Almost 80 per cent of chief executive officers of large organisations in Thailand hope the new Cabinet will be able to start working immediately and with a deep understanding of local and foreign economies, according to a Krungthep Turakit newspaper survey of 100 CEOs in various sectors.
The CEOs also expected the new Cabinet to be able to work closely with the private sector.
Most of them wanted to see a strong and professional economic team in the new Cabinet.
Around 45.5 per cent expected the Cabinet reshuffle to improve implementation of economic policies, while 38.4 per cent thought the situation would remain unchanged.
Almost three-quarters (71 per cent) of CEOs wanted the new Cabinet to immediately launched short- and long-term stimulus packages to maintain economic momentum.
Asked about a possible second wave of Covid-19 in Thailand, more than 77.8 per cent said the government should have a plan to deal with a surge via collaboration with the private sector, toughened measures at tourist attractions, shopping malls and restaurants, and speeding up vaccine development.
Almost 50 per cent of CEOs believed the business sector situation would worsen in the last five months of this year if there is no vaccine. More than 50 per cent believed the Thai economy will shrink by 10 per cent this year.
The CEOs were split on whether the state of emergency should remain in place. Forty-nine per cent said it should stay while another 49 per cent said it was not necessary.
Of the total, over 50 per cent said the state of emergency had a slight impact on their businesses, while 14 per cent said it had a major impact.
Of the total CEO respondents, 21.4 per cent were from finance sector, 17.3 per cent from the energy sector, 16.3 per cent from the production sector, 16.3 per cent from the ICT sector, 15.3 per cent from the tourism sector, and the rest from export, property, auto, consumer goods, retail, agriculture and media.
The Thai stock market would face volatility in the remaining five months of this year, asset management experts predicted. They expect the Stock Exchange of Thailand (SET) Index to move between 1,300 and 1,400 at the year-end,
Wiput Uaanant, Krungsri Asset Management’s chief equity investment officer said the Thai stock market in the remaining five months of this year would move in a narrow range compared to the first half of this year.
“The SET index at the year-end is expected to be at 1,400 as we expect the country’s economy and companies’ profits to recover gradually from the lockdown easing and monetary policy,” he said.
“Besides, the low interest rate will also help boost investment in stocks.”
He advised investors to monitor the Covid-19 impact on the economy closely.
“We recommend increasing investment in companies that benefit from the economic recovery, such as the commercial group,” he said.
He added that stocks the company weighted more than the market were food and beverage, and information and communications technology, while stocks that the company weighted less than the market were hotel, restaurant and logistics.
Theeranat Rujimethapass, Tisco Asset Management’s president, said the company expected the index at the year-end to move between 1,300 and 1,350.
“The index would rise slightly as foreign funds may flow into the market because of the low interest rate and high liquidity, while the Thai economy would recover gradually,” he said.
“Therefore, we advise investors to pick up stocks with good fundamentals and that pay high dividends.”
Somchai Amornthum, Krungthai Asset Management’s assistant to the chief executive officer of the Strategic Asset Allocation and Fund Marketing Department, expected the index at the year-end to be at 1,350 as listed companies’ profits are expected to drop by 22 per cent.
“The Thai stock market would face volatility in the remaining five months of this year even though the country’s economy may be better than in the first half of this year,” he said.
“However, the index would rise more than expected if it gains positive sentiment from news on the development of a Covid-19 vaccine.”
He advised investments in stocks that benefit from a low interest rate and show good performance.
The Government Savings Bank (GSB) is now offering a second round of emergency loans for those who have been affected by the Covid-19 crisis. The loan is capped at Bt50,000 per person. Applicants can register online at www.gsb.or.th from Tuesday (August 4) onwards.
To be eligible, candidates must hold a regular job and be able to provide a bank statement for the past three months or the latest salary slip. The loan is offered at a flat interest rate of 0.35 per cent per month for up to three years.
BCPG Pcl, a leader in the renewable energy business in Thailand and the Asia-Pacific region, has signed an agreement with Eternity Power Pcl for the acquisition of 99.99 per cent shares in RPV Energy Co Ltd, an operator of four solar power plants in Thailand, with a total production capacity of 20 megawatts.
The four solar power plants, which have already started commercial operations, consist of a 5MW solar power project in Lopburi province, a 5MW solar power project in Prachin Buri province, and two solar power projects with a total production capacity of 10MW in Kanchanaburi province.
The revenue recognition for all projects is expected to be within this quarter.
“The acquisition is in line with BCPG’s five-year plan, which aims to expand into various types of renewable energy businesses and develop the existing green energy projects to achieve the company’s business performance goal,” BCPG president Bundit Sapianchai said.
By The Washington Post · Ian Duncan, Lori Aratani · NATIONAL, BUSINESS, TRANSPORTATION, US-GLOBAL-MARKETS
WASHINGTON – The Federal Aviation Administration said Monday that it has given preliminary approval to design changes for Boeing’s 737 Max that should prevent a repeat of two crashes that killed more than 300 people in five months.
In a new report and a proposed directive to airlines, the agency said it would require the installation of a software patch that introduces several new safeguards and require that key sensors on the planes be checked before they are flown.
The public will have 45 days to comment on the proposed directive. The FAA must then analyze the feedback and respond to it, so it’s unlikely the Max will be ungrounded before October. But the steps taken by the agency Monday are the clearest sign yet that the jets will soon be ready return to the skies.
“Through a thorough, transparent, and inclusive process, the FAA has preliminarily determined that Boeing’s proposed changes to the 737 MAX design, flightcrew procedures and maintenance procedures effectively mitigate the airplane-related safety issues,” the agency said in a report on its work so far.
In a statement, Boeing said it was continuing to work with the FAA on getting the Max safely back in the air.
“While we still have a lot of work in front of us, this is an important milestone in the certification process,” the company said.
The first Max crash occurred Oct. 29, 2018, when a Lion Air flight crashed into the Java Sea shortly after takeoff, killing all 189 people onboard. Five months later, on March 10, 2019, a Ethiopian Airlines 737 Max bound for Nairobi crashed shortly after takeoff, killing all 157 people onboard.
Investigators say an automated feature on the Max known as the Maneuvering Characteristics Augmentation System, or MCAS, contributed to both crashes. The system repeatedly engaged based on faulty data from a single sensor that investigators say had probably been poorly repaired. The noses of both planes were pushed down repeatedly as the pilots struggled to regain control.
After the second crash, aviation safety authorities around the world declared the jet unsafe and ordered it grounded. The FAA said Monday that since then a team of 40 agency employees have been working full-time to ensure the Max is safe to fly again.
When the Max does return to the air, a jet that was seen as crucial to Boeing’s financial success and airlines’ operations will come back to an aviation industry ravaged by the coronavirus pandemic.
In the United States, demand for air travel collapsed almost completely by early April and airline leaders say they’re uncertain when it will return to pre-pandemic levels. That has led airlines to rethink plans for how they will use the Max in their fleets.
Boeing says it lost 373 orders for the Max in the first half of the year. And that doesn’t include plans to cancel an order for almost 100 of the jet by a Norwegian carrier that was an important early customer for the aircraft.
While the directive is a significant step in the eventual ungrounding of the Max, the FAA said that several other tasks remain. A group of international pilots must assess the training requirements for the jet and a document issued as part of that process will also be submitted for formal public comment.
Once the grounding order is lifted, airlines must ensure they are complying with all the new rules for operating the plane. In addition, the FAA has said it will sign off on all newly manufactured planes before they are allowed to fly, a job that was previously delegated to Boeing.
Southwest Airlines, which has 34 Max jets, the most of any U.S. carrier, said once the FAA recertifies the plane, it would take several months to return the jets to service. In addition to meeting requirements laid out by the FAA, including updates to MCAS, the airline will have to train thousands of pilots. Airline executives said they continue to work closely with the FAA and Boeing on efforts to return the aircraft to service.
Southwest said the plane has been removed from its schedule through mid-December.
The FAA agency emphasized the thoroughness of the review, noting that the work took more than 18 months and included more than 40 engineers, inspectors, pilots, and technical support staff. In all, the effort, “represents more than 60,000 FAA hours of review, certification testing, and evaluation of pertinent documents.”
The FAA said the review included approximately 50 hours of flight or simulator tests and analyzed more than 4,000 hours of flight and simulator testing undertaken by Boeing.
The evaluation also included input from flight crews from Boeing and from pilots working at U.S. and international airlines that fly the 737 Max. The crews selected were designed to represent a cross-section of pilots expected to operate the plane once it returns to service.
The redesign work has focused on the MCAS. The system was designed to counter changes in how the jet handled because of its larger engines, which are positioned differently on its wings than older 737s.
The proposed directive calls for four fixes to the Max.
It says the software patch would require MCAS to rely on two sensors that determine the angle at which the plane is flying, rather than just one. And if the sensors disagree by a certain amount, the system would be disabled for the rest of the flight. MCAS will also be gentler in how it pushes the plane’s nose down and allowed to engage only once, to avoid overwhelming pilots.
Wiring in the jets that was found not to comply with FAA rules during the safety review will also have to be changed.
The FAA estimates the changes will affect 73 planes registered in the United States and that complying with the directive will cost operators a total of $1 million. Other planes still in production will be updated before their first flights.
Michael Stumo, whose daughter Samya died on the Ethiopian flight, said he remained unconvinced that the Max was safe, calling it an old design that had been questionably updated.
“Obviously there is economic pressure to get the plane up in the air,” he said. “Safety isn’t first.”
While the design fixes focus on MCAS, investigations since the crashes have revealed how Boeing sought to downplay the significance of the feature in an effort to ensure regulators wouldn’t require existing 737 pilots undergo more intensive and expensive training to qualify to fly the plane. A reference to MCAS was stripped from a manual approved by the FAA and even an FAA warning after the first crash it was not identified by name.
Boeing and the FAA have repeatedly faced questions about the closeness of their relationship since the crashes. U.S. regulators were the last to decide to ground the jet in March 2019.
Last November, Boeing issued a statement predicting that the Max would be ready to fly again by early this year. In return regulators quickly took steps to show that they were in charge of the timeline and would hold the company accountable.
Within weeks, Boeing ousted its chief executive and said it would halt production of the Max.
Boeing’s effort to minimize the importance of MCAS and the FAA’s subsequent failure to properly scrutinize the system has led lawmakers to propose revamping the safety certification process for planes. Much of the work is handled by Boeing employees acting on behalf of the government, which critics say leaves them exposed to pressure to meet the corporation’s financial goals rather than serving the public.
Almost Bt80 billion was wiped off the value of Airports of Thailand (AOT) today when its stock price dropped 8.7 per cent to Bt49.75 per share following the board’s move to assist King Power Duty Free (KPD) without first consulting shareholders.
AOT’s board of directors approved King Power’s minimum guaranteed payment method based on the number of passengers at Suvarnabhumi Airport, which remains lower than the estimate of the duty free giant.
Also, AOT extended the duty free area renovation period from September 28 this year to March 31, 2022, because KPD and its Suvarnabhumi operation were unable to contact trade partners to prepare for reopening of duty free outlets.
After the board approved both plans, investors sold a total of 6.5 million stocks via non-voting depository receipts (NVDR) on July 30-31. However, investors made net buys of 9.2 million stocks if considering transactions via NVDR throughout July this year.
A stock analyst said AOT’s share price was under pressure because the company had not followed the bidding contract, while the number of tourists visiting Thailand would return to normal in 2022 or 2024. The analyst said his brokerage would change its investment recommendations if the stock price drop lower than the target price.
“We do not agree with AOT taking the move without first hearing shareholders’ comments,” the analyst said. “AOT should find better ways to relieve KPD’s pressure from the Covid-19 pandemic.”
The analyst said AOT’s move to extend the duty free area renovation period would not affect the brokerage’s net profit forecast, but the company’s move to change the minimum guaranteed payment method would cause its 2022 net profit forecast to drop by 5.3 per cent.
“We advise investors to sell AOT stocks,” the analyst added.
Meanwhile, a stock analyst at Yuanta Securities said AOT’s move to change the minimum guaranteed payment method affected the market’s profit forecast because the company would recognise revenue from the bidding contract after 2022 when the number of foreign tourists returns to 66 million people, adding that this move would affect the market’s 2023 profit forecast if the number of tourists increases slowly.
“We expect the number of tourists to hit a new high between 2024 and 2025, five years after the Covid-19 pandemic emerged,” the analyst said.
The analyst said the securities company had maintained AOT’s profit forecast for 2019 to 2020 and for 2020 to 2021 at Bt2.3 billion and Bt5 billion respectively.
However, we cut the company’s profit forecast from 2021 to 2022 to Bt14 billion due to the abovementioned move,” the analyst said. “As a result, we cut the fair price at the end of 2019 and 2020 to Bt52.50 per share.”
Banpu Public Co Ltd, a leading integrated energy solutions company in Asia-Pacific, is acquiring the El Wind Mui Dinh Wind Farm, which marks a key milestone in the company’s long-term investment in Vietnam.
The US$66-million (Bt2.06-billion) acquisition, subject to adjustments outlined in the sales and purchase agreement, was made through BRE Singapore, an associate company in which Banpu holds a 50 per cent share through Banpu Next.
Banpu secured a feed-in-tariff of $0.085/kWh for a period of 20 years in a power purchase agreement with Vietnam Electricity.
The El Wind Mui Dinh Wind Farm went into commercial operation since April 23, 2019, at a capacity of 37.6 megawatts. Its 16 wind turbines, each with a capacity of 2.35MW, are designed and maintained by Enercon Partner Konzept (EPK), a leading wind-power company and turbine manufacturer. Banpu has a 20-year full-comprehensive agreement with EPK, which ensures operational reliability of the project in the long run.
The location of El Wind Mui Dinh Wind Farm in Ninh Thuan province on the coast ensures high-wind speed, and together with the Vietnam government’s supportive policy, 80 per cent of the country’s renewable power is generated in the province.
Somruedee Chaimongkol, chief executive officer of Banpu Public Co Ltd, said investment in the wind asset in Vietnam is a testament to Banpu’s continuous commitment to a greener, smarter future.
She added that the El Wind Mui Dinh Wind Farm will help expand the company’s portfolio of renewable energy and generate more revenue and cashflow.
Somruedee Chaimongkol, chief executive officer of Banpu
Recently, Vietnam government approved 7 gigawatts of new wind projects to be built and by 2025, the country is looking at a total wind-power generation capacity of nearly 12GW.”
The Banpu Group aims to achieve a power-generation capacity of 6,100MW within 2025 by focusing on markets with growing power demand with BanpuNEXT spearheading the development of renewable energy and energy technology.
Inclusive of the El Wind Mui Dinh Wind Farm, the company’s total committed capacity of renewable business will be reaching 919MW.
Lord & Taylor, oldest department store chain in U.S., files for bankruptcy
CorporateAug 03. 2020A shopper wears mask while passing in front of a Lord & Taylor Store in Novi, Mich., on June5. (Emily Elconin/Blomberg News)
By The Washington Post · Abha Bhattarai · BUSINESS, RETAIL
Lord & Taylor, the country’s oldest department store chain, filed for bankruptcy on Sunday, joining about a dozen iconic retailers that have sought Chapter 11 protection during the pandemic.
The once-storied institution, founded in New York in 1826, had in recent years fallen out of touch with high-end customers and younger shoppers. Le Tote, the clothing-rental start-up that bought Lord & Taylor last year for about $100 million, also filed for Chapter 11 bankruptcy on Sunday.
The filings come weeks after two other department store chains – Neiman Marcus and J.C. Penney – also filed for bankruptcy protection. The pandemic has wreaked havoc on already struggling retailers that have temporarily shuttered thousands of stores and furloughed more than 1 million employees since mid-March.
Le Tote had hoped to revive the flagging brand by adding makeup subscriptions, try-on boutiques and other services aimed at busy millennial shoppers.
Lord & Taylor has about 40 stores across the country, many of them in shopping malls.
In its filing, the company said it had $100 million to $500 million in both assets and debts. Its largest creditors include well-known brands such as Polo Ralph Lauren (owed $3.5 million), Michael Kors (owed $2.2 million) and L’Oreal Lancome (owed $1.2 million).
The Stock Exchange of Thailand (SET) Index rose by 9.72 points, or 0.74 per cent, to 1,330.95 on Tuesday morning.
A stock analyst at Krungsri Securities expected the index to rebound between 1,330 and 1,335 before falling, as the US and Europe’s economic data have rebounded after easing lockdown measures.
“Oil price increased after the US and euro-zone manufacturing purchasing managers index (PMI) rose to 54.2 and 51.8, respectively,” the analyst said.
“Also, the market gained positive sentiment from Covid-19 antiviral drug news after Eli Lilly & Co, a US pharmaceutical company, said it was conducting the final phase of the LY-CoV555 drug test.”
However, the analyst added that uncertainty over the US US$1-trillion economic relief measures and listed companies’ second-quarter performance would pressure the index.
The SET Index closed at 1,321.23 on Monday (August 3), down 7.30 points or 0.55 per cent. Total transactions amounted to Bt54.716 billion with an index high of 1,325.31 and a low of 1,311.25.
He recommended that investors buy:
▪︎ Energy stocks that benefit from rising crude oil price, such as PTT, PTTEP, TOP, PTTGC, IRPC, SPRC and IVL.
▪︎Electronic stocks that benefit from work from home and 5G trends, such as KCE, DELTA, HANA and SVI.
▪︎ Stocks whose second-quarter performance will improve, such as TOP, PTTGC, SPRC, SCC, BGRIM, CKP, CPF, TU, ASIAN, TASCO, STA, STGT, AP, PRM, PTL, AJ, CBG, TQM, JMT, CHAYO, PTG and BCH.
The price of gold dropped by Bt50 per baht weight in morning trade on Tuesday (August 4), the Gold Traders Association reported.
As of 9.25am, the buying price of a gold bar was Bt28,950 per baht weight and selling price Bt29,050, while gold ornaments cost Bt28,425 and Bt29,550, respectively.
At close on Monday (August 3), the buying price of a gold bar was Bt29,000 per baht weight and selling price Bt29,100, while gold ornaments cost Bt28,470.48 and Bt29,600, respectively.
The Comex (Commodity Exchange) gold price to be delivered in December rose by 40 cents, or 0.02 per cent, to US$1,986.30 (Bt61,792.94) per ounce at yesterday’s close.
Gold closed in positive territory due to uncertainty following the Covid-19 impact, which continues to boost the demand for gold as a safe-haven asset. However, the strengthening dollar has caused the gold price to rise slightly.
BCPG president Bundit Sapianchai
File photo of Boeing 737 Max
A shopper wears mask while passing in front of a Lord & Taylor Store in Novi, Mich., on June5. (Emily Elconin/Blomberg News)
