Surviving the pandemic may be tough for many Thai hotels, survey shows
Most hotel operators in Thailand only have enough funds to last them for less than three months, a survey conducted by the Thai Hotels Association (THA) showed.
THA president and hotelier Marisa Sukosol Nunbhakdi said the survey – in cooperation with the Bank of Thailand – was conducted between June 14 and 27 on more than 200 hotel operators.
The survey learned that 58 per cent of hotel operators were 20 per cent less liquid than the previous month, 68 per cent had funds to last them less than three months, while 26 per cent will barely be able to pull through one month, she said.
Marisa added that 19.5 per cent of the hotels had to shut down temporarily, 41 per cent were open, while 39.5 per cent were partially open.
She said most of the hotels that are temporarily shuttered are in the South, and 75 per cent of them expect to open again for business in the fourth quarter of the year.
“The Covid-19 outbreak is still hurting hotels even though the occupancy rate in June had risen 10 per cent from 6 per cent in May,” she said.
Marisa said she expected the occupancy rate in July to rise to 12 per cent, especially in the South. She added that 63 per cent of hotel staff in the South have got their Covid-19 jabs in line with the Phuket Sandbox scheme, which kicked off on July 1.
Fallout of Covid variant on global economy to drag SET down
The Stock Exchange of Thailand (SET) Index fell by 5.74 points, or 0.37 per cent, to 1,550.27 on Tuesday morning.
The SET Index closed at 1,556.01 on Monday, down 18.36 points or 1.17 per cent. Transactions totalled THB66.72 billion with an index high of 1,563.88 and a low of 1,551.79.
Krungsri Securities predicted the index on Tuesday would fall further to between 1,545 and 1,550 points due to concerns that the Covid-19 Delta variant outbreak would hit global economic recovery.
It added that the negative sentiment had also caused oil price to fall sharply and foreign funds to flow out of the stock market.
“However, mass buy-ups of shares that have gained positive sentiment, such as stocks whose second-quarter business turnover is expected to improve, would help the index to rebound,” Krungsri Securities said.
It recommended that investors buy:
▪︎ HANA, KCE, TU, CPF, ASIAN and EPG, which benefit from weakening baht.
▪︎ BCH, CHG, BDMS, HMPRO, GLOBAL, DOHOME, BEM, CKP, CBG, OSP, ICHI, GPSC, BEC, GUNKUL, JWD, WICE, SONIC and NER, whose second-quarter business turnover is expected to improve.
The price of gold in Thailand rose by THB150 per baht weight on Tuesday morning.
The Gold Traders Association report at 9.28am showed buying price of a gold bar at THB28,100 per baht weight and selling price at THB28,200, while gold ornaments were priced at THB27,591.20 and THB28,700, respectively.
At close on Monday, buying price of a gold bar was THB27,950 per baht weight and selling price THB28,050, while gold ornaments were priced at THB27,439.60 and THB28,550, respectively.
Spot gold price on Tuesday was US$1,819 (THB59,665) per ounce after Comex gold on Monday dropped by $5.8 to $1,809.2 per ounce due to the strengthening dollar and uncertainty over the Covid-19 outbreak worldwide, especially the Delta variant.
Hong Kong gold price, meanwhile, rose by HK$100 to $16,810 (THB70,958) per tael, the Chinese Gold and Silver Exchange Society reported.
Stocks slump as virus jitters fuel rush into bonds
Stocks slumped around the world as investors rushed into haven assets after the delta coronavirus variant cast a pall over the economic recovery, while tension between the U.S. and China escalated.
In a reversal of the reopening trade that has powered this year’s equity rally, cyclical companies bore the brunt of the rout on Monday. Commodity, financial and industrial shares led losses in the S&P 500, which fell the most in two months. Small caps extended a slide from March’s peak to nearly 10%. After recently plunging to pre-pandemic levels, the Cboe Volatility Index, or VIX, soared. European stocks had their biggest drop since December, following a sell-off in Asia.
With the risk-off sentiment spreading across global markets, long-term Treasury rates spiraled to their lowest since February — dragging the yield curve flatter. Ten-year yields tumbled as much 12 basis points to as little as 1.17%. The dollar rose alongside the yen and the Swiss franc. Despite the classic safety trade, gold retreated. Oil sank after OPEC+ agreed to boost supply into 2022. Meantime, Bitcoin’s slide pushed the world’s largest digital currency closer to $30,000.
The resurgence of covid-19 is unsettling global investors, who are considering whether new lockdown restrictions will sap the economic rebound and reverse an equity rally that had driven stocks to a record. Matt Miskin, co-chief investment strategist at John Hancock Investment Management, told Bloomberg Television that the move to “higher-quality assets” such as Treasuries is justified. Americans should avoid traveling to the U.K. because of a surge in that nation’s spread of covid-19, U.S. government and health officials warned.
“Risk aversion is firmly in place as the Delta covid variant spread is triggering a flight to safety,” wrote Edward Moya, senior market analyst at Oanda. “Equities were ripe for a pullback given Wall Street was in agreement that this is ‘as good as it gets’ for peak earnings, economic growth, monetary stimulus. It is hard to hold risky assets over the short-term now.”
Geopolitical jitters also resurfaced on Monday after the U.S., the U.K. and their allies said the Chinese government has been the mastermind behind a series of malicious ransomware, data theft and cyberespionage attacks against public and private entities — including the sprawling Microsoft Exchange hack earlier this year.
Here are some of the main market moves:
Stocks
– The S&P 500 fell 1.6% as of 4 p.m. EDT
– The Nasdaq 100 fell 0.9%
– The Dow Jones industrial average fell 2.1%
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– The MSCI World index fell 1.7%
Currencies
– The Bloomberg Dollar Spot Index rose 0.3%
– The euro was little changed at $1.1797
– The British pound fell 0.7% to $1.3668
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– The Japanese yen rose 0.5% to 109.50 per dollar
Bonds
– The yield on 10-year Treasurys declined 10 basis points to 1.19%
– Germany’s 10-year yield declined three basis points to -0.39%
– Britain’s 10-year yield declined seven basis points to 0.56%
Commodities
– West Texas Intermediate crude fell 7.6% to $66.33 a barrel
– Gold futures fell 0.1% to $1,812.30 an ounce
Published : July 20, 2021
By : Syndication Washington Post, Bloomberg · Rita Nazareth, Vildana Hajric
Biden says Fed should take whatever steps it deems necessary to respond to inflation
WASHINGTON – President Joe Biden on Monday said that he made clear to Federal Reserve Chair Jerome H. Powell that the central bank should take any steps deemed to be needed to combat rising inflation and support the economic recovery.
“As I made clear to Chairman Powell of the Federal Reserve when we met recently, the Fed is independent,” Biden said during a speech about the economy. “It should take whatever steps it deems necessary to support a strong, durable economic recovery.”
Monday’s remarks revealed direct communication between Biden and Powell about inflation as prices increase faster than many policymakers and economists projected.
The administration has continuously said over the past few months that price hikes will be temporary. But new coronavirus cases, and in particular the highly transmissible delta variant, loom over that picture and complicate Biden’s report card for booming economic growth.
Fed officials have said they have no plans to raise interest rates anytime soon to respond to inflation, saying prices will simmer back down as the economy heals. The White House and leaders at the Fed share the view that inflation is a feature of an economy clawing back from the pandemic recession.
Still, the inflation readings are crucial for how policymakers – in the White House and at the Fed – chart the economic recovery. Biden on Monday used the price increases to advocate for his infrastructure package, saying the investments would create a more resilient supply chain for businesses and workers.
The Fed, for its part, must weigh when and how to pull back its economic supports. If central bankers suddenly decide inflation has climbed dangerously high, they risk causing another recession if they raise rates or trim asset purchases too abruptly.
The Fed stakes much of its reputation on a separation from politics, and Biden specifically pointed to the Fed’s independence in his remarks Monday. While the Biden administration is also paying close attention to rising prices and other threats to the recovery, tackling inflation by raising interest rates rests squarely with the Fed.
Biden and Powell have met once since Biden took office. The exchange about inflation took place during that meeting, which also included other financial regulators, on June 21.
“I want to be clear. My administration understands that if we were to ever experience unchecked inflation over the long term, that would pose a real challenge to our economy,” Biden said Monday. “So while we’re confident that isn’t what we’re seeing today, we’re going to remain vigilant about any response that is needed.”
Fed leaders often point to a few products to illustrate why they think inflation is temporary. Lumber prices soared earlier this year as demand for new houses and construction projects overwhelmed sawmills, which had low inventories and thinned-out crews. As production rebounded, lumber prices fell dramatically.
Meanwhile, used-car prices are still skyrocketing. Industry experts say that is because a global microchip shortage has hamstrung supply chains for new cars. That trickles down to the used-car market, which relies heavily on trade-ins and auto parts. The expectation among many economists is that once factories can ramp back up, supplies of chips and new cars will flow through the auto market and eventually bring prices for used cars down.
But at the same time, prices are on a steep climb. Prices rose 5.4 percent in June compared with a year ago, marking the largest spike since 2008. And some categories could prove thornier than others. For example, some economists are concerned that if rental prices continue to rise, they might not come back down.
The uptick has taken on political dimensions as Republicans call for the Fed to pull back on its monetary supports and stop the economy from overheating. Democrats say that prices will eventually cool and that, in the meantime, more people will be able to get jobs, as long as the Fed doesn’t pump the brakes.
Powell has said he does not expect a prolonged period of runaway inflation. But he has also said central bankers have to be “humble about what we understand” about the data at this point in the recovery.
“We’re experiencing a big uptick in inflation, bigger than many expected, bigger certainly than I expected, and we’re trying to understand whether it’s something that will pass through fairly quickly or whether, in fact, we need to act,” Powell told the Senate Banking Committee last week.
Inflation was not a worry when the pandemic shut down much of the economy last spring and yanked prices down. On Monday, the National Bureau of Economic Research said that the coronavirus recession began in February 2020 and ended in April 2020. The two-month contraction was the shortest on record, yet the severity of the crisis, and the ongoing pandemic, has led to a choppy and uneven recovery.
SET down more than 1% as Asian stocks sapped by global surge of Delta
The Stock Exchange of Thailand (SET) Index closed at 1,556.01 on Monday, down 18.36 points or 1.17 per cent. Transactions totalled THB66.72 billion with an index high of 1,563.88 and a low of 1,551.79.
In the morning session, Krungsri Securities forecast the index on Monday would fall to between 1,550 and 1,560 points due to concern that outbreaks of Covid-19’s Delta variant in the US and Europe will hit global economic recovery.
It added that the surge in domestic Covid-19 cases plus volatility in foreign fund flows would pressure the index.
The 10 stocks with the highest trade value today were GUNKUL, GPSC, PTT, BANPU, AOT, RCL, KBANK, KCE, KTC and PTTGC.
Other Asian indices were down, with one exception:
Japan’s Nikkei Index closed at 27,652.74, down 350.34 points or 1.25 per cent.
China’s Shanghai SE Composite Index closed at 3,539.12, down 0.18 points or 0.0051 per cent, while the Shenzhen SE Component Index closed at 14,992.90, up 20.69 points or 0.14 per cent.
Hong Kong’s Hang Seng Index closed at 27,489.78, down 514.90 points or 1.84 per cent.
South Korea’s KOSPI closed at 3,244.04, down 32.87 points or 1.00 per cent.
Taiwan’s TAIEX closed at 17,789.25, down 106.00 points or 0.59 per cent.
HKTDC twin international jewellery shows open in July
The 37th HKTDC Hong Kong International Jewellery Show and seventh HKTDC Hong Kong International Diamond, Gem & Pearl Show, open in July Physical and online format, open to public for first time
The 37th HKTDC Hong Kong International Jewellery Show and seventh HKTDC Hong Kong International Diamond, Gem & Pearl Show, organised by the Hong Kong Trade Development Council (HKTDC), will run from 25 to 29 July at the Hong Kong Convention and Exhibition Centre (HKCEC). This is the first time for the shows to be held in a hybrid format with both a physical exhibition and an online business matching service. The latter will run until 5 August, allowing global jewellers to make business deals through online video conferences. The physical fairs welcome industry buyers and, for the first time, members of the public with a passion for fine jewellery.
Fine jewellery exports climb 82.3% in first five months of 2021
The twin shows, the first two physical trade fairs to be staged by the HKTDC since the start of the pandemic, have attracted more than 400 exhibitors, the majority of which are local companies as travel restrictions are still in effect between Hong Kong and the rest of the world. However, some overseas exhibitors are sending their local representatives to participate in the fairs, representing companies from Germany, Switzerland, the United States, Italy and India.
Speaking at a press conference to introduce the twin shows, HKTDC Deputy Executive Director Benjamin Chau said: “The pandemic situation has remained stable in Hong Kong while quarantine and immigration control measures continue to be in place globally. I believe the physical and online hybrid format will become the new trend for trade fairs. This HKTDC-organised one-stop exhibition and sourcing platform is showcasing a huge range of quality jewellery to suit the needs of buyers from around the world, helping exhibitors to build connections and make more business deals.”
In the more than one year since the pandemic first hit, the impact on the jewellery sector has been significant. However, global demand has begun to rise this year, leading to a 29.4% increase in exports for the first five months of 2021. This compares to a low base in the same period in 2020 but it is clear that the export market is showing signs of recovery. Hong Kong’s exports of fine jewellery registered a sharp increase of 82.3% year-on-year to HK$28.65 billion for the period from January to May this year. Exports to the largest market, Mainland China, skyrocketed nearly 230% while Asia regions including Macao, Taiwan and Malaysia also showed a significant increase. For raw materials, the gross export value of pearls, gemstones and rough diamonds climbed 83.1% in the same period this year.
HKTDC twin international jewellery shows open in July
The figures clearly show that the pandemic pressure on the jewellery sector is easing. HKTDC Jewellery Advisory Committee Chairman Winston Chow said at the press conference that local companies may wish to take a more diverse marketing approach in the long run amid continuing global economic uncertainty. In addition to tapping into emerging markets, companies should explore online sales channels and sourcing platforms or participate in virtual fairs in order to capture new business opportunities. Meanwhile, small and medium-sized enterprises (SMEs) and start-ups need to seize opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area as well as exploring markets in the mainland.
Wide variety of precious jewellery and modern pieces
Different product zones are being set up at the twin shows this year, including the World of Glamour at the Jewellery Show that has attracted several well-known jewellery companies to showcase a selection of refined and precious pieces. Numerous modern design pieces will be available at the fair including:
• A magnificent Jadeite and Diamond Pendant Necklace from On Tung Company (Booth 3E-A14).
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• The g monogram collection from Just Gold (Booth 3E-B02) highlights the company’s intricate yet classic designs with fine lines and a delicate hollowed-out pattern. This collection marks a new direction for this classic brand.
• The Sapphire Necklace from Legrand Jewellery (Booth 3E-C02) comprises an oval-shape sapphire necklace with diamonds set on 18K white gold. The waterfall design adds a sense of dynamism to this precious piece.
• The Amethyst, Diamond & Gem-set Puppet pendant from Young’s Creation Co Ltd (Booth 3E-D09) was inspired by famous fairytale character Pinocchio.
In addition, products zones such as Fine Jewellery, Antique & Vintage Jewellery and Silver and Finished Jewellery highlight different kinds of accessories from high-end pieces to casualwear items, including jewellery made with rubies, Fei Cui, antique pieces, trendy designs and more.
The Hong Kong International Diamond, Gem & Pearl Show showcases a fine assortment of raw materials including diamonds, gems and pearls. Different zones include the Hall of Fine Diamonds, which showcases prime quality diamonds of different shapes, cuts, grades and rare colours. The Treasures of Nature zone displays various glittering precious gemstones, semi-precious gems and other natural raw materials, while the Treasures of the Ocean zone houses the highest-quality pearls from Tahiti, the South Seas and other pearl-producing areas around the world.
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An impressively large number of special exhibits will be on display:
• RMC Gems Limited (Booth 3G-C02) will showcase a fine-cut Paraiba Tourmaline with a water-drop shape whose reflection highlights the condition of the gem. The stone has an extraordinary neon blue colour.
• CK Crystal Limited (Booth 3G-F18) will feature a meteorite ring that includes genuine pieces of meteorite from outer space and displays a unique Widmanstätten pattern.
• SM Gems Limited (Booth 3G-E27) will display a Pink Morganite, that highlights the beauty of nature. This is a very durable and dazzling gemstone belonging to the Beryl family.
HKTDC twin international jewellery shows open in July
Seminars improve professional knowledge, Day 1 smart bidding adds excitement
A host of seminars will be held during the twin shows including one hosted by a representative from De Beers, who will share how the jewellery industry supply chain has changed amid the pandemic. Representatives from Chow Tai Fook will share about online marketing, while speakers from the Gemmological Association of Hong Kong (GAHK) will talk about the internationalisation and testing standards for Fei Cui. There will also be expert talks to meet the needs of the jewellery-loving public, including a representative from the internationally renowned jewellery college L’ECOLE sharing on the art and science of rubies. Representatives from the Diamond Federation of Hong Kong and Jade Manufacturers Association will talk on how to appreciate rare-colour stones, while a representative from the Gemological Institute of America (GIA) will introduce the its pearl evaluation methods
In addition, the Jewellery Smart Bidding session will be held on the first day of the Jewellery Show (25 July) with visitors invited to bid for their favourite jewellery items starting at low prices – around 10% of original prices. Various jewellery parades and lucky draws will also be held throughout the fairs. Lucky draw prizes include an 18K white gold pendant with a natural ruby and diamonds, an Italian 18K rose gold vermeil simple-cuff bangle, hotel dining coupons, and more.
On display at the Jewellery Show, in Hall 3E Concourse, will be winning entries from the 22nd Hong Kong Jewellery Design Competition, jointly organised by the HKTDC and four major jewellery associations in Hong Kong. The theme for this year’s competition was “Light•Shadow”, with some 150 entries divided into the Open Group and Student Group.
Physical edition of International Sourcing Show runs concurrently
The physical edition of the hybrid HKTDC International Sourcing Show will be held from 26 to 29 July, running in parallel with the twin jewellery shows. The International Sourcing Show will take the form of a display showcase featuring thousands of the latest products. Themed “Your Source of Inspirations”, the event will highlight a broad range of quality lifestyle products and solutions under four main categories:
• Smart Home: Featuring an extensive selection of household items including indoor furnishings and home textiles.
• Smart Play: Showcasing a range of kids’ products including dolls and figurines, car toys, interactive toys and educational games. Buyers can also source baby care and nursery products, gear and accessories, including strollers.
• Smart Style: Highlighting an eclectic mix of garments, fashion accessories, fashion tech and fabrics. Also featured are gifts and premiums for different budgets including handicrafts, beauty and healthcare products, travel and outdoor equipment, environmental protection and festive items, as well as printing and packaging solutions.
• Smart Tech: Displaying a wide variety of tech products, including electronics, medical and healthcare and lighting products, as well as gifts, fashion and household items employing the latest technologies.
Bangkok Airways confirms to operate its domestic flights until 20 July 2021
Certain flights still operate as usual including Samui-Phuket (roundtrip) and special flights under Samui Plus Programme.
Bangkok Airways confirms to operate its domestic flights until 20 July 2021 to comply with the Government Gazette announced on 18 July 2021. Certain flights still operate as usual including Samui-Phuket (roundtrip) and special flights under Samui Plus Programme.
Any relevant change to such announcement, the airline shall keep their passengers informed.
Passengers affected by this announcement are eligible for Bangkok Airways assistance measures as below:
✅ rebook for a new traveling date without rebooking fee*
👉 Passenger who wish to postpone without a new departure date (Open Ticket) are required to fill in the form below and submit at least 24 hours prior to the scheduled departure time.
Thai Vietjet would like to confirm normal domestic flight schedule until 20th July 2021
Following the Royal Gazette announcement on 18th July 2021, the airline is closely monitoring the situations and following the regulations of related authorities.
Following the Royal Gazette announcement on 18th July 2021, the airline is closely monitoring the situations and following the regulations of related authorities. In the meantime, Thai Vietjet would like to confirm normal domestic flight schedule until 20th July 2021. We will inform passengers again once any change occurs or there is any official announcement from the authorities.
Thai Vietjet would like to confirm normal domestic flight schedule until 20th July 2021
The airline has imposed service recovery policy for passengers holding flight tickets traveling during 1 July – 31 August 2021 (not limit booking date, apply to tickets which were changed travel date before) can choose 1) To change travel date without fee. New departure date must be within 31th Dec 2021 (Except high travel period) or 2) To keep credit shell for future use. Credit shell is valid 90 days from original departure date. Passengers are advised to visit www.vietjetair.com for more information.
SET to face downward pressure from rising Covid cases, funds outflow
The Stock Exchange of Thailand (SET) Index fell by 19.17 points, or 1.22 per cent, to 1,555.20 on Monday morning.
The SET Index closed at 1,574.37 on Friday, up 2.36 points or 0.15 per cent. Transactions totalled THB80.44 billion with an index high of 1,575.66 and a low of 1,567.17.
Krungsri Securities predicted the index on Monday would fall to between 1,550 and 1,560 points due to uncertainty over the outbreak of the Covid-19 delta variant in the US and Europe that may affect economic recovery.
It forecast a rise in domestic Covid-19 cases and expected volatility in foreign funds flow to pressure the index.
Daily infections reached a new high of 11,784 on Monday and 81 deaths. It is the third consecutive day the country has recorded over 10,000 cases.
It recommended that investors buy:
▪︎ HANA, KCE, TU, CPF, ASIAN and EPG, which benefit from the weakening baht.
▪︎ BCH, CHG, BDMS, HMPRO, GLOBAL, DOHOME, BEM, CKP, CBG, OSP, ICHI, GPSC, BEC, GUNKUL, JWD, WICE, SONIC and NER, whose second-quarter business turnover is expected to improve.
HKTDC twin international jewellery shows open in July
HKTDC twin international jewellery shows open in July
Thai Vietjet would like to confirm normal domestic flight schedule until 20th July 2021
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