Business

Thailand Could Be Facing a Gloomy Outlook in 2020

The outlook for the year looks quite dim for the country due to a string of external and internal developments.

2019 was a controversial year for Thailand, especially with the elections in March, but 2020 is shaping up to be even larger one. With drought affecting much of the country and the Mekong River at record lows. Both of which have the the potential to become regional flashpoints.

The battle to keep the baht down will also continue long into the new year. Its strength is threatening tourism and export sectors. The bahts strength is also and stressing Prime Minister Prayut Chan-o-cha’s leadership. Meanwhile, opposition Future Forward Party have vowed to take on the fight for democracy. Usurping Pheu Thai Party as leaders, but, for its leader Thanathorn Juangroongruangkit it could mean ruin.

The Environmental Crisis Continues in Thailand

There is no sign of relief in the long-running drought, with 31 provinces warned to expect drought conditions this year. Provinces to the north will continue to bear the brunt of the disaster, which has seen crops and livelihoods destroyed in recent months.

Water reserves were replenished somewhat during last year’s wet season, but torrential rains in the north exacerbated disastrous conditions with flooding leaving 33 dead in the Isaan region alone.

Prime Minister Prayuth Chan-o-cha has called on the rest of the country to help out by reducing water consumption. “Please all help save water. Turn off all the taps. Use less water. Reduce tooth-brushing and shower time by one minute,” he said Tuesday. His government also announced a government pledge for $100 million to extract groundwater.

Thais living along the Mekong have reason to be extra concerned. The river is at historic lows and will nearly certainly worsen in coming months as warm weather spikes in March and April. Already, scores of farming, fishing and other reliant communities along the river have been forced out in search of alternative employment.

Drought and Mekong Dams

Drought conditions have met a match in the damming of the Mekong. Laos’ Xayaburi Dam began operations in October and is already destroying much of the ecosystem downstream. Mahasarakham University researcher Chainarong Setthachau told Associated Press that the dam has created a phenomenon known as ‘hungry water.’ “The current has less sediment, which unleashes energy onto the river banks downstream. This so-called ‘hungry water’ will cause much more erosion to the banks, uprooting trees and damaging engineering structures in the river,” Chainarong told the Reuters.

The Xayaburi dam has not been operational for even six months and already is causing disaster for northeastern provinces. Laos is planning the construction of another nine dams. The Mekong River Commission — an intergovernmental agency including Myanmar, Laos, Cambodia and Thailand — has approved a new five-year strategy to mitigate some of these concerns, but experts warn it is not effective enough. Thai environmental experts have been particularly damning of the MRC focus, saying electricity generation for export has been prioritized over safeguarding the needs of Thai people.

Thailand’s Baht Too Big For Its Boots

The consistently strong baht will continue to occupy policymakers. The currency welcomed the new year by hitting the 30-to-USD ratio, a level not seen since 2013. While it has since dropped, woes are expected to continue. Bank of Thailand, the country’s central bank, spent last year slashing rates to record lows to middling success. Bloomberg reports that analysts expect further cuts but other options are limited and will be focused primarily on ensuring the baht does not again breach the 30-to-USD limit.

Predictions that the baht, one of the highest performing Asian currencies last year, would scare off holidaymakers in 2019 has not come to pass with the highest arrival figures on record. Still, exports have struggled with rice and other crop exports long predicted to miss 2019 targets. The shipping sector expects to see a further 5 percent contraction in exports this year with drought conditions exacerbating currency issues.

Official unemployment figures remain low, but unions and workers groups warn lower-income Thais will likely bear the brunt. Declines in manufacturing exports are expected to see job losses in that sector.

Drama Has Just Begun in Thailand

The year ahead in Thailand politics will likely be laid out in February. Opposition MPs have threatened a no-confidence motion against Prime Minister Prayuth Chan-o-cha. Which is expected to be tabled in the coming weeks. It’s unlikely any move would unseat Prayuth or other pro-military party ministers. Because the junta infamously stacked the cards in its favor prior to the march election.

The challenge will be led by Thailand’s opposition stalwarts Pheu Thai Party over land sale issues. While the issue itself may not be a stake in the heart of the government, party cadre Chalerm Ubamrung promises it’s just the beginning. “I can’t say if the land sale issue will actually tarnish Gen Prayut, but I can assure you that the first round of the boxing match has started … the opposition will not disappoint the public,” he said, as reported by Bangkok Post.

The Future Forward Party, whose leader Thanathorn Juangroongruangkit was booted from parliament last year, dropped four MPs after they consistently voted with Prayuts government. You can expect to see those MP’s join pro-government parties and retain their seats. Despite the heavy hits, FFP and Thanathorn do not plan on going down quietly.

Dissolution of Opposition Party in Thailand

Thanathorn called on supporters to rally in Bangkok in December after the official election body called on the Constitutional Court to forcibly dissolve the FFP. The rally is the largest in the city since 2014. It’s unlikely to be the last. “This is just the beginning. We’re here first as a test run. Prayuth, don’t be too afraid. The real thing is next month,” Thanathorn told attendees.

One poll shows he may have broad support. The National Institute for Development Administration survey, conducted across the country in the week after the demonstration. It found 31.42 percent of the 2,511 respondents thought Thanathorn and the FFP should be leading Thailand. Prayuth was the second choice with 23.74 percent of respondents.

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By Erin Cook

Erin Cook is a Jakarta-based journalist covering Southeast Asian affairs. She has previously worked for several regional publications including the Jakarta Globe.

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