MACROECONOMICS
Thai Inflation Jumps to Near 14-Year High on Costly Oil. (Bloomberg)
- Consumer prices rise 7.1% in May, more than double the target, leading to price uptick on energy and food costs.
- Thailand’s retail inflation quickened in May to its highest in nearly 14 years, a level that may test the central bank’s resolve to stand pat on borrowing costs.
- KEY NUMBERS MAY 2022 APRIL 2022
CPI 7.10% 4.65%
Core CPI 2.28% 2.00%
Food 6.18% 4.83%
Energy 37.24% 21.07%
- The uptick in the inflation rate was driven mostly by energy and food items, a development that was foreseen by Bank of Thailand Governor Sethaput Suthiwartnarueput. Policy makers may find it difficult to ignore the print that’s come in at more than double the central bank’s 1%-3% target days before the interest rate review, but some economists say they may still buck the trend of the global tightening.
- Nomura expects the Monetary Policy Committee to vote unanimously to leave the benchmark interest rate unchanged at a record low of 0.5% on Wednesday. The panel will continue to signal a dovish tone, “with BOT maintaining its pro-growth stance and reiterating that supporting the recovery is still its top policy priority.”
DIGITAL BUSINESS & E-COMMERCE
China’s Ant Group launches digital bank ANEXT in Singapore (Reuters)
- Ant Group, a financial technology (fintech) giant controlled by billionaire Jack Mahas launched a digital wholesale bank incorporated in Singapore, dubbed ANEXT Bank.
- ANEXT received approval from the Monetary Authority of Singapore (MAS) to commence business on June 2. Ant obtained one of Singapore’s first digital wholesale banking licenses at the end of 2020 allowing it to serve large clients, including financial institutions and corporations.
- Ant, roughly 33% owned by e-commerce leader Alibaba, said ANEXT’s focus was micro, small, and mid-sized enterprises (SMEs), particularly those with cross-border operations. ANEXT Business Account will be available for SMEs from the third quarter of this year.
FOOD INDUSTRY
Fifth-generation cattle rancher aims to build biggest U.S. beef plant. (Reuters)
- The Kingsbury project will be the country’s largest beef plant in South Dakota with capacity to slaughter 8,000 head of cattle a day (around 1,000 more cattle per day than the current top processor, a Tyson’s plant in southeastern South Dakota).
- The $1.1 billion project will be spearheaded by Kingsbury and Associates and Sirius Realty, both run by Megan Kingsbury of a South Dakota ranching family. Construction is expected to start in 2023 and be completed in 2026.
- The Biden administration and Congress scrutinized the beef industry after COVID-19 outbreaks temporarily shut slaughterhouses in early 2020, leaving ranchers with nowhere to deliver cattle and consumers facing meat shortages.
- Four big companies – Cargill, Tyson Foods, JBS and National Beef Packing – slaughter about 85% of all U.S. fed cattle. The administration has blamed a lack of competition in the sector for rising food prices.
Bain Backs Packaged-Foods Maker Cuisine With Growth Capital. (Bloomberg)
- Buyout firm Bain Capital has committed $250 million in growth capital to packaged-foods distributor Cuisine Solutions. The minority investment values the Sterling, Virginia-based business at more than $1 billion.
- Funds from the transaction will be used to accelerate product innovation and help scale the business domestically and internationally. As part of the deal, current management will continue to lead Cuisine Solutions, including Chief Executive Officer Felipe Hasselmann and Chairman Stanislas Vilgrain. The executive team will retain a significant interest in the company alongside the Vilgrain family’s controlling stake.
- Founded in 1987, Cuisine Solutions makes vacuum-sealed products known as sous vide foods that are distributed to more than 22,000 restaurants and 6,000 retailers globally. From half-chicken with thyme to brown sugar glazed pork, the company also provides meals for airlines.