The baht opened at 36.26 to the US dollar on Thursday, strengthening from Wednesday’s close of 36.28.
The currency is expected to move between 36.10 and 36.30 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said the currency market is in a risk-on state and might provide the dollar with support to strengthen, especially if foreign investors go for mass purchases of Thai stocks again once the tension between China and the US eases over Taiwan.
However, he suggested investors beware of currency market volatility that might increase after a key Bank of England meeting.
If the BOE shows concern about a shrinking or regressing economy at the end of the year, it might pressure the pound sterling to weaken and in turn support the dollar, which could strengthen.
Poon also advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.
Mercedes-Benz introduces Online Showroom full-scale e-commerce platform through its website, offering new channel for customers to easily book & buy cars in just a few clicks
Mercedes-Benz officially introduces e-commerce platform through its website at mercedes-benz.co.th allowing customers to reserve and make a purchase all Mercedes-Benz models by themselves within a few clicks.
Customers can also choose to be in contact with any of Mercedes-Benz showrooms and service centres, marking a new era for Mercedes-Benz in offering a seamless Mercedes-Benz online-to-offline experience to customers across the country.
Roland Folger, President and CEO of Mercedes-Benz (Thailand) Limited, said “Mercedes-Benz has continuously studied and observed Thai consumers’ behaviour. We have found that digital platforms both in terms of websites and social media have become more and more important for consumers today, especially during the past few years as we face the COVID-19 situation. Digital platforms provide them with a way to easily access brands and products. And on the other hand, it is also a way for brands to reach and get closer to consumers. With cars, although consumers may need to have a test drive or at least experiencing the actual products before making decision to buy, it is not an obstacle for a digital platform to provide all information they would need about a car and offer them the opportunity to reserve or buy a car online. With the launch of our e-commerce platform as a new channel to generate growth in terms of sales, Mercedes-Benz is committed to providing a seamless online-to-offline experience to consumers while strengthening our brand presence in Thailand.”
Mercedes-Benz is set to offer a digital car booking and buying experience that is seamlessly connected to Mercedes-Benz’s authorized dealers at its website at www.mercedes-benz.co.th. Customers can start booking Mercedes-Benz cars from the home page by clicking on “Buy” at the top left. Then, you can select the desired topic such as “Buy through Online Showroom”, “Promotions”, “Book a test drive”, “Price lists & brochures”, “Collections & Merchandise” etc.
When you click on “Buy through Online Showroom”, the website will take you to explore available vehicles where you can choose the model or body type you want. Then, you can choose your preferred dealer by using the website’s filter which will result in the preferred model and dealer. The cars that appear on this page are those that are currently in stock. Mercedes-Benz will keep customers updated about the estimated delivery time and will notify them when the car is ready to be delivered later on.
Next step, you can also choose to click “Request for Quote”, where the website will ask for your details to contact you back or click “Proceed to payment ” to select payment options and learn more about instalment calculation. Once you decide on your preferred payment option, you can make a payment to reserve your desired car right away.
More details about this newly launched e-commerce platform can be found at www.mercedes-benz.co.th. You can also learn more information about any of the Mercedes-Benz models at Mercedes-Benz’s authorized dealers nationwide.
Kiatnakin Phatra Financial Group (KKP) reported a net profit of 4.08 billion baht in the first half of this year, up 45.1 per cent year on year.
KKP chief executive officer Aphinant Klewpatinond said commercial bank loans, especially hire purchase and home loans, grew by 10 per cent.
He added that the group’s brokerage business had No. 1 market share at 18.18 per cent, while the investment business grew considerably from equity and derivative trading, which made good profits despite volatile conditions.
“As for investment banking, the number of transactions declined at the beginning of the year, but large transactions are expected in the second half,” he explained.
He added that the group’s wealth management business had assets under advice of 700 billion baht.
Debtor repayment rate was better than expected, as a provision of 1.87 billion baht was set aside, a considerable decrease from the previous year, he said.
He said they would continue to focus on commercial banking and capital markets to develop complete and seamless services for customers and diversify sources of income to prepare for a more volatile future.
“KKP will leverage the country’s financial technologies and infrastructure that reduce size or network constraints to allow the bank to compete equally with others,” he said.
“At the same time, KKP continues investing in systems for its core businesses, such as loans that we believe to have room for growth.”
He added that the group has prepared to assist customers who may be affected by prolonged economic slowdown caused by the Covid-19 pandemic.
“However, sustainable relief efforts rather than immediate measures will be emphasised in order to best benefit customers during prolonged economic downturn,” he added.
Meanwhile, Kiatnakin Phatra Bank president Philip Chen Chong Tan said in the first half of this year, bank loans generated interest income of 69 per cent, mainly from secured retail loans, including auto hire purchase loans (up by 11 per cent) and home loans (up by 19 per cent).
He added that the bank will streamline internal systems and processes to make credit approval more efficient and accessible through the KKP Mobile app, launch new credit products like KKP Auto, and expand the service network through partnerships.
“In addition, to help alleviate high household debt and support sustainable growth, the bank will strive to empower customers financially by increasingly linking our banking services to investment services,” he added.
Kiatnakin Phatra Bank head of finance and budgeting Preecha Techarungchaikul explained that KKP had a net profit of 4.08 billion baht in the first half of this year, up 45.1 per cent year on year. Net profit from the capital markets was 672 million baht, he added.
“Provision in the first half of 2022 was reduced as loan quality remained at a manageable level, with an NPL coverage ratio of 169.1 per cent,” he said.
He said the bank saw an increase in both net interest and non-interest incomes.
Net interest income amounted to 8.77 billion baht, up 15.1 per cent year on year, while non-interest income was 3.80 billion, up 2.2 per cent, he added.
“The bank had a BIS ratio of 16.56 per cent, which was calculated according to the Basel III rules and included profits up to the end of the second quarter this year, and Common Equity Tier 1 of 12.99 per cent,” he added.
The five members of the board of the National Broadcasting and Telecommunications Commission on Wednesday unanimously decided to defer a decision on the merger of two giant telecom operators.
Trairat Viriyasirikul, acting NBTC secretary-general, said the five commissioners said they would need more information before making a decision on measures to prevent monopolistic or unfair trade practices following the merger of True Corporation and Total Access Communication Plc (DTAC).
Trairat said the NBTC on Wednesday considered the request for the merger by the second and third-largest mobile phone operators in terms of number of customers.
He said the five commissioners on Wednesday considered five categories of information:
– Studies by four subcommittees on the merger deal
– Results of public hearings of three focus groups
– A report on possible economic impact from the merger from the NBTC Office
– A study by Chulalongkorn University on the impact of the merger
– Opinion from an independent adviser, Finansa Securities Ltd.
After studying the information presented on Wednesday, Trairat said the five commissioners found the presented information inadequate and not comprehensive enough to design measures to protect consumers and to prevent possible damage to the telecom industry.
Trairat said the commissioners have asked the NBTC Office to come up analyses of six aspects:
– Business structure of the merger deal, all licences that True and DTAC have, and the licences which will be controlled by the new company
– Possible impact on management and businesses as well as competitions by holders of telecom licences to be controlled by the new company
– Analyse cost savings from the new economies of scale following the merger and how to translate the saved money into benefits for consumers
– Analyse ownership of telecom bandwidth by the new company to see whether it would have an advantage in the market
– Analyse possible measures for reducing airtime prices and to maintain service quality to reduce impact on consumers in the short, medium and long term
– Analyse measures for promoting mobile virtual network operator (MVNO) and to propose measures for revising regulations so that MVNO services would have higher competitiveness and become an alternative operator for consumers.
Bangkok, August 3, 2022 – Bitkub Blockchain Technology, Bitkub Chain and Blockchain Total Solution Provider, which aims to be an infrastructure of the Thai blockchain ecosystem, explained in-depth technology from the beginning to the present and emphasized the importance of blockchain technology by Mr. Samret Wajanasathian, Chief Technology Officer (CTO) of Bitkub Blockchain Technology via Bitkub Chain Official Facebook Page.
All of the information is concluded as follows:
The Beginning of the Bitkub Chain
The Bitkub Chain project idea originated from 3 main visions which are 1. Able to allow everyone to easily interact with blockchain DApps (support mass adoption) 2. To make the blockchain secure and stable 3. Enhance on-chain user experience
Bitkub Chain technically derived some of the technology from Ethereum (EVM Compatibility). This allows developers to build decentralized applications (DApp) on Bitkub Chain with several advantages such as rapid on-chain processing data, low transaction fees, and compatible consensus.
New Technology Developed on Bitkub Chain
1. KUB Coin – A native utility token on Bitkub Chain, which can be used for several utility functions such as on-chain gas fee payment, convertibility to fee credits, locking coins within a certain period of time, and earning various digital assets and redemptions for partners’ services and products.
2. Block Size – The block size of Bitkub Chain has been set to 60,000,000 Gas. Nevertheless, the block size could be increased in the future or more than other chains such as Ethereum to support on-chain transactions. (In 2021, Ethereum was set at 15,000,000 Gas).
3. Block Time – Bitkub Chain started with Proof-of-Authority (POA) consensus, which the system is fixed to around 5 seconds. This can be claimed that the confirmation time is faster than Ethereum. In addition, the time variation is extremely low due to the network’s low latency, and the speed can be calculated from the block size and transaction per block. The number adjustment is also becoming a challenge in technical terms. However, the process depends on the other factors to enhance the adjustment to be more practical and stable on the blockchain.
4. Transaction Fee – Bitkub Chain used a different mechanism called “Fixed Minimum” to stabilize the transaction fee to 50 GBit, which can suit several business use cases and gas fee estimation for both its users and developers. Furthermore, the high transaction fee is one of the main pain points for blockchain adopters, which depends on the crypto-economic model. In comparison, Ethereum uses the dynamic gas price mechanism based on the congestion on the network, which is different from Bitkub Chain. To clarify, the more the network is congested, the higher the gas price and transaction fees.
5. Hyper Block – A mechanism to aggregate the transactions from several wallet addresses on Bitkub Chain. Hyperblock can increase the speed of the transaction by over 1,000 transactions per second (TPS), making Bitkub Chain process faster and more secure. Hyperblock consists of four main parts:
a. Backend Service – the technology to help manage the “Backed Transaction Pool” by calling all of the data transactions at once via contract address. In addition, the Transaction Defragmentation Mechanism can increase the efficiency of the remaining block size.
b. Gas Tank Module – The wallet addresses to pay the transaction fees for the users on Bitkub Chain.
c. KAP Standard (Smart Contract) – Standard token on Bitkub Chain forked from ERC Standard. Bitkub Chain also invents 3 main functions which can secure the ecosystem:
getOwner() : The function is to help investigate the owner of smart contracts on Bitkub Chain to be more transparent.
batchTransfer (from , to[] , value[]) : The function is to help call a thousand transactions at once to record the data into the blockchain. This can economize the transaction fee and rapidly distribute a large number of coins.
adminTransfer(from , to , value) :The function of the KUB coin working group is appointed to monitor the law infringement actions such as Rug Pull. They can use this function as a majority agreement or appointed by the court to take action to retrieve back all of the stolen assets.
d. Fail-Safe Mechanism – The Fail-Safe mechanism works by using an off-chain engine to detect the failed transaction in the transaction pool and try to diagnose the root cause of the failure.
6. Security – Bitkub Chain’s security system is designed based on fundamental safety, which comes with a registration feature to protect users’ assets. However, the full functionality of KYC will be available in the future.
Bitkub Chain As Thailand’s Future Digital Infrastructure
1. Gas Optimization from 50 Gbit to 5 Gbit – Bitkub Chain’s vision is to prepare for mass adoption in the future. To align with the new configuration, KUB Coin supply was reduced to 110,000,000 KUB and the distribution was also revised to ensure balanced incentives for a sustainably growing ecosystem.
2. Byte Code – The fundamental encoding Bytecode to compare the smart contract similarity with KAP fundamental Bytecode. This could help reduce human errors from inserting the wrong code into DApps.
3. Bitkub Chain Layer-2 – Bitkub Chain launched Bitkub Chain Layer-2 or “BKC Ping” on June 29, 2022. It is the secondary framework or protocol that is built on top of the Bitkub Chain (Layer-1) to maximize the efficiency of blockchain utilization. For instance, it can reduce the transaction traffic and fee and inherits the security from Layer-1 with fraud-proof. In the future, there will be the launching of another 3 frameworks which are Wang, Yom, and Nan.
4. Software Development Kit (SDK) – Bitkub Chain software development kit was designed to facilitate almost all developers to connect with Bitkub Chain. To clarify, this software development kit has several advantages, including 1. To handle transaction submissions to blockchain 2. Transaction gas fee support 3. Environment testing (helps developer debug and deploy on mainnet) 4. Less time is needed for project development on Bitkub Chain.
5. BKC Oracle – The main infrastructure on Bitkub Chain that connects the data from the real world to blockchain and supports blockchain developers to use the tools and platform more efficiently.
6. Static Web Hosting – The technology that can bring the website to use on blockchain by using Bitkub Chain as Database to connect with Smart Contract from Software Development Kit (SDK).
Technical Paper (Yellow Paper)
Technical Paper (Yellow Paper) is officially announced on http://www.bitkubchain.com and published through Bitkub Chain Official Facebook Page. In addition, The Technical Paper (Yellow Paper) has already been verified by independent specialists.
Mr. Samret Wajanasathian, Chief Technology Officer (CTO) of Bitkub Blockchain Technology, said, “I would like to ensure that Bitkub Chain has always been and uses a high standard of blockchain technology. For example, we have KUB Coin, the native utility token on Bitkub Chain. Our system has an estimated 2 million wallet addresses which are composed of an estimated 990 thousand Bitkub NEXT accounts and 83.5 million transactions. We still strive to continuously develop our technology for Thai people and prepare for mass adoption in the future”
True and Dtac have come out against a news article titled “AIS presses NBTC on mega merger”. According to the firms, the article stated that the merger may violate applicable laws and require explicit approval from the National Broadcasting and Telecommunication Commission.
The companies said they are in “full compliance with the law” and insisted that “AIS’s attempt to compare the deal with other 3BB acquisitions in not applicable”.
True and Dtac said they wish to clarify the issues as follows:
• Mergers in the Thai telecommunications industry have been consistently and continuously carried out. Since the 2018 NBTC notification on mergers (the “2018 NBTC Notification”) came into force, there have been at least 9 merger cases whereby NBTC had considered the mergers according to the 2018 NBTC Notification by issuing resolutions to acknowledge the notification of those mergers. Since then, has never resolved to ”approve”: or “disapprove” the merger cases and adopt the 2006 NBTC Notification in considering such 9 merger cases. We believe that NBTC will uphold its principles fairly and apply the same standards as previous merger cases without discrimination in considering the amalgamation of True and Dtac.
• It is inaccurate and misleading to refer to laws and regulations applicable to other industries (e.g. energy and banking sectors) to the mergers in the telecommunications sector which has caused confusion to the public because each regulated sector has a specific regulatory body and regulations to oversee mergers. Therefore, the regulations and practices in the telecommunications sector in which the private sector has complied with, have to apply in considering merger cases the telecommunications sector. For the telecommunications sector, NBTC has the power to impose specific measures in accordance with the 2018 NBTC Notification which is the specific regulation applying to mergers in the telecommunications sector. True and Dtac have fully complied with all procedures required in connection with the proposed amalgamation both as governed by the NBTC and the Public Limited Companies Act B.E. 2535.
• The amalgamation of True and Dtac and the acquisition of 3BB by AIS are incomparable because each of them is subject to different NBTC’s notifications
o The 2006 NBTC Notification regarding the acquisition of shares or business, and significant assets between telecommunication licensees (the “2016 NBTC Notification”)– the acquisition of 3BB by AIS is captured by this 2006 NBTC Notification as it refers to acquisition of shares or assets of another licensee, which requires prior approval from the NBTC.
o With respect to the amalgamation between True and dtac, such amalgamation has to be considered in accordance with the 2018 NBTC Notification which specifically regulates the amalgamation of telecommunication licensees or their controlling persons. The 2018 NBTC Notification repealed the 2010 NBTC Notification. Therefore, referring to the 2010 NBTC Notification as the regulation applying to mergers creates confusion because 2010 NBTC Notification is no longer in effect.
• With respect to Somchai, AIS Executive’s comment in The Bangkok Post questioning whether the foreign shareholders of True and dtac have an understanding of Thai laws and regulations, True and dtac reaffirm that the two companies and their major shareholders have undertaken their businesses in strict adherence to corporate governance principles and ethical business practice, including treating business partners and competitors with respect, adhering to the pillars of fair competition, and complying with relevant laws and regulations in all jurisdictions in which they invest and operate. With respect to this amalgamation, the parties have thoroughly considered all applicable Thai laws and regulations to ensure full compliance with all relevant procedures.
• Linklaters (Thailand) Co., Ltd. and Allen and Overy (Thailand) Co., Ltd., legal counsels to True Corporation Public Company Limited and Total Access Communication Public Company Limited respectively, have provided legal view to True and dtac regarding the amalgamation between True and dtac as follows:
o “Based on the NBTC’s practice in considering the amalgamation and merger and acquisition cases in the past, after the 2018 NBTC Notification came into force since 20 January 2018, there were at least 9 merger cases where merging parties notified the NBTC of their mergers in accordance with the 2018 NBTC Notification. In all those cases, the NBTC had resolutions to acknowledge the merger notifications without issuing an order to “approve” such merger cases and the NBTC’s consideration of such merger cases did not base on the 2006 NBTC Notification.”
o “Even though NBTC does not have the power y to approve or disapprove the amalgamation, it has power to regulate the amalgamation according to Clause 12 of the 2018 NBTC Notification to impose specific conditions or measures to the business operators with significant market power in the telecommunications market, in order to prevent damage to the public interests.”
• True and dtac reiterate that True and dtac have followed all required procedures, including having obtained approvals from the Board of Directors and shareholders of True and dtac and the management of True and dtac having carried out all the required steps. We are confident that the new tech company arising from this amalgamation will deliver greater benefits and values to the Thai consumers, businesses, society, and support the country’s sustainable development going forward. The new tech company will enable Thailand to take advantage of the perfect storm of new technologies such as artificial intelligence, 5G, Internet of Things and deliver new products and services through partnerships with global platform companies. Thailand needs two strong market players, not one strong and 2-3 weak players, which does not promote effective competition.
Bangkok, August 2, 2022 – AIA Thailand, the country’s leading life insurance company that truly understands need of Thai people, introduces “AIA One Billion Trail 2022” the walking/running trail event where we allow runners to participate in the event as a team of 4 people for the first time in Thailand.
The trail event is organised to reinforce the company’s purpose to help people live Healthier, Longer, Better Lives. Runners in the team of four will enjoy the spectacular route from Doi Inthanon to Doi Suthep while proving their stamina as well as physical and mental strength. This team-based trail event will help participants develop trust and teamwork, as they need the strength to carry on, help each other, get rested, and compete to the finish line together. Participants and spectators of this event will also help raise funds to support the Thai Red Cross Language Literacy project which aim to improve Thai language skills among schoolchildren in remote areas.
The AIA One Billion Trail 2022 is scheduled on 2-4 December 2022 in Chiang Mai province, registration is now open on its website aiaonebilliontrail.run.
Mr. Nikhil Advani, Chief Executive Officer, AIA Thailand, said “AIA One Billion Trail 2022 is the first 4-person trail walking/running event in Thailand that we are the main sponsor. It aims to encourage physical strength, unity, and teamwork to achieve a common goal. It is also part of the “AIA One Billion” initiative originated by AIA Group and other 18 markets including Thailand, which was launched earlier this year to engage a billion people to live healthier, longer, better lives by the year 2030. We intend to start a movement to bring our purpose to life and create a more sustainable future for people across the region. Furthermore, participants of the AIA One Billion Trail 2022, either the runners, family members, friends and general public will be able to donate to raise funds for the Thai Red Cross Language Literacy project to improve the speaking, reading, and writing skills of children in remote areas. This event reinforces the company’s commitment to helping people to live Healthier, Longer, Better Lives.”
Mr. Knattapisit Krutkrongchai, Chief Agency Officer, AIA Thailand, said “In visiting communities of Thai children in remote areas, we found that there are still many children who lack access to basic education or low literacy skills, especially in speaking, reading, and writing Thai language, which are necessary skills for their future. The company, therefore, decided to initiate the “AIA One Billion Trail 2022” project in Chiang Mai to raise funds to support children’s education and maximise their potential. The event features a walking and running competition in a team of four using a natural trail route from Doi Inthanon to Doi Suthep amid the fresh winter air in December. All members of the team will need to work together while harnessing their physical and mental capabilities to cross the finish line together. There are four categories: 100, 50, 25 and 10 kilometres, whereas winners of each category will receive a trophy from Her Royal Highness Princess Maha Chakri Sirindhorn.”
“We want this event to be a turning point that inspires Thai people to take care of their health as well as appreciate the beautiful nature and environment. Moreover, this event will also raise funds from runners and participants to support the Thai Red Cross Language Literacy project to improve the speaking, reading, and writing skills of children in remote areas, in line with AIA’s brand promise to helping Thai people live healthier, longer, better lives,” he added.
In the AIA One Billion Trail 2022 Press Conference, there are two organisations that are key partnership of this trail event; Thai Red Cross Society, led by Mr. Khan Prachuabmoh, Director Fund Raising Bureau and Mr. Wittaya Chanchalong, Assistant Director Thai Red Cross Chapters Administration Office, together with Chiang Mai Provincial Office of Tourism and Sports, led by Mr. Jakkapong Sidthilaw. They are joining the panel to discuss about the details of Thai Red Cross Language Literacy project and the readiness of Chiang Mai to welcome trail runners from all over the country. Another special guest is Mr. Artiwara Kongmalai (Toon Bodyslam), the leading rock star and healthy idol, presented on stage to share technique for long distance running as well as invite the runners to participate in AIA One Billion Trail 2022 which help delivering educational opportunity to Thai youth.
Furthermore, the famous trail runner Coach Nam – Namphet Phorntharakjaroen and Dr. Nathee Thongsiri from Goody Box Ltd, the designer of the trail route for AIA One Billion Trail 2022, also showed up with a video presentation to introduce the Chiang Mai trail, which is one of the most beautiful trail routes in Thailand.
“We want to organise a decent trail event to grant positive experience to Thai runners and pave the way to events at the international level. Most importantly, we want to create a strong and sustainable exercising community that also takes part in the conservation of nature, forests, mountains, and all living things in the ecosystem in a sustainable manner,” said Namphet.
“AIA One Billion Trail 2022” is scheduled on 2-4 December 2022 in Chiang Mai. Interested persons can register as runners or donate directly to the Thai Red Cross Society bank account via website: aiaonebilliontrail.run from today onward.
The Thai economy is entering a “parallel universe” marked by deglobalisation, geopolitical conflict, high inflation, and rising interest rates, KKP Research said on Wednesday.
KKP Research chief economist Pipat Luengnaruemitchai said these factors are a challenge to the global and Thai economies both in the short and long terms.
He said the economy will gradually recover from a low base, adding that the global gross domestic product is expected to grow at 3.3 per cent as domestic consumption and investment start to return to normal.
However, inflationary pressures and rising cost of living are worries for recovery of the Thai economy, he said.
“Interest rates are on the way up as a result of inflationary pressures, and central banks around the world are raising interest rates,” he said.
“A possible global economic slowdown or recession in the near future may also affect the pace of recovery of the Thai economy,” he warned.
He expected the Bank of Thailand’s Monetary Policy Committee to raise the interest rate by 25 to 50 basis points during its meeting on August 10.
He pointed out that many sectors were yet to return to their pre-Covid levels, as households and businesses are still affected and have trouble paying back their debts.
In addition to short-term factors, he said the Thai economy is facing several structural challenges that hold back economic growth and place the country at risk of losing competitiveness.
He added that environmental factors such as technological development are changing rapidly.
“Therefore, a solution for the Thai economy in this new world is economic restructuring to increase competitiveness,” he said.
He added that the country will also need to support investments, promote research and development, upgrade the quality of education and labour skills, liberalise labour and services, reduce monopoly, and improve economic and political institutions to reduce the opportunity gap.
Geopolitical tensions and inflation could boost Thailand’s gold demand in the short term, as a safe haven for investors and a means of wealth preservation for consumers, the World Gold Council said.
Andrew Naylor, regional CEO, Asia Pacific (ex-China) of the council, said during an online press conference on Wednesday morning that due to the economic slowdown and uncertainty factors, gold remains a preferable alternative for Thai people.
He said consumer demand for gold during the second quarter this year had already increased 14 per cent, from 7.5 tons in the same quarter last year to 8.5 tons this year.
The council pointed out that the demand was supported by a 10 per cent year-on-year increase in demand for jewellery from 1.7 tons in the second quarter of 2021 to 1.9 tons in the second quarter of this year and a 15 per cent year-on-year increase in bar and coin demand. Jewellery consumption has been supported by the economic recovery, emergence from Covid restrictions and a rebound in tourism.
“This is the sixth consecutive quarter that we’ve seen a year-on-year rise in jewellery consumption in Thailand, owing to lower gold prices as well as higher safe-haven demand for gold amid a weaker local currency and inflationary concerns,” Naylor said
However, global jewellery fabrication outperformed consumption as demand remains well below pre-pandemic levels, he added.
The latest Gold Demand Trends report reveals that the overall global gold demand (excluding over-the-counter) in the second quarter was down 8 per cent year on year to 948 tons. However, thanks to strong exchange-traded funds (ETF) inflows in the first quarter, gold demand for the first half of 2022 is up 12 per cent compared to the first half of 2021 at 2,189 tons.
In terms of global demand, gold price fell in the second quarter of 2022 after an initial rally in April on geopolitical risks and rising inflationary pressure, as investors shifted their focus to rapidly rising interest rates and a strikingly strong US dollar, the council said.
The 6 per cent drop in gold prices over the quarter impacted gold ETFs, which saw 39-ton outflows in the second quarter. The first half of this year has seen net inflows totalling 234 trillion, compared to 127 trillion in outflows in the same period last year, the council said.
However, given a potentially softening inflation outlook amid continued rate hikes, the second quarter decline is likely to set a weaker tone for ETFs in the second half of 2022, the council added.
In the second quarter, demand for gold bars and coins remained stable year on year at 245 tons. Demand increased significantly from India, the Middle East, and Turkey, helping to offset weakness in China, caused in part by ongoing coronavirus lockdowns. As a result, global bar and coin demand fell 12 per cent year on year to 526 tons in the first half of this year.
In the jewellery sector, gold demand in the second quarter increased 4 per cent year on year to 453 tons, aided by a 49 per cent increase in Indian demand compared to the second quarter of 2021, Naylor said.
The strong performance in India has compensated for a significant drop of 29 per cent in mainland China, where the market was hampered by coronavirus lockdowns that slowed economic activity and reduced consumer spending.
Meanwhile, central banks were net buyers in the second quarter, adding 180 tons to global official reserves, the council said. Net purchases reached 270 tons in the first half of the year, matching the findings of the council’s recent central bank survey, in which 25 per cent of respondents stated that they planned to increase their gold reserves in the next 12 months.
In the technology sector, gold demand was down 2 per cent from the second quarter of 2021 at 78 tons, resulting in the demand being marginally lower year on year at 159 tons in the first six months of this year, the council said.
The electronics industry has continued to face supply chain disruption, as well as diminished consumer appetite for electronics as the cost-of-living crisis takes hold; both of these factors contributed to the slight drop in demand.
According to the council’s Gold Demand Trends data series, mine production for the first half of the year reached a new high of 1,764 tons, up 3 per cent from the first half of 2021.
Some projects mined higher-grade deposits, and the Chinese mining industry returned to normal output levels after safety stoppages last year, boosting output. Gold price increases in the first quarter and increased economic hardship and uncertainty led to an increase in recycling activity, with total recycling reaching 592 tons in the first half of the year, an increase of 8 per cent year on year, the council said.
Louise Street, senior analyst Europe, Middle East and Africa at the council, said there are both threats and opportunities for gold in the second half of 2022. Safe-haven demand will likely continue to support gold investment, but further monetary tightening and continued dollar strength may pose headwinds.
“As many countries face economic weakness and the cost-of-living crises continue to squeeze spending, consumer-driven demand will likely soften, although there should be pockets of strength,” said Street.
Fortune announced the Fortune Global 500 list for 2022, ranking the world’s largest corporations by revenue for fiscal 2021. and Walmart claims the top spot for the ninth consecutive year,
Fortune announced the Fortune Global 500TM list for 2022, ranking the world’s largest corporations by revenue for fiscal 2021. Walmart claims the top spot for the ninth consecutive year, and for the 17th time since 1995. Saudi Aramco (No. 6) reclaims its title as the world’s most profitable company, with $105 billion in earnings.
Mainland China (including Hong Kong), with 136, once again has the most companies on the list, up one from last year. Adding Taiwan, the total for Greater China is 145. The US, with 124, is up two; in third place, Japan lost six, for a total of 47.
For the first time, the aggregate revenue of Fortune Global 500 companies based in Greater China (including Taiwan) exceeded the revenue of US companies on the list, accounting for 31% of the total.
Of the 2022 rankings, Fortune List Editor Scott DeCarlo says, “A rebound from the worst depths of the pandemic created a huge tailwind for the world’s largest companies by revenue. Aggregate sales and profits hit record levels in the fiscal year 2021 for the Fortune Global 500. The Global 500 is the ultimate scorecard for business success and the companies face another big test navigating several global economic headwinds in 2022.”
Fortune Global 500 companies generated revenues totalling $37.8 trillion—more than one-third of the world’s GDP—for an increase of 19% over last year, marking the highest annual growth rate in the list’s 33-year history. Cumulative profits were up 88% over last year, for a record $3.1 trillion. Companies on the 2022 list employ 69.6 million people worldwide and are based in 229 cities and 33 countries and regions around the world. The number of women CEOs of Fortune Global 500 companies rose to 24 this year, from 23 last year.
The 2022 Fortune Global 500 Top 10 LIST: 1. Walmart (U.S.) 2. Amazon.com (U.S.) 3. State Grid (China) 4. China National Petroleum (China) 5. Sinopec (China) 6. Saudi Aramco (Saudi Arabia) 7. Apple (U.S.) 8. Volkswagen (Germany) 9. China State Construction Engineering (China) 10. CVS Health (U.S.)
In her foreword to the magazine’s August/September 2022 issue, Fortune Editor-in-Chief Alyson Shontell writes, “Here’s the catch: [These] numbers reflect financials from 2021 when the world was starting to bounce back from COVID-19. This year has brought a whole new truckload of challenges… For businesses of every size, the real test will be who can survive and thrive in tough conditions like these, especially if—or when—a recession of unknown length and depth settles in.”
Companies are ranked by total revenues for their respective fiscal years ended on or before March 31, 2022. All companies on the list must publish financial data and report part or all of their figures to a government agency. Figures are as reported, and comparisons are with the prior year’s figures as originally reported for that year. Fortune does not restate the prior year’s figures for changes in accounting.
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