Business

Thailands Finance Minister Says Capital inflows into Thailand may have a “Vigorous” Returns

Published

13 years ago

September 24, 2011

Bchcomber

Net foreign capital inflow has exceeded US$10 billion (Bt300 billion) in the first five months of this year

Capital inflows into Thailand may have a “vigorous” return after a selloff in the nation’s stocks, and the government is prepared to help control such investments if needed, Finance Minister Thirachai Phuvanatnaranubala said.

The Bank of Thailand should “keep a close watch” on the return of capital flows and can approach the government to impose specific measures if inflows are too strong, Thirachai said in a Bloomberg interview in Washington yesterday. It would be “jumping the gun” to say such steps would be necessary and unveil policies the government can undertake, he said.

“Once investors get over this short-term pessimism, the long-term fundamentals would come in and this could translate into a more vigorous capital inflow than of late,” he said. “If the central bank finds the inflows too strong and if they think it would adversely affect our competitive ability, then the central bank is welcome to come to talk to us and ask for whatever help they may need.”

The worsening European debt crisis and threat of a U.S. recession erased more than $10 trillion from global equities since May. Thailand’s benchmark SET Index slid 7.3 percent last week, its biggest weekly decline since November 2008. Overseas investors have sold a net $520.8 million of Thai stocks so far this month, according to data compiled by Bloomberg.

Recession Threat

The threat of a global recession is rising and European nations need to gather political will to resolve the crisis, Thirachai said. Europe’s crisis is likely to have a greater impact on Thailand’s financial markets compared to its economy, he said. Thirachai is attending the annual meetings of the International Monetary Fund and World Bank.

“The concern is less about export demand but more about financial market disruption” for Thailand, Thirachai said. Without a resolution to Europe’s debt woes, “whenever the bonds come due and they need to be refinanced, the markets will react again and again like a bullet that ricochets, hitting and bouncing around and it will hurt the emerging markets.”

The Bank of Thailand, which last month raised its key interest rate for the seventh straight meeting, needs to find “the right balance” between inflation risks and threats to growth amid the worsening global environment, Governor Prasarn Trairatvorakul said Sept. 15.

The central bank lifted the benchmark interest rate to 3.5 percent on Aug. 24, the ninth increase since the start of July 2010, and said current rates are close to “normal levels.” The next meeting is on Oct. 19.

‘More Adverse’

“It seems like they are now looking at the external environment as being more adverse than it appeared originally so they will take that into account,” Thirachai said.

Thai Prime Minister Yingluck Shinawatra has pledged to increase the daily minimum wage to 300 baht ($10), almost double the current level in some parts of the country, and buy rice from farmers at as much as 42 percent above market rates, spurring concern inflation will quicken.

The Thai government’s measures to boost domestic demand will have “one-time” effects, Thirachai said.

“There might still be price pressures but with the outlook of the major economies being weak, this might be a good insurance,” he said. The government’s measures “should not put too much worry on the shoulders of the central bank.”

Thai inflation accelerated 4.29 percent in August, the fastest pace since 2008, as rising food prices countered a decline in oil costs. Core inflation, which excludes fresh food and fuel, accelerated 2.85 percent. The central bank uses core inflation to guide monetary policy and aims to keep it at less than 3 percent.

Salary Increases

Thailand’s Cabinet this month approved wage and salary increases for government officials as well as tax incentives for first-time buyers of homes and cars to help spur consumption.

The government is targeting a budget deficit of 350 billion baht in the fiscal year starting Oct. 1, and estimates expenses of 2.33 trillion baht. The government earlier this month approved a plan to spend 15.2 trillion baht over the next four years, including 11.3 trillion baht to fund state policies aimed at boosting the economy.

While the previous Thai government had aimed to balance the budget by 2016, Thirachai said that is less of a concern for him.

“With the adverse environment in the international arena, the issue of when the budget would come back into balance is less important than how the spending and the budget are geared toward improving competitiveness of the country,” he said.

Business

PepsiCo Reduces Revenue Projections As North American Snacks And Key International Markets Underperform.

Published

2 months ago

October 8, 2024

Salman

(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.

Published

2 months ago

October 8, 2024

Salman

(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

Published

2 months ago

October 8, 2024

kiaragrace

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