Business

Thaksinomics – Thailand can’t Embrace it’s Future by way of the Past

Somkid Jatusripitak is turning to the same spendthrift economic policies—dubbed Thaksinomics

BANGKOK – After taking power nearly 16 months ago, Thai coup leaders sought to banish all traces of former leader Thaksin Shinawatra from public life. It’s more than a little ironic that they’re now embracing his economic policies.

Thaksin himself was removed in a 2006 coup after five years in power. But his political machine continued to control Asia’s seventh-biggest economy off-and-on for years after, with his younger sister, Yingluck Shinawatra, serving as prime minister from 2011 to 2013. In May 2014, a new band of military leaders rolled into Bangkok determined to restore order after a long— running political stalemate and hoping to drive the Thaksin crowd out once and for all.

Initially, general-turned-premier Prayuth Chan-Ocha won reasonably broad support from a Thai public exhausted by political infighting. Many Thais figured that if democratically— elected leaders couldn’t boost living standards, perhaps the generals could. But as the economy’s struggles have deepened, the government’s support rate has sunk along with the Thai currency. To prop up those numbers, Prayuth is turning to the same spendthrift economic policies—dubbed Thaksinomics—he once derided.

Last month, Prayuth hired Somkid Jatusripitak, Thaksin’s former finance minister and architect of his economic program. Somkid is already pushing similar policies, including pumping waves of money into villages to shore up political support.

That’s exactly what Thailand doesn’t need. One can appreciate the pressure Prayuth is feeling. Even though the Thai baht is down 9 per cent this year, exports contracted in each of the last seven months. Domestic demand is equally weak amid high consumer debt and a lack of confidence.

A deadly bomb blast in Bangkok last month threatens to inflict further damage on the vitally-important tourism trade and repel already scant foreign investment.

Yet Prayuth was right to criticise Thaksin’s strategy of lavishing piles of cash on rural communities in exchange for loyalty. Reverting to mass handouts now will do nothing to improve economic fundamentals and may well deepen the nation’s malaise. For one thing, such populism distracts the government from polices more likely to encourage long-term competitiveness, such as infrastructure upgrades.

Plans to spend roughly US$92 billion on such projects—including high-speed rail networks between Southeast Asia and China—are progressing glacially. So are efforts to move Thailand up the skill-and-production value chain. As Indonesia, the Philippines and Vietnam lobby to host Toyota and Samsung factories, Thailand doesn’t have this kind of time to waste.

There’s also the next phase of Thailand’s development to consider—the need to integrate into the global information economy. If the junta is going to ply rural communities with billions of dollars, the money should be put into education, training and productivity-enhancing research and development projects.

Unfortunately, the junta’s recent actions may curb the capital inflows needed to finance such human-capital investments. On Friday, for example, it failed to pass a new constitution that critics say would have legalized similar coups. The upshot: An election in 2016 now looks impossible.

Thailand has seen a record 17 days of outflows from debt. Further capital flight is likely as growth slows and global volatility continues. All this would be less worrisome if Prayuth and his men seemed to have a coherent plan to revive the economy. Now that two interest-rate cuts have failed to boost demand, the onus is on the government to combat the effects of Federal Reserve rate hikes and a Chinese slowdown (including through a US$6.5 billion stimulus package).

Amid such uncertainty, a detour toward Thaksin-like short— termism is troubling to say the least. Thailand needs bold structural reforms to strengthen government institutions—like the judiciary—reduce the role of exports, curb corruption, increase transparency and cut red tape to encourage both domestic startups and foreign investment. Confidence could be restored by offering a coherent and proactive revival program with specific goals and deadlines—including a timeline for when the generals will restore civilian rule. The last thing the country needs is a return to the past those same generals claimed to be fighting against.

By William Pesek

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