Business

Thailand Facing Difficult Choices as its Economy Implodes from Covid-19

Thailand is one of the few countries that can claim to have restricted the internal spread of COVID-19 so far. The country has yet to reach 3500 total cases, with limited deaths, currently at 58.

A timely border closure supported by initiatives that were broadly embraced by Thai citizens has contributed to this arguably successful containment. Wspecially considering the size of Thailand’s population at nearly 70 million citizens. But has it truly been a success?

To Open or Not to Open Thailand?

In the past few weeks, several observers have questioned the necessity of maintaining Thailand’s strict lockdown. Particularly in light of the country’s dependence on tourism. Which constitutes a sizable portion of its GDP at anywhere between 10 and 20%. After a record 39.8 million tourists in 2019, the Bank of Thailand expects around 8 million visitors for 2020. However even lower numbers have been feared.

A recent report from the National Economic and Social Development Council (NESDC) claimed that more than 4 million Thais were unemployed because of the lack of tourists. Also as many as 14 million could be in the same situation if a solution is not found by years end. All of this is in addition to the ongoing economic hardship that has hit the industrial sector.

Talks of “travel bubbles” with countries considered safe, such as South Korea or New Zealand, also quickly faded. A second waves of COVID-19 affected broader areas, eventually leading to renewed lockdowns.

Re-opening Phuket Thailand First

In early August, the authorities presented a plan to gradually reopen the country starting with Phuket. The Thai Government hoped the situation could be more easily monitored in Phuket. The plan immediately raised some doubts about its potential appeal and difficult implementation. Moreover, even before more details were set out, the first case of domestic transmission in 100 days was discovered. With lingering uncertainty about how it could have happened. This resulted in further delays in the potential reopening of Phuket.

More recently, another proposal to invite tourists with longer visas and other concessions was advanced and is currently being discussed. In the meantime, it seems that the limited Phuket model could be expanded to include the whole country. However it is still unclear who the target audience is and whether expensive quarantine periods in luxury hotels would still be mandatory. Even more if more affordable solutions will be offered.

Back in July, analysts described Thailand’s economic outlook as the “worst in Asia”, with a potential 8.1% contraction in GDP – even worse than the 1997 Asian Financial Crisis. This is mainly due to the country’s reliance on tourism and exports. Additionally, the baht, Thailand’s national currency, was gaining against the US dollar, hampering the rebound of exports while exacerbating the country’s overall economic woes.

Economic Discontent: Too Little, Too Late?

Fast forward to early September, and no comprehensive solution has been advanced yet. A few selected groups have been allowed to enter the country. Furthermore a domestic tourism stimulus has been introduced to mitigate the situation. However these measures alone will not be able to support local businesses in the long run. Also discontent is growing.

All things considered, Thailand might still be in a favorable position to implement the long-awaited “Safe and Sealed” plan. Above all to attract tourists to a virus-free travel destination. Several other countries have also felt the urge to reopen their borders. Whether to business travellers or tourists. Many of them have experienced second waves, most notably in Europe. However, for a country with extensive experience in hospitality and a capable healthcare system such as Thailand, risks can be managed.

For instance, the initial idea to attract a wealthier demographic who are likely to spend most of their time in resorts or circumscribed areas instead of more adventurous “backpacking” trips with multiple destinations should be thoroughly considered. Given the cost of flights, COVID-19 tests, and mandatory health insurance and quarantine, visitors who are still eager to come to Thailand. They can be expected to have the financial means to support themselves for longer stays. With limited risk of misconduct such as visa overstay, which is a common occurrence.

Political Discontent: Student Mobilization

Beyond the pressing economic troubles discussed so far, student protests calling for the government to quit along with long-overdue changes to the constitution are gaining momentum. Initially limited to small gatherings at a few universities across the capital of Bangkok, they developed into a more inclusive mass protest of more than 10,000 participants in mid-August. These protests could not come at a worse time for Prime Minister Prayut Chan-o-cha, as the country is about to embark on a precarious “dance” between major powers while trying to avoid being involved in intensifying Sino-American rivalry.

Whilst the decision to gradually reopen the country to tourists and business people is almost entirely in the hands of local authorities. Both internal factors such as the development of the protests. Also external ones such as the upcoming presidential elections in the US; and the ensuing global implications; will have to be carefully weighed up to limit further internal; and external discontent and the associated economic and political risks. At this point, it is still unclear which factors will be most important in the near future, but it is certain that Thai leaders are about to face difficult choices that will define the country’s post-pandemic standing.

By Daniele Carminati

Business

PepsiCo Reduces Revenue Projections As North American Snacks And Key International Markets Underperform.

(VOR News) – In the third quarter of this year, Pepsi’s net income was $2.93 billion, which is equivalent to $2.13 per share. This was attributed to the company.

This is in stark contrast to net income of $3.09 billion, which is equivalent to $2.24 per share, during the same period in the previous year. The company’s earnings per share were $2.31 when expenses were excluded.

Net sales decreased by 0.6%, totaling $23.32 billion. Organic sales increased by 1.3% during the quarter when the effects of acquisitions, divestitures, and currency changes are excluded.

Pepsi’s beverage sales fell this quarter.

The most recent report indicates that the beverage and food sectors of the organization experienced a 2% decline in volume. Consumers of all income levels are demonstrating a change in their purchasing habits, as indicated by CEOs’ statements from the previous quarter.

Pepsi’s entire volume was adversely affected by the lackluster demand they encountered in North America. An increasing number of Americans are becoming more frugal, reducing the number of snacks they ingest, and reducing the number of times they purchase at convenience stores.

Furthermore, Laguarta observed that the increase in sales was partially attributed to the election that occurred in Mexico during the month of June.

The most significant decrease in volume was experienced by Quaker Foods North America, which was 13%. In December, the company announced its initial recall in response to a potential salmonella infection.

Due to the probability of an illness, the recall was extended in January. Pepsi officially closed a plant that was implicated in the recalls in June, despite the fact that manufacturing had already been halted.

Jamie Caulfield, the Chief Financial Officer of Pepsi and Laguarta, has indicated that the recalls are beginning to have a lessening effect.

Frito-Lay experienced a 1.5% decline in volume in North America. The company has been striving to improve the value it offers to consumers and the accessibility of its snack line, which includes SunChips, Cheetos, and Stacy’s pita chips, in the retail establishments where it is sold.

Despite the fact that the category as a whole has slowed down in comparison to the results of previous years, the level of activity within the division is progressively increasing.

Pepsi executives issued a statement in which they stated that “Salty and savory snacks have underperformed year-to-date after outperforming packaged food categories in previous years.”

Pepsi will spend more on Doritos and Tostitos in the fall and winter before football season.

The company is currently promoting incentive packets for Tostitos and Ruffles, which contain twenty percent more chips than the standard package.

Pepsi is expanding its product line in order to more effectively target individuals who are health-conscious. The business announced its intention to acquire Siete Foods for a total of $1.2 billion approximately one week ago. The restaurant serves Mexican-American cuisine, which is typically modified to meet the dietary needs of a diverse clientele.

The beverage segment of Pepsi in North America experienced a three percent decrease in volume. Despite the fact that the demand for energy drinks, such as Pepsi’s Rockstar, has decreased as a result of consumers visiting convenience stores, the sales of well-known brands such as Gatorade and Pepsi have seen an increase throughout the quarter.

Laguarta expressed his opinion to the analysts during the company’s conference call, asserting, “I am of the opinion that it is a component of the economic cycle that we are currently experiencing, and that it will reverse itself in the future, once consumers feel better.”

Additionally, it has been noted that the food and beverage markets of South Asia, the Middle East, Latin America, and Africa have experienced a decline in sales volume. The company cut its forecast for organic revenue for the entire year on Tuesday due to the business’s second consecutive quarter of lower-than-anticipated sales.

The company’s performance during the quarter was adversely affected by the Quaker Foods North America recalls, the decrease in demand in the United States, and the interruptions that occurred in specific international markets, as per the statements made by Chief Executive Officer Ramon Laguarta.

Pepsi has revised its forecast for organic sales in 2024, shifting from a 4% growth rate to a low single-digit growth rate. The company reiterated its expectation that the core constant currency profitability per share will increase by a minimum of 8% in comparison to the previous year.

The company’s shares declined by less than one percent during premarket trading. The following discrepancies between the company’s report and the projections of Wall Street were identified by LSEG in a survey of analysts:

SOURCE: CNBC

Business

Old National Bank And Infosys Broaden Their Strategic Partnership.

(VOR News) – Old National Bank, a commercial bank with its headquarters in the Midwest, and Infosys, a firm that specializes in information technology, have recently entered into a strategic expansion of their link, which has been in place for the past four years.

This expansion is more likely to take place sooner rather than later, with the likelihood being higher.

For the purpose of making it possible for Old National Bank to make use of the services, solutions, and platforms that are offered by Infosys, the objective of this expansion is to make it possible for the bank to transform its operations and processes through the application of automation and GenAI, as well as to change significant business areas.

This lets the bank leverage Infosys’ services, solutions, and platforms.

Old National Bank Chairman and CEO Jim Ryan said, “At Old National, we are committed to creating exceptional experiences for both our customers and our fellow employees.”

This statement is applicable to Old National Bank. Infosys is carefully managing the business process innovations that it is putting us through, putting a strong emphasis on efficiency and value growth throughout the process to ensure that it is carried out efficiently.

This is a routine occurrence throughout the entire operation. Because of Infosys’ dedication to our development and success, we are incredibly appreciative of the assistance they have provided.

Old National has been receiving assistance from Infosys in the process of updating its digital environment since the year 2020, according to the aforementioned company.

Ever since that time, the company has been providing assistance. The provision of this assistance has been accomplished through the utilization of a model that is not only powerful but also capable of functioning on its own power.

Infosys currently ranks Old National thirty-first out of the top thirty US banks.

This ranking is based on the fact that Old National is the nation’s largest banking corporation.

It is estimated that the total value of the company’s assets is approximately fifty-three billion dollars, while the assets that are currently being managed by the organization are valued at thirty billion dollars.

Dennis Gada, the Executive Vice President and Global Head of Banking and Financial Services, stated that “Old National Bank and Infosys possess a robust cultural and strategic alignment in the development, management, and enhancement of enterprise-scale solutions to transform the bank’s operations and facilitate growth.”

This remark referenced the exceptional cultural and strategic synergy between the two organizations. Dennis Gada is the one who asserted this claim. This was articulated explicitly concerning the exceptional cultural congruence and strategy alignment of the two organizations.

We are pleased to announce that the implementation of Infosys Topaz will substantially expedite the transformation of Old National Bank’s business processes and customer service protocols. We are exceedingly enthusiastic about this matter. We are quite thrilled about this specific component of the scenario.

Medium-sized banks operating regionally will continue to benefit from our substantial expertise in the sector, technology, and operations. This specific market segment of Infosys will persist in benefiting from our extensive experience. This phenomenon will enable this market sector to sustain substantial growth and efficiency benefits.

SOURCE: THBL

Business

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

The largest regulated water and wastewater utility company in the United States stated Monday that it had been the target of a cyberattack, forcing the company to halt invoicing to consumers.

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

American Water, based in New Jersey and serving over 14 million people in 14 states and 18 military facilities, said it learned of the unauthorized activity on Thursday and quickly took precautions, including shutting down certain systems. The business does not believe the attack had an impact on its facilities or operations and said employees were working “around the clock” to determine the origin and scale of the attack.

water

The corporation stated that it has alerted legal enforcement and is cooperating with them. It also stated that consumers will not be charged late fees while its systems are unavailable.

According to their website, American Water operates over 500 water and wastewater systems in around 1,700 communities across California, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia.

SOURCE | AP