Thailand’s King Dies: World Financial Markets Seem To Only Care About Profits From It

(THIS ARTICLE IS COURTESY OF BLOOMBERG NEWS)

Thai Baht Holds Gain After King Dies in Sign Selloff May Unwind

October 13, 2016 — 9:35 AM EDTUpdated on October 13, 2016 — 10:42 AM EDT
  • Some strategists saw uncertainty fueling this week’s slump
  • Bonds, stocks had been heading for worst week since 2013

Thailand’s baht held gains and an exchange-traded fund tracking the nation’s shares rose after the Royal Household Bureau said King Bhumibol Adulyadej, the world’s longest reigning monarch, had died.

The baht rose 0.7 percent to 35.42 per dollar as of 10:27 a.m. in New York. The local stock market had rebounded with the currency, closing higher before the king’s death was announced. Earlier in the week, Thailand’s assets had tumbled after the royal palace said Sunday that King Bhumibol Adulyadej’s health was “unstable.”

“People are already pretty much factoring a lot of uncertainty right now,” said James Woods, a strategist at Rivkin Securities in Sydney, speaking before the announcement. “You may see another push lower, but really, after that it’s just going to be about how quickly the royal family comes out to stabilize the market with comments and what their succession plan is. Once that is in place and investors have certainty, then it’s back to business as usual.”

The iShares MSCI Thailand Capped ETF climbed 1.8 percent to $67.95 in New York, trimming its loss this week to 7.8 percent.

Priced In

“The uncertainties and political risks have been more or less priced in,” Margaret Yang, an analyst at CMC Markets in Singapore, said by phone after the news. “We may still see some panic selling but I don’t expect this to last for very long. Eventually smart money will flow in to support the market.”

Thailand’s SET Index has fallen 6.1 percent this week, with 30-day volatility on the gauge climbing on Wednesday to the highest level since January. The baht reached the lowest since January and at one stage was heading for its worst week in a decade.

The SET rose 15 percent in the first nine months of the year, the most among Southeast Asia’s major gauges after the Jakarta Composite Index. Stocks entered a bull market in July and reached the highest level in 15 months in August as economic growth accelerated and emerging-market assets rallied.

Stimulus Measures

Equities had also been aided as stimulus measures to help shield the country from China’s economic slowdown made the nation’s shares a haven for overseas funds. Foreign investors have poured $3.8 billion into Thai equities this year, the biggest inflow in Southeast Asia, according to data compiled by Bloomberg.

“Thailand’s economic fundamentals remain unaffected, which should help it to weather this storm,” Jingyi Pan, a Singapore-based strategist at IG Asia Pte, said by e-mail before the announcement. “The military government which has overseen the economy during a period of increasing GDP growth, could help to guide the country through the period.”

Global funds pulled more than $950 million from Thai bonds in four straight days of selling, heading for the largest weekly outflows since May 2013. The nation’s 10-year government yield rose 11 basis points this week to 2.32 percent, the highest since January.

The nation’s bond market had been struggling even before the king’s health spurred further declines, as higher oil prices threatened to spur inflation and prompting traders to price in chances for a Bank of Thailand interest-rate increase. Thailand’s sovereign notes have slumped 2.1 percent in the past six months, compared with gains of more than 6 percent in India and Indonesia and a 2.9 percent advance in Malaysia.

Growth Outlook

Southeast Asia’s second-biggest economy may grow as much as 3.5 percent in 2016 from 3.2 percent last year on the government’s accelerating spending, according to the National Economic and Social Development Board. Prime Minister Prayuth Chan-Ocha, who took power in a May 2014 military coup, has issued a series of economic stimulus measures valued at more than 645 billion baht since September 2015 to help shore up local demand.Soo Hai Lim, investment director at Baring Asset Management (Asia) Ltd. in Hong Kong, says there’s a potential buying opportunity.

“A lot of people are nervous about the situation,” he said. “It is something that investors cannot dismiss outright but with the military in charge, the situation in Thailand should be manageable. Quite a number of companies are still delivering quite good growth despite the challenging macro economic environment. This incident is unfortunate but it’s something we’re aware of. The king has been sick for a while.”

China: Welcome To The World Of Global Greed At A Global Level

 

China is learning something about a “free market system” in that the only thing, and I do mean the only thing that matters is higher and higher profits for the ones who control the stocks. The more stocks you control as a person or a country, the more control a person or country has over you or your country. The ones that don’t matter to the ones who are forced to look only, and I do again mean the only, is the balance sheet. This meaning the balance of your personal check book to the persons who own the stocks which own the companies doesn’t mean anything at all to them. All that matters is that the ones below in the chain do what you tell them to do so that you don’t intern lose your position and income. The world of business is savage to say the least, there are those who can never have enough billions, o yes, and the control those billions have over other people’s lives. O yes, and the control they have over the company that employees you and your neighbor, and so on. In a free market economy no country can complacently dictate policy toward an economy when it is on the world wired market and blankly expect the whole world to obey their commands. In the end game, who has a seat at the suite? Political leaders, military leaders, Admirals of industries, I guess it depends on how small or large a table, how many seats. In the end game of this world is the fact that higher income means more to millions of people than their nationality, families, or so-called faith system. China is learning all of these things now. Their Government wants the higher profits of the free market but are realizing now that they can’t control it like they thought they could. Welcome to the world-wide wired system of greed and graft gentlemen, at a  global level.

BBC Report On Exhausted Apple Work Force

BBC Report On Exhausted Apple Work Force

(THIS ARTICLE IS FROM DECEMBER 19th, 2014)

Apple, the most valuable company in the world. Companies do not get to be more and more valuable by giving out better wages, benefits, and working conditions to the low life serfs who actually make their products. The more you as a company can literally squeeze the blood out of the ones actually doing the work, the higher the profits. It is that simple and anyone in business knows that. The less I am forced to give you the worker, the more for the bosses.

 

Businesses DO NOT care about anything except profit margins. Stock holders DO NOT care about anything except the largest possible profits on their stock investments. No profitable company gives a damn about the lowly scum who actually do the work, workers are a dime a dozen, if they die, they will just grab the next hungry person in line and throw them into the dead persons spot. The concept of a stock market requires this necessity, simply put, if the CEO and other brass do not squeeze out enough profits each quarter they will be replaced from their throne by someone who will squeeze out every penny from those who are starving. If you think that the workers matter you are quite possibly a fool, ignorant, or simply a liar (just my opinion). ONLY PROFITS MATTER, not, the low life scum of the earth who actually do all of the physical work. I have learned this first hand from 45 years in the American work force. 30 years as a long haul truck driver, going into thousands of work places seeing first hand how little the workers matter to the ones who run those businesses.

 

Here in America, Wal-Mart is the single biggest driver of starving American workers. Not just in the fact that the biggest stock holders demand higher profits at all times, like the four Walton kids who simply by blood line became billionaires. Wal-Mart has one in nine of every dollar in Americas GDP go through their hands every year. That is more than 1.1 Trillion dollars people. Yet they refuse to hire their work force (the extreme majority) as full-time workers, pay them a wage where they can live more than a minimal existence, or furnish the workers with affordable medical insurance. This would interrupt their billions in profits. Very recently the company has paid 500 million dollars to have three ships built for the sole purpose of transporting goods from China to the west coast of America. The reason I say this is because all three ships are too large to fit through any of the world’s shipping  canals. You and your family can starve to death for all these billionaires give a damn. Until the American people wake up and do not shop at Wal-Mart at all, until we as a nation demand that Wal-Mart and other companies like them buy from American companies whose factories are here in the states employing American workers full-time, then we the people just keep making life harder, worse on ourselves.

 

 

Linda Tauhid

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