Business

Thailand’s Baht after Reopening – A bullish Valley or a Bearish Horde

Thailand’s economy relies on tourism and trade, both of which have been badly damaged by the novel coronavirus pandemic.

Bank of Thailand Reports Baht at a 16 Year Low

Thailand’s baht surged the most in a year, defying a selloff among emerging Asian currencies and testing the central bank’s patience after it warned of economic risks from continued appreciation. At the start of June, the Bank of Thailand said expressed concerned about the Thai baht’s recent and rapid appreciation. Saying it’s ready to take steps to curb a climb that could imperil an already fragile economy.

Thailand’s presence during 2020 was not necessarily highlighted due to the obvious elephant in the room. COVID-19 basically took the voices of smaller countries away from them and focused more on larger countries trying to combat the pandemic. However, this did not mean that smaller countries were not suffering from the economic implications of what the virus had brought.

Sure you may have seen some news about Thai scientists coming up with a cocktail of medicine to treat the virus, but other than that, there is a plethora of information about the country and how it has been dealing with the economic damage caused in just Q1 of 2020.

In most cases, people would use the GDP of the country in order to measure the damage caused by the pandemic, but in this case, we have to use the exchange rate of the Baht, considering how interconnected it is to the general economy and situation in the country.

Focus on Travel Industry

You see, Thailand is not necessarily known for focusing on production and exporting it to nearby countries. They simply cannot do it, due to having a two behemoth producer such as India and China nearby. Therefore, the only thing they can truly focus on our services. These services tend to be more focused around the travel industry, thus concentrating the economy too much.

Needless to say, the “cancellation” of Thailand’s Spring and Summer seasons was absolutely devastating for millions of locals and the economy. This was pretty well displayed by the National Bank through actively trying to devalue the currency since the beginning of the year.

The anticipation was that lowering the exchange rate in relation to the USD would help convince countries like the United States, the UK, and various others to prioritize Thai exports as opposed to Chinese exports.

There was no better time to do this as well, considering that production was seized and the political relations with China were souring every single day. Unfortunately for Thailand though, this new plan, alongside all of the planning for anticipated income through tourism, just vanished right in front of their eyes. And the results are very clear to see.

Although many businesses could potentially go back to their regular routines even during the remainder of the national emergency situation. It’s also very unlikely for Thailand to start accepting international tourists before June 30th. Even after this date, it’s very hard to say whether the government will risk a new wave of the virus inside of the country. Considering that China is now starting to see the Coronavirus resurface again.

Thai Baht and the Post reopen situation

Because of this uncertainty, the Thai Baht has been all over the place. Taking a look at the chart we can clearly see that during the first months of the pandemic the Thai Baht was performing amazingly well due to the anticipation that it could potentially rise when the pandemic was over.

Most countries thought that the virus would die out during the final weeks of Spring, but as we can all see, it’s still raging on. Because of this, the facade of hope was broken within just a few days, thus causing both institutional and retail traders to dump the Baht on the market and consolidate their holdings with USD, EUR or JPY.

According to some of the most trustful forex brokers in Thailand, the bearish market was so intense that they had to somehow lower their leverage allowance as well as the maximum trading size. If they had not done so, it was almost guaranteed for them to lose even more than they were already losing during the year.

But, one “person” that walked away from a victor from all of this was the central bank of Thailand. The mission for devaluing the currency has been a resounding success for some, but taking a look at the same chart, it is obvious that there’s still a long way to go to reach the pre-pandemic exchange rate. However, the pre-pandemic exchange rate is definitely not the goal here, it is much much lower.

The most likely target would be the large dip that happened at the beginning of the year, thus instilling the bullish sentiment for the rest of the months to come.

What to expect with economy

It is quite clear that the central bank is trying to convince foreign investors to increase the FDI it had lost during the year. They’re basically playing the long game as they would much rather have the economy suffer for the remaining of the year with a depreciating currency, rather than have everybody’s hopes up with an appreciating one and suddenly burst the bubble introducing a great depression Thailand version.

Overall, the exchange rate of Baht is going to continue falling for the remainder of Q2 or throughout the remainder of the year.

If you’re also interested, we just wrote a guide about When Are the Best Times to Trade Forex?

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