected by copyright.
35:51.4
But it's a derivative work because there's an original work, meaning you copied...
35:56.7
If you want to transform or adopt a certain original work and make another work out of it, then permission is needed from the author of the said original work.
36:10.1
So, that's the case of, apparently, between Lenka and our local artist here.
36:18.1
But I think that's...
36:19.9
The question is mooted because the Chaira's group apparently decided to get permission and to license from the original copyright owner.
36:33.9
Okay. So, she has obtained permission. Did Lenka give that permission to her?
36:39.7
What's the update and what's the next steps in her case?
36:43.3
We have not really followed through.
36:46.7
So, it has not been published.
36:49.9
We haven't analyzed whether or not there's actual licensing that happened.
36:54.4
But we do understand that they decided to talk it out among themselves.
37:00.2
Okay. So, we're assuming this is amicably settled.
37:03.6
Are there similar cases with Chaira and Lenka that you're handling now at IPO PHL?
37:10.1
I'm not aware that there are similar cases pending now before the Intellectual Property Office of the Philippines.
37:19.9
Nor are there new cases, similar cases being addressed in court.
37:27.8
Okay. But you're expecting these cases in this day and age, particularly the derivative cases that you mentioned,
37:34.7
wherein you adopt maybe a portion or a tune or a segment of a particular creative work?
37:44.1
Of course, our recommendation will always be the first.
37:49.9
We'll try to settle it out among themselves because maybe one part is just not aware of the need to seek permission from the original copyright owner,
38:02.8
especially when there is a contention that there is a substantial part of the original work that has been changed,
38:11.0
such that the derivative work is more or less no longer similar to the original work.
38:19.6
So, first, try to settle the issue or concern amicably among themselves.
38:27.7
And if that does not progress, then that's the time that we seek the remedies available in court,
38:35.8
available under our copyright law, either to seek a civil or criminal case before the court
38:44.1
or an administrative case before the Intellectual Property Office of the Philippines.
38:49.6
Okay. Emerson, has there been a similar case as Shaira's and a similar way it was resolved that you can remember in the Philippines?
38:57.2
No, I don't remember. But the three recent cases decided by the Supreme Court all involves music copyright
39:06.9
and how music is used in restaurants or in entertainment establishments.
39:15.8
And the court said that using music copyright...
39:19.6
Using copyrighted music in these establishments is public performance and therefore requires license or permission from the copyright owner.
39:31.8
Okay. Now, Emerson, we're in this day and age where technology really plays a role in terms of producing creative pieces
39:38.9
and even to distribution because you have social media.
39:42.3
Now, how does technology help in the faster detection of copyright infringements now?
39:47.2
I think technology...
39:49.6
Technology is also being used to detect copyright infringement faster.
39:55.5
If you observe in your social media the use of a copyrighted song or music, for example,
40:03.7
automatically, without permission, automatically your post is muted.
40:12.1
So that's an example of the use of technology to be able to enforce on the copyright.
40:19.6
Okay. Let's talk about your services now and your functions.
40:25.0
What assistance is available at IPO-PHL for content creators to help them navigate safely through copyright issues?
40:36.2
Okay. So basically, our office is the main agency of government in charge of implementing the state policies on intellectual property.
40:46.2
So if you seek...
40:49.6
Your creative pursuits protection under intellectual property protection,
40:55.7
then you have our various bureaus including the Bureau of Copyright for such.
41:01.8
So if you have technology related to the creative industries and you want to protect the said technology or invention,
41:11.7
then you can register your technological invention with our Bureau of Patents.
41:19.6
Now, if we're talking about the use of a logo or a visible sign for your commercial and creative enterprise,
41:30.2
then you can seek protection by registering the said trademark before our Bureau of Trademark.
41:36.4
Now, for the Bureau of Copyright, because copyright is protected from the moment of creation,
41:42.5
we do ensure that there is one greater awareness on the rights that our creatives and creators,
41:50.5
And secondly, provide them an added layer of protection by seeking to register their copyright even if copyright is vested from the moment of creation.
42:06.3
All right. Now, Emerson, we really live in a world where anyone and everyone can be a content creator.
42:12.4
What must we bear in mind in terms of protecting ourselves from potential copyright infringement suits
42:17.6
and even protecting our own creativity?
42:19.6
I mean, are there programs now at the Intellectual Property Office that address these concerns and these new needs?
42:31.4
Of course, there is the voluntary.
42:34.8
We have agreements with the social media platforms for a voluntary takedown system for infringing or pirated materials,
42:49.0
being posted over platforms over the internet.
42:53.5
Of course, we continue to seek and address the rights of owners by having awareness campaigns
43:07.0
and copyright education and intellectual property awareness programs,
43:13.5
not just within Metro Manila but across the Philippines.
43:17.9
Like right now, we just...
43:19.0
We are here in Iloilo for alongside a book fair, the Iloilo Mega Book Fair.
43:27.2
And we had a session there on copyright awareness for our publishers and authors.
43:34.7
Okay. Let's talk about digital intellectual property.
43:37.2
Now, we know this is emerging.
43:39.3
In fact, a lot of people create a lot of things online.
43:42.8
Now, what do you think is the future, the way forward for digital intellectual property protection?
43:49.0
I think it's settled under our law that creative expression or a copyrighted work is protected
43:58.6
whether it's in physical form or in the digital form.
44:03.4
So, whether it's in physical copy or being distributed online,
44:09.4
you have copyright protection over your literary and artistic works.
44:15.5
So, it does not...
44:19.0
It's in digital form or online does not mean that you don't have copyright protection.
44:26.5
So, I think for our creators, the first step is really knowing that they have these rights
44:32.6
and the remedies available to them under the law in case there is copyright infringement
44:39.0
or a violation of their economic rights.
44:42.1
And of course, lastly, we have something that is central to copyrights.
44:46.9
We have AI, artificial intelligence.
44:49.0
That new technology.
44:50.5
What do you make of this technology?
44:51.9
Is it a friend or foe?
44:54.7
I think artificial intelligence is here to stay.
45:00.8
There are basically two issues that we need to address.
45:04.5
One is at the input side when our LLMs, our AI models consume or use copyrighted works in order to train.
45:19.0
And artificial intelligence.
45:20.6
So, that's one side because we need to ensure that the rights of our creators and their works
45:27.7
which are used for training an AI model is also protected.
45:33.5
On the other side, at the output side, we need to settle the issue on whether or not AI fully generated by works,
45:45.0
fully generated by artificial intelligence should be granted protection.
45:49.0
Under our copyright law.
45:51.5
Because at the moment, if we are to base on our present intellectual property code,
45:57.3
authors or the creators of works are defined under our law as a natural person who has created the work.
46:05.6
Meaning that at present, artificial intelligence are not granted copyright ownership or copyright authorship under our law.
46:17.0
Valuable insights there, Bureau of Copyright.
46:19.0
Right and Related Rights Director, Emerson Kuyo.
46:21.5
Thank you so much for joining us today.
46:27.2
Before we go, giant robots invade a mega warehouse in the UK employing AI to ensure optimal operation.
46:35.7
Warehouse operations are reaching new heights thanks to these giant shelf scanning robots.
46:41.6
They're the world's tallest autonomous robots.
46:43.8
Developed by UK-based Dexery, the robots can patrol mega warehouses.
46:47.6
And use artificial intelligence to scan its surroundings.
46:52.6
This helps detect and address warehouse problems faster, from damaged stock to infrastructure issues.
47:00.0
Dexery systems can capture millions of data points across multiple locations each day.
47:06.0
That data is then used to build up a detailed 3D model of the warehouse to offer real-time insights and predictive analytics.
47:14.5
Dexery's giant robots also have a neat trick.
47:17.6
They can extend upwards to give it a height of about 12.5 meters, or roughly 40 feet.
47:24.2
Andre Donescu is co-founder and CEO of Dexery.
47:27.6
So they're the size of a warehouse rack.
47:30.4
They're about 12.5 meters tall.
47:32.8
Which gives them the ability as they pass through the warehouse to scan everything in one swift go, in one swift pass.
47:39.8
So they have a number of cameras, they have a number of laser measurement systems on them.
47:44.7
And this gives them the ability to create a digital copy.
47:47.6
And really understand how goods are being kept, how efficiently the pallet space is being utilized.
47:55.6
And basically it helps the warehouse operators to run their facility in the most efficient way.
48:02.8
A single battery-powered robot can scan warehouses of 1 million square feet in size and over 100,000 pallets in a day.
48:11.2
It can then return autonomously to its charging station when needed.
48:15.9
Global shipping and logistics.
48:17.6
The logistics company, AP Moller Maersk, partnered with Dexery in January 2023 with the aim to optimize warehouse management in the UK.
48:27.0
Maersk says the robot is used in all of its UK locations and is being rolled out to some in Europe.
48:33.6
But it's not coming at the cost of the human worker, according to Maersk's commercial lead, Fergus Wynum.
48:40.0
No, I don't think it's replacing humans.
48:42.0
We're not replacing something.
48:43.8
We're actually enhancing it.
48:45.2
And that means that for our colleagues.
48:47.6
It's positive because when they go to a location, they have faith that the location has the product in it.
48:52.6
Therefore, they see the benefit of working alongside the robot and it becomes a positive influence on the working environment.
49:17.6
For more information, visit ANC's YouTube channel, like us on Facebook, and follow us on Twitter.
49:21.8
Stay safe and stay with ANC.
