By The Washington Post · Hamza Shaban · BUSINESS The Securities and Exchange Commission has warned General Electric that it faces legal action in connection with its troubled insurance business, according to a regulatory filing published Tuesday.
The SEC issued what’s known as a “Wells notice” on Sept. 30 to alert the conglomerate that it considering civil action for possible securities law violations.
Boston-based GE first disclosed the government investigation into its accounting practices in 2018, after a multibillion-dollar underestimate of its insurance business created a shortfall in its reserves. Then-Chief Financial Officer Jamie Miller said on a conference call with analysts, “There’s nothing here I’m overly concerned about.” The SEC also delved into how GE recognized revenue from long-term service agreements for the maintenance of industrial equipment, including power plants and jet engines.
In a statement Tuesday to The Washington Post, GE said it has “fully cooperated with the SEC’s investigation,” adding, “We strongly disagree with the recommendation of the SEC staff and will provide a response through the Wells notice process.” GE said it is providing documents and other information requested by the SEC.
The SEC declined to comment.
GE will be given an opportunity to make a case against enforcement. But if the government proceeds, it could seek an injunction against future violations of securities law and impose fines. GE acknowledged a level of uncertainty in the filing on what the investigation means for its business: “The results of the Wells notice and any enforcement action are unknown at this time.”
Like other companies in the aviation business, GE has been battered by the coronavirus. In May, the company said it would cut 13,000 jobs from its jet-engine operation. Industry executives have said it will take years for the aviation business to return to pre-pandemic levels. From its recent peak in February, the value of GE shares has been cut in half.
News of the Wells notice shook investors further, and the stock slumped 3.7% to close at $6.17. But the broader market fell after President Donald Trump tweeted Tuesday afternoon that he was withdrawing from stimulus negotiations until after the Nov. 3 election. He said he had instructed Treasury Secretary Steven Mnuchin to halt talks with Democratic leaders.
Investors have for months monitored the negotiations for signs of a breakthrough. Economic experts and government officials, including Federal Reserve Chair Jerome Powell, have tied the recovery of the U.S. economy to further government aid, highlighting the importance of a deal. Hours before Trump said he ended negotiations, Powell warned that insufficient support from policymakers could batter the economy further and imperil the recovery.
ERX, a digital token trading service provider, will launch its digital trading platform in Thailand by the end of the year.
Pinpraaj Chakkphak, ERX chief executive officer, said the Finance Ministry and the Securities and Exchange Commission (SEC) gave the company approval for trading digital assets in July this year, and the company has allowed certain customers to open a trading account since October 1.
He said ERX is currently talking to some potential customers who want to use their assets, such as property, to raise funds in the form of digital tokens. The firm expects to get three assets by the end of this year.
Pinpraaj added that the company has negotiated with three security companies to help boost investor’s interest in digital tokens.
“ERX’s strongest point is its major shareholder is Elevated Returns, an American company that specialises in digital assets and is experienced in issuing Aspen Coins, a token that is linked to the assets of the St Regis Aspen Resort with a funding value of US$18 million,” he said.
He added that ERX aims to first create a platform in Thailand before expanding further in rest of Asia.
“We have decided to start in Thailand because many Thais use smartphones and the SEC has the potential of improving its regulations in line with changes in technology. Also, Thai financial institutions are ready to invest in this form of assets,” he said.
Pinpraaj went on to say that the strongest point of digital tokens is that it gives investors a chance to get high returns by investing in assets they would not have access to otherwise, like properties that that sell investment units at Bt100 million.
“It also enables asset owners to raise funds at a far lower cost than they would if they were raising funds via the Stock Exchange of Thailand,” he added.
Trump just crushed stimulus talks, endangering U.S. economy and 26 million on unemployment
Biz insightsOct 07. 2020President Donald Trump watches Marine One from the Truman Balcony on Monday, Oct. 5, 2020, as he returns to the White House after receiving treatments for covid-19. MUST CREDIT: Washington Post photo by Jabin Botsford
By The Washington Post · Heather Long · BUSINESS, US-GLOBAL-MARKETS ECON-ANALYSIS
WASHINGTON – President Donald Trump’s surprise move Tuesday to shut down all negotiations on another big relief package until after the Nov. 3 election threatens to stall the U.S. economic recovery – or even trigger a backslide.
Many economists and business leaders were quick to dub the move disheartening and irresponsible. The stock market immediately sold off after the news, with the Dow Jones industrial average ending the day 376 points down. Companies from airlines to energy firms to restaurants have warned in recent days that they will have to undertake massive layoffs without more government aid. At least 75,000 layoffs were announced by major corporations at the end of last week alone, and Boeing has sharply pulled back its forecasts for airplane sales for years.
In short, the U.S. economy is about half recovered, meaning there is still a long way to go. For weeks, economists and business leaders have warned that the next phase of the recovery will likely be harder and it would be a huge mistake for politicians to think their job is done.
Even some right-leaning economists were calling for stimulus.
“If there isn’t more stimulus, the recovery is in danger of collapsing. It’s that simple,” said Peter Morici, an economist and emeritus business professor at the University of Maryland who has supported Trump’s reelection. “Waiting until after the election is waiting too long.”
There’s growing concern among economists about a downward spiral. As businesses cut more jobs, people have less money to spend, which means they buy less at stores, restaurants and other companies, putting those businesses and workers at risk.
Trump has tried to portray this recovery as a rapid bounceback – a “super V” shape when considered on a line chart – but there’s growing fear it could turn into more of a “W” shape with a second dip if layoffs and business closures escalate in the coming weeks.
“Corporations were holding off on laying off employees in the hopes of further stimulus,” said Peter Atwater, an adjunct lecturer in economics at the College of William & Mary. “With this afternoon’s news, I expect that we will see businesses capitulate and begin to announce large scale layoffs.”
This new wave of layoffs will add more to the ranks of the 26 million Americans who were receiving unemployment compensation. Many unemployed people say they no longer have enough money to pay for rent, cars, utilities or even food. The average unemployment-benefit payment fell from $900 a week to just over $300 at the end of July, a sharp reduction that makes it hard for many families to survive. As these people stop paying renting and car payments, it hurts landlords, firms and banks waiting for the money.
Hours before Trump’s tweet, Federal Reserve Chair Jerome Powell urged Congress to act quickly and go big on more aid, saying the risk was far greater of backsliding for inaction than doing too much.
“Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses,” Powell said at an event hosted by the National Association for Business Economics.
These fears are growing as the United States tries to contain the novel coronavirus, which causes the deadly illness covid-19. More than two dozen states have reported increases in cases in recent days. As case counts rise, people typically stay home and curtail spending. Rose and Sparrow Salon, a top rated hair salon in the District of Columbia, has seen a pickup in cancellations as people worry about venturing out, said owner Amie Adkins.
Trump tweeted that “the Stock Market is at record levels, JOBS and unemployment also coming back in record numbers,” but the reality is that about half the jobs lost in the spring, during the initial spike of the public health crisis, have returned.
Economists have warned for weeks that jobs that have returned are the low-hanging fruit and getting the rest of the jobs back will be more difficult, much like running the second half of a marathon.
Trump’s own treasury secretary, Steven Mnuchin, told Congress during a recent hearing that another round of stimulus was needed for small businesses and the unemployed.
“We should act quickly because they need the support now,” Mnuchin said told the Senate Banking Committee on Sept. 24. “They don’t need the support next year.”
Mnuchin and House Speaker Nancy Pelosi, D-Calif., were close to a deal for over $1.6 trillion in aid. The major disagreements were over how much help to give cash-strapped states, cities and the unemployed, but many felt a deal was within reach.
The momentum in negotiations came after the September jobs report. Permanent job losses are rising as people have been out of work for half a year. While the nation did add jobs in September, the gains were the slowest since the recovery and nearly a quarter of restaurant and hospitality jobs remain wiped out. State government and the education sector lost jobs in September, a red flag of what lies ahead for many states, cities and municipalities are running low on funding.
Fred Warf runs a small barbershop and salon called Hair FX in Chicago with his wife. Like many small business owners, he was really hoping for another round of government grants or loans like the Paycheck Protection Program that went to more than 5 million businesses.
Warf did receive a loan over the summer, but that money is long gone. He has been able to reopen, but like many “high contact” businesses, it’s nothing like before. Some clients still have not returned. His costs are up for all the protective gear and cleaning that he has to do in between clients. And a lot of people are still on edge. The business staff is down to him and his wife, but he’s still struggling to pay his landlord.
“My business has to change to make profitability, but what else can we cut?” said Warf, who is 62. “This was supposed to be my golden years to make money and it certainly is not.”
Warf says he’s staying in business largely because of his blue-collar clients. They still have to go to work in factories and warehouses, and they are willing to come in for regular haircuts. Yet, many of his white-collar Chicago office workers are “leery” to come in. As winter approaches, he’s worried about whether he can make it without more aid or more customers coming back.
The National Restaurant Association warned that 40% of restaurants are in danger of closing in the next six months without more aid. The American Hotel & Lodging Association warned thousands of hotels can’t pay toward their mortgages right now, putting them in danger of closing. Overall, 21% of small business warn that they will have to shut permanently if something doesn’t change in the next six months, according to a National Federation of Independent Business survey in August.
Economists, including those at the Fed, have built more government stimulus into their projections about the economic recovery. Without it, they warn the economy is likely to sputter again or even backslide.
“My forecast is, it may take until the end of 2021 to recover all of the economic output losses and three years to recover all the job losses,” said Lynn Reaser, chief economist at the Fermanian Business & Economic Institute at Point Loma Nazarene University. But she predicted a sharp “drop in economic activity” without more government stimulus.
Trump risks the nation backsliding economically, putting more jobs and business in danger of going away. He wanted a V-shaped recovery, but a W is looking more likely.
The Stock Exchange of Thailand (SET) Index fell by 3.55 points, or 0.28 per cent, to 1,246.60 in the morning session on Wednesday.
An analyst at Krungsri Securities expected the index to fluctuate sideways between 1,240 and 1,260 points despite positive sentiment over the rising oil price and the Centre for Economic Situation Administration aiming to discuss measures to stimulate expenses during the latter part of the year.
“The postponement of US economic stimulus bill negotiations until after the presidential election and foreign investors’ mass share sell-offs will pressure the index,” he said.
He recommended investors buy shares of:
> PTTEP, Top and PTTGC, that benefit from the rising oil price.
> Banpu and Age, that benefit from a rising coal price in response to strong Chinese demand.
> TU, PlanB, STGT and Com7, whose third-quarter performance is expected to grow.
The SET Index closed at 1,250.15 on Tuesday, up 7.16 points, or 0.58 per cent. Total transactions amounted to Bt56.52 billion, with an index high of 1,257.46 points and a low of 1,249.14.
By Syndication Washington Post, Bloomberg · Claire Ballentine, Vildana Hajric · BUSINESS, US-GLOBAL-MARKETS U.S. stocks tumbled and bonds soared after President Donald Trump said he is ending stimulus talks until after the election, hours after Federal Reserve Chairman Jerome Powell renewed his warning that the economy will stumble without additional fiscal support.
The benchmark S&P 500 slumped 1.4% after Trump tweeted his comments late in the trading session, erasing a gain of as much as 0.7%. The Dow Jones industrial average and Nasdaq Composite indexes also turned negative. Treasuries surged and the dollar jumped against most its major peers.
“It was certainly a surprise to the market that had started to price in another stimulus,” Ed Clissold, chief U.S. equity strategist at Ned Davis Research, said in an interview on Bloomberg Television. “It’s going to be difficult for the economy to gain much traction until there is another round of stimulus.”
House Speaker Nancy Pelosi, D-Calif., had called on Republicans to get on board with a version of the stimulus bill the House passed last week with only Democratic votes. But significant gaps remained between the Democrats’ $2.2 trillion proposal and a $1.6 trillion offer backed by the White House.
“Over the past few trading sessions the market had rallied around stimulus talks and now it’s almost a slap in the face,” said Gene Goldman, chief investment officer at Cetera Financial Group
There are also lingering concerns about the trajectory of the pandemic and its effect on the economy. New York City’s seven-day average of daily cases is approaching Democratic Mayor Bill de Blasio’s warning threshold of 550. In France, the country’s statistics agency, downgraded its growth forecast to zero.
Elsewhere, the pound weakened after a report that the European Union has no plans to offer concessions to Prime Minister Boris Johnson before next week’s Brexit deadline. Oil rose further after the biggest gain since May.
– – –
Here are some key events coming up:
– On Wednesday, the minutes of the Sept. 15 and 16 meeting of the FOMC could be especially fruitful for Fed watchers, beginning with details of the debate on conditions necessary to trigger a rate increase
– The vice presidential debate takes place at the University of Utah in Salt Lake City on Wednesday
– Although the final formal round of talks is over, the British government expects trade negotiations to continue up to the E.U. summit in mid-October.
– – –
These are some of the main moves in markets:
Stocks
– The S&P 500 index declined 1.4%, to 3,360.75, as of 4 p.m. New York time, the largest drop in almost two weeks.
– The Dow Jones industrial average declined 1.3%, to 27,770.65, the biggest drop in almost two weeks.
– The Nasdaq composite index dipped 1.6%, to 11,154.61.
– The Nasdaq 100 index sank 1.9%, to 11,291.27.
– The Stoxx Europe 600 index rose 0.1%, to 365.88, the highest in more than two weeks.
Currencies
– The Bloomberg Dollar Spot index climbed 0.4%, to 1,173.78, the biggest rise in almost two weeks.
– The euro fell 0.3%, to $1.1751.
– The British pound decreased 0.6%, to $1.2907, the biggest dip in two weeks.
– The Japanese yen strengthened 0.1% to 105.60 per dollar.
Bonds
– The yield on 10-year Treasuries decreased four basis points, to 0.75%, the biggest tumble in four weeks.
– Germany’s 10-year yield advanced less than one basis point, to -0.51%, the highest in more than a week.
– Britain’s 10-year yield declined less than one basis point, to 0.287%, the first retreat in a week.
Commodities
– West Texas Intermediate crude climbed 2.3%, to $40.13 a barrel.
– Gold weakened 1.3%, to $1,888 an ounce, the biggest drop in almost two weeks.
By The Washington Post · Erica Werner, Jeff Stein · NATIONAL, BUSINESS, POLITICS, CONGRESS, US-GLOBAL-MARKETS
WASHINGTON – Economic relief talks screeched to a halt Tuesday as President Donald Trump ordered Treasury Secretary Steven Mnuchin to stop negotiating with House Speaker Nancy Pelosi until after the election.
In a series of tweets less than 24 hours after he was released from a hospital, Trump accused Pelosi, D-Calif., of failing to negotiate in good faith, after she rejected an opening bid from Mnuchin in their latest round of talks.
“I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business,” Trump wrote.
Trump’s surprising announcement stood in stark contrast with recommendations from Federal Reserve Chair Jerome Powell, who had said in a speech hours earlier that more economic stimulus was needed to sustain the recovery.
Trump’s tweets sent the stock market lower, as many businesses, households and investors had been hoping for a jolt of fiscal stimulus amid signs the economy had lost momentum. The Dow Jones industrial average ended down 376 points, or 1.3%. The Nasdaq and S&P 500 also fell.
Trump is still dealing with his recent covid-19 diagnosis, but he has tried to dismiss the illness’s impact on him in the past two days.
Trump’s declaration appeared to kill any near-term chance of new aid for millions of Americans who remain out work and at risk of eviction. Pelosi and Mnuchin spoke shortly after Trump’s tweets, and Mnuchin informed Pelosi that the negotiations were indeed over, according to Pelosi’s spokesman.
Trump said he instead asked Senate Majority Leader Mitch McConnell, R-Ky., “not to delay, but to instead focus full time on approving my outstanding nominee to the United States Supreme Court, Amy Coney Barrett.”
McConnell, who spoke with Trump shortly before the president’s announcement, said he agreed with the decision.
“I think his view was that they were not going to produce a result and we needed to concentrate on what’s achievable,” the majority leader told reporters at the Capitol.
Trump’s pronouncement came after days of sustained if long-shot negotiations between Pelosi and Mnuchin. Pelosi later speculated to Democratic colleagues on a conference call that the president’s sudden change in position might be connected to the steroids he’s taking as he battles covid-19.
“Believe me, there are people who thought, who think that steroids have an impact on your thinking,” she told Democrats, according to a person on the call, who spoke on the condition of anonymity to discuss the private comments. “So, I don’t know.”
The White House’s focus now appears to have shifted from the economic talks to solely pushing for the Supreme Court confirmation. Even though several Republican senators have tested positive for the novel coronavirus, McConnell is moving forward swiftly with Barrett’s nomination, trying to get her confirmed before the election.
Still, Trump’s move disappointed some members of his party who were hoping to be able to deliver new relief to their constituents.
“Waiting until after the election to reach an agreement on the next covid-19 relief package is a huge mistake,” Sen. Susan Collins, R-Maine, a moderate in a tough reelection race, said in a statement.
The U.S. economy is facing new head winds. It contracted sharply earlier this year because of the pandemic, leading to massive layoffs and business closures.
The economy showed signs of a partial recovery in May and June, but businesses and households have struggled as the virus continues to infect thousands of Americans each day. Trump has sought to play up the economy’s recovery, often touting partial or incomplete information. That continued Tuesday, when he misstated the health of the U.S. economy during his string of tweets.
“Our Economy is doing very well,” he wrote. “The Stock Market is at record levels. JOBS and unemployment also coming back in record numbers.”
Even some of Trump’s top advisers have said that the economy is not doing well and that more assistance is needed. Further, the stock market is not at record levels, and it also doesn’t reflect the broader health of the economy. The unemployment rate has come down from its April peak of about 15 percent, but it is still at 7.9 percent, and millions are struggling to pay their bills, afford food and find jobs. The United States has recovered barely half of the jobs lost in March and April.
Trump keeps shifting his position on how he plans to proceed.
Three days ago, during his first day in the hospital, he tweeted, “OUR GREAT USA WANTS & NEEDS STIMULUS. WORK TOGETHER AND GET IT DONE. Thank you!”
And then after he announced Tuesday that the talks were off and that the economy was great, he wrote another Twitter post in the evening that suggested he actually supported the idea of more spending.
Trump’s first set of tweets Tuesday came just after he and Mnuchin conferred with McConnell and House Minority Leader Kevin McCarthy, R-Calif., on a conference call. McConnell and McCarthy have expressed skepticism about Republicans signing on to a giant new spending bill. During Tuesday’s call, McConnell suggested to Trump that Pelosi was stringing him along and no deal she cut with Mnuchin would command broad GOP support to pass in the Senate, according to two people with knowledge of the call who spoke on the condition of anonymity to discuss it.
Pelosi and Mnuchin had been working on assembling a relief bill of between $1.6 trillion – which was Mnuchin’s opening offer – and $2.2 trillion, the size of a stimulus bill passed last week by House Democrats. Talks had been moving slowly but appeared to be progressing. Pelosi last week expressed optimism about reaching a deal, although many Republicans had been skeptical.
The Trump tweets landed while House Democrats were in the middle of a conference call. Pelosi had been updating them on the status of her talks with Mnuchin. She had been telling them that they remained divided on issues including state and local funding and coronavirus testing.
A few minutes after Trump tweeted that the talks were over, Pelosi told lawmakers on the call what the president had said, made her comment about a potential link with steroids and then quickly got off the call, according to people listening in.
“Clearly, the White House is in complete disarray,” Pelosi said in a statement shortly afterward.
Because of the White House’s move, she said, “over time, household insolvencies and business bankruptcies will rise, harming the productive capacity of the economy and holding back wage growth.”
The spending package was supposed to send another round of $1,200 stimulus checks to millions of Americans, give the jobless new unemployment benefits, and provide a new round of small-business aid, help for the airline industry and a range of other measures.
Congress has not passed economic or health-care relief legislation since the spring, when lawmakers came together on four bipartisan bills totaling about $3 trillion, an unprecedented sum.
But many of the programs approved at that time, such as small-business relief and enhanced unemployment benefits, have since expired, in some cases months ago. In the past week, numerous companies announced plans for big layoffs.
The airline industry last week began furloughing more than 30,000 employees because government aid expired, and some surveys have found that as many as 40 percent of restaurants will close within six months without additional aid. Tens of millions of Americans who have lost their jobs will receive no federal unemployment supplement absent an additional package from Congress, draining the U.S. consumer market and a key source of stimulus. Personal incomes already dropped in August as the spring relief expired.
Powell issued a dire warning Tuesday about the potential consequences of Congress and the White House failing to pass an additional stimulus deal. “Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses,” Powell said.
Pelosi last week urged airlines to hold off on layoffs, saying an airline payroll support program would be extended either as part of an overall deal or a stand-alone bill. It’s unclear now whether there will be an attempt to move forward on that.
Talks involving Pelosi, Mnuchin, White House Chief of Staff Mark Meadows and Senate Minority Leader Charles Schumer, D-N.Y., collapsed in early August and remained stalled for weeks, but last month, Pelosi was pressured by moderate House Democrats who wanted to pass more relief for their constituents ahead of the election.
She and Mnuchin restarted negotiations. But they always faced tough odds, with many congressional Republicans reluctant to agree to a deal anywhere near the size of what Mnuchin was proposing, even as Pelosi repeatedly criticized his opening offer as too stingy.
Additionally, the Trump administration has been divided internally, with Mnuchin pushing hardest for a deal despite skepticism about it from other senior officials.
Larry Kudlow, the president’s top economic adviser, has for months said an additional stimulus deal would help bolster the economy but was not necessary for the recovery.
Shortly after Trump’s tweets, White House trade adviser Peter Navarro got into an argument with Fox Business host who pressed him on why the administration would let a deal fall through. Navarro pointed to executive actions Trump took in August, including on unemployment and evictions, that provided a measure of relief – but nowhere near what legislation could accomplish.
Despite the push from some within the White House and lawmakers from both parties, conservatives had urged Trump to reject a new spending package.
Art Laffer, a supply-side economist generally regarded as outside the economic mainstream, said he visited the White House about a week ago and expressed the view that Trump should not approve a stimulus package. Stephen Moore, another outside economic adviser, has told White House officials that a stimulus package would do little to boost Trump’s political fortunes because it would not show results until after the election.
The Centre for Economic Situation Administration (CESA) is holding discussions on further opening the country to foreign business people, while the Finance Ministry is planning new measures to stimulate the domestic economy.
Government Spokesman Anucha Burapachaisri said that the CESA would discuss on Wednesday the details of rules and regulations for more entrepreneurs and foreign investors to enter the country. Special Tourist Visa (STV) details may also be considered to allow more foreigners to enter Thailand.
The major issue of debate is how to facilitate travel by entrepreneurs and foreign investors, as this group would be inconvenienced by 14 days of quarantine for a short-term visit. Originally, the practice was to have them test at the country of origin and to test for Covid-19 again when they reach Thailand, without mandatory quarantine. A travel manager who is a qualified Thai medic or public health personnel was to oversee the trip. However, there are proposals that the business partner or business negotiating company should take responsibility.
Anucha said the Centre for Covid-19 Situation Administration has approved approximately 11,000 business people and work permit holders to enter the country, and these people has agreed for 14 days of alternative state quarantine.
Meanwhile, the Ministry of Finance will on Wednesday offer additional measures to stimulate domestic consumption, targeting middle-income earners and upper middle-income people in purchasing goods and receiving tax deductions. They would grant tax deduction up to Bt50,000 to incentivise people with income and purchasing power to buy products during the fourth quarter of this year.
The central bank will introduce new rules on the rate of penalty imposed on loan defaulters in a bid to ease borrowers’ burdens and motivate them to repay their debts, a Bank of Thailand (BOT) executive said on Tuesday.
Thanyanit Niyomkarn, assistant BOT governor, said the central bank will let financial institutions charge no more than 3 per cent on top of the contract rate stated in the loan contract.
For instance, if a bank offers personal loans at 20 per cent interest, and if the borrower fails to pay the instalment, then the bank can only impose a penalty of 3 per cent, resulting in total interest rate rising to 23 per cent.
Currently, the interest rate automatically rises to 25 per cent when a debtor misses an instalment.
This move to keep the penalty low should motivate debtors to honour their obligations as well as reduce their burden, she said.
The central bank plans to announce the new rule in the fourth quarter of this year, and will implement it in April next year. The new regulation will apply to personal, retail and business loans.
Financial institutions would also be required to offer borrowers the option of debt-restructuring first before the case is taken to court.
Thai exporters are upbeat about business prospects, citing gradual increase in demand, but they are worried about the baht strengthening as well as the shortage of migrant workers.
The Thai National Shippers’ Council (TNSC) has revised upward its export projection this year to 8 per cent contraction from 10 per cent contraction previously forecast, says Ghanyapad Tantipipatpong, the council chairman.
Products in demand include rubber gloves, washing machines, fax machines, telephones and parts, and gold, she noted.
Demand for Thai products have risen as many countries have eased Covid-19 lockdown restrictions. Demand for basic need products, such as canned food, farm products, processed farm products have risen, and the coming Christmas and New Year seasons would further boost demand, she said.
Thailand’s exports in August amounted to $20.2 billion, falling 7.94 per cent, against imports of $15.86 billion, dropping 19.68 per cent. Exports in the first eight months contracted 7.75 per cent, amounting to $153.37 billion.
However, there are many negative factors. Consumer purchasing power remains weak due to the global recession. So, Thai exporters should focus on necessity products and products whose prices were not high, she said.
The baht remains strong and can be an obstacle for exports, as it makes Thai products more expensive than products of competitors. The baht should stay at around Bt34 per dollar, down from the current Bt31 level, or it must move along with regional currencies, she said.
A shortage of migrant workers is also adversely affecting businesses, she complained. The rise of logistics cost, including freight cost, is also a cause for concern, she pointed out.
She said exporters want newly appointed Finance Minister Arkhom Tempittayapaisith to deregulate exchange rate regulations. The government should also provide financial aid to those who have not yet been supported by previous measures, she added.
Meanwhile, Visit Limluecha, vice chairman of the TNSC, said the US presidential election in November may have an impact on Thai exports. If Democrat Joe Biden wins the election, the US government may implement more free trade policies than incumbent President Donald Trump, he added.
Krungsri Bank to launch financial literacy programme for Obec schools in bid to break cycle of poverty
CorporateOct 06. 2020From left: Sanit Yamgesorn, Seiichiro Akita and Dr Kraiyos Patrawart
By The Nation
Krungsri Bank and its business units have joined the Office of Basic Education Commission (Obec) and the Equitable Education Fund (EEF) to launch an animated series to promote financial literacy and discipline among youth in 28,000 schools nationwide.
The online financial literacy platform, titled “Simple to Learn – Stay Save during Covid-19” has been developed as part of Krungsri’s sustainable development goals (SDGs). It offers four basic concepts – think before buying, saving, young bookkeepers and recycling. It will also help students understand the “new normal” and other relevant financial precautionary measures in a post-Covid economy.
Seiichiro Akita, Krungsri president and chief executive officer, said: “The financial literacy project is one of Krungsri’s flagship missions to reflect the fact that financial institutions play an important role in socio-economic development of the country. Not only do we provide capital to the business sector and customers across all segments, but we also perform our mission of fostering a proper balance of economic, social, and environmental considerations.
“The series aims to cultivate financial discipline among youth and is expected to help build their immunity against potential problems emerging from personal and household indebtedness – a critical foundation of sound and sustainable economic growth,” Akita added.
Sanit Yamgesorn, Obec’s deputy secretary-general, said: “Cultivating financial discipline and literacy is crucial to ensuring sound money management and better quality of life for young people.
“We will disseminate the animated series among schools under the supervision of Obec. This series will be integrated into Obec’s learning project of cooperatives, developed by Obec’s Bureau of Student Activities Development,” he said.
Dr Kraiyos Patrawart, EEF’s deputy managing director, said: “The animated series aims to enhance financial knowledge and discipline among elementary students nationwide, including those from the underprivileged sector. With financial literacy, these students will be able plan and manage their personal finances both in terms of spending and saving, thereby boosting their financial immunity and advancing their own and their family’s quality of life, which is key to breaking the cycle of generational poverty.”
President Donald Trump watches Marine One from the Truman Balcony on Monday, Oct. 5, 2020, as he returns to the White House after receiving treatments for covid-19. MUST CREDIT: Washington Post photo by Jabin Botsford 
President Trump 
From left: Sanit Yamgesorn, Seiichiro Akita and Dr Kraiyos Patrawart 
