Business

How the Coronavirus has Affected Business in the Asia-Pacific Region

The recent Coronavirus outbreak has affected many industries outside of healthcare and has shut China and the entire region of Asia-Pacific from the rest of the world. Due to the fact that the virus is an international health hazard, all traveling has been suspended, in an effort to keep the virus as contained as possible. Despite these efforts, however, there have been multiple reported coronavirus cases outside of China, where the virus initially started to spread.

The Coronavirus has virtually affected all the businesses in the region, with establishments struggling to continue their work, not just because of the health hazards, but simply because the day-to-day life has now completely changed, and people are cautious about going outside.

The quarantine and the general panic, that follows such outbreaks, has affected the entire region, slowing down the economy, affecting the currency in a negative way, and even shutting down entire venues and entertainment units, as the government is demanding as much isolation as possible, in order to prevent the virus from spreading across the country with higher intensity.

Coronavirus affecting Tourism

Naturally, the first industry to take the hit in the region was tourism. The international travel has been stressful, with security officers checking everyone’s temperature upon entering through the incoming flights from China, and the Asia-Pacific region as a whole has been suspended. China has also prohibited any foreigners from entering the country, but some of the international cases still popped up a number of weeks after the initial news about the virus outbreak became public.

Tourism plays an important role in the economy of the region, especially in countries like China, Thailand, and Australia, all of which now have recorded cases of coronavirus. Flights have been suspended in most of the countries in the region, while the government is encouraging people to stay at home, avoid public gatherings and follow strict sanitary guidelines.

Safe to say that the tourism industry will not be recovering from this hit any time soon. Thailand, a country that depends heavily on tourism, is facing a substantial decline in the number of visitors, posing a threat to the country’s economy. Even countries that do not have confirmed cases of coronavirus, like Indonesia, are facing economic challenges due to public panic and international concerns.

Casinos void of Chinese gamblers

But since 99% of the reported cases are concentrated in China, the country has been hit the hardest due to the outbreak. The country has had to ban a lot of its trade to prevent the virus from spreading. This left neighboring countries, which usually depend on Chinese exports, wondering where to get the much-needed goods from.

Macau, China’s gambling capital, has been completely empty for the last couple of weeks. Since the city is a massive tourist hotspot and the entertainment capital of the country, the whole city has been deserted, with all the casinos closed down, nobody in the streets and no way to get in or out. The safety measures have been extremely tight in places like these, where close social interactions are frequent and people often don’t have personal space whilst in public.

In Australia, where the Crown casino dominates the industry, and where people go to play real pokies and experience one of the largest selections of slot machines, the gambling venue is expected to have a tough quarter, due to such public places now being considered as hazardous.

Production and supply

With so many factories closing down, the supply chain is facing a lot of risks. The worldwide trade could face some serious disruptions if the virus isn’t contained soon enough, and for the damage to stay within the limits of salvageable. While largely a negative trend, as China is one of the biggest oil consumers, and the demand for oil is under risk, we could see a drop in oil prices.

Coronavirus and Currency

The currencies have also been going through a lot of challenges, with the majority of the businesses being closed down. For the time being, the tourism industry is virtually non-existent and the concerns about the future of the virus have affected the region in a negative way. While the Chinese Yuan initially saw a substantial drop, over the course of the last two weeks, the

Chinese market managed to stabilize itself, and even showed some gains towards the second week of February. The Australian dollar is following a similar trend, which has created a whole new level of concern in the Asia-Pacific region, with everyone fearing the economic consequences of the coronavirus outbreak. The concerns of the fx market about the future of the virus, and whether or not it will spread throughout the region, are valid and have taken a heavy toll on a lot of local currencies.

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