PTT Group is targeting electricity generating capacity of 16,000 megawatts by 2030 – 8,000MW from fossil-based sources and 8,000MW from renewables, said PTT’s president and chief executive officer Auttapol Rerkpiboon.
Currently, the group’s domestic and international production capacity is 10,000MW, divided equally between fossil and renewable sources.
He added that most of the targeted additional 3,000MW of the fossil-based capacity will come from the group’s overseas investment.
PTT’s plan to raise renewable power production capacity rests on merger and acquisition deals for overseas projects, talks for which are expected to be completed in the first quarter next year.
Global Power Synergy (GPSC) remains the group’s power business flagship, Auttapol added.
He said that PTT expects to perform well next year if the global crude oil price moves in the range of US$40-50 per barrel, or higher than this year’s average of $41-42 per barrel. The other factor that will benefit PTT is if there is no second wave of Covid-19 infections.
Auttapol predicts that PTT’s performance this year will improve from the second quarter onwards after the virus crisis abated and demand for diesel and petrol rose. Only demand for jet fuel is yet to return to normal levels.
He also expects US-China trade tensions to ease once Joe Biden becomes president in January, as Biden has a more compromising stance on trade than the outgoing President Donald Trump.
Arawadee Photisaro, PTT’s senior executive vice president for Corporate Strategy, added that PTT is also seeking new business opportunities in cutting-edge sectors such as life-science technology. The company is in talks to acquire an overseas drug-production facility, with a deal expected to be concluded next year.
By Syndication Washington Post, Bloomberg · Anne Riley Moffat · BUSINESS
McDonald’s Corp. reported better-than-expected results for the third quarter as the global pandemic continued to lift restaurants with robust drive-through and delivery footprints.
The chain posted revenue of $5.42 billion, surpassing analysts’ expectations for the fourth straight quarter. Adjusted earnings per share of $2.22 also beat. The burger chain had previously reported same-store sales for the quarter, including 4.6% growth in the U.S. that wasn’t enough to offset weakness abroad. Globally, same-store sales dropped 2.2%.
The stronger-than-forecast results come as customers craving comfort food and touchless experiences increasingly turn to fast food. The burger giant had already been revamping digital options before the virus hit, including touchscreen ordering and increased delivery options, allowing it to maintain sales even when eat-in dining rooms were temporarily closed earlier this year in parts of the U.S. and beyond.
The stock was up 9.6% this year through Friday, just ahead of the S&P 500.
Even so, challenges remain. McDonald’s said several of its key markets have reintroduced restrictions on in-person dining, from reduced hours to dining-room closures, including France, Germany, Canada and the U.K. In the quarter ended Sept. 30, the Chicago-based company had already reported negative same-store sales in Latin America, China and several key European markets.
Things are stronger in McDonald’s home market. A brisk drive-thru business in the U.S. and limited-edition celebrity meals featuring Travis Scott and J Balvin helped the U.S. return to growth. Spicy chicken nuggets — a short-term menu item that drew buzz — also brought in customers. Still, U.S. comparable guest counts remained negative for the quarter, meaning fewer customers placed orders — they just spent more whenever they did.
The company will also host a virtual investor update Monday to share strategic priorities and plans for future growth, McDonald’s said when it announced results.
Here’s what a Biden victory means for the Federal Reserve
Biz insightsNov 09. 2020Jerome Powell, chairman of the U.S. Federal Reserve, listens during a House Select Subcommittee hearing in Washington, on Sept. 23, 2020. MUST CREDIT: Bloomberg photo by Stefani Reynolds.
By Syndication Washington Post, Bloomberg · Christopher Condon · NATIONAL, BUSINESS, POLITICS, WHITEHOUSE, RACE, US-GLOBAL-MARKETS A victory for Joe Biden in the U.S. presidential election may eventually reshape the Federal Reserve’s leadership and the way it regulates big banks, but it won’t change what matters most for financial markets and the economy: monetary policy.
With the economy struggling to regain its pre-pandemic strength, Fed officials have telegraphed clearly that interest rates will stay near zero for at least three more years. Moreover, in August the Fed’s rate-setting panel unanimously endorsed a new long-run strategy that promises to keep rates lower coming out of this recession than officials had dared during previous recoveries.
That strategy won’t change. On Thursday, Fed officials voted once again to hold rates at rock-bottom levels for the foreseeable future as risks to the economy remain elevated.
“We are committed to using our full range of tools to support the economy and to help assure that the recovery from this difficult period will be as robust as possible,” Chair Jerome Powell told reporters after the Fed’s decision. A divided Congress through at least the end of this year means Powell will keep calling on lawmakers to reach a deal on more fiscal support, especially for those out of work. He sounded hopeful during the press conference on the prospects for more aid, noting that “plenty of people on Capitol Hill” see the need for more action.
Biden can remake the Fed’s leadership by 2022. By then, Powell’s term — as well as the terms of both vice chairs — will expire.
Powell’s fate under Biden is difficult to predict. In a recent survey of economists, 57% said they expected a President Biden would offer him another four-year term. Powell hasn’t said whether he would accept another term if asked to stay.
The chair has earned a high degree of respect from both sides of the political aisle, first for how he handled President Donald Trump’s attacks on the Fed for much of the past four years, and second for how he managed the Fed’s response to the pandemic. Biden certainly will be pleased with the Fed’s pledge to provide as much monetary policy as is needed.
But the new president could come under pressure from some in his party to pick a Democrat. For most of the last 50 years, presidents have reappointed first-term chairs chosen by their predecessor. Trump broke with that when he dumped former Chair Janet Yellen in 2018 in favor of Powell, a Republican and then a Fed governor. Powell was appointed to the Fed in 2012 by President Barack Obama.
Extra pressure will come from Democrats displeased by the Fed’s steady push to soften some of the regulatory reforms introduced following the global financial crisis with the 2010 Dodd-Frank Act.
At the least, Biden is expected by economists who follow the Fed to replace Randal Quarles, the vice chair in charge of banking supervision. His term expires in October 2021.
The other vice chair belongs to Richard Clarida, the Fed’s highest ranking Ph.D., whose term runs through September 2022.
Biden is already being lobbied by some groups to use appointments to improve diversity at the Fed, which has traditionally been dominated by White men, notwithstanding Yellen’s four-year term. There are also currently two vacant Fed board seats, and possibly a third if Biden, as some expect, makes Fed Governor Lael Brainard his Treasury secretary. Already a strong candidate for the job four years ago had Democrat Hillary Clinton defeated Trump, Brainard looks even stronger now, given that close coordination between the Fed and Treasury may prove crucial in helping the economy recover from the pandemic-induced recession.
Trump failed multiple times to fill those vacant Fed seats when he couldn’t convince enough Republican senators to back his nominees. His most recent selections — Judy Shelton and Christopher Waller — are unlikely to be approved in the lame-duck session following the election, and their nominations will expire when the current Congress adjourns at the end of the year.
Biden’s economic team also wants the Fed to focus more on racial inequality in the economy. Democrats in Congress have introduced legislation to add that goal to the Fed’s existing mandate for price stability and maximum employment. This could have implications for the central bank if a Biden administration decided to endorse it.
But Powell and his colleagues have repeatedly addressed this topic themselves, particularly since Black Lives Matter protests swept through the nation earlier this year. Importantly, their new strategy introduced in August explicitly promises more patience in raising interest rates than in the past to push the benefits of a tight labor market deeper into minority communities.
No matter what changes Biden introduces, the public relationship between the White House and Fed is widely expected to improve. The days of the president calling the Fed chair an “enemy” are likely soon over.
By The Washington Post · Taylor Telford, Hamza Shaban · BUSINESS, PERSONAL-FINANCE, US-GLOBAL-MARKETS
Global markets roared Monday, with the Dow Jones industrial average soaring to intraday highs not seen since February as investors welcomed Joe Biden’s White House victory and promising vaccine news.
The Dow spiked more than 1,600 points before giving back nearly half those gains. It ended the session up 834.57 points, or nearly 3 percent, at 29,157.97. The S&P 500 advanced 41.06 points, or 1.2 percent to close at 3,550.50. The tech-heavy Nasdaq 100, which has seen strong growth throughout the pandemic, tumbled 181.45 points, or more than 1.5 percent, to 11,713.78.
An early morning announcement from drug giant Pfizer and biotechnology firm BioNTech helped spark the rally. The companies said their vaccine candidate was more than 90 percent effective, compared with a placebo, offering the strongest sign yet that a vaccine – and with it a possible end to the pandemic – was within sight.
“I think the 90% success rate in trials is on the high end of street expectations given the 40-60% success for seasonal flu vaccines,” Wayne Wicker, chief investment officer at Vantagepoint Funds, said in an email to The Washington Post. “This is going to give a real boost to a broader range of stocks beyond technology as shown by the outsized gains in the Dow premarket. With greater clarity on both political and health issues, this should provide additional momentum in the short run.”
Kristina Hooper, chief global market strategist at Invesco, was not surprised by the Dow’s late-session fade.
“This was such a powerful run-up today, full of exuberance – and with good reason given the news about the vaccine,” she said. “It’s normal to have some digestion after a big rally. I also think today’s rally was a bit too exuberant given that this vaccine still needs FDA approval and needs to be broadly distributed. We have to recognize that this vaccine is not ideal, as it requires two inoculations. And we still don’t know how long the immunity lasts.”
Biden applauded Pfizer’s breakthrough in a statement earlier Monday, but warned that the end of the battle against covid-19 is still months away. “Today’s news does not change this urgent reality,” he said. “Americans will have to rely on masking, distancing, contact tracing, hand washing and other measures to keep themselves safe well into next year.”
Public health experts warn that the nation is entering the pandemic’s worst phase. The United States surpassed 10 million coronavirus cases Monday, just 10 days after hitting 9 million.
Companies whose stocks have been pummeled by the pandemic, especially in travel, saw remarkable swings: Carnival cruise stock leaped 39.3 percent, while Delta, American and United Airlines all jumped at least 15 percent. Pandemic winners saw major reversals: Zoom’s stock tumbled 17.4 percent, while Wayfair and Overstock each slumped more than 20 percent.
The “reopening” stocks – the companies that got beaten up by the pandemic – came roaring back and are poised to see the ultimate rebound should Pfizer’s vaccine prove successful, said Nicole Tanenbaum, partner and chief investment strategist at Chequers Financial Management. “However, the reopening optimism was tempered by more immediate concerns around a resurgence of the virus in the U.S., as New York Mayor Bill de Blasio expressed concerns around the city’s increase in cases and New Jersey Gov. Phil Murphy announced plans to tighten restrictions in the state,” she said.
But if Pfizer’s vaccine “turns out to be the real deal, then this is a game-changer,” Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, said in comments emailed to The Washington Post. “To the extent that consumer spending and economic activity have been suppressed by concerns of the increasing Covid cases, anything that can reverse that trend will be welcomed by the markets.”
The MSCI All Country World Index hit a new high Monday as equities soared overseas. Asian markets advanced across the board, led by Japan’s Nikkei 225, which swelled 2.1 percent to a record high, and the Shanghai Composite Index, which gained 1.8 percent. European markets were also buoyant, with France’s CAC 40 soaring 7.5 percent and Germany’s DAX jumping nearly 5 percent. The benchmark Stoxx 600 index advanced nearly 4 percent.
The recent surge in infections has renewed business and travel restrictions in some countries. If the virus cannot be tamed, it could trigger the widespread renewal of shutdowns that ushered the United States into recession earlier this year.
“Today is a great day for science and humanity,” Albert Bourla, Pfizer’s chairman and chief executive, said in a statement. “We are reaching this critical milestone in our vaccine development program at a time when the world needs it most with infection rates setting new records, hospitals nearing over-capacity and economies struggling to reopen.”
Oil markets also rallied Monday, as a possible vaccine opens the door to new demand for gasoline and other petroleum products. Brent crude, the international oil benchmark, jumped nearly 10 percent to $42.74 per barrel. West Texas Intermediate crude, the U.S. oil benchmark, advanced 11 percent to $43.35 a barrel.
As investors sought out riskier territory, the yield on the 10-year U.S. Treasury note inched up 0.13 percent. Bond yields move inversely to prices. Gold, another safe haven, plummeted more than 4.5 percent to $1,863 per ounce.
Investors also reacted to Biden’s victory, largely dismissing President Donald Trump’s refusal to concede even as the president-elect begins to roll out his plan for combating a pandemic that has killed more than 238,000 Americans. Trump contends, without evidence, that the election was mired by voting fraud. On Monday, Senate Majority Leader Mitch McConnell, R-Ky., threw his support behind Trump’s legal challenges, saying the president is “100 percent within his right” to pursue recounts and litigation.
“While the threat of legal action by Trump could delay proceedings, investors are pricing in almost zero chance for the incumbent to destabilize affairs,” Russ Mould, investment director at AJ Bell, wrote in an email to The Post. “That means the market is in risk-on mood.”
In the campaign’s final days, analysts had begun talking of a “Blue Wave” and the possibility of a Biden presidency that would deliver a multitrillion-dollar stimulus bill early next year to jump-start the slowing economy.
Stocks soared last week as the prospect of a GOP-controlled Senate reduced the likelihood that a Biden presidency would usher in tax increases and sweeping regulatory changes, which many analysts considered “the goldilocks outcome” in the U.S. presidential contest. But the balance of power won’t be decided until January, when Georgia will hold runoff elections for both Senate seats.
By The Washington Post · Michael Birnbaum · BUSINESS, WORLD, US-GLOBAL-MARKETS
The European Union on Monday announced plans to impose $4 billion in tariffs on U.S. goods after similar U.S. tariffs were levied last year, a move that adds to the list of international disputes that President-elect Joe Biden will have to resolve once in office.
EU trade ministers who approved the measures took pains Monday to say that they did not intend the tariffs to be seen as escalatory and that they hoped both Washington and the European Union could remove them as soon as possible. But the decision – which takes effect Tuesday – nevertheless may force Biden to weigh in on a transatlantic trade dispute early in his administration.
The tit-for-tat trade measures are part of a 16-year fight between the United States and Europe about whether Airbus and Boeing are being given illegal state aid. The World Trade Organization allowed the United States to impose tariffs last year because of improper subsidies offered to Airbus. In October, the WTO decided that the European Union could do the same because Boeing had received similar support. The WTO’s final green light came Oct. 26.
“We are not escalating anything. We are exercising our rights as awarded by the WTO,” said German Economy Minister Peter Altmaier.
“We are just mirroring the U.S. approach,” he said. “We are ready to withdraw or suspend our tariffs at any time when the U.S. is ready to do so on their side, whether it is the current or future U.S. administration.”
The EU is set to publish a list of the goods on which it will impose levies later Monday. Officials declined to say ahead of time what products would be targeted, but draft lists have included airplanes, wine and liquor, tractors, motorcycle parts and U.S. meat and produce, among other products.
The $7.5 billion in U.S. levies last year included French wine, Italian cheese and British cashmere.
Altmaier said EU ministers decided to move forward with the tariffs in part because the Biden trade team – and any accompanying change in U.S. policy – is unlikely to be in place until February or March. Biden has a more conciliatory approach to trade issues than President Donald Trump, who imposed tariffs on European steel and aluminum exports that were not connected to the aircraft dispute.
Next Capital (NCAP) shares rose by 45.45 per cent to Bt3.20 from its initial public offering (IPO) of Bt2.20 in the first day of trading on Monday.
NCAP provides loans to motorcycle buyers and does not come under the central bank’s supervision. It has 24 outlets nationwide.
The company released 300 million shares in an IPO on October 30, of which 225 million were offered to the public and 75 million to company patrons, directors, executives and employees. The company raised Bt660 million in capital.
The market capital at IPO price was Bt1.98 billion with Finnex Advisory as a financial advisor and Thanachart Securities as underwriter.
The IPO launch won NCAP three major shareholders, namely Com7 which holds 33.93 per cent, Synnex (Thailand) 26.67 per cent and Vista Investments Limited 5 per cent. The company’s IPO price is determined by a price to earnings ratio (P/E ratio) of 9.30 times compared to its net profit in the past four quarters from July 1, 2019 to June 30, 2020. NCAP has a policy to pay dividends no less than 40 per cent of its net profit after tax deduction capital reserve allocation under the law.
The Commerce Ministry is getting ready to deal with the United States in the terms of trade under president-elect Joe Biden.
Commerce Minister Jurin Laksanawisit said on Monday that his ministry and the private sector have closely monitored the presidential elections, given that the US was Thailand’s fourth largest trading partner last year after Asean, China and Japan.
Thailand-US trade stood at Bt1.16 trillion in the first nine months of this year. Thailand’s export to the US stood at Bt790 billion during that period, or 14.7 per cent of total export.
Jurin added that the Biden presidency would ease but not end tensions in the US-China trade war. The US Generalised System of Preferences would also be more generous under Biden, he said.
Jurin said Biden is expected to place importance to trade negotiations via multilateral talks through international bodies such as the World Trade Organisation. The president-elect is also expected to use conditions such as the environment, labour and intellectual property as bargaining chips in trade talks.
He said Thailand will work closely with other Asean members to boost the region’s bargaining power when negotiating with the US. He added that if the US-China trade war eases under Biden, it will also have a benefit on Thailand.
Cabinet to rule on whether KTB still a state enterprise
EconNov 09. 2020Finance Minister Arkhom Termpittayapaisith
By The Nation
Finance Minister Arkhom Termpittayapaisith will ask the Cabinet to confirm whether Krungthai Bank (KTB) is still a state enterprise.
The government’s legal adviser, the Council of State, recently advised that KTB has lost its state enterprise status as per the Budget Procedures Act.
This raises the question of whether state agencies can still disburse money through KTB. Under current rules, state agencies can only engage in financial transactions with state-owned banks.
The finance minister said that KTB is still a state-run bank under the Bank of Thailand (BOT) Act since its major shareholder, the Financial Institutions Development Fund (FIDF), is part of the Bank of Thailand – a state agency. As such, state agencies and state enterprises can continue to engage in financial transactions with KTB. The bank can also continue to receive and disburse money as part of government stimulus measures, he added.
However, he said he would have to check whether Council of State’s opinion affects the welfare of KTB employees.
The Comptroller-General is reportedlyworking on newrules for state authorities to continue doing financial transactions with KTB without breaching rules.
In a separate matter, the finance minister said he would ask the Cabinet to set up a committee to hasten and follow up on state agencies’ budget disbursement to ensure that targets are met.
He will also ask the Cabinet to amend the state procurement law in order to promote the use of technology to speed up the procurement process.
The government has set the 2021 fiscal budget at Bt3.285 trillion – Bt648 billion for investment and the rest for fixed expenditure.
He added that the government is considering fresh stimulus measures as “New Year gifts” to the public.
He said the ministry will launch a new round of welfare aid for low-income Thais early next year, based on household income rather than personal income.
Meanwhile, Arkhom said he is waiting to see whether new US policies would impact Thailand following Joe Biden’s victory in the presidential election.
Biden is expected to raise corporate tax and wages, which might encourage some US companies to relocate production to overseas markets, including Thailand.
The Stock Exchange of Thailand (SET) Index closed at 1,285.88 on Monday, up 25.80 points or 2.05 per cent. Total transactions amounted to Bt77.89 billion with an index high of 1,293.90 and a low of 1,277.52.
In the morning session, an analyst at Krungsri Securities expected the day’s index to rise to between 1,270 and 1,275 in response to former vice president Joe Biden winning the US presidential election, providing a boost to global trade and rollout of economic stimulus measures.
“However, surging global Covid-19 cases and market volatility due to SET-listed companies’ third-quarter business turnover announcements will pressure the index,” he said.
The 10 stocks with the highest trade value today were TASCO, PTT, KBANK, CPALL, IVL, GULF, SCC, ADVANC, AOT and BAM.
As of 4.30pm, the price of oil rose by US$1.01 or 2.72 per cent to $38.15 per barrel, while gold rose by $9.70 or 0.50 per cent, to $1,961.40 per ounce.
Other Asian indices were on the rise:
Japan’s Nikkei Index closed at 24,839.84, up 514.61 points or 2.12 per cent.
China’s Shang Hai SE Composite Index closed at 3,373.73, up 61.57 points or 1.86 per cent, while the Shenzhen SE Component Index closed at 14,141.15, up 302.73 points or 2.19 per cent.
Hong Kong’s Hang Seng Index closed at 26,016.17, up 303.20 points or 1.18 per cent.
South Korea’s KOSPI Index closed at 2,447.20, up 30.70 points or 1.27 per cent.
Taiwan’s TAIEX Index closed at 13,127.47, up 153.94 points or 1.19 per cent.
Experts forecast the Stock Exchange of Thailand (SET) Index will rise sharply next year following former vice president Joe Biden’s victory in the US presidential election.
Amonthep Chawla, head of research at CIMB Thai Bank, said Thailand would benefit from rising demand for imports in the US – especially electronic and automotive parts, rubber and food – as Biden’s policies will help boost Americans’ income.
“Hence, Thailand needs to consider joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership [CPTPP] as soon as possible, otherwise the country would lose benefits from China’s production relocation,” he said.
However, he said the baht would strengthen further from its current range of 30.50-30.60 against the dollar because the US debt is likely to grow in the long term.
Therdsak Thaveeteeratham, executive vice president at Asia Plus Securities, said the global economy including Thailand would be buoyed by Biden’s lenient trade measures, while foreign funds are likely to flow into Asian stock and bond markets after the Biden administration raises corporate taxes, meaning US stocks will be less attractive among investors.
“If Thailand’s political tensions don’t escalate, we expect the SET to rise to around 1,300 points by the end of this year, before hitting 1,450 points next year if a Covid-19 vaccine is developed the end of this year,” he said.
He added that shares in renewable energy-focused generators, such as GULF, GPSC, EA and BGRIM, would gain a boost from the US Democrats’ clean energy policy.
“Meanwhile, we still recommend that investors buy six large stocks – SCC, DELTA, CPF, HMPRO, STGT and BAM– whose profits are likely to increase next year,” he added.
Wikij Tirawannarat, director of individual customer research at Bualuang Securities, predicts logjams in US policymaking since Republicans still control the Senate, but is bullish on the prospects for Thai stocks.
“We expect the SET to hit 1,400 points next year as Thai political unrest eases, listed companies’ profits rise 50 per cent, and foreign funds flow into Asian and emerging markets,” he said. He forecast the SET would rise to around 1,340 points by the end of this year as the US election result is still unclear.
Thidasiri Srisamith, chief investment officer at Kasikorn Asset Management, said the SET had already priced-in the Biden presidency with a 5 per cent rise.
“However, we expect the index to hit 1,500 points by the end of next year on hopes of a Covid-19 vaccine. If the Covid-19 situation resolves, Thailand will be able to welcome more tourists,” she said, adding that the country’s revenue from tourism normally accounts for 13 per cent of its GDP.
She recommended that investors buy stocks not vulnerable to impact from the economic slowdown and with high fundamentals – such as utility, retail and finance stocks.
Nattapong Hirunyasiri, chief executive of MTS Gold Group, expects the gold price to fluctuate between US$1,920 and $1,960 per ounce and between Bt27,800 and Bt29,000 per baht weight this year.
“However, the gold price will hit $2,000 per ounce if it is still rising at $1,940 per ounce,” he forecast.
Tada Phutthitada, president of The Thai Bond Market Association, said regardless of who is the US president, the Thai bond market will gain positive sentiment from the US policy to inject funds into Asian markets, adding that foreign funds mostly flow into bonds issued by governments and central banks.
“In the last two days, foreign investors have made net buys of up to Bt10 billion in bonds … so this is a chance for the government to issue more bonds to raise more funds,” he said.
Jerome Powell, chairman of the U.S. Federal Reserve, listens during a House Select Subcommittee hearing in Washington, on Sept. 23, 2020. MUST CREDIT: Bloomberg photo by Stefani Reynolds. 
Finance Minister Arkhom Termpittayapaisith 
