Standard Chartered completes first cross-bank letter of credit using blockchain technology
CorporateSep 11. 2020Plakorn Wanglee, president and CEO, Standard Chartered Bank (Thai)
By The Nation
Standard Chartered Bank announced on Friday (September 11) that it has successfully completed the first cross-bank letter of credit (LC) transaction between Vietnam and Thailand using blockchain technology. The transaction involved Asian Development Bank (ADB), Bank for Investment and Development of Vietnam and Standard Chartered Bank (Thai).
Completed over the Contour network, a blockchain-based platform focusing on digitising trade finance, it involved a US$50,000 shipment of plastics from Thailand’s SCG Plastics to Vietnam’s Opec Plastic Joint Stock Company.
Compared to the paper-intensive and time-consuming processes involved in traditional methods of trade finance, digitising LC issuance and confirmation reduced processing time from up to five days to about seven hours.
It also marks the successful completion of ADB’s first credit guarantee using distributed ledger technology, as well as the first of such LC comprising a sell-down feature to be conducted on Contour.
This transaction paves the way for more banks and corporates to rely on innovative technology that can support the growth of trade.
Carl Wegner, CEO of Contour, said: “With this new functionality to support bank guarantees, we’re able to further our goal of making global trade accessible, digital and secure for all. We will continue to strengthen these connections as Contour enters into production in fourth quarter this year.”
Steven Beck, ADB’s chief of trade and supply chain finance, said: “The coronavirus pandemic has shown that it is essential the trade finance industry quickly digitises operations to make global trade and supply chains more resilient and robust.
“This innovation makes trade more efficient, reduces risk and lowers barriers to entry for small and medium-sized businesses in developing Asia.”
Plakorn Wanglee, president and CEO, Standard Chartered Bank (Thai), said: “We are looking forward to working with all stakeholders to scale up this digital solution for many more of our Thai clients to improve international trade efficiency, particularly intra-Asean soon.”
Citi names Fraser as first female CEO of major global bank
CorporateSep 10. 2020Jane Fraser smiles during the Milken Institute Global Conference in Beverly Hills, Calif., on April 29, 2019. MUST CREDIT: Bloomberg photo by Kyle Grillot. Photo by: Kyle Grillot — Bloomberg Location: Beverly Hills, United States
By Syndication The Washington Post, Bloomberg · Jenny Surane
Citigroup Inc. picked Jane Fraser as its next chief executive officer, placing the first woman atop a major Wall Street bank.
Fraser will succeed Mike Corbat, who is retiring in February after more than eight years in the top job. Fraser, who was named the company’s president last year in a move that marked her as the heir apparent, has run the bank’s consumer unit, private bank and Latin American operations in her 16-year tenure.
Corbat helped Citigroup shrink and return to consistent profitability after the behemoth almost collapsed in the 2008 financial crisis. Now, Fraser will be tasked with improving returns that trail industry leader JPMorgan Chase and using the bank’s global network in a world that’s seeing more nationalism and trade barriers.
“We completed our transformation from the financial crisis and emerged a simpler, safer and stronger institution,” Corbat said in the statement. “There is always more to do and I believe the time is right for my successor to lead Citi through this next stage of progress.”
Fraser, a 53-year-old Scot, joined Citigroup in 2004 after a decade as a McKinsey & Co. consultant. Her promotion last year came after she was viewed as a potential candidate for CEO jobs at other banks, including Wells Fargo. She will join Citi’s board immediately and take on the CEO role once Corbat retires, the New York-based bank said in a statement Thursday.
Under Corbat, Citigroup has become a slimmer organization with just two main businesses: the institutional clients group and the global consumer bank. In the institutional unit, Corbat has focused the bank’s efforts on its “network” businesses, such as its treasury and trade solutions group, which he often refers to as the “backbone” of the bank.
Still, the firm has struggled to bring down costs and achieve its profitability targets. The shares have risen 43% in Corbat’s tenure, less than half the advance of the S&P 500 Financials Index. They climbed 1.1% at 10:40 a.m. in New York.
“A fresh look is good in our view, since the prior CEO failed to reach Citi’s targets and move the company enough strategically,” said Mike Mayo, an analyst at Wells Fargo.
Corbat, 60, is bowing out as Citigroup battles one of its biggest challenges ever with the coronavirus pandemic, which has forced the bank to keep much of its workforce home and craft widespread forbearance offerings for its customers around the world.
As the world’s largest credit-card issuer, Citigroup will soon see the global tidal wave of unemployment begin to make its way to its portfolio as those programs and government relief funds slowly run out. Citigroup said it would announce a successor for Fraser to run the consumer unit in coming weeks.
Fraser has led the bank’s response to the coronavirus pandemic in North America, including its plans for returning its workers to offices around the U.S.
“The way our team has come together during this pandemic shows what Citi is made of,” Fraser said in the statement. “I am excited to join with my colleagues in writing the next chapter.”
CorporateSep 09. 2020CP Foods CEO Prasit Boondoungprasert
By The Nation
Charoen Pokphand Foods (CP Foods) insists its feed operation is unlikely to be affected by the 7-per-cent rise in US soybean prices.
CP Foods CEO Prasit Boondoungprasert said soybean is not the main raw material in CP’s animal feed, and the the company has stocks of soybean to last through early 2021.
Meanwhile US soybean prices are expected to drop in the first quarter of 2021 as new cultivation begins and demand from China’s big buyers drops.
“Due to the Covid-19 outbreak, CP Foods is well prepared in terms of imported supplies, especially feed materials which must be pre-ordered and sourced sustainably. In addition, shipping costs have dropped significantly thanks to falling fuel prices, resulting in better cost management,” said Prasit.
CP Foods added that Thailand’s pork production is unlikely to be damaged by the outbreak of PRRS (porcine reproductive and respiratory syndrome) in the border provinces of Tak and Mae Hong Son. It is confident that the Department of Livestock Development plus strong biosecurity at large pig farms and will control the outbreak effectively. Consequently, the company predicts that domestic pork prices will remain high.
Pork prices in export markets Vietnam and China are also on the rise, which would help CP foods achieve its targets, it added.
Kingsford Securities, To Exit (2Ext) and Kudun and Partners (KAP) are getting together to take on the role of advisers to help start-ups on their journey to success.
With start-ups playing an integral role in Thailand’s economic growth thanks to their innovation and competitiveness, each of the parties in the collaboration can use their distinct expertise to help them.
Kingsford Securities, for instance, can use its experience in the securities market to provide financial advice, while consulting firm 2Ext can take on the role of a start-up adviser, and law firm KAP can provide advice on law and the rules and regulations governing business.
Woranun Thaworanun, managing director and chief of investment banking at Kingsford Securities, said: “One of the most challenging aspects for Thai start-ups is funding. Funding is always the most important recipe for the business. Kingsford Securities is part of this collaboration as a financial adviser to strengthen and grow start-ups. Our collaboration understands entrepreneurs and their start-ups well. We will make sure their talent meets commercial success.”
Nicky Nattanuch, managing director of 2Ext, said: “2Ext is poised to help start-ups tackle obstacles from different dimensions. We have prioritised our services for early and growth-stage start-ups because of the belief in our motto that the ‘first step matters’. We provide full services to start-ups from inception, pitching, investors matching, financial advisory, fundraising to investment advice such as deals sourcing and due diligence. With our expertise and knowledge in Southeast Asian start-ups ecosystem, the 2Ext team is confident of playing a crucial part in our collaboration with Kingsford Securities and KAP.”
Troy Schooneman, partner and chief of KAP’s start-ups advisory group, added: “This collaboration grew from our mutual passion to act as a one-stop service provider, acting as a coaching partner and mentor to entrepreneurs in the beginning stages of their start-up journey so they can identify and avoid common mistakes, implement business strategies and structures to get their start-up through difficult times and maximise their chances of success.”
The advisers are holding their first start-up seminar, “Ready, Get Set and Go!”, on September 17 at the Gaysorn Urban Resort in Gaysorn Tower.
Featured in the meeting will be the co-founder of Omise, a successful unicorn, Ezra Don Harinsut, Woranun from Kingsford Securities, Nicky from 2Ext and Kongkoch Yongsavasdikul, a key partner of KAP.
Visit the Kudun and Partners Facebook page or email Worakanya Chaisorn, assistant marketing manager of KAP (worakanya.c@kap.co.th) for more information.
State-run banks are speeding up the restructuring of debt for clients participating in the debt-moratorium schemes to reduce the chance of rising non-performing loans (NPLs) in their system.
Apirom Sukprasert, president for the Bank for Agriculture and Agricultural Cooperatives, said his bank has restructured debt for some borrowers, most of whom are farmers and small and medium enterprises (SMEs).
Of the total borrowers in the debt-moratorium programme, 260,000 are SMEs in the agricultural sector with a total debt of Bt81 billion. Their debt suspension term was extended from the end of this month to the end of December.
The bank’s NPL is 4.03 per cent of its outstanding loan of Bt1.5 trillion.
Vithai Ratanakorn, president of Government Savings Bank (GSB), said the bank will restructure the debt of clients participating in the debt-moratorium scheme in the last quarter of the year now that the moratorium period has been extended to year end.
He added that some of these clients are still feeling the pinch from the Covid-19 outbreak and may become NPLs early next year. Hence, he said, the bank will call them in to discuss debt restructuring in the fourth quarter.
Thai Smile Airways will launch a new flight from Bangkok to Nakhon Si Thammarat starting September 10, with two flights per day, chief executive officer Charita Leelayudth said.
“The new route follows the company’s flight expansion plan for the domestic market,” she said.
“Thai Smile realises the potential of Nakhon Si Thammarat as a hub for tourism and business in the southern region. We hope the new route will promote tourism there and in nearby provinces, which are known for their abundant marine resources and unique arts and culture.”
The Bangkok-Nakhon Si Thammarat flight will be a full service one, with onboard meals and free luggage of up to 30 kilograms. It will also have both premium and economy classes: “Smile Plus” will sport 12 seats while the economy class will comprise 150/156 seats on an Airbus A320-200. Fares will start at Bt1,300 per person per trip (all inclusive).
To reserve a ticket or for more information, contact call center 1181 or 02 118 8888, or visit www.thaismileair.com.
Gulf Energy Development is targeting annual revenue of Bt150 billion to Bt170 billion by 2027, said its chief financial officer Yupapin Wangviwat.
She added that the company expected to record revenue of Bt37 billion this year.
Gulf is expected to realise revenue from its wind power project in Germany in the fourth quarter this year.
More of its power plants in Thailand and overseas are scheduled to begin feeding power to grids in 2021 and 2022.
Meanwhile, its power plant in Pluak Daeng, Rayong province, and its Hin Kong plant in Ratchaburi province are set to begin commercial operation in 2023-2024.
The company is scheduled to start realising revenue from its infrastructure projects at about the same time, including the phase 3 development of the Laem Chabang deep seaport in Chonburi.
In 2025, it also expects to realise revenue from a liquefied natural gas-fired power plant in Vietnam.
Gulf plans to invest at least Bt100 billion over the next four years, of which Bt45 billion will be spent this year.
Top construction firm, CH Karnchang has bought back Bt674.40 million worth of shares at the average cost of Bt18.7 per share for financial management.
The company’s board of directors had initially approved the buying back of no more than 169,389,000 shares or 10 per cent of all sold shares with a maximum credit limit of Bt3 billion.
As of September 1, the company had bought back 36 million shares, accounting for 2.13 per cent of all sold shares.
The board of directors will consider the sale of repurchased shares under this project later.
According to related regulations, companies can sell the shares after six months of repurchasing them, but no more than three years. If the company cannot sell all repurchased shares in time, the unsold ones become invalid.
By The Washington Post · Hannah Denham · NATIONAL, BUSINESS, COURTSLAW, RACE, HISTORY, US-GLOBAL-MARKETS
More than four dozen former franchise owners, all Black, have accused McDonald’s of “systematic and covert racial discrimination” and of setting them up to fail, despite the company’s public commitment to racial equality.
In a federal lawsuit filed late Monday, the 52 plaintiffs allege the company intentionally placed their restaurants in economically depressed and high-crime locations that had higher operating costs, frequent employee turnover and lower sales. The conditions positioned them for lower profits and failure – a “financial suicide mission” – the lawsuit said.
The plaintiffs, whose franchises date to 1981 and who left the company within the past decade, also allege that McDonald’s retaliated against Black franchisees who rejected being placed in high-crime communities; denied them financial support and assistance often afforded to White franchise owners; unfairly graded Black-owned operations, which led to poor internal reviews and pushed out those franchisees; and misled Black entrepreneurs into purchasing franchises in challenging locations.
McDonald’s denied the allegations, saying they “fly in the face of everything we stand for as an organization and as a partner to communities and small business owners around the world.”
“Not only do we categorically deny the allegations that these franchisees were unable to succeed because of any form of discrimination by McDonald’s, we are confident that the facts will show how committed we are to the diversity and equal opportunity of the McDonald’s System, including across our franchisees, suppliers and employees,” the company said in an emailed statement.
McDonald’s is among the corporate giants that pledged to play a bigger role in combating systemic racism following the death of George Floyd, a Black man who was killed May 25 in police custody in Minneapolis. The ensuing protests galvanized a national moment amid a pandemic that has taken an outsize toll on Black Americans. At the end of July, McDonald’s updated its corporate values with a statement of commitment to diversity and inclusion, including plans to attract and recruit “diverse franchisees,” without defining the terms of diversity.
James Ferraro, the Florida-based lawyer representing the plaintiffs, said the “notion that McDonald’s is a friend of the Black entrepreneur is complete fiction,” according to a news release. “McDonald’s has been hemorrhaging Black franchisees for decades due to blatant and implicit racial discrimination. The company will now be held accountable.”
The complaint alleges the plaintiffs averaged $2 million a year in sales – $700,000 less than the company’s national average from 2011 to 2016 and $900,000 less than the 2019 average. That led to an exodus of Black franchisees, the suit says, from 400 in 1998 to less than 200 today, even as the number of McDonald’s franchises doubled.
The plaintiffs are seeking compensatory damages from $4 million to $5 million per store for the more than 200 locations operated by the former franchisees. The complaint, which seeks a jury trial, was filed in the U.S. District Court for the Northern District of Illinois Eastern Division, where McDonald’s is based. The plaintiffs operated franchises in Alabama, Florida, Georgia, Illinois, Indiana, Iowa, Michigan, Mississippi, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas and Virginia, according to the complaint.
“The world will soon see how these 52 people of color risked everything on the Golden Arches only to be kept down, marginalized and driven to ruin,” Ferraro said. “Black lives matter on the streets, in our communities and they matter in Corporate America.”
McDonald’s said in its statement that it places Black franchisees in all types of communities and denied allegations that it forces franchise owners into underperforming markets or that franchisees do not have a say in what locations they purchase. The company also contends it treats Black franchisees no differently from other franchisees and does not offer less financial support.
In a video sent to McDonald’s employees and suppliers, chief executive Chris Kempczinski said the company focuses on recruiting franchisees and suppliers from diverse backgrounds.
“Based upon our review, we disagree with the claims in this lawsuit and we intend to strongly defend against it,” Kempczinski said. “But I think it’s important in moments like this to remind ourselves what we do stand for. And as CEO, that’s a tone I intend to continuously set from the top. McDonald’s stands for diversity, equity and inclusion. I’m proud of the work we’ve done as a company to foster entrepreneurship, economic growth and mobility.”
McDonald’s also is in the midst of a legal fight with its former chief executive, Steve Easterbrook, who was fired in November for violating corporate policy that forbids managers from having relationships with subordinates. Last month, the company filed a lawsuit to recover Easterbrook’s multimillion-dollar exit package, alleging that he lied about having multiple affairs with employees and covered up the evidence, according to a regulatory filing.
The Shell Company of Thailand Ltd is still focused on investing in Thailand and other Asean countries, according to the company’s country chairman Panun Prachuabmoh.
He added that the company has continued to allocate budget for investment in Thailand and plans to open another 30 petrol stations per year in the Kingdom. Shell Thailand currently has 639 stations across the country.
It will also continue to expand its non-oil business, he added.
Shell will also continue installing solar rooftops at its stations to cover another 100 stations next year and more after that.
Plakorn Wanglee, president and CEO, Standard Chartered Bank (Thai) 
Jane Fraser smiles during the Milken Institute Global Conference in Beverly Hills, Calif., on April 29, 2019. MUST CREDIT: Bloomberg photo by Kyle Grillot. Photo by: Kyle Grillot — Bloomberg Location: Beverly Hills, United States 
CP Foods CEO Prasit Boondoungprasert 
Country chairman Panun Prachuabmoh
SootinClaimon.Com 