Every country will be infected with the Covid-19 Omicron variant, expert virologist Dr Yong Poovorawan wrote on his Facebook page on Thursday, advising people to wash their hands regularly, always wear a mask, keep a distance from others and get vaccinated.
Yong said Omicron can spread more easily than other variants including Delta. He speculated that it would replace Delta soon once it spreads worldwide.
Meanwhile, another virologist, Anan Jongkaewwattana, wrote on his Facebook page that Hong Kong researchers, who conducted tests with bronchial and lung tissue samples, found that Omicron grows faster in the upper bronchus.
However, the virus grew slower in the lungs, which supported reports that Omicron will not be as severe as other variants.
Four star players – Pornanong Phatlum, Prayad Marksaeng, Gunn Charoenkul and Pannarat Thanapolboonyaras have signed up for The Final Chapter 2021, the season-concluding TrustGolf Tour which runs between December 28-31 at the Aquella Golf and Country Club in Phang Nga.
Former LPGA top 30 player Pornanong will make her first appearance in the Bt5 million Thailand Mixed event, a warm-up before she re-joins the LPGA Tour in January.
“I made a decision to enter this tournament not only to sharpen my skills before the LPGA in 2020 but also to socialize with fellow players. It will be fun as I’ve never competed in this type of format before,” said the 32-year-old who cracked the world top 30 in 2014.
While the windy condition at the Aquella is likely to upset the apple cart for many players, Pornanong believes she can deal with it with experience from playing in the Bahamas where the course is situated near the sea.
Star Players from Big Tours to Feature at The Final Chapter 2021
“I have some good results in the Bahamas before. I’m quite familiar with the winds. I love challenge,” added the 2018 Women’s British Open runner up who has been working with Chris Mayson, a coach of fellow LPGA stars Ariya and Moriya Jutanugarn, for three months.
“I’ve adjusted my swing and it paid off. I did well in my last LPGA (Pelican Women’s Championship where she finished tied sixth, her best finish of the year). I believe I can produce some good results in 2022 and hopefully will get back to the top 30 again,” added the two-time Ladies European Tour winner.
Fellow LPGA player Pannarat whose best finish in the tournament was at tied sixth in the second edition in April hopes to make an impact as she makes her third attempt on the tour.
“I will be well prepared for the tournament and I’m quite confident with my game. I’ve been working on my approach shots and hope to produce a good result,” said the 23-year-old from Roi Et. Phang Nga-born Gunn, just returning from the Japan Golf Tour, will be routed by local fans to triumph on homersoil. The 29-year-old should have edge over others at the Aquella where he used to play when it was still known as Tai Muaeng course while growing up.
“I’m quite familiar with this course and I’m glad to play in a home tournament,” said Gunn who lifted up two back-to-back titles on the Thai PGA Tour last year.
However, a finger injury may hamper him from his A game in his return to the TrustGolf Tour for the second time.
“The injury is picking up. I’m more than 80 per cent ready. I hope to finish in the top 3 but that means my putting game has to be great,” added Gunn who barely entered Thai events this year die to his busy schedule in Japan.
Three-time Japan Senior Tour Order of Merit winner Prayad will be launching his second attempt in the mixed event. He participated in the inaugural episode at the Black Mountain Golf Club and then departed Thailand for the Japan Senior Tour where he settled at fifth this season.
“It’s good to be back in the event as there are a lot of good male and female players. It proves that our country has many up-and-coming players. Playing this tournament will help sharpen my game for 2022,” said the 55-year-old Prayad, also a 10-time Asian tour champion.
The tournament which pits the men and women against one another will be staged under strict protective protocols against COVID-19. ATK Swap test is provided for players, personal caddies, player’s company and officials. Only those who test negative are permitted to participate in the tournament. Furthermore, fans who produce negative ATK results within 72 hours before the tournament are welcome at the course.
Viewers can watch live streaming of the Thailand Mixed hosted by TrustGolf on AISPLAY APP, https://www.facebook.com/trustgolfclub and at TrustGolf Youtube channel from 9am onwards during tournament days.
The Thailand Mixed is organised by TrustGolf, an indoor training center with advanced technology, It is supported by the Sports Authority of Thailand, the National Sports Development Fund, the Ministry of Tourism and Sports, Bangkok Bank, B.Grimm Company, Bond Holdings, AISPLAY, Bridgestone, Trust Pharmacy, Trust Live Streaming, the Center for Covid-19 Situation Administration, Aquella Golf and Country Club and S.Khonkaen.
Fortinet appoints Pakthapa (Pam) Chatkomes as the new Country Manager for Thailand, effective since November 1st. She will reinforce Fortinet Thailand’s game-changing position to achieve the business growth target of 30-40% in 2022.
Fortinet appoints Pakthapa (Pam) Chatkomes as the new Country Manager for Thailand, effective since November 1st. She will reinforce Fortinet Thailand’s game-changing position to achieve the business growth target of 30-40% in 2022.
Pakthapa sees more opportunity for growth in the enterprise-size businesses across multiple sectors from the digital transformation phenomena, remote working situation as the impact from the pandemic, 5G and cloud computing environment, into those areas where she plans to penetrate Fortinet’s innovative security fabric portfolio.
She plans to grow the market share by 30% in public sector, 40% in telco, 50% in FSI and 50% in enterprise space significantly. Key aggressive strategies are to replace competition, increase partners who focus in enterprise market, take benefits from alliance partner, and increase the sales headcount. Her plan also to leverage the trust in Fortinet among the enterprise customers. Therefore, more advanced training will be provided to up-skill Fortinet workforce to expert, whom the customers shall regard as trusted advisor, specialist in their network/application environment.
(Pam) Pakthapa Chatkomes
From the establishment in Thailand since 2005, Fortinet has remarkable growth in the market. At current, a strong team of 30+ staff are based here. The site is arranged as the operational hub then equipped with Technical Support, Market and TAC pool resource to serve the business in Southeast Asia region. The office reserves an area and set up “Intelligence Lab” experience center to fulfill the commitment in helping the partners and organizations in Thailand to understand and cope with advanced threat.
“Aligned with our vision to “Make possible a digital world you can always trust”, Fortinet crafts the more cohesive security fabric solution capabilities in providing the consolidating protection, even on the existing system the customers are using. Digitalization and virtualization become top concerns, especially the recent increase in remote workforce during COVID-19 pandemic, resulting in dramatic cybersecurity business expansion in Thailand. Fortinet then contributes to enable Thai organizations, who plan to deploy cloud and virtualization technologies in their digital transformation process, to a superior position in global competition. I hope that Fortinet’s converging cybersecurity platform can leverage Thailand’s economy step forefronts other ASEAN countries,” said Peerapong Jongvibool, Fortinet’s VP and Regional Sales Director for Southeast Asia & Hong Kong. “With her experiences, I’m strongly believe that Pakthapa will take the Fortinet Thailand gain the largest cybersecurity market share in ASEAN region.
According to the 2021 EY Work Reimagined Employer Survey, 84% of companies in the region plan to make moderate to extensive hybrid work changes and are actively promoting hybrid work to attract and retain talent.
Prevalent adoption of hybrid work has introduced new workstyles and requirements that will impact how business leaders approach workplace design and investment over the long term. As a result, more organisations are adopting hybrid work as the default arrangement as various markets in Asia Pacific began easing pandemic-related restrictions.
According to the 2021 EY Work Reimagined Employer Survey, 84% of companies in the region plan to make moderate to extensive hybrid work changes and are actively promoting hybrid work to attract and retain talent. The same survey also noted employees’ preference for flexibility in where and when they work, with many stating hybrid work will help increase productivity and creativity.
“Remote and hybrid work have redefined people’s idea of workplace as they know it, causing shifts in workstyles as well as disparity in work experiences. To truly succeed in the hybrid era, business leaders will need to devise workplace strategies and investments that will enable workers to have a more equitable work experience regardless of where they are working from, for optimal collaboration and productivity,” said Pierre-Jean Châlon, Senior Vice President, APAC, Poly.
“Hybrid work is now a norm. In fact, it’s reported that hybrid is the preferred working arrangement in Southeast Asia, alongside work anywhere and work remotely full-time. These have introduced a set of considerations and challenges that may be relatively new to many business leaders. Which is why a good understanding of workplace personas is crucial to help business leaders make informed decisions when they map out hybrid work strategies, as well as technology and workspace investments to ensure they match the dynamic workstyles of an increasingly distributed workforce,” said Samir Sayed, Managing Director for ASEAN and Korea, Poly.
Top Trends that Will Shape Hybrid Working in 2022 and Beyond
#1: Productivity Anywhere Will Shake Up Workforce and Workplace Structure
Remote working has enabled employees to be productive anywhere, everywhere, and anytime. With hybrid working being the default arrangement, business leaders will start looking into providing a more equitable work experience for those inside and outside the office, especially during meetings and group discussions. Willis Tower Watson’s recent 2021 Employee Experience survey found that 90% of APAC employers are prioritizing enhancing the employee experience over the next three years
This collaborative infrastructure will also complement the greater adoption of asynchronous work practices – a trend triggered by the pandemic. It will not just redefine how employees collaborate with one another, but also help businesses rethink hiring practices and tap into a more global and diversified talent pool. Industries have and will continue to change how they work, with decentralised work practices and processes enabling effective business continuity for a workforce that may be largely working from home.
#2: Greater Use of A.I. and Data Analytics in the Workplace
According to a survey by Juniper Networks, 95% of respondents said their companies’ daily operations, products and services would benefit from implementing AI technologies. Leaders across the region will start adopting AI and data analytics to support and improve employee productivity and safety, in addition to driving business growth and operational efficiency, as part of their continued digital transformation plan.
IT departments will turn to data and insights to have a more objective view on employee productivity both in the office and when they work remotely. These will help inform decisions on what technology investments to help a hybrid workforce collaborate better. Office managers will also leverage insights such as occupancy data can help office managers determine the most effective office layout, minimise wasted space and reinforce or improve proper safe distancing measures.
#3: Office Spaces Reimagined for a Hybrid Future
With employees working remotely half or most of the time, companies are turning to a flexible and cost-effective approach for their office space investment. In Singapore, central business district (CBD) office occupiers could aim to reduce their footprint by 10% to 20% over the next three years, according to Maybank Kim Eng.
There will be a growing adoption of the office on-demand approach to help businesses effectively add on workspaces as needed. On the other hand, companies with existing excess office space can consider subleasing part of that space as needed; this ‘core and flex’ model enables a combination of long-term security for core operations while allowing flexibility for growth. At the same time, companies will start redefining workforce roles and determine which functions are best suited to be based in central business district (CBD) areas, and who can work either remotely or in satellite offices in regional cities or districts.
Business leaders will also look how to make return to office something that employees look forward to. Offices will become collaboration hubs, serving as a place for teams to gather to brainstorm in small groups, host client meetings, celebrate milestones, and work on joint projects. They will also serve as a central hub for community socialisation that will help provide a culture that cannot be replicated via remote working.
Looking Ahead: Organisations Must Invest in Technology that Improve Employee Experiences
Companies’ technology investments and collaboration strategies will focus on improving employees’ working experience both remotely and on-site. Users are expecting technology to be easy to use to minimise disruption that may hamper productivity and collaboration, so that they can spend more time getting real work done instead of figuring out how the tools work.
With limitations around business travels and in-person meetings, video conferencing is now the norm for collaboration. This also led to new usage model of videos such as telemedicine, hybrid events, virtual property viewing and educational courses via videos. As such, more and more organisations are adopting a no-compromise attitude to ensure the highest quality video solutions are used for high level productivity, resilience, and customer experience.
This will drive an increased demand in pro-grade technology and collaboration tools that are geared to drive better user experiences. ReportLinker is already forecasting that the Asia Pacific Video Conferencing Market will grow at a CAGR of 17.8% within 2021-2027.This is prime opportunity for collaboration vendors that are platform-agnostic to thrive, as they enable office collaborators to use the same infrastructure in the conference room as they have grown accustomed to using from their home offices.
Asia Pacific-wide #TravelMakesUsThankful campaign invites everyone to say thank you with positive messages and their best moves
Marriott Bonvoy, Marriott International’s portfolio of 30 hotel brands and award-winning travel program, launches #TravelMakesUsThankful, a gratitude campaign encouraging everyone to savor the good moments, whether big or small, that came out of 2021. Coinciding with the year-end festive season traditionally regarded as a time to take stock and reflect on the year, #TravelMakesUsThankful urges travelers, guests, associates, and netizens alike to express what they’re thankful for – whether though messages of gratitude shared over social media, or through a ‘gratitude dance’ with the aid of a specially-launched Instagram filter and animated dance partner.
Rajeev Menon, President, Asia Pacific (excluding Greater China), Marriott International said, “While there’s no denying the pall cast by the pandemic this past year, it also brought to light many things that we can delight in and be thankful for. Amidst the start-stop border re-openings and closures, we’re grateful for the continued trust and confidence our owners, partners and guests have for us. And more importantly, this campaign is a dedication to our hotel associates for their incredible resilience during these turbulent times. #TravelMakesUsThankful is a profound reminder to look forward to better days ahead.”
“Our global ‘Power of Travel’ campaign that launched earlier this year was a reminder on the transformative power of travel. People around the world were invited to join the conversation and connect with one another by sharing their memories of how travel makes them feel to reignite the spirit of travel,” said Julie Purser, Vice President, Marketing, Loyalty & Partnerships, Asia Pacific, Marriott International. “We continue to leverage and tell that story as the year comes to a close, highlighting the travels that we miss but yet still are thankful for the many indelible memories.”
To take part in #TravelMakesUsThankful, simply
1. Search for the ‘Travel Makes Us’ filter on Instagram stories, under ‘Browse Effects’ and save the filter on your device
2. Follow the dance partner and record the best gratitude dance
3. Post it on Instagram or Facebook as a video post (accounts must be public).
4. Add a caption highlighting reasons for being grateful this year
5. Include hashtags #TravelMakesUsThankful and #MarriottBonvoy
Videos posted on Instagram and Facebook will be featured on digital walls across selected properties in Asia Pacific.
Putting people first has always been at the core of Marriott International and despite another challenging year, our associates rallied together to support one another. Amongst the many initiatives, the company mobilized the Asia Pacific Disaster Relief Fund to support in-need associates across the region. As borders gradually reopen and with economic recovery underway, Marriott International continues is commitment to good travel and supporting communities in which it operates.
The chic beachfront resort with a Miami Beach vibe unveils a calendar of festive events and activities, including curated dining experiences, beach parties, live DJs and more on Hua Hins shores
The Standard, Hua Hin, the brand’s new beachfront resort where Hollywood glamour meets mid-century inspired design, is giving the gift of glam this holiday season, with a full calendar of upbeat events and activities to light up Thailand’s golden gulf coast.
The fun starts on December 23RD with the lighting of the resort’s Christmas tree in the tropical garden, accompanied by chilled-out tunes and fresh exotic cocktails. Then on Christmas Eve, December 24th, guests are invited to celebrate “An Eve You Won’t Believe” at the Lido Restaurant (18.30-21.30 hrs., from THB 3,000 net per person), with a spectacular selection of festive favourites, fresh seafood and sweet treats, plus live jazz music from Petite & J.
Alternatively, the resort’s idyllic beach bar and restaurant, Praça, will put a tropical twist on the traditional Christmas meal with “A Thai Christmas Takeover” (18.30-22.30 hrs., from THB 2,500 net). With an enticing eight-course Thai inspired menu and a lively after-dinner set by DJ Pichy, this will be a night guests will never forget.
The full set of programming includes activities for all ages. Young guests will enjoy the pottery painting workshop hosted on the Beachfront Lawn by Nanzo, the renowned make-up artist, while adult guests can head over to the Lido Bar for an afternoon of frosty frosé and deep house beats by DJ Maftsai.
December 25TH, the Christmas Day celebrations start in style at Lido Restaurant with “Brunch But Better” (11.30-14.00 hrs, from THB 3,000 net), a fantastic feast that goes above and beyond the usual weekend buffet, with live violins and an endless array of delectable dishes, accompanied by free flow alcohol. The fun continues well into the afternoon with “Not Your Standard BINGO” (14.30-16.00 hrs.), hosted by beloved New York drag queen Panginaheals, with a resident DJ on the decks. Additionally, Praça will provide “Culinary Presents” with the perfect à la carte Christmas dinner (18.30-22.30 hrs.), featuring authentic Thai cuisine, inventive mocktails and uplifting tunes.
A welcome retreat on Boxing Day December 26th, visitors are invited to revive their bodies and souls following two days of festive indulgence. A “Morning Merit Making” ceremony (07.00 hrs.) will be hosted in the lobby, giving guests the chance to offer alms to Buddhist monks at sunrise. After this spiritually rewarding activity, focus turns to the body for a “Detox to Retox” beachfront bootcamp – a live fitness session that will leave guests feeling invigorated.
On News Years Eve December 31ST, The Standard, Hua Hn will light up the night with a choice of two glamorous end-of-year events! “The Last Supper: Lido Edition” (19.30-23.30 hrs., THB 5,000 net including free flow wine & beers and entry to the countdown party) will get the party started with a bountiful buffet dinner, while “The Last Supper: Praça Edition” (19.30-23.30 hrs., THB 3,500 net) will showcase an exceptional eight-course pre-fixe menu filled with the finest flavors of Thailand. Then, as the clock ticks down to midnight, guests are invited to gather at the Lido Bar for “Let’s Party” (16.00-01.00 hrs.), a vibrant night with great music by DJ Peter, Gene Kasidit, Khan Thaitanium, a surprise guest performance and beachfront fireworks at midnight!
Capping the full week of celebrations, The resort will kickstart 2022 with a series of events and activities on Januaray 1st that are sure to get your New Year off to a strong start. Enhance your mindfulness and discover your destiny with a morning “Sound Bath Session” at the Pool Lawn (08.00-09.00 hrs.) and Mordoo Tassananane’s “Time To Tarot” session at Praça (10.00-17.00 hrs.). Guests are invited to learn “The Art of Coffee Dripping” at the Juice Café (11.00, 13.00 & 15.00 hrs.), or master “Art Calligraphy” with Nudee Studio at the Beachfront Lawn (14.00 & 16.00 hrs.).
Guests can indulge in our New Year’s Day brunch “A Fresh Start” at the Lido Restaurant (11.30-14.00 hrs., THB 3,000 net) with music from Petite and J. Hangover. DJ Pichy will be spinning tunes at the Lido Bar from 16.00-20.00 hrs., with frosty frosé and good vibes. Later that evening, guests can begin “2022 Thai Style” with an eight-course dinner at Praça (18.30-22.30 hrs., THB 3,500 net) – a wonderful way to welcome the New Year! DJ Deejai will end the celebrations with the “Yes Way, More Frosé” party at the Lido Bar (16.00-20.00 hrs.) on Sunday 2nd January.
Newly-opened in December 2021, The Standard, Hua Hin is the destination of choice for the Thai creative set and The Standard’s global loyalists. With 171 guest rooms and suites, 28 pool villas, a beachfront location and timeless design, this property boasts an experience unlike any other in Thailand.
Two companies under CK Power Public Company Limited (CKPower), stock symbol “CKP”, namely Xayaburi Power Company Limited (XPCL).
Two companies under CK Power Public Company Limited (CKPower), stock symbol “CKP”, namely Xayaburi Power Company Limited (XPCL), the operator of the Xayaburi Hydroelectric Power Plant, and Nam Ngum 2 Power Company Limited (NN2), the operator of the Nam Ngum 2 Hydroelectric Power Plant in the Lao PDR, have been certified to four ISO standards by the British Standards Institution (BSI) – a testament to the efficient work processes and international operational standards of these companies within the CKPower Group.
XPCL was accredited to three ISO standards, namely ISO 9001: Quality Management System, ISO 14001: Environmental Management System and ISO 45001: Occupational Health and Safety Management System, while NN2 obtained a certificate for ISO 14001: Environmental Management System.
These ISO certificates reflect CKPower’s commitment to the management approach of the hydroelectric power plants that not only recognizes and embraces best international power plant management standards but also takes into consideration environmental management and clean energy development with the aim to reduce greenhouse gas emissions in line with the Thai government’s goal to achieve net zero greenhouse gas emissions by 2065, with emphasis on the management of occupational health and safety during operations.
Mr. Vorapote Uchoepaiboonvong (left), Managing Director of Xayaburi Power Company Limited (XPCL), received an ISO certificate from Mr. Bookkhalakorn Chaidee (right), General Manager – Sales and Marketing of the British Standards Institution (BSI).Mr. Wisate Chungwatana (left), Managing Director of Nam Ngum 2 Power Company Limited (NN2), received an ISO certificate from Mr. Bookkhalakorn Chaidee (right), General Manager – Sales and Marketing of the British Standards Institution (BSI).
Krungsri Securities forecast the Stock Exchange of Thailand (SET) Index on Friday (December 17) would fluctuate between 1,635-1,660 points.
It said the index gained positive sentiment from US Federal Reserve’s move to maintain interest rate and taper its quantitative easing programme as many investors expected.
“However, uncertainty over the Covid-19 outbreak in Europe and fund flow volatility due to the resistance level at 1,660 points would pressure the index,” Krungsri Securities said.
It also recommended buying of the following companies’ shares as an investment strategy:
▪︎ AWC, BANPU and HANA, which would be listed in SET50 Index.
▪︎ BLA, BPP, EPG, KEX, RCL, SIRI, STARK and TTA, which would be listed in SET100 Index.
▪︎ EA, GPSC, AMATA, WHA, AH and SAT, which benefit from the government’s support on electric vehicles.
▪︎ BBL, TTB, KTB and KBANK, which benefit from news of interest rate hike.
A rout in some of the worlds biggest technology companies dragged down the broader equity market, outweighing gains in companies that stand to benefit the most from an economic rebound.
The S&P 500 fell after earlier climbing on bets that central banks can move toward tighter policies to fight inflation without derailing the economy. The Nasdaq 100 tumbled, led by losses in giants like Apple and Tesla. Commodity, financial and industrial shares rose. European equities jumped as the region’s policy makers unveiled a gradual pullback of pandemic stimulus, while the pound gained as the Bank of England unexpectedly raised rates. Bitcoin slumped.
Central banks are weighing measures to fight price pressures while balancing risks to growth amid coronavirus challenges. European Central Bank President Christine Lagarde unveiled forecasts showing a strong economic rebound along with an outlook for faster inflation. The Federal Reserve said Wednesday it will accelerate the pace at which it tapers bond purchases, and projected rate hikes through 2024.
Comments:
– “Bitcoin and big tech are getting punished today as investors reallocate some of their more profitable risky bets. The growth outlook still remains upbeat for next year” with some traders rotating back into cyclicals, said Edward Moya, senior market analyst at Oanda.
– “While we expect increased stock market volatility as the Federal Reserve embarks on normalizing policy, equity markets should end the year higher as the economy still remains strong, which should lead to continued earnings growth,” said Richard Saperstein, chief investment officer at Treasury Partners.
– “I do think that central banks are being reactive, which is good. If inflation does start to moderate as these major central banks are still expecting, we may actually expect some turn in the policy direction in the later part of next year,” said Janet Mui, investment director at Brewin Dolphin.
Corporate highlights:
– Adobe Inc. forecast revenue for the first fiscal quarter and full year 2022 that fell short of analysts estimates.
– Delta Air Lines Inc. projected it will report a profit this quarter, citing strong demand for travel and a decline in jet-fuel prices.
– Reddit Inc., the social-media platform that helped fuel this year’s meme stock frenzy, said it has confidentially filed for an initial public offering.
– Air France-KLM agreed to buy 100 single-aisle planes from Airbus in another major order setback for Boeing — which had supplied aircraft the new jets will replace.
Stocks:
– The S&P 500 fell 0.5% as of 1:04 p.m. New York time.
– The Nasdaq 100 fell 2.2%.
– The Dow Jones Industrial Average rose 0.1%.
– The MSCI World index was little changed.
Currencies:
– The Bloomberg Dollar Spot Index fell 0.4%.
– The euro rose 0.3% to $1.1319.
– The British pound rose 0.4% to $1.3316.
– The Japanese yen rose 0.4% to 113.62 per dollar.
Bonds:
– The yield on 10-year Treasuries declined three basis points to 1.42%.
– Germany’s 10-year yield advanced one basis point to -0.35%.
– Britain’s 10-year yield advanced two basis points to 0.76%.
Commodities:
– West Texas Intermediate crude rose 2.2% to $72.42 a barrel.
The Bank of England unexpectedly raised interest rates for the first time in three years, setting aside concerns over a surge in coronavirus infections to tackle the highest inflation in more than a decade.
The first major central bank to hike its benchmark since the pandemic began opted to lift borrowing costs by 15 basis points to 0.25%, delivering an increase that no other Group of Seven central bank has made since the start of the crisis.
The pound rallied as much as 0.8% while U.K. 10-year yields jumped 5 basis points after the decision. Traders now see the BOE’s key rate rising to 1% by September. The FTSE 100 stock index pared gains.
“Another hike in February of 25 basis points is well in the cards,” said Fabrice Montagne, chief U.K. economist at Barclays. “If delivered, the MPC would also be in a position to start running down its balance sheet with bonds starting to mature out of its portfolio in early March.”
Markets are current pricing in another 20 basis points of increases in February — implying an around 80% chance of a move to 0.5% at that meeting. That would allow the BOE to immediately bring an end to its policy of reinvesting its expired QE bond holdings, allowing as much as 37 billion pounds of government debt to roll off its balance sheet by the end of 2022.
Officials led by Governor Andrew Bailey voted 8-1 for the increase, with Silvana Tenreyro dissenting in favor of no change. Policy makers said more “modest” tightening is likely to be needed as inflation heads toward a peak likely to be around 6% in April.
“Worries about inflation trumped concerns about omicron at the Bank of England’s December meeting. The move is a gamble — it’s possible the economy will shrug off the new variant of Covid-19, but no one knows for sure. Assuming the virus doesn’t slow the economy materially, we expect the next move in May, although there’s a small risk the BOE hikes again in February,” Dan Hanson of Bloomberg Economics wrote.
While the decision surprised investors, it was consistent Bailey’s guidance. In October, he signaled that rates would need to rise to address inflation. Later, he set out his concerns that markets seemed to think that policy makers were prioritizing growth over their inflation-fighting remit.
In a speech earlier this month, Ben Broadbent, the deputy governor, added that the BOE’s job was to focus on the medium-term risks. The decision to raise rates in the context of surging inflation and flagging growth is a clear statement of the BOE’s priorities. The focus on medium term price risks over the impact of omicron, which is likely to be short term, is consistent with Broadbent’s stance.
The U.S. Federal Reserve already set a hawkish tone on the eve of the BOE announcement by signaling three rate hikes next year and accelerating the wind down of its stimulus program, while Norway kept up its own tightening effort on Thursday with its second increase this year.
The BOE’s precipitous shift into tightening mode will surprise the large majority of economists who anticipated no change, and investors who were pricing in around a 40% chance of a move. The outcome was the second in a row featuring a surprise after November’s decision to stay on hold wrong-footed financial markets.
“The Bank of England’s decision to raise interest rates was surprising given mounting uncertainty over the economic impact of the Omicron variant,” said Suren Thiru, head of economics at the British Chambers of Commerce. “While today’s rate increase may have little effect on most firms, many will view this as the first step in a longer policy movement.”
The BOE hike is a response to the danger posed by surging prices gains, with a report this week showing inflation jumped to 5.1% in November — more than double the central bank’s target — and a separate report Tuesday showing U.K. companies added to payrolls at a record pace.
Considering that backdrop, Goldman Sachs Chief European Economist Jari Stehn told Bloomberg Television just hours earlier that an outcome of no change was “not a done deal,” even though it was his main expectation.
The decision to move now is all the more remarkable since the country is in the grips of a new coronavirus wave driven by the more infectious omicron variant, which has pushed daily case loads in the U.K. to the highest recorded total since the pandemic began.
The danger that poses in potentially overwhelming the country’s health services is such that Prime Minister Boris Johnson’s government has reintroduced some curbs on activity, with more possible in coming days and weeks if the outbreak can’t be quelled.
By moving now, the BOE heeded a warning this week from the International Monetary Fund, which cautioned against policy inaction on inflation.
The increase is the first from the BOE since 2018 and comes a day after officials wrapped up their pandemic-era quantitative easing plan. The buying has left the central bank’s holdings of government bonds at 875 billion pounds ($1.2 trillion), from 435 billion pounds before the crisis hit.
The central has only hiked rates once in December in the past 45 years, and never since it was granted independence in 1997.
Outside of emergency actions during the pandemic, it’s also the first time officials have moved at a meeting that isn’t a so-called “Super Thursday”– the nickname for the quarterly events when the BOE simultaneously publishes its decision, minutes and forecasts — since they were introduced in 2015.
The European Central Bank on Thursday set out its plan to move on from emergency stimulus, saying it will expand its regular bond purchase for half a yera to smooth a transition toward phasing out its debt-buying program. Officials in Frankfurt confirmed their 1.85 trillion-euro ($2.1 trillion) pandemic measure, known as PEPP, will wind down as planned in March.
To cushion that halt in emergency purchases, they temporarily boosted their conventional bond-buying tool. President Christine Lagarde has been at pains however to persuade investors that a rate increase in the euro zone isn’t going to happen any time soon.
Star Players from Big Tours to Feature at The Final Chapter 2021
(Pam) Pakthapa Chatkomes
Mr. Vorapote Uchoepaiboonvong (left), Managing Director of Xayaburi Power Company Limited (XPCL), received an ISO certificate from Mr. Bookkhalakorn Chaidee (right), General Manager – Sales and Marketing of the British Standards Institution (BSI).
Mr. Wisate Chungwatana (left), Managing Director of Nam Ngum 2 Power Company Limited (NN2), received an ISO certificate from Mr. Bookkhalakorn Chaidee (right), General Manager – Sales and Marketing of the British Standards Institution (BSI).
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