MBK Centre shopping mall plans to develop and improve the retail space left vacant by Tokyu Department Store once the latter withdraws from its business operations in Thailand at the end of January.
The store had announced it was ceasing operations after facing three consecutive years of losses.
MBK said on Thursday it has a plan to develop and improve the retail space left vacant by Tokyu’s exit in line with the centre’s business strategy to meet the demands of customers, business partners and shareholders.
“MBK Centre continues to develop its business to maintain sustainable growth and standards as a leading shopping centre in Thailand,” the company said.
Tokyu started its business at MBK Centre in 1985. With a total retail area of 12,000 square metres, the store was the second largest there after SF Corporation.
Sony raises profit forecast ahead of Big PlayStation 5 debut
CorporateOct 29. 2020A Sony Alpha 9 mirrorless digital camera at the Sony Corp. headquarters in Tokyo on Feb. 4, 2020. MUST CREDIT: Bloomberg photo by Kiyoshi Ota.
By Syndication Washington Post, Bloomberg · Takashi Mochizuki · BUSINESS, WORLD, TECHNOLOGY, US-GLOBAL-MARKETS, ASIA-PACIFIC Sony Corp. raised its fiscal-year operating profit outlook by 13% to 700 billion yen ($6.7 billion) as its video game unit rode a surge in demand for entertainment from home-bound consumers.
The forecast, up from a previous 620 billion yen, surpassed the average analyst expectation of 658.9 billion yen and precedes the PlayStation 5’s highly anticipated November debut. Sony aims to sell more than 7.6 million PS5 units by the end of March, more than the PS4 managed in its first fiscal year, Chief Financial Officer Hiroki Totoki said.
Sony’s outlook hike underscores how the entertainment giant is benefiting from a global Covid-era consumer shift. While sales of its smartphone image sensors have been hit by U.S.-China trade tensions, the Japanese company is drawing gamers to its online services. Sony is betting that the PS5 will help it outdo Nintendo Co. during the all-important holidays and drive growth.
Sony’s American Depositary Receipts climbed about 3.3% in pre-market trade.
Hardware sales of the new console are likely to contribute “a small minus” to Sony’s bottom line over its first few months, the CFO added, confirming expectations that it will be a loss leader to begin with.
“Sony will spend a lot of money to deliver many units of the PlayStation 5 to the U.S., probably by air,” said Ace Research Institute analyst Hideki Yasuda. “The hardware would be sold at a slight loss as well.”
Operating profit for the three-month period ended Sept. 30 rose 14% to 318 billion yen, outstripping expectations. Game software sales in the quarter were 331 billion yen, down from the 432.5 billion of the prior three months. Sony now has 45.9 million members signed up for its PlayStation Plus subscription, up from 45 million in the prior quarter.
Key takeaways:
– Sony sees improved profits in all segments except for imaging and sensing.
– Raising fiscal-year operating profit forecast for gaming division to 300 billion yen from 240 billion yen.
– Company cites software, mainly add-ons, for improved gaming outlook.
– Monthly active PlayStation users declined to 10.7 million from 11.4 million quarter-on-quarter.
Sony Interactive Entertainment Chief Executive Officer Jim Ryan told Reuters the company pre-sold as many PS5 units in the device’s first 12 hours of availability as it did in the PS4’s first 12 weeks.
The novel coronavirus continued to weigh on Sony’s motion picture business, as many theaters around the world remained far shy of capacity, though the company’s movie prospects may be headed for a bump in the next quarter, according to Bloomberg Intelligence analyst Masahiro Wakasugi. This is largely thanks to the runaway success of a Demon Slayer movie released to theaters on Oct. 16, recording the fastest box office debut in Japan with 10.8 billion yen earned in its first 10 days. The movie’s revenue is part of the group’s music segment.
SCG Packaging (SCGP) forecasts its revenue next year will rise by over Bt100 billion thanks to its second polymer factory in Vietnam and acquisition of three paper and polymer packaging businesses.
SCGP chief executive officer Wichan Jitpukdee said the Vietnam plant should be completed by the end of this year and would help boost production.
He also expects to see revenue realised by the end of 2020 from the acquisition of Bien Hoa Packaging Joint Stock Company (SOVI).
“With demand for paper and polymer packaging expected to increase despite the Covid-19 outbreak, we have a plan to expand the business, especially in Asean countries,” he said, adding that the acquisition of three paper and polymer packaging businesses is currently being negotiated, with one of the deals set to be finalised by year-end.
He said paper-packaging factories in Vietnam, Indonesia and the Philippines worth Bt7.7 billion are under construction and on schedule for completion in 2021.
“These factories will help boost production by 620,000 tonnes per year and generate revenue of Bt9 billion per year, so the company’s revenue from overseas will increase sharply,” he said. Currently, the company’s overseas business accounts for 52 per cent of total revenue, he added.
This was an opportunity for investors to buy SCGP shares at a price lower than the initial public offering (IPO) price, he said.
“We expect our shares to be attractive to foreign investors after the company is listed on the MSCI on November 10,” he said, adding that SCGP is already listed on the SET50 Index.
By Syndication Washington Post, Bloomberg Opinion · Noah Smith · OPINION, BUSINESS The covid-19 pandemic will eventually subside, but the economic hangover from the recession it brought will be long and painful.
As calls grow for government to step up and spend money in order to get the economy back on its feet, deficit hawks already are raising their voices in response. Hastening the post-covid recovery will require overcoming the doctrine of austerity, which did so much to hurt the U.S. and other countries during the last recession.
When the financial crisis led to the Great Recession back in 2008, the idea of fiscal austerity was quick to rear its head. A number of prominent right-leaning economists disparaged the notion that government spending could ameliorate the downturn. Some even argued that cutting spending would expand the economy, by increasing confidence in the government’s solvency. Others warned that too much government debt would slow down economic growth.
Ultimately, pro-austerity arguments helped to limit the size of President Barack Obama’s fiscal stimulus, and found an even more receptive audience in some parts of Europe. Austerity — helped by the activism of conservative Tea Party Republicans — won the day, and most of the deficit spending initiated in the early years of the Great Recession was reversed.
The idea of austerity is attractive for several reasons. Many people tend to think of the government as being like a household; a government that borrows to spend is seen as irresponsible. What’s more, conservatives often fear that emergency government spending will become permanent when a recession is over, thus ratcheting up the size of government. Economists who watched crises in emerging markets were long accustomed to recommending that these countries strengthen their fiscal position in order to gain the confidence of fickle international capital. And cynical politicians may invoke austerity in order to prevent a president from the opposing party from giving the economy a boost.
But the U.S. must avoid the siren song of austerity this time around. Theory and evidence both come down strongly against cutting spending in a downturn. And although government borrowing can be bad in some situations, now is not one of those times.
As it turns out, the notion that reducing government spending can stimulate the economy doesn’t have much empirical support. A team of International Monetary Fund economists reexamined the idea in 2011, measuring changes in fiscal policy by looking at direct evidence from government speeches and internal documents. They found that government spending cuts tend to reduce private investment and depress economic activity. The research showing otherwise, they argue, had made a mistake by confusing natural economic forces with changes in government policy.
Meanwhile, the minority of economists who pooh-poohed fiscal stimulus didn’t have much of a leg to stand on. The theoretical justification for spending to boost the economy — especially in a deep recession, when interest rates can’t be cut past zero — is as solid as macroeconomic theory ever gets. What’s more, a slew of empirical analyses since 2008 almost all show the effectiveness of fiscal stimulus during recessions. The respected macroeconomist Robert Hall concluded that Obama’s stimulus, modest and short-lived as it was, still managed to cushion about one-fifth of the blow of the Great Recession. Meanwhile, European countries that indulged in austerity performed generally worse than others.
The reason, of course, is that the government isn’t like a household. Though some governments borrow mainly from foreign countries, the U.S. borrows mainly from U.S. bond investors. Since most federal debt is money the U.S. owes to itself, it’s not really being spendthrift when it borrows. The main question is whether private bond investors will continue to finance the U.S. deficit. So far, persistently low interest rates show that they’re perfectly willing to do so.
If interest rates someday rise, the Federal Reserve might have to increase the money supply in order to push them back down, which might create inflation. But the lack of inflation — even in countries with far more government debt than the U.S. — means that this point is still probably far off.
What’s more, when the government spends, it often benefits society even if it doesn’t make its money back. Investments in scientific research, infrastructure and education can produce big dividends for the private sector, even though the increased tax revenue might not be enough to pay for the spending. In this case, the debt is always worth it.
So austerity is a false prophet — at least, during recessions. But false prophets have real power, and this one is already doing some damage. When Congress’ concern over deficits caused special unemployment benefits to lapse, millions of Americans fell into poverty. That’s certain to hurt the economy going forward. Meanwhile, a Joe Biden victory in the upcoming presidential election might cause Republicans to dig in their heels against further government action, as they did during the Obama administration. The result would be a human and economic tragedy.
Austerity has its place — but in good times, not during recessions. Until the covid-induced downturn is firmly in the rearview mirror, the U.S. government shouldn’t be afraid to spend.
– – –
Smith is a Bloomberg Opinion columnist. He was an assistant professor of finance at Stony Brook University, and he blogs at Noahpinion.
The Stock Exchange of Thailand (SET) Index closed at 1,201.64 on Thursday, down 6.30 points or 0.52 per cent. Total transactions amounted to Bt50.83 billion with an index high of 1,206.84 and a low of 1,195.99.
In the morning session, an analyst at Krungsri Securities expected the day’s index to fall to between 1,190 and 1,200 points due to an economic slowdown after Germany and France imposed lockdowns to contain the spread of Covid-19.
“Meanwhile, the falling oil price and domestic political unrest will pressure investment,” he predicted.
The 10 stocks with the highest trade value today were STGT, SCGP, STA, AOT, PTT, KBANK, CPALL, BBL, SCB and NER.
As of 4.30pm, the price of oil dropped by US$0.86 or 2.30 per cent to $36.53 per barrel, while gold rose by $0.80 or 0.04 per cent, to $1,880 per ounce.
Other Asian indices were down, except in China:
Japan’s Nikkei Index closed at 23,331.94, down 86.57 points or 0.37 per cent.
China’s Shang Hai SE Composite Index closed at 3,272.73, up 3.49 points or 0.11 per cent, while the Shenzhen SE Component Index closed at 13,519.66, up 131.56 points or 0.98 per cent.
Hong Kong’s Hang Seng Index closed at 24,586.60, down 122.20 points or 0.49 per cent.
South Korea’s KOSPI Index closed at 2,326.67, down 18.59 points or 0.79 per cent.
Taiwan’s TAIEX Index closed at 12,662.91, down 130.84 points or 1.02 per cent.
The Stock Exchange of Thailand (SET) Index fell by 10.76 points, or 0.89 per cent, to 1,197.18 in the morning session on Thursday.
An analyst at Krungsri Securities expected the day’s index to fall to between 1,190 and 1,200 points due to an economic slowdown after Germany and France imposed lockdowns to contain the spread of Covid-19.
“Meanwhile, the falling oil price and domestic political unrest would pressure investment,” he predicted.
The analyst said the Dow Jones Index fell by 943 points for the fourth consecutive day due to an increase in Covid-19 cases worldwide, especially in the US and Europe, a delay in the rollout of fresh US economic stimulus measures, and mass sell-offs in stocks to mitigate risks before the US presidential election on November 3.
He recommended investors buy TU, STGT, STA, CBG, SCC, IVL, Com7, Synex, Asian, Hana, SVI and TVO, whose third-quarter performance was expected to improve.
The SET Index closed at 1,207.94 on Wednesday, down 1.01 points, or 0.08 per cent. Total transactions amounted to Bt55 billion, with an index high of 1,217.88 points and a low of 1,205.88.
The price of gold dropped by Bt300 per baht weight in morning trade on Thursday, the Gold Traders Association reported.
As of 9.20am, the buying price of a gold bar was Bt27,700 per baht weight and selling price Bt27,800, while gold ornaments cost Bt27,197.04 and Bt28,300, respectively.
At close on Wednesday, the buying price of a gold bar was Bt28,000 per baht weight and selling price Bt28,100, while gold ornaments cost Bt27,500.24 and Bt28,600, respectively.
The spot gold price moved to US$1,877 (Bt58,672) per ounce in the morning after the price dropped by US$32.70 to $1,879.20 per ounce at close on Wednesday in response to a strengthening dollar as investors bought the currency as a safe-haven asset due to the Covid-19 crisis in both the United States and Europe.
The Hong Kong gold price meanwhile dropped by HK$230 to $17,360 (Bt69,993) per tael, the Chinese Gold and Silver Exchange Society reported.
EconOct 29. 2020A person rests on a post in front of the New York Stock Exchange in New York on Oct. 2, 2020. MUST CREDIT: Bloomberg photo by Michael Nagle.
By Syndication Washington Post, Bloomberg · Sarah Ponczek, Claire Ballentine · BUSINESS, US-GLOBAL-MARKETS Stocks tumbled in the U.S. and Europe as rising coronavirus infections and tougher lockdowns added to worries about the economic hit from the pandemic.
The S&P 500 Index fell 3.5%, the biggest drop since June, amid a surge in covid-19 hospitalizations, especially in the Midwest. Energy shares sank with oil prices, and technology stocks were also among the worst performers, with Microsoft Corp. down after a disappointing forecast. The VIX Index, a measure of expected U.S. equity volatility, climbed to the highest level since June.
The U.S. and European stock benchmarks are both down more than 5% this week as virus cases surge and after American lawmakers failed to agree on an economic aid package before the Nov. 3 election. Analysts are also warning about increased volatility ahead of the presidential vote and in its aftermath, with some saying that a contested outcome is still a worrisome possibility.
“We’ve obviously got the election hanging over our heads. Then obviously covid accelerating to the degree that it has both here in the U.S. as well as in Europe,” said Lori Heinel, deputy global chief investment officer at State Street Global Advisors. “And then you’ve got the lack of stimulus, which in our estimation is still necessary to get us through this period until we get an ultimate medical solution. It’s the triple whammy right now.”
The Stoxx Europe 600 Index fell to a five-month low, losing 3% as German Chancellor Angela Merkel reached a deal for a one-month partial lockdown to curb the spread of the virus. After the market closed, France imposed a new nationwide lockdown.
Elsewhere, oil fell sharply on concern raging infections will sap demand. The dollar jumped and gold slumped. An exchange-traded fund tracking junk-rated corporate bonds fell to a one-month low. Bitcoin headed to its biggest drop in a month.
In Asia, stocks fared better. The MSCI Asia Pacific Index edged lower, and markets in South Korea and Shanghai posted modest gains. In China, indicators tracked by Bloomberg showed the recovery continued to display mixed signals while remaining broadly steady in October.
Here are the main moves in markets:
Stocks
– The S&P 500 Index dropped 2.8% as of 4 p.m. EDT.
– The Stoxx Europe 600 Index decreased 3%.
– The MSCI Asia Pacific Index fell 0.5%.
Currencies
– The Bloomberg Dollar Spot Index increased 0.6%.
– The British pound declined 0.5% to $1.2981.
– The Japanese yen gained 0.1% to 104.35 per dollar.
Bonds
– The yield on 10-year Treasurys was little changed at 0.77%.
– Germany’s 10-year yield fell one basis point to -0.63%.
– Britain’s 10-year yield decreased two basis points to 0.21%.
Commodities
– West Texas Intermediate crude sank 5.6% to $37.36 a barrel.
By The Washington Post · Hamza Shaban · NATIONAL, BUSINESS, US-GLOBAL-MARKETS
U.S. and global markets shuddered Wednesday as an alarming rise in coronavirus infections rattled investors and threatened a fledgling economic recovery.
The Dow Jones industrial average skidded 943 points, or 3.4%, to close at 26,519.95, extending a turbulent week of selling that sent the blue-chip index deeper into negative territory for the month. The S&P 500 tumbled more than 119 points, or 3.5%, to end at 3,271.03, and the Nasdaq 100 gave up 426 points, or 3.7%, to settle at 11,004.87.
European markets staggered too as France and Germany signaled plans to implement new social restrictions to contain a surge of covid-19 cases. The German DAX fell 4.1%, France’s CAC slid 3.4%, and the Pan-European Stoxx gave up nearly 3%, all three plunging to levels not seen since late May.
Investors have signaled increasing concerns as the pandemic enters this newest phase, which coincides with flu season. The rolling seven-day average of new daily case counts in the United States hit a record 70,000 on Tuesday, and coronavirus-related hospitalizations shot up nearly 10% in the last week. Another 73,627 cases were reported in the United States on Tuesday.
“Although statistically the start of one of the strongest periods for markets, covid-19 once again flips the narrative,” said Jamie Cox, managing partner for Harris Financial Group. “The country is under significant stress, and the markets continue to reflect that reality. Thankfully, November has the potential to settle some big, outstanding issues.”
Failed efforts to advance a coronavirus aid package also weighed on investors. Though House Speaker Nancy Pelosi, D-Calif., suggested last week the possibility of a breakthrough on an estimated $2 trillion deal, the Republican-controlled Senate has since adjourned until Nov. 9. The recess ensures that a deal to pump hundreds of billions of dollars into the economy, with aid delivered to struggling households and floundering small businesses, would not arrive before the election.
Uncertainty over the timing of coronavirus relief is further complicated by the election, which may change the power dynamics in Washington. Senate Republicans have rejected provisions for a larger stimulus package even as President Donald Trump has publicly called for greater spending.
The House passed a $3.4 trillion bill called the Heroes Act in May, but Senate Republicans and the White House dismissed it as overly costly, objecting to nearly $1 trillion for state and local governments. Pelosi subsequently scaled back the bill to $2.2 trillion, largely by shortening the time frame of the initiatives, reducing the state and local aid portion to $436 billion. Republicans still say it’s too high, but the House passed the $2.2 trillion version earlier this month, over GOP opposition.
Heavy stock market losses connected to the virus are also muddling Trump’s closing argument to voters. The president has often linked Wall Street’s performance to his own leadership and has framed an economic comeback as central to his re-election. But worries of a prolonged downturn reflected in retreating stock prices challenge the president’s message to the electorate.
In two crucial Midwest battleground states, former vice president Joe Biden continues to hold a lead over Trump, according to a new pair of Washington Post-ABC News polls. In Michigan, Biden is ahead among likely voters by 51% to 44%. In Wisconsin, Biden claims a bigger advantage, with likely voters favoring him 57% to 40%. Registered voters in both states say they trust Biden more to handle the novel coronavirus by double-digit margins.
Rising case numbers and hospitalizations have prompted fears not just tied to public health but of the follow-on economic repercussions if local governments are compelled to reinstitute business closures and stay-at-home measures. During the spring months, 42 states and territories in the U.S. issued mandatory orders restricting movement, according to the Centers for Disease Control and Prevention, affecting 73% of all the counties in the country.
Entire segments of the economy have been battered as people curtailed travel and leisure spending, and many have restricted their day-to-day routines to protect themselves and others from possible infection. Hotels and airlines have absorbed heavy losses. Boeing, the aerospace giant, said Wednesday it will cut an additional 7,000 jobs by the end of the year to cope with weak demand in air travel and the ongoing fallout from the 737 Max jet crisis. Share prices of cruise lines including Royal Caribbean and Carnival have been drastically cut from the start of the year and have not recovered.
Oil prices also sank, with brent crude, the international oil benchmark, plunged 5.4% to $39.36 a barrel. The pandemic has crushed demand for gasoline, as fewer Americans drive their cars and heavily restrict commercial travel.
Other companies have emerged as clear “winners” during the pandemic, owing to their technology offerings that helped people adapt to pandemic conditions and to surging consumer demand. Shares of Zoom, the online communications company, have increased by seven times their value from the beginning of the year; Peloton, the maker of the high-end exercise bike, has swelled more than four times its January value.
Across the Atlantic, German Chancellor Angela Merkel announced a month-long partial lockdown, with bars, restaurants and theaters closing, and new limits on public gatherings. Neighboring Switzerland imposed new restrictions as well. And in an evening address Wednesday, French President President Emmanuel Macro is expected to announce similar public health measures.
In the coming days, investors will parse financial results from the largest companies in technology, including Facebook, Amazon, Apple and Alphabet, which report earnings on Thursday, and will offer Wall Street the latest indication of how their businesses have fared during the pandemic. (Amazon founder Jeff Bezos owns The Washington Post.)
The tech giants have fueled much of the market’s relentless growth this summer. As households and businesses transitioned to extended periods of remote work and school, the mega-platforms further entrenched their positions while smaller rivals stumbled. A strong earnings showing from big tech could highlight their resilience to the turbulence unleashed by the virus. But a weaker performance might underscore the fragility of the economic recovery and the uncertainty facing even the best positioned U.S. businesses.
The Trade Competition Commission (TCC) will meet today to decide whether Charoen Pokphand (CP)’s acquisition of Tesco’s Thailand business could lead to a monopoly or unfair market dominance. CP already operates the 7-Eleven franchise in Thailand.
CP, through its subsidiary CP Retail Development Co, is buying an 86.9 per cent stake in Tesco Stores Thailand and 100 per cent in Tesco Stores Malaysia.
TCC chairman Sakon Waranyuwattana said the deadline for the 90-day consideration is the end of October, but it could be extended by up to 15 days if any commissioner wanted to present additional details.
“Regardless of the outcome of the consideration, there will be people who agree and disagree. But the committee will be impartial in its judgement, not favouring anyone,” Sakon said.
Somchai Pornratanacharoen, president of the Thai Wholesale and Retailing Association, said the TCC had held public hearings where concerns were raised that the CP-Tesco deal would put mom-and-pop stores out of business.
“Personally, I believe the TCC will allow mergers and acquisitions since they cannot stop the operations of large-scale national businesses. But we have to look at how this merger will affect small shops and how we can all live together. The country’s economy is deteriorating, purchasing power is falling and shoppers are moving online. Regardless of the TCC ruling, society must be given good reasons for this merger, “said Somchai.
CP informed the Stock Exchange of Thailand in March that it had acquired shares in Tesco Stores (Thailand) and Tesco Stores (Malaysia).
The share purchases, which allow CP to acquire assets worth Bt338.445 billion, must be approved by the TCC and the Malaysia’s Domestic Trade and Consumers Affairs Ministry, respectively.
Tesco’s business in Thailand consists of 214 hypermarkets, 179 Tesco-Lotus stores, 1,574 Tesco Express branches, and leasing space in 191 shopping centres.
Tesco’s Malaysia business consists of 46 hypermarkets, 13 supermarkets, 9 small shops, and space leasing in 56 shopping centres.
A Sony Alpha 9 mirrorless digital camera at the Sony Corp. headquarters in Tokyo on Feb. 4, 2020. MUST CREDIT: Bloomberg photo by Kiyoshi Ota. 
Noah Smith 
A person rests on a post in front of the New York Stock Exchange in New York on Oct. 2, 2020. MUST CREDIT: Bloomberg photo by Michael Nagle. 
