Online Discussion #1: News Sharing Session

Indonesia's rice production disrupted by El Nino, raising inflation  

Summary
The extreme El Nino phenomenon in Indonesia has disrupted the rice production in the largest economy of Southeast Asia, which has resorted to imports to secure domestic stocks.

A prolonged drought resulting in lower rice production has pushed the price to soar. A Strong El Nino phenomenon typically means less rainfall for the thirsty crop. It affects Asia in particular, where rice is a staple food for most people.

The disturbed rice production also contributed to the rising inflation rate. According to Statistics Indonesia (BPS), the consumer price index was recorded at 2.56 percent year-on-year in October, up slightly compared to the previous month of 2.28 percent, due to raised prices of necessities such as rice.

Why it is important/interesting?
Supply falls: Since rice production decreased due to the El Nino phenomenon, the supply of rice will fall, and the price of rice will increase.
Higher food price: In Asia, rice is one of the main ingredients of food. When the rice price rises up, the food price will increase also.
The rising inflation rate: the raised prices of rice, which is one of the necessities, causes the increase in consumer price index. Then the rising consumer price leads to the rising inflation rate.

Reference
www(dot)bangkokpost(dot)com/business/general/2678556/indonesias-rice-production-disrupted-by-el-nino-raising-inflation

Summary
According to potato supplier Lamb Weston on Thursday, the percentage of consumers who order french fries with their meals at fast-food restaurants has remained from pre-pandemic levels. That may suggest that consumers are willing to keep overspending even if inflation stays high. In addition, inflation can drive up costs for the company, specifically related to potato contract prices. Moreover, the global frozen potato category remains solid with overall demand and supply balanced. However, the business observed changes in customer behavior, such as a shift from casual dining and full-service restaurants to quick-service food providers.

Why it’s interesting/important
The consistent demand for french fries and fast-food items can have positive implications for the U.S. economy and the global economy by supporting various sectors, employment, and trade. It also offers insights into consumer behavior and their response to economic conditions, including inflation.

For example:
Employment: The fast-food industry, which often includes french fries in their menu offerings, is a significant source of employment. Steady demand for such items can help maintain jobs in the food service sector.
Economic Growth: The fast-food industry and related sectors contribute to economic growth. Steady demand for french fries can boost sales and revenues, indirectly supporting economic expansion.
Global Trade: The popularity of fast-food items, including french fries, often leads to international trade opportunities. U.S. potato suppliers may export their products to meet global demand, contributing to trade and economic activity.

Reference
cnbc.com/2023/10/05/consumers-are-still-ordering-french-fries-with-meals-in-a-good-sign-for-the-economy.html

News in brief :
Japanese Prime Minister Fumio Kishida launched an ambitious stimulus package of 37.4 trillion yen ($249 billion) aimed at raising the country's potential growth rate to 1%, the same as the United States and Europe. Japan has been battling with stagnating wage growth and investments as a result of deflationary pressures, with a potential growth rate of 0.4%. The strategy centers on labor, capital, and productivity. It includes labor-saving initiatives, incentives for domestic investment in important industries, and steps to eliminate obstacles that have prevented women from entering the workforce on a full-time basis. It is still unclear, though, if these actions will be successful in resolving underlying structural problems.

Why is this news interesting or important? :
It illustrates Japan's will to address its long-standing economic problems. The comprehensive approach centered on labor, capital, and productivity recognizes the complexities of the issues at hand. While the effectiveness of these initiatives is unknown, they highlight the importance of structural reforms and long-term economic growth for Japan's future economic prosperity. Therefore, economists, policymakers, and worldwide watchers will be watching this project attentively.

Reference :
asia.nikkei/Economy/Japan-s-Kishida-seeks-economic-transformation-with-ambitious-stimulus

Summary:
      Due to the second quarter of the second quarter, there was a sluggish annual growth rate of 1.8% of the Thai economy. Declining exports are the main cause of the slowdown. For this reason, The government is looking for ways to stimulate the slowing Thai economy. It will temporarily waive tourist visa requirements for visitors from China and Kazakhstan to attract more tourists and stimulate spending in the final quarter of the year.

Why is it interesting/important?
      Visa free policy will help attract tourists to Thailand because they will not have to pay fees and waste time in applying for a visa. As more tourists increase, tourism industry spending increases. It will help to boost the Thai economy and cause the GDP to change in a better direction from the original in Thailand in the 2nd quarter of 2023, growing only 1.8%, lower than the market expected at 3.1%. Even though it will help stimulate the Thai economy, Waiving tourist visas for Chinese may bring in some unqualified tourists, such as the zero-dollar tour. Zero-dollar tour is a tour that uses Chinese tour services, the restaurants and souvenir shops are all owned by Chinese people. Because of this, the money made does not end up in the hands of Thai citizens. The Thai government needs to increase screening and monitoring of Chinese nationals who enter the country illegally hoping to obtain benefits.

Reference: asia.nikkei.com/Economy/Thailand-to-waive-tourist-visas-for-Chinese-to-boost-economy

Why is the crypto market down today?


In the world of cryptocurrency, we're seeing a dip in prices today due to a less-than-favorable US inflation report and a decrease in market liquidity. This has left investors feeling uncertain. The overall trend in the crypto market is pointing downward as everyone absorbs the news of inflation surpassing expectations and concerns grow about conflicts in the Middle East and Ukraine. The increased market volatility has prompted a surge in liquidations. To make matters worse, many big banks are still predicting a US recession at some point in 2023, further contributing to the cautious sentiment surrounding inflation.

Why it's interesting : The importance of inflation affecting the economy and the effects of the war that slowed the economy.
Nowadays, there are many more ways to invest, crypto is one of them. And because crypto is more volatile than other assets, it has attracted many people to invest. And the risks in this market are also very high.

Reference: (https://)cointelegraph.com/news/why-is-the-crypto-market- down- today
Posted by 6405811 Surayut Intachai

Summary
According to the International Monetary Fund's most recent estimations, Germany's nominal GDP will be $4.43 trillion this year, while Japan's will be $4.23 trillion. As a result of the yen's decline compared to the dollar and the euro, Germany's economy is expected to overtake Japan's as the world's third-largest in 2023. The yen's depreciation has been mostly caused by fundamental monetary policy differences. Furthermore, according to IMF data, Germans are expected to be doing far better than Japanese. Germany's average GDP per person is expected to be $52,824 this year, compared to $33,950 in Japan.

Why it is interesting/important?
- The indicators, such as rising productivity and advancements in technology, caused Japan to be overtaken by Germany. Being eclipsed will be an incentive for Japan to change its economic policy for the better.
- The weakening of the yen has left Japan with a trade deficit.
- The depreciation of the yen is considered to be a suitable opportunity for Thai investors and people who have plans to travel to Japan. It is appropriate to buy yen during this period to make a profit when the Japanese economy recovers.

Reference: timesofindia.indiatimes.com/business/international-business/germany-to-dislodge-japan-as-worlds-3rd-largest-economy/articleshow/104668149.cms?from=mdr

Summary

The Department of Trade Negotiations in Thailand was getting ready for the EU's Carbon Border Adjustment Mechanism (CBAM), which commences on October 1, 2023. The primary goal is to match prices of carbon-intensive imports with the emission costs of EU goods. CBAM will affect six product categories, demanding importers to report emissions from Oct 2023 to Dec 2025, and from Jan 2026, purchase "CBAM certificates" based on emitted gasses.

The collaboration between public and private sectors underscores the nation's dedication to global trade and environmental standards. Thailand's proactive stance positions it well to address CBAM's challenges. In 2022, affected exports to the EU made up roughly 1.49% of Thailand's total exports, with metal and steel as the largest category.

Why it's Interesting/Important

- CBAM is a global trend, and various countries and trading blocs are considering or implementing similar mechanisms. Thailand's participation in discussions and negotiations related to CBAM can help maintain good trade relations with its partners and ensure that its interests are taken into account.

- CBAM involves imposing a carbon price on select imports, with importers having to buy carbon allowances for their products' emissions. While the EU hasn't explicitly mentioned trade restrictions for countries lacking similar carbon pricing, not adopting such measures may raise costs for their exports in the EU, potentially hurting competitiveness and trade relationships.

- This could lead to trade disputes and negotiations between Thailand and the EU. Non-compliance with the EU's Carbon Border Adjustment Mechanism (CBAM) could raise costs or restrictions for Thai exports to the EU and impacting Thailand's GDP [Y = C + I + G + (X-M)]. It's vital for Thailand to align with CBAM or take measures to mitigate these impacts to maintain market share and economic gains in export-focused industries.

Image reference: (https://)scsinternational.it/wp-content/uploads/2023/09/CBAM-2023-980x560.jpg
Article reference: (https://)mahanakornpartners.com/thailand-prepares-for-the-eus-cbam-tariff-with-expert-discussions/
Posted by: Benchaya Boonrit 6405615

Summary

There has been debate among the populace as the situation between Israel and Palestine has gotten more severe. Many businesses experienced a boycott as a result of their support for the Israeli military by the pro-Palestinian. These businesses include Disney, which provided $2 million to organisations that are providing humanitarian relief in the region, McDonald's, which fed thousands of free meals to Israel Defense Forces (IDF) soldiers, and Starbucks, which filed a lawsuit against the labour union for displaying the phrase "Solidarity with Palestine!" on X.

Businesses are finding themselves under more pressure to adopt a position on social and political problems in the current setting of the conflict between Israel and Hamas. In the modern age of social media, when ideas are easily exchanged, businesses need to think carefully about the implications of their public remarks on sensitive topics.

Why is this interesting?

I find it interesting to see how companies' stances on social and political problems have immediate effects on how people perceive their brand and sales have changed over time. Companies used to generally avoid publicly supporting societal positions. But since social media, technology, and the internet have made it so much easier for people to share and obtain information these days, businesses feel more pressure to speak out against injustices such as racism, LGBTQ+ issues, and wars, especially those that serve customers as their primary source of business—even if those issues have no direct relation on their business. Given the significance of business communication, a growing number of businesses are finding themselves in a situation where they must carefully consider the consequences that result from their public statements regarding this divisive topic with regard to the ongoing Israel-Hamas conflict.

Reference: (https://)euronews.com/2023/11/01/the-controversies-of-company-activism-how-are-businesses-responding-to-the-israel-hamas-wa

Summary:
The significant positive impact of Taylor Swift's "Eras" tour on the United States hotel industry. The phenomenon known as "Swiftonomics" has resulted in a notable increase in average revenue per room, primarily due to higher room prices and increased bookings. In some instances, such as Nashville, hotel occupancy surged by more than 30%, and room rates increased by over 50% on concert nights, leading to revenue per room more than doubling during Swift's visit. This positive effect has coincided with a surge in international tourism among Americans, contributing to the hotel industry's recovery.

Why This News is Interesting/Important?
Taylor Swift's tour acts as an economic catalyst, generating substantial revenues for both the artist and related sectors such as the hotel industry, illustrating the impact of cultural events on local businesses. This underscores the pivotal role of pricing strategies in the hospitality sector, where hotels can optimize revenue by adjusting room rates in response to shifts in the demand curve, which may shift to the right during such events when demand increases.

Reference:
cnbc.com/2023/09/08/taylor-swift-is-single-handedly-giving-a-boost-to-hotel-industry-revenue.html

Summary:
Maersk, a leading shipping company, is cutting 3,500 more jobs due to lower demand and falling profits. This follows a previous cut of 6,500 jobs earlier in the year. The decline in profits, down by 92%, is attributed to worsening shipping prices. Initially, demand for shipping surged as the world emerged from COVID-19 lockdowns, causing congestion and shortages. However, recent high inflation and rising interest rates have reduced demand for shipping services. Maersk's challenges serve as a significant economic indicator, reflecting the broader global economic landscape. It demonstrates how interconnected factors like shipping, inflation, and demand impact the world's economy.

Why is this news interesting/important?
-Economic Indicator: Maersk's struggles serve as a significant economic indicator, reflecting the overall health of the global economy, especially given its central role in the shipping industry.
-Supply Chain Impact: Maersk's challenges highlight the potential disruptions in global supply chains, which can result in delays and increased costs for transporting goods, impacting consumers.
-Inflation and Demand Dynamics: The impact of inflation and rising interest rates on shipping demand underscores how broader economic factors can directly affect specific industries.
-Global Trade and Geopolitical Tensions: Geopolitical tensions, like US-China relations and conflicts in various regions, can disrupt global trade and influence the shipping industry, with implications for global economic stability.
-Consumer Impact: Lower shipping costs can translate into lower prices for consumer goods, directly affecting the wallets of everyday consumers.

Reference:
bbc.com/news/business-67307248
Saran Takahashi 6405622

Summary:
According to BBC, a recent report from the Marine Conservation Society shows that the number of jellyfish seen in UK waters and on beaches has gone up by 32% in the past year. The most common type spotted was the big barrel jellyfish, but some rarer warm-water crystal jellyfish were also seen. This increase is linked to climate change, which is making UK seas warmer and more suitable for jellyfish. A hot spell in June raised water temperatures by about 3-4 degrees Celsius.

Why This News is Interesting/Important?
This news is interesting and important for various reasons:

Impact on the Fishing Industry
- A surge of jellyfish in the seas around the United Kingdom might shift the availability of many different types of fish, which could have an impact on the amount of fish that can be caught and have an economic impact on the fishing business.

Impact on the Tourism Industry
- Due to concerns, people may be reluctant to swim or participate in other water-related activities, which could have an impact on tourism. A drop in tourism may have a detrimental effect on the local economy and the businesses that are associated with it.

Impact on the Education and Research
- Additional research is required to fully understand how climate change is affecting marine environments, as seen by the increase in jellyfish occurrences. It is necessary to understand the health of various marine organisms, including jellyfish, in order to develop strategies for adapting to communities and businesses that depend on the sea.

Impact on the Environmental Protection  
- The study from the Marine Conservation Society provides essential details for environmental protection efforts.  Monitoring changes in wildlife, such as jellyfish, allows us to make the most informed decisions on how to maintain the sea and its inhabitants. This is critical to maintaining the long-term health of the economies of the coastline

In summary, the news is interesting since the growth in jellyfish witnessed in UK seas is a sign of how climate change is affecting the sea, which can lead to economic effects on coastal industries and communities. It reminds us to consider how to deal with these changes and how to manage our environment.

Reference:
bbc.com/news/science-environment-67301074

Summary:
Delta Air Lines is making some changes in its office jobs to save money because things like fuel and worker wages have become more expensive. The company said they're doing this to reach their goals while being considerate of their affected team members. They didn't say exactly how many jobs will be affected, but it's described as a "small adjustment" for office and management positions. The jobs of pilots, flight attendants, and mechanics won't be affected.

Why is this news interesting/important?
The news is important because it indicates that even though more people are flying again after the COVID-19 pandemic, airlines are still having a tough time with higher costs, especially for fuel and salaries for their workers. Delta is making these changes to keep its finances stable. This matters in the economy because it demonstrates how businesses, even in industries that are getting better, need to make smart moves to stay financially healthy. It also reflects how many different industries are still dealing with the effects of the pandemic and adjusting how they work because of it.

Reference:
cnbc.com/2023/11/01/delta-lays-off-some-corporate-workers-to-cut-costs.html
Saran Takahashi 6405622

Summary:
The news emphasizes the significance of saving in times of uncertainty, even if interest rates remain low for an extended period. It emphasizes that, while traditional savings plans may be less appealing due to low interest rates, digital savings products offer a safe and convenient alternative. These digital savings accounts provide greater convenience and security because they can be opened online, eliminating the need to visit bank branches, which is particularly useful during the ongoing COVID-19 pandemic. Furthermore, these digital accounts typically offer higher interest rates than traditional savings accounts and enable customers to manage their finances through mobile banking, increasing the ease and accessibility for savers.

Why This News is Interesting?
Digital Savings Accounts: It investigates the competitive landscape of digital savings accounts offered by various Thai banks, with a focus on interest rates and terms. The availability of digital savings products is becoming increasingly important, particularly as people look for safe and convenient ways to save and manage their money.
The Interest Rates: When compared to traditional accounts for savings, digital savings products offer higher interest rates. This appeals to savers seeking higher returns on their money in a low-interest rate surroundings.
Financial Inclusion: Digital savings products can help with financial inclusion through offering banking services for individuals who might not have easy access to physical bank branches. This is especially important in areas with limited banking infrastructure.

Ref: bangkokpost.com/business/2060435/digital-savings-products-gain-traction

Thai insurers sink into bankruptcy due to COVID claims



Summary:
At least four Thai insurance companies have gone bankrupt after suffering losses from selling low-cost COVID-19 policies. One of the 16 companies in Thailand that selling Covid-19 policies in 2020, Syn Mun Kong offered plans for only 300-500฿ per year, with payouts as high as 500,000 to Covid-19 patients. At that time, Thailand had a few Covid-19 patients but then Thailand faced several Covid-19 outbreaks, pushing new cases over 20,000 at one point. In June 2021, all 16 insurance companies stopped selling Covid-19 policies.

Why This News is Interesting/Important?:
This news is important because it can be the lesson to other companies when they’re is the huge pandemic in the future. At that time, some people may not think that covid-19 could be a huge pandemic that a lot of people around the world got infected and the infection spread very fast. The companies sold too low price of Covid-19 policies with too high payouts and did not make a good decision when dealing with the risk assessment of Covid-19.

Reference: asia.nikkei.com/Spotlight/Coronavirus/Thai-insurers-sink-into-bankruptcy-due-to-COVID-claims

Summary :
Chinese electric car manufacturer BYD is emerging as a strong competitor to Tesla, surpassing it in quarterly production and becoming the world's second-largest seller of electric vehicles (EVs). The success of BYD reflects China's growing dominance in the global auto industry, with the country recently becoming the world's largest exporter. BYD's founder, Wang Chuanfu, started the company in 1995 as a battery manufacturer before diversifying into car production. BYD's affordable EV models, rooted in its ability to make key components in-house, have gained popularity globally. Despite Tesla's credited role in popularizing EVs in China, BYD's sales outpace Tesla's in the country, illustrating China's influence in the shift towards electric vehicles.


Why This News is Interesting/Important? :
The intensifying competition between Tesla and its Chinese rival BYD in the electric vehicle (EV) market. The surge in BYD's stock and its expectation of doubling third-quarter profits underscore the company's growing prominence, surpassing Tesla in quarterly production and ranking second globally in sales. This development reflects the rapid expansion of China's auto industry, recently surpassing Japan as the world's largest exporter. Amid a sluggish Chinese economy, BYD's success stands out, although tensions with key export markets pose challenges for the EV industry's global shift. The report also delves into BYD's strategic advantage as an original battery company and its remarkable growth, while contrasting Tesla's approach and market dynamics. The analysis provides insights into the dynamics of the global EV market and the increasing significance of Chinese automakers.


Reference : bbc.com/news/business-66737524

Natnaree Tantivejakul 6405607

Summary:
Disney's theme park business is showing strong financial performance, with revenue exceeding $24 billion in the first nine months of 2023, a 17% increase from the previous year. Theme park admissions alone generated nearly $8 billion, marking a 21% growth. As part of Disney’s corporate restructuring, the company plans to significantly increase its investment in the theme park division, spending approximately $60 billion over the next decade on its three divisions: entertainment, sports, and experiences. This news reflects Disney's strategic approach to its theme park segment, with changes in financial reporting and a focus on its three core divisions, while also considering broader industry trends such as changes in attendance and pricing.

Why it’s interesting/important:
- Competitive positioning: Disney is facing challenges like fewer people going to their theme parks and higher ticket prices. This helps us understand how Disney is competing with other companies in the entertainment and tourism industries.
- Economic impact: Disney is a big player in the entertainment and tourism industry, so its success and spending plans can impact the overall economy and create jobs.
- Business restructuring: Disney is changing the way it organizes its business, with new financial reporting and a focus on different parts of the company. This gives us a look at how Disney is adjusting and improving its operations and business strategy, which could also attract more visitors.
- Investment strategy: Disney is planning to spend a lot of money, around $60 billion over ten years, to make their theme parks even better. This big commitment could change how Disney grows and makes money in the future.

Reference: (https://)(www).cnbc.com/2023/10/19/disney-highlights-theme-park-revenue-growth.html

Summary

Australia's Southeast Asia Economic Strategy to 2040 is a major new strategy launched by the Australian government to promote deeper economic relationships with Southeast Asia, one of the fastest-growing regions in the world and the center of global activity and business. Promote trade and investment growth and encourage Australian businesses to invest in the ASEAN region.

Why it’s Interesting/Important

- Investment deal teams: To boost Australian investment in Southeast Asia, Austrade, the Department of Foreign Affairs and Trade and Export Finance Australia (EFA), will implement a $70.2 million, four-year program. Partner agencies will be based in the ASEAN region and will collaborate to identify and facilitate investment opportunities with governments, companies in Southeast Asia, and investors from Australia.
- Southeast Asia Business Exchange: A $19.2 million initiative to boost two-way trade between Australia and Southeast Asia will be led by Austrade. A local campaign to inform Australian consumers and businesses about trade and investment opportunities in the region will also be a part of this program.
- Placements and internships pilot program for young professionals: Young professionals from Australia in Southeast Asia and young professionals from Southeast Asia in Australia will be able to find placements and internships (6 to 12 months) through this program.

Reference: globalaustralia.gov.au/news-and-resources/news-items/australia-launches-new-southeast-asia-economic-strategy-2040

Summary :
Moderna reported a significant loss for Q3, largely attributed to a write-down of unused Covid vaccine doses. Despite beating revenue expectations, the company's stock fell by 6%. The loss was primarily driven by non-cash charges related to tax allowances and resizing its manufacturing footprint. Moderna aims to make its Covid vaccine profitable by 2024 through production cutbacks. The Q3 sales of its Covid shot dropped 44%, reflecting decreased demand. The company reaffirmed its full-year outlook of at least $6 billion in Covid vaccine sales, but its 2024 sales forecast of $4 billion disappointed analysts. Moderna seeks to diversify its focus beyond Covid with a pipeline of new vaccines targeting respiratory diseases, cancer, and heart disease. The company anticipates up to 15 new products in the next five years, driving growth beyond 2025.


Why This News is Interesting/Important? :
The Moderna vaccine is considered a highly desirable vaccination for protecting against the COVID-19 pandemic. During a period when the vaccine was in high demand, Moderna made a lot of profit.But as time passed The COVID-19 pandemic has decreased, and consumer demand for products has declined. However, there is still a demand for sales.as a result. Moderna's stock decreased accroding to the news.Therefore, the business needs to develop and produce a new vaccine relevant to the present pandemic in order to satisfy patients' treatment demands.



Reference : cnbc.com/2023/11/02/moderna-mrna-q3-earnings-report-2023.html

Natnaree Tantivejakul 6405607

Why is Bitcoin price up today?
by Nonthiphat Phattanasuttinon 6405548


Summary

On October 25, 2023, BTC price rose to an intra-day high of $35,121. This situation occurs from the hype about a spot BTC exchange-traded fund (ETF), which leads to an ascend in spot and CME BTC quantity, and the higher price in the crypto market is incessantly pushed across by the positive momentum. Although there were innumerable obstacles, the BTC price had reached a significantly high level of $35000 twice within 2 days.
The BlackRock iBTC fund which is an enormous provider of ETFs is the first company to be listed as Bitcoin ETF by a Nasdaq clearing firm.  Before being really registered, Fake news had been spread about the approval of a spot Bitcoin ETF, which has led to a surge in BTC prices, suggesting that there are many investors who still have a pent-up interest in captive cryptocurrencies and faith in being a stable asset.


Why is it important and interesting?
Before talking about why it's important. Since only 21 million Bitcoins were minted, this means there is a limited supply. Moreover, behind the scenes, this technology uses something called blockchain to record transactions. Because no one owns this system, everyone is jointly owned which makes this system considered the most transparent and secure. In general, hacking is a horrible action that many investors fear but in the operation of this system, hackers need to attack at least 51% of the system before they can change the data transactions. Certainly, this is impossible, no one has ever succeeded in Bitcoin's entire existence.

The reason why Bitcoin was talked about so much in the past October is because there were rumors about BlackRock's Bitcoin ETF registration being approved. This caused the price of Bitcoin to skyrocket even before it was even registered. This event indicates the importance of Bitcoin as it is becoming a stable asset that can fight inflation very well due to the security of the system and its limited volume which has only 18 million coins in the market, and it will all be completely mined in around 2040. For instance, during the Covid-19 ago, it has been the reason that a large amount of money has been printed to recover the global economy which is a key factor in Bitcoin's positive momentum. Furthermore, BTC is being adopted as the currency of El Salvador, and major institutions entering the crypto market are making Bitcoin more reliable as well.

Reference
cointelegraph.com/news/why-is-bitcoin-price-up-today
bangkokbiznews.com/finance/cryptocurrency/1094061
edition.cnn.com/2023/10/24/investing/bitcoin-price/index.html
krungsri.com/th/krungsri-the-coach/investments/investment-knowledge/why-investor-attend-to-bitcoin

Economic Boost as MotoGP Grand Prix Drives Tourist Spending in Thailand



Summary:
From attracting 179,811 attendees of the MotoGP motorcycle race, Round 17 OR Grand Prix of Thailand 2023, at Chang International Circuit in Buriram Province boosted the local economy by around 4,493 million baht. This amount can be divided between Thai attendees who traveled extensively to partake in the event, including overnight stays and transportation costs, amounting to an average expenditure of 14,831 baht per person. And foreign attendees spent an average of 27,503 baht per person, excluding earnings from tourists in Buriram who did not attend the event. Therefore, this event caused the economic growth in Buriram Province and neighboring provinces as a significant contribution to the region's economy.

Why it is interesting/important:

1. Economic Impact of Sporting Events: The news highlights the significant economic impact that a major sporting event, in this case, the MotoGP Grand Prix in Thailand, can have on the local economy. The infusion of 4,493 million baht into the economy demonstrates the potential of sporting events to stimulate economic growth, not only in the host province (Buriram) but also in neighboring areas.

2. Tourism Boost: The MotoGP event attracted a large number of attendees, both local and foreign. The substantial contribution of 3,783 million baht spent by attendees underscores the role of such events in promoting tourism. The fact that both Thai and foreign attendees contributed significantly to the economic boost indicates the event's appeal to a diverse audience.

3. Detailed Expenditure Analysis: The news provides a detailed breakdown of the expenditures, distinguishing between Thai and foreign attendees. This level of detail helps in understanding the patterns of spending, including factors like overnight stays and transportation costs. The average expenditure per person for both groups provides insights into consumer behavior during such events.

4. Regional Economic Impact: The economic impact is not limited to the host province, as the article mentions that the economic growth extended to neighboring provinces. This highlights the regional and cascading effects of large-scale sporting events, influencing a broader geographical area. Moreover, the positive economic outcome of the MotoGP Grand Prix in Thailand may encourage the hosting of similar events in the future. This can lead to ongoing economic benefits for the region, as well as enhancing its reputation as a destination for major international sporting events.

5. Collaboration Between Tourism and Sports Divisions: The collaboration between the Economic, Tourism, and Sports Division of the Ministry of Tourism and Sports demonstrates a coordinated effort to assess and communicate the economic impact of the event. This collaboration is essential for understanding the multifaceted effects of such events on the local economy.

Reference:
(http://) www newsdirectory3 com/preliminary-survey-reveals-the-economic-impact-of-the-moto-gp-motorcycle-race-in-thailand-2023-boosting-local-economy-with-millions-of-baht/

Author: 6405614 Boonyaporn Tantanakul

:SHEIN is about to enter the stock market with a value of 3,200,000 million baht.

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News in brief :

SHEIN, a Chinese fast fashion platform, is preparing for an initial public offering (IPO) in the US market with an estimated value of 3,200,000 million baht (3.2 trillion baht). SHEIN distinguishes itself by selling clothes directly to retail customers with a wide range of sizes, detailed product information, reviews, fast delivery, and competitive prices. The company operates in over 220 countries worldwide. Its flexible product design and efficient backend stock systems allow it to offer low-cost clothing due to China's inexpensive labor. In the past three years, SHEIN has experienced impressive revenue growth, with a 55% annual average increase.

There are of interest and importance for several reasons:

1. Global Fashion Industry Impact : SHEIN's meteoric rise and valuation make it a major player in the global fashion and e-commerce industry. It's noteworthy because it challenges traditional retail models by thriving without physical stores and competing with well-established fashion giants like H&M and Uniqlo. This showcases the shifting landscape of fashion retail.

2. E-commerce Revolution : The success of SHEIN underscores the continuing shift towards online shopping and the growing significance of e-commerce platforms. It highlights the power of digital marketplaces and the potential for enormous growth in this sector.

3. Chinese Innovation : China has emerged as a hub for innovation and entrepreneurship. SHEIN's story is a testament to the innovative capabilities of Chinese companies in the technology and fashion sectors. It emphasizes China's role in shaping global business trends.

4. Investor Interest : The IPO's high valuation is bound to attract attention from investors and analysts. It signifies the interest and potential profitability in the fast fashion and e-commerce sectors, which can have a broader impact on investment decisions and stock markets.

5. Economic Impact : A successful IPO by SHEIN could have economic implications, including potential job creation and its role in bolstering the Chinese economy. It could also lead to opportunities for related industries such as logistics and technology.

Reference : longtunman.com/47628

Summary

E-commerce is developing at a rapid pace since the pandemic started. In the year 2022, a major Thai e-commerce companies, such as Lazada have made their profit after operating for over a decade. They are now concentrating on developing their technology to attract customers and increase profits, rather than engaging in a price war.

The expansion of online marketplaces in Thailand will also draw Chinese warehouses to build in the country, lowering product costs and speeding up delivery times. The article also discussed how digital financial services like LazadaPay and ShopeePay, which offer services like online payment services and digital loans to increase customer convenience, contribute to the growth of Thai e-commerce.

Additionally, Thailand's e-commerce is shifting toward specialized marketplaces that address particular customer needs and categories. These kinds of marketplaces include the home goods-focused, NocNoc and the healthcare-focused, HDmall. Furthermore, there are additional online shopping choices, like Grab Food and grocery shopping in Lineman, that offer goods delivery to customers in a matter of hours or less after placing an order.

Today's e-marketplaces extend outside the store's website or well-known e-commerce businesses; examples of these include the marketplace on Facebook and the TikTok shop, among several other social media platforms. Live stream sales, which are becoming more and more common in Thailand, can help with that. Influencers, live video, social media, and interactive elements are all used in live selling to engage consumers and boost income.

Finally, businesses are investing in and employing AI in every area of their retail and e-commerce operations due to the technology's rapid developments. One of the many advantages of implementing AI into e-commerce operations is the ability to target marketing through deep personalization based on user interactions. Artificial intelligence (AI) algorithms can increase customer retention rates and sales by providing what customers really want through the investigation of vast amounts of information.

Why is this important for the businesses?

The evolution of online marketplaces has transformed how people shop for goods and services. Nowadays, it's much easier to order food for delivery right to your doorstep through online shopping. Many retail stores have shifted from being physical-only to having an online presence, especially during the COVID-19 pandemic when people couldn't shop in person as before.

While online shopping and deliveries have been around for a while, recent years have brought significant advancements in the online shopping experience. New technologies have been developed to make shopping more convenient for customers. It's essential for businesses to keep up with these technologies and adopt new ways of selling their products.

Furthermore, the rise of e-commerce has created more online sellers and entrepreneurs. With increased competition in this space, sellers must differentiate themselves and continually improve their products and services to thrive in the market. This competition can lead to better quality goods and services, benefiting both the market and consumers.

As more sellers enter the market, there's a need for more consumers. Sellers can achieve this by diversifying their sales channels and enhancing their marketing efforts to attract more customers. E-commerce is predicted to grow more stable and massive with the aid of AI and technological advancements, which will increase revenue and increase sales for numerous enterprises. Ultimately, this will boost the country's economy.

Reference: (https://)bangkokpost.com/business/general/2531990#group=nogroup&photo=0

News in brief :
PwC's decision to cut up to 600 jobs, primarily in its advisory and tax departments, has been defended by the firm's UK chair, Kevin Ellis. The move comes as PwC faces a slowdown in client demand, with the firm aiming to "right-size" the business following weaker growth, rising costs, and a reduction in natural attrition rates. PwC's attrition rate has fallen to 10% from 15% recently, contrasting with diminishing job vacancies at rival firms and startups. The job cuts, which account for about 2.4% of its 25,000 employees, will affect various seniority levels, but the most senior partners and first-year staff are expected to be shielded.

Why is this news interesting or important? :
This news is important as it highlights decisions faced by major professional services firms in managing their workforce and adapting to changing market conditions. It also underscores the importance of maintaining competitiveness at all levels of the organization and the difficult choices that may need to be made to achieve this.

Reference :
theguardian/business/2023/nov/07/pwc-defends-plans-to-cut-600-jobs-rather-than-bosses-pay

Summary
In the past year and a half, the U.S. Federal Reserve, European Central Bank, and Bank of England significantly raised interest rates in an effort to control surging inflation. However, all three central banks opted to maintain their current interest rates during their recent meetings. Market expectations indicate the potential for rate cuts by the end of 2024, despite policymakers' expressed caution.

Why it’s interesting/important
These central bank decisions and market expectations are significant because they provide valuable insights into the strategies employed to manage inflation, the global economic environment, and potential future economic developments. They have far-reaching consequences for financial markets, businesses, and individual consumers.

For example:
Global Economic Conditions: The synchronized rate hikes by these major central banks signify a global response to inflation concerns. These central banks often set the tone for monetary policy worldwide, and their actions can influence the policies of other countries.
Monetary Policy Impact: The decisions made by the U.S. Federal Reserve, European Central Bank, and Bank of England regarding interest rates have significant implications for the broader economy. Interest rates influence borrowing costs, investment decisions, and overall economic activity.

Reference
cnbc.com/2023/11/07/central-banks-look-to-have-hit-peak-rates-heres-how-markets-think-theyll-come-down.html

Summary:
A possible bankruptcy of WeWork, which would have a significant impact on the struggling New York office market, is imminent. In the wake of the COVID-19 pandemic, WeWork, which was once the largest corporate tenant in New York and London, is about to file for bankruptcy, which would intensify the difficulties faced by property owners in dealing with rising debt and declining demand for office space. Many landlords have already accepted reduced rents from WeWork to keep the company afloat, and its potential bankruptcy could lead to significant fallout, particularly for landlords heavily relying on WeWork leases, particularly in older Class B and Class C office buildings.  These landlords may find it challenging to recover their losses, potentially resulting in a severe impact on the New York office market, which is currently dealing with a historically high vacancy rate. A WeWork bankruptcy would represent a significant turning point for a company that, at its peak, was valued at $47 billion and played a major role in the co-working industry.

Why it’s interesting/important:
- Impact on the office market: WeWork is a major player in the commercial real estate market, and its possible bankruptcy could have a significant impact on the landlord and the overall office market.
-  Pandemic impact: Many companies have reduced office space, leading to a shortage in commercial real estate because of the decreased number of employees returning for COVID-19.
-  Impact on older buildings: In the past, a number of New York City old office buildings known as Class B and C had been happy to rent space to WeWork but now they're in difficulty because their rents are no longer being paid by WeWork resulting in property values decreasing.
-  Implications for Landlords: Landlords who had relied on WeWork for their rental income may need to explore alternative options for their properties, such as converting them into residences.
-  Coworking trends: The decline of WeWork reflects a broader shift in the coworking sector, which has once been considered to be one of the biggest disruptors in the commercial property market.

Reference: (https://)www nytimes.com/2023/11/04/business/wework-bankrupcty-office-real-estate.html