Business

Concern Fluctuates Over Omicron Variant in Thailand

As a result of the World Health Organization’s designation of the new, highly contagious Omicron strain as a variant of concern on Nov 26, many countries have reversed their position on Covid-19 curbs.

Thailand was one of those nations that abandoned the idea of replacing costly RT-PCR tests with more affordable antigen test kits in order to attract tourists.

During the past two weeks, public concern about the new variant has fluctuated. After news of the variant spread, the Stock Exchange of Thailand Index declined by almost 80 points or 4.8%.

Following the government’s pledge not to reimpose a lockdown and appeal to the public to remain calm, the stock market settled.

In Thailand, there were a few confirmed cases of Omicron, but lower daily infection totals — less than 5,000 cases each day — have contributed to a positive outlook for the first half of December.

For those still reeling from the Covid crisis, a new variant has crushed their hopes of resuming economic activities, while the government has not been responsive to their pleas for assistance.

Thailand will overcome Omicrom obstacles

Even as tourism businesses, such as hotels, prepare for international arrivals, some outbound tour operators still face obstacles due to mandatory quarantines at many destinations.

The Thai Travel Agents Association president, Suthiphong Pheunphiphop, said last month’s optimism about outbound package tours suddenly turned to the gloom after the Omicron variant was detected in many countries.

According to him, travellers were concerned about the situation because not enough information was available about the new variant.

After learning that Omicron may not be more dangerous than other variants, such as those who are immunized, Mr Suthiphong observed a gradual return of good vibes in outbound travel.

While public concern may subside, Omicron has already affected the reopening policies of many countries, including Japan, which has reinstated strict border controls. Caseloads in South Korea have risen even without the threat of Omicron, he said.

According to Chotechuang Soorangura, managing director of NS Travel and Tours, outbound tours will resume with limited options and fewer potential customers since operators can only offer excursions to Europe and the US, which are often more expensive, appealing to those with large budgets.

Omnicron travel restrictions

Thailand’s travel restrictions in Europe are minimal. Switzerland, for instance, accepts vaccinated travellers and is included on the Test & Go list that doesn’t require quarantine upon their return.

In the meantime, he said, if the major destinations for Thai tourists remain closed during the high season of outbound tours in April, there is little hope of stimulating mass tourism demand.

Due to border closures, most tour operators are experiencing a liquidity crisis as outbound sales have been delayed, said Mr Chotechuang.

Thai Real Estate Association President Meesak Chunharuckchot suggested the government promote a rental scheme for low-income earners since they are unable to qualify for mortgage loans.
Low-income earners can save three times as much on living costs by renting a unit. Renting a unit costs 2,500 Baht a month, compared with 7,000 Baht for a monthly instalment. “Rental homes can help raise their standard of living.”

According to Mr Meesak, the government can promote those with savings, which stand at over 15 trillion baht, to invest in residential properties and rent them out through tax incentives.

Economic recovery incentives

A price cap of 2 million baht or less could be used to target low-income tenants. Developers who rent out units to low-income people could also reduce corporate taxes, he said.

According to Mr Meesak, the special business tax for property transactions should be cut to 0.1% of the value of the property from 3.3% so as to spur the market, as it did from 2008-2009.

It is suggested that the current property incentives — a deduction of transfer and mortgage fees from 2% and 1% respectively to 0.01% each for residential units priced no more than 3 million baht — should be extended through next year.

According to Mr Meesak, the deduction should apply to units priced up to 5 million baht because the purchasing power in this segment is strong.

Alternatively, incentives could be offered to all price ranges, but only the first three million baht would be deducted, he added.

It is also important to offer reduced mortgage fees for self-built and second-hand homes, according to Issara Boonyoung, chairman of the Thai Chamber of Commerce’s real estate committee.

As a result of the pandemic, many developers require debt restructuring. The government should extend the two-year effective period for construction permits, he said.

Lockdowns damaged the economy

As a result of the government’s lockdown measures, domestic car sales dropped by 38.8% year-on-year to 42,176 units in August.

Omicron has caused concern among major car manufacturers participating in the 12-day Thailand International Motor Expo, which ended yesterday. The Federation of Thai Industries (FTI) and the Association of Used Cars voiced concerns.

According to Surapong Paisitpatanapong, vice-chairman and spokesman of the FTI’s automotive club, “no sector can let down its guard or problems will escalate.”

It is a good idea for the government to carry on with stimulus measures, such as the “We Travel Together” tourism scheme, as they are quick and direct ways to inject money into the economy.

Despite the authorities’ good work, the government needs to extend the time for implementation of these schemes because the economy still requires assistance, according to Mr Surapong. In the New Year period, we’ll see if more stimulus measures are announced.”

In around a month, the club expects to discover if Omicron is a more virulent strain capable of causing another outbreak in Thailand.

Continue stimulus measures

Sanan Angubolkul, chairman of the Thai Chamber of Commerce, said that the private sector hopes the government will introduce new stimulus measures as a New Year gift to the public, especially the extension of the tax rebate “Shop Dee Mee Khuen” program.

Next year, the government should continue stimulus measures, since it still has a huge pool of funds that can be used to finance them.

270 billion baht remains from the 500 billion baht borrowed under the second emergency loan decree. 12 billion baht remain from the 1 trillion baht borrowed under the first emergency loan decree. A mid-year budget for fiscal 2022 is worth 89 billion baht.

In addition, the government still has room to borrow to rehabilitate the economy since it raised the public debt-to-GDP ratio from 60% to 70%, said Sanan.

A shutdown is NOT necessary

If Omicron’s spread can be controlled, economic recovery is expected to continue.

“Thailand’s public health system still has the capacity to manage and contain an outbreak of the new strain,” said Mr Sanan. “The private sector insists the country should not be shut down because a lockdown would have massive economic consequences.”

According to him, a continued mass vaccination campaign will make an Omicron outbreak less damaging than a Delta outbreak.

It’s important to get those 10 million people vaccinated,” said Mr Sanan.

Chaddatip Chutrakul, CEO of mall operator Siam Piwat, said that the company is unfazed by the new variant. After the country’s reopening on Nov 1, the four retail complexes — Siam Center, Siam Discovery, Siam Paragon, and Iconsiam — have seen customer traffic recover.

Economy improving in Thailand

The retail business sentiment in Thailand is much better than last year. The private sector is very strong in Thailand. We’ve faced many challenges and overcome them all,” she said.

“Even if there are new outbreaks, this won’t be a new problem. We have learned lessons from the past two years, and are confident we can manage our business.”

As long as local consumers keep up the positive momentum shown at the end of this year, retail prospects remain promising, said Ms Chadatip. Sellers need to adapt to changes as the tourism sector will not recover until next year.

According to Pinyo Tanawatcharaporn, president of the Association of Used Cars, there is no need to panic as Thailand has dealt with Covid-19 for nearly two years.

A well-prepared state public health system is necessary. “We don’t want another hospital bed shortage,” he said.

“The government will not be forced to resort to lockdowns if adequate preventive measures are in place.”

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