Thousands Mourn Monarch's Death Thai Economy Braces for Hits to Tourism, Sales
Total Page:16
File Type:pdf, Size:1020Kb
P2JW289000-4-A00700-1--------NS THE WALL STREET JOURNAL. **** NY Saturday/Sunday, October 15 - 16, 2016 | A7 WORLD NEWS Thai Economy Braces for Hits To Tourism, Sales BY JAMES HOOKWAY special events to be canceled. “The instability brought by BANGKOK—The one-year his death will definitely dimin- period of mourning declared ish tourism,” he said. to mark the passing of King Tourism accountsfor Bhumibol Adulyadej presentsa around 10% of the economy. financial hit to Thailand's Beforethe king’sdeath, au- struggling economy, already thoritiesforecast 32 million facing deep-seated problems people would visit the country such as slowing productivity in 2016, up 7% from last year. and a graying workforce. By contrast, exportshave Economistsand risk consul- contracted in each year since tantswarn therecould be a the coup while investment has sharp decline in economic ac- slowed—a sharp turnaround tivity in the coming days that from the 1980s and 1990s, could set back growth this year. when companies such as Toy- Prime minister and junta ota Motor Corp. helped make chiefPrayuth Chan-ocha was Thailand one of the world’s quick to saythat business fastest-growing economies. would go on as usual. The Morerecently,the flow of stock market closed up 4.6% foreign investment has dwin- Friday, following days of de- dled. DBS Group in Singapore noted that the manufacturing andagricultural sectors, de- spiteemploying about half of 10% theworkforce and accounting Approximate size of tourism for35% of grossdomestic prod- /REUTERS SU sector’s role in Thailand’s uct, contributed to just 6% of economy growth in the past three years. EDGAR BowerGroup Asia, aU.S.- The streets of Bangkok were crowded with black-dressed mourners observing the motorcade carrying the body of King Bhumipol. basedconsultancy, predicted clines.Tradersexpressed relief many businesses in Thailand over his assurances that the would see reduced sales during Thousands Mourn Monarch’sDeath king’sexpected heir,Crown the mourning period and that Prince Maha Vajiralongkorn, some enterprises would see a would succeed his father. rise in absenteeismand pro- BY JAMES HOOKWAY next monarch afterhehas verted to color in the afternoon during areligious riteand put- Yetthe situation in the ductivity losses as people take takentime to grieve, Prime afterbeing aired in black and ting it in afetal position. It will country is far from normal. time off work to paytheir re- BANGKOK—Tens of thou- Minister Prayuth Chan-ocha whiteearlier in the day. then be placed inside aceremo- Measures announced Thurs- spectstothe king. sands of people,manydressed has said. Agovernment spokesman nial urn, one part of aritual dayaspart of ayear of mourn- Further ahead, manyrisk in black and weeping,knelt in One of King Bhumibol’schief said regular programming was that will take several days. ing included a30-daycurb on consultantsand economists the streetsofThailand’scapital advisers, 96-year-old former to resume later in the evening When King Bhumibol’ssister “joyous occasions,” as the gen- areassessing howThailand’s Fridayasaconvoy carried the premier Prem Tinsulanonda, or Saturday, though without PrincessGalyani Vadhana was eral put it. That rules out festi- royal succession might affect body of King Bhumibol Aduly- will serveastemporaryregent. game shows or soap operas. cremated in 2008,therewere vals,music performances and the military’sstatedplan to adej to the city’s Grand Palace Thegovernment has asked Many Thais arenow focus- performances by morethan other eventsthat help drive hold elections in 2017. from the hospital wherehe Thais to postpone concerts, par- ing their attention on prepara- 2,000 artists. Thailand’sgov- tourism traffic—one of the few Thailand has yettofully died the daybefore. ties and other eventsfor 30 tions forthe king’scremation. ernmentiswidely expected to economic growth stories since emerge from adecadelong It wasthe beginning of afu- days.Manybarsand restau- Adatehasn’t been set yet. hold an event much largerto the militarydeposed an elected powerstruggle between neral processthat could take rants, including those in Bang- When King Ananda Mahidol, mark the lateking’scremation. government in May2014. elected, populist leadersand months or even yearstocom- kok’sinfamous red-light dis- King Bhumibol’solder brother, Precedent suggeststhe coro- Paul Chambers, research di- themilitaryestablishment. plete. Thegovernment has de- tricts,decided to shut their died from agunshot in 1946, nation of the newking could be rector forthe Instituteof Thearmyoverthrew two clared a12-month mourning doorsasamark of respect after the funeral didn’t take place similarly lavish. When King Southeast Asian Studies at elected governments, in 2006 period forKing Bhumibol, who the king’sdeath wasannounced. untilfour yearslater,when Bhumibol wasformally Chiang MaiUniversity,said and in 2014, convulsing the was88and reigned for70 Manywereexpected to remain King Bhumibol had completed crowned in 1950,the process some touristsmight be put off countryatatime when new years. closed in the coming days. school in Switzerland. took three days,culminating in coming to Thailand as the na- rivals for investment such as Theking’sson, 64-year-old Television broadcasts—which Thefirst step in preparing the young monarch placing a tion grieves.Hesaid he ex- Vietnam were attracting the CrownPrinceMaha Vajiralong- ranthe same program depicting King Bhumibol’s body forcre- golden, diamond-encrusted pected many morefestivals of eye of foreign manufacturers. korn, will become the country’s the lifeofKing Bhumibol—re- mation involves embalmingit crownonhis head. End to Industrial Deflation PLEASE JOIN US TO CELEBRATETHE LSAFAMILY BringsRelief to China’sFirms HEALTH SERVICE GALA BY MARK MAGNIER PositiveatLast OF EASTHARLEM BEIJING—China ticked one Factory-gateprices in China rose in September,the firsttime in 54 months. item off itslong list of eco- nomic challenges as prices at Producer and consumer price Coal-mining and -processing thefactorygaterose forthe indexes, change from ayear earlier prices, change from ayear earlier MONDAY EVENING, OCTOBER 17,2016 AT 6:00PM firsttime in morethan four 8% 5% The PierreHotel 2East 61st Street at 5th Avenue, New York City years, signaling improving con- 6 CPI ditions forChina’sbusinesses. 0 Thehalt in industrial defla- 4 PPI For tickets or to make adonation, visit www.spiritofeastharlem.com or call 646-672-5220. tion waspartly aresult of old- 2 –5 stylegrowth-boosting tactics, and it came,fittingly,from 0 –10 HONORING surging prices foracommodity –2 –15 that defined the boom times: –4 coal. China’sproducer-pricein- –6 –20 dex, long suppressed by excess 2011 ’12 ’13 ’14 ’15 ’16 JFMAMJJAS industrial capacity and weak Source:National Bureau of Statistics THE WALL STREETJOURNAL. Samuel A. Ramirez, Sr. global commodity prices,edged Founder &President, Ramirez &Co., Inc. up 0.1% in September from a and higher transportation fees. disruptivetolocal economies Diane M. Ramirez year ago, the government re- “The government is limiting and the bond market than clos- Chairman &CEO, Halstead Property ported Friday, the firstrise in our mining activity to 270days ing smaller coal mines. 54 months. ayear now. And banks aregiv- “The steel cleanup is not as Prices forcoal rose as China ing out fewerloans,” he said. easy as coal because it’slarger closed mines and set produc- Keeping industrial prices in and moreleveraged,” said Iris tion cuts in the sector,while a positiveterritoryislikely to Pang,economist with invest- strongly rebounding property depend on cutting excess ca- ment bank Natixis, part of Samuel A. Ramirez, Jr.& market andcontinuing infra- pacity in the steel sector,econ- France’sGroupe BPCE,who es- Fabiana Ramirez structurespending boosted de- omistssaid. Shutting amassive timates that the steel industry __________________ mand formetals. steel mill ofteninvolves laying accountsfor around 10% of Theuptick in factoryprices off tens of thousands of em- China’sproducer-priceindex. will likely giveaboost to prof- ployees and incurring millions Last month, the government itsand operating conditions for of yuan in outstanding debt, said that as of the end of July Little Sisters of hard-pressed manufacturers, andispotentially much more it had achieved 38% of its2016 the Assumption __________________ whose struggles have weighed target of cutting 250-million on theoverall economy. metric tons of coal capacity Consumer inflation is also and had achieved 47%ofits picking up.The consumer-price Japan Urges Speedy goal of cutting 45-million met- indexrose by 1.9% in Septem- Trade-Pact Approval ric tons of steel capacity.then ber from ayear earlier,acceler- without providing details. ating faster than expected from Japan’sgovernmenturged Still, stimulus policies aimed Helen T. Lowe a1.3%gain in August. parliamenttoapprove the at boosting growth areprop- Senior Development “Thiswill allowthe corpo- Trans-Pacific Partnership trade ping up demand in manyofthe Consultant rate sector to repair itsbalance deal quickly,showing the drive same industries.Steel produc- sheet and profitability,” said in Asia to keep it alivedespite tion, forexample,has increased RoyalBank of Scotland PLC opposition from presidential everymonth sinceMarch from economist Harrison Hu. “And it candidatesHillary Clintonand ayear earlier. helps corporates control lever- Donald Trump. As Beijing battles ahost of ageand their debt burden. De- “Japan’s ratification would economic problems—from flation is themost dangerous give an impetus