Each month, Standard & Poor's Ratings Services publishes its economists' best estimate of where the U.S. economy could be heading. However, financial market participants also want to know how we think things could go worse--or better--than what our baseline scenario calls for. As a result, we have been publishing a quarterly feature called "Risks to the Forecast," in which we project two additional scenarios, one worse than the baseline and one better. Standard & Poor's published the latest version of this article, which is titled "U.S. Risks To The Forecast: Half Speed Or Full Speed?," earlier today.
According to the article, our baseline forecast assumes a gradual recovery after a few quarters of bouncing along the bottom, which looks like a stretched-out "U." But the risk of another downward leg on the recession remains real, producing a "W." The optimistic scenario is that we could again be underestimating the American consumer, and a stronger recovery could still turn into a more typical "V"-shaped expansion. However, the Japanese experience of the 1990s suggests that the risk of a fourth scenario, an "L"-shaped recession where years rather than months are spent bouncing along the bottom, should not be ignored.
It should be noted that our baseline scenario is far weaker than would be consistent with historical averages. On average, real GDP rises 5% in the first four quarters of a recovery and tends to rise even more sharply after deep recessions. Our baseline scenario shows a rise of only 2.3%, less than one-half the historical average, while our downside case shows an even weaker recovery of just 1.5%. Even our optimistic scenario implies an increase of only 4.7%. "We believe that the imbalances in the world and U.S. economies will keep the expansion slow," noted Standard & Poor's Senior Economist David Wyss. "The question is how slow."
The report is available to RatingsDirect on the Global Credit Portal subscribers at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to research_request@standardandpoors.com. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided.
Wednesday, December 16, 2009
Tuesday, December 15, 2009
ESCAP and Russian Federation to Sign Cooperative Development Agreement
Signing ceremony Thursday 11:30, 17 December at ESCAP Building
The Economic and Social Commission in Asia and the Pacific (ESCAP) – the regional arm of the United Nations - and the Russian Federation will sign an agreement this Thursday to strengthen cooperation, with a view to promoting inclusive and sustainable economic and social development in Asia and the Pacific.
Under the agreement, the Russian Federation provides a voluntary
contribution of US$ 1.2 million annually during the period 2009-2010 to support key programme activities of ESCAP.
ESCAP will be hosting a signing ceremony where Mr. Gennady Gatilov of the Russian Federation Ministry of Foreign Affairs and Dr. Noeleen Heyzer, Under-Secretary-General of the United Nations and Executive Secretary of ESCAP will formalize the agreement.
In response to the regional development priorities, the Russian contribution will be used for technical cooperation projects to develop capacities and improve development in key areas such as environment, energy, regional transport connectivity, disaster risk reduction, statistics and migration.
The ceremony will take place Thursday 17 December 2009, 11:30 on the 15th floor of the ESCAP Secretariat building. Media are welcome to cover the ceremony. Please register in advance for building access at unisbkk.unescap@un.org.
The Economic and Social Commission in Asia and the Pacific (ESCAP) – the regional arm of the United Nations - and the Russian Federation will sign an agreement this Thursday to strengthen cooperation, with a view to promoting inclusive and sustainable economic and social development in Asia and the Pacific.
Under the agreement, the Russian Federation provides a voluntary
contribution of US$ 1.2 million annually during the period 2009-2010 to support key programme activities of ESCAP.
ESCAP will be hosting a signing ceremony where Mr. Gennady Gatilov of the Russian Federation Ministry of Foreign Affairs and Dr. Noeleen Heyzer, Under-Secretary-General of the United Nations and Executive Secretary of ESCAP will formalize the agreement.
In response to the regional development priorities, the Russian contribution will be used for technical cooperation projects to develop capacities and improve development in key areas such as environment, energy, regional transport connectivity, disaster risk reduction, statistics and migration.
The ceremony will take place Thursday 17 December 2009, 11:30 on the 15th floor of the ESCAP Secretariat building. Media are welcome to cover the ceremony. Please register in advance for building access at unisbkk.unescap@un.org.
Investment-Grade Composite Spread Tightens To 209 Basis Points
Standard & Poor's investment-grade composite spread tightened yesterday to 209 basis points (bps), while its speculative-grade counterpart compressed to 653 bps. By rating, the 'AA' and 'A' spreads tightened one basis point each to 144 bps and 180 bps, respectively, and 'BBB' tightened 3 bps to 264 bps. The 'BB' spread tightened 5 bps to 484 bps, 'B' compressed 6 bps to 654 bps, and 'CCC' tightened 15 bps to 1,040 bps.
By industry, financial institutions, banks, and industrials tightened 4 bps each to 366 bps, 288 bps, and 336 bps, respectively. Utilities and telecommunications followed, tightening 2 bps each to 212 and 318 bps, respectively.
Despite material tightening since their record highs in December 2008, the speculative-grade spread remains range-bound within a default cycle, and the investment-grade spread continues to face pressure from financial institutions and banks. In addition, speculative-grade defaults continue to accelerate, as does the preponderance of credit downgrades. Because of these factors, we expect spreads to remain at their elevated levels for some time as investors, the credit markets, and the economy cautiously tread through the current recessionary period.
By industry, financial institutions, banks, and industrials tightened 4 bps each to 366 bps, 288 bps, and 336 bps, respectively. Utilities and telecommunications followed, tightening 2 bps each to 212 and 318 bps, respectively.
Despite material tightening since their record highs in December 2008, the speculative-grade spread remains range-bound within a default cycle, and the investment-grade spread continues to face pressure from financial institutions and banks. In addition, speculative-grade defaults continue to accelerate, as does the preponderance of credit downgrades. Because of these factors, we expect spreads to remain at their elevated levels for some time as investors, the credit markets, and the economy cautiously tread through the current recessionary period.
TCEB unleashes 3 years strategic plan “Thailand could become one of the best MICE destinations in the world”
Thailand Convention & Exhibition Bureau has laid down six major strategies to develop and expand the market for meetings, incentives, conventions, and exhibitions (MICE) in partnership with private and government networks as well as the growing ASEAN community.
Promoting “Green Meetings,” the act of holding of environmentally friendly events, is key to boosting revenue for Thailand in 2010.
Mr. Akapol Sorasuchart, TCEB president, said Thailand’s MICE sector in 2008-2009 encountered slowing growth from internal factors, such as domestic political unrest, and external factors such as the troubled global economy and the 2009 flu pandemic.
In 2010, the economic situation is expected to trend positive, pushing the MICE sector to reach its growth target of 25 per cent. Next year the TCEB forecasts 785,816 MICE visitors to Thailand, generating income of 56 billion baht from about 400 events and activities.
“The TCEB has drawn up its three-year strategic plan [for 2010-2012] in line with Thailand’s national development plans, including the National Economic and Social Development Plan, the Strategic Formulation Plan [for 2008-2011], and the Tourism Recovery and Promotion Strategic Plan [for 2009-2012],” said Mr. Akapol.
“The TCEB’s strategic plan aims to promote Thailand as a prime destination for the MICE industry and as a stage of Asia for world-class MICE venue,” he added. “The plan is based on the potential network and cultures among ASEAN communities. It’s forecast that in seven years, by 2016, Thailand will be seen as top on the list for the MICE sector in Asia and throughout the world.”
The plan draws on three key concepts: WIN /PROMOTE and DEVELOP Under the plan, six major action plans are included.
1. Accelerate and expand the MICE market. It’s important to establish channels for marketing, public relations, and the capability to draw events with the cooperation of the private and public sectors.
2. Support MICE industry image-building. The importance of the MICE industry and the TCEB’s role and responsibility should be promoted. The “Thailand Creative Event Awards” is a good example for promotion.
3. Support value-added benefits to take the industry to the next level. The concept of the “Creative Economy” should be employed to grow the MICE industry to become more international, with support for new events and large-scale events and activities to Thailand.
4. Expand the capability of the MICE infrastructure. Thailand’s MICE industry must be recognized on the world stage. In 2010, the TCEB will give much effort to promoting highly recognized “Green Meetings,” the practice of holding environmentally friendly meetings, incentives, conventions, and exhibitions, as a selling point to promote Thailand. Some of the MICE companies in Thailand have prepared infrastructure to support these meetings.
5. Build local and international networks. “Thai Team, Team Thailand” will be established as a center for co-operation between the government and private sectors.
6. Boost the role and potential of the TCEB. Management and human resources should be developed in correlation with the direction of the industry.
“The TCEB has a budget of 934 million baht for 2010,” Mr. Akapol said, “divided into 749 million baht for our fiscal budget. Of this amount, 200 million baht for the ‘Pid Thong Lang Pra’ Project, 145 million for WIN, 240 million baht for PROMOTE, 55 million baht for DEVELOP, and 110 million for internal operations.
“In addition, the TCEB has budgeted 185 million baht to attract income to Thailand via the ‘Strong Thailand Project’ and ‘Creative Economy,’” he added. “Activities under the ‘Strong Thailand Project’ include the Thailand MICE Road Show 2010 to boost confidence of our MICE industry in Japan; the TCEB’s participation in World Expo 2010 in Shanghai with the launch of ‘Thai Night’ at the Thailand Pavilion; and the search for an opportunity to draw World Expo 2020 to Thailand.”
The TCEB forecasts 628,653 MICE visitors to Thailand in 2009, compared with 727,723 visitors recorded in 2008. This year it expects to generate 45 billion baht, compared with 52 billion baht in 2008. (Updated figures will be received in March 2010).
In 2009, the TCEB succeeded in attracting 41 events and exhibitions as well as new creations consisting of 27 international conventions, three trade exhibitions, and 11 new shows. In addition, the International Congress & Convention Association (ICCA) ranked Thailand second in the Asian region after South Korea as the country with the highest number of international conventions and the number of participants.
Promoting “Green Meetings,” the act of holding of environmentally friendly events, is key to boosting revenue for Thailand in 2010.
Mr. Akapol Sorasuchart, TCEB president, said Thailand’s MICE sector in 2008-2009 encountered slowing growth from internal factors, such as domestic political unrest, and external factors such as the troubled global economy and the 2009 flu pandemic.
In 2010, the economic situation is expected to trend positive, pushing the MICE sector to reach its growth target of 25 per cent. Next year the TCEB forecasts 785,816 MICE visitors to Thailand, generating income of 56 billion baht from about 400 events and activities.
“The TCEB has drawn up its three-year strategic plan [for 2010-2012] in line with Thailand’s national development plans, including the National Economic and Social Development Plan, the Strategic Formulation Plan [for 2008-2011], and the Tourism Recovery and Promotion Strategic Plan [for 2009-2012],” said Mr. Akapol.
“The TCEB’s strategic plan aims to promote Thailand as a prime destination for the MICE industry and as a stage of Asia for world-class MICE venue,” he added. “The plan is based on the potential network and cultures among ASEAN communities. It’s forecast that in seven years, by 2016, Thailand will be seen as top on the list for the MICE sector in Asia and throughout the world.”
The plan draws on three key concepts: WIN /PROMOTE and DEVELOP Under the plan, six major action plans are included.
1. Accelerate and expand the MICE market. It’s important to establish channels for marketing, public relations, and the capability to draw events with the cooperation of the private and public sectors.
2. Support MICE industry image-building. The importance of the MICE industry and the TCEB’s role and responsibility should be promoted. The “Thailand Creative Event Awards” is a good example for promotion.
3. Support value-added benefits to take the industry to the next level. The concept of the “Creative Economy” should be employed to grow the MICE industry to become more international, with support for new events and large-scale events and activities to Thailand.
4. Expand the capability of the MICE infrastructure. Thailand’s MICE industry must be recognized on the world stage. In 2010, the TCEB will give much effort to promoting highly recognized “Green Meetings,” the practice of holding environmentally friendly meetings, incentives, conventions, and exhibitions, as a selling point to promote Thailand. Some of the MICE companies in Thailand have prepared infrastructure to support these meetings.
5. Build local and international networks. “Thai Team, Team Thailand” will be established as a center for co-operation between the government and private sectors.
6. Boost the role and potential of the TCEB. Management and human resources should be developed in correlation with the direction of the industry.
“The TCEB has a budget of 934 million baht for 2010,” Mr. Akapol said, “divided into 749 million baht for our fiscal budget. Of this amount, 200 million baht for the ‘Pid Thong Lang Pra’ Project, 145 million for WIN, 240 million baht for PROMOTE, 55 million baht for DEVELOP, and 110 million for internal operations.
“In addition, the TCEB has budgeted 185 million baht to attract income to Thailand via the ‘Strong Thailand Project’ and ‘Creative Economy,’” he added. “Activities under the ‘Strong Thailand Project’ include the Thailand MICE Road Show 2010 to boost confidence of our MICE industry in Japan; the TCEB’s participation in World Expo 2010 in Shanghai with the launch of ‘Thai Night’ at the Thailand Pavilion; and the search for an opportunity to draw World Expo 2020 to Thailand.”
The TCEB forecasts 628,653 MICE visitors to Thailand in 2009, compared with 727,723 visitors recorded in 2008. This year it expects to generate 45 billion baht, compared with 52 billion baht in 2008. (Updated figures will be received in March 2010).
In 2009, the TCEB succeeded in attracting 41 events and exhibitions as well as new creations consisting of 27 international conventions, three trade exhibitions, and 11 new shows. In addition, the International Congress & Convention Association (ICCA) ranked Thailand second in the Asian region after South Korea as the country with the highest number of international conventions and the number of participants.
United Mexican States FC And LC Ratings Lowered By One Notch; Outlook Stable
Despite recent tax increases and steps that could bolster growth prospects, we expect that Mexico's fiscal challenges will persist over the coming years.
In addition, the prospects for substantial fiscal reform or other measures to enhance GDP growth in the second half of the Calderón Administration are, in our view, diminishing.
As a result, we have lowered the foreign-currency sovereign credit rating on Mexico to 'BBB/A-3' from 'BBB+/A-2' and the local-currency rating to 'A/A-1' from 'A+/A-1'.
The stable outlook reflects fiscal and external indicators that are consistent with the 'BBB' median, the absence of macroeconomic imbalances in the Mexican economy, and the Mexican government's longstanding commitment to macroeconomic stability.
Standard & Poor's Ratings Services said today that it lowered its foreign-currency sovereign credit rating on the United Mexican States to 'BBB/A-3' from 'BBB+/A-2' and the local-currency credit rating to 'A/A-1' from 'A+/A-1'. Standard & Poor's also said that it lowered the transfer and convertibility assessment on Mexico to 'A' from 'A+'. In addition, Standard & Poor's affirmed the mxAAA/Stable/-- national-scale rating. The outlook is stable.
"The downgrades reflects our assessment that Mexico's recent steps to raise non-oil revenues and improve efficiencies in the economy will likely be insufficient to compensate for the weakening of its fiscal profile," explained Standard & Poor's credit analyst Lisa Schineller. "This weakening stems from a combination of modest GDP growth prospects and diminished oil production over the coming years." The revenue measures approved in the 2010 budget should address immediate concerns about fiscal vulnerability to volatile oil revenues. However, the inability to widen the tax base substantially, along with a low likelihood of major tax reform in the next several years, suggest that Mexico's debt profile will remain more in line with that of its 'BBB' peers.
Mexico's net general government debt has recently increased and is projected to remain at about 34% of GDP during 2009-2011, which is line with the projected 'BBB' median for this same period. Its GDP growth prospects over the next several years are also projected to remain moderate at 3%-4%, limiting the upside to fiscal dynamics. Notwithstanding the efficiency gains associated with the closure of Luz y Fuerza del Centro (the main supplier of electricity in the central region of Mexico), new management of its assets, and forthcoming telecommunications concessions, we believe that Mexico's strong links with the U.S. economy will limit its growth prospects given our diminished expectations for growth in the U.S.
In the midst of the deepest contraction in real GDP (estimated at 7%) in decades, the Mexican Congress passed a number of tax increases, including raising the controversial VAT. The measures replace lost oil revenue in the short term. However, the government's forecasts are for overall public-sector revenues to at best hold steady at about 22% of GDP; this is consistent with general government revenues of 19% of GDP and is much lower than the 35% for the 'BBB' median. Oil-related revenues have averaged about 35% of total budgetary revenues.
The government's inability to broaden the tax base meaningfully and address the many loopholes and exemptions in the tax regime weakens its capacity to contain fiscal pressures from diminished oil production--even if oil output declines more slowly than in recent years. General government deficits are projected to average 3% of GDP (2009-2011), which is comparable with that of the 'BBB' median. Projected deficits are higher than the deficits Mexico ran during the years of buoyant oil prices, when investment-grade credits with significant budgetary reliance on commodity revenue ran surpluses.
The ratings on Mexico are supported by its track record of and commitment to macroeconomic stability, as its prudent macroeconomic management, which political parties at the national level support, demonstrates. The ratings also reflect conservative management at the Finance Ministry, a formally and operationally independent central bank, and recent steps to improve tax administration at Servicio de Administractión Tributaria, the national tax-collection agency.
In addition, Mexico's external accounts do not, in our view, pose the same risk to its credit profile as they do in some other peer 'BBB' category credits. Mexico's external debt, net of liquid assets, is in line with the 'BBB' median of about 31% of current account receipts. Despite the fall-off in oil revenues, the current account deficit declined to an estimated 0.8% of GDP this year from 1.5% in 2008. Although we expect that the deficit will widen over the forecast horizon toward 1.4% of GDP in 2011, this is below the projected 2%-2.5% for the 'BBB' median for 2009-2011. The absence of imbalances feeds into comparatively strong external financing needs vis-à-vis peer credits. Mexico's gross external financing needs as a percent of current account receipts and usable reserves average 93% in 2009-2011 versus the 'BBB' median of 114%.
"The stable outlook reflects our expectation that cautious macroeconomic policies should contain the rise in Mexico's debt burden in coming years," Ms. Schineller added. The government's commitment to maintaining macroeconomic stability, combined with recent changes in taxation, should contain the slippage in Mexico's fiscal and external indicators and keep them at levels that are consistent with the 'BBB' median.
"The ratings could come under downward pressure if fiscal dynamics were to deteriorate, such as if the recently passed tax measures fail to generate sufficient revenues to offset lower oil revenue," Ms. Schineller notes. "The ratings could benefit from stronger-than-expected GDP growth prospects that facilitate better fiscal dynamics or other measures that enhance fiscal flexibility."
RELATED RESEARCH
"Sovereign Credit Ratings: A Primer," May 2008.
Complete ratings information is available to RatingsDirect on the Global Credit Portal subscribers at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.
In addition, the prospects for substantial fiscal reform or other measures to enhance GDP growth in the second half of the Calderón Administration are, in our view, diminishing.
As a result, we have lowered the foreign-currency sovereign credit rating on Mexico to 'BBB/A-3' from 'BBB+/A-2' and the local-currency rating to 'A/A-1' from 'A+/A-1'.
The stable outlook reflects fiscal and external indicators that are consistent with the 'BBB' median, the absence of macroeconomic imbalances in the Mexican economy, and the Mexican government's longstanding commitment to macroeconomic stability.
Standard & Poor's Ratings Services said today that it lowered its foreign-currency sovereign credit rating on the United Mexican States to 'BBB/A-3' from 'BBB+/A-2' and the local-currency credit rating to 'A/A-1' from 'A+/A-1'. Standard & Poor's also said that it lowered the transfer and convertibility assessment on Mexico to 'A' from 'A+'. In addition, Standard & Poor's affirmed the mxAAA/Stable/-- national-scale rating. The outlook is stable.
"The downgrades reflects our assessment that Mexico's recent steps to raise non-oil revenues and improve efficiencies in the economy will likely be insufficient to compensate for the weakening of its fiscal profile," explained Standard & Poor's credit analyst Lisa Schineller. "This weakening stems from a combination of modest GDP growth prospects and diminished oil production over the coming years." The revenue measures approved in the 2010 budget should address immediate concerns about fiscal vulnerability to volatile oil revenues. However, the inability to widen the tax base substantially, along with a low likelihood of major tax reform in the next several years, suggest that Mexico's debt profile will remain more in line with that of its 'BBB' peers.
Mexico's net general government debt has recently increased and is projected to remain at about 34% of GDP during 2009-2011, which is line with the projected 'BBB' median for this same period. Its GDP growth prospects over the next several years are also projected to remain moderate at 3%-4%, limiting the upside to fiscal dynamics. Notwithstanding the efficiency gains associated with the closure of Luz y Fuerza del Centro (the main supplier of electricity in the central region of Mexico), new management of its assets, and forthcoming telecommunications concessions, we believe that Mexico's strong links with the U.S. economy will limit its growth prospects given our diminished expectations for growth in the U.S.
In the midst of the deepest contraction in real GDP (estimated at 7%) in decades, the Mexican Congress passed a number of tax increases, including raising the controversial VAT. The measures replace lost oil revenue in the short term. However, the government's forecasts are for overall public-sector revenues to at best hold steady at about 22% of GDP; this is consistent with general government revenues of 19% of GDP and is much lower than the 35% for the 'BBB' median. Oil-related revenues have averaged about 35% of total budgetary revenues.
The government's inability to broaden the tax base meaningfully and address the many loopholes and exemptions in the tax regime weakens its capacity to contain fiscal pressures from diminished oil production--even if oil output declines more slowly than in recent years. General government deficits are projected to average 3% of GDP (2009-2011), which is comparable with that of the 'BBB' median. Projected deficits are higher than the deficits Mexico ran during the years of buoyant oil prices, when investment-grade credits with significant budgetary reliance on commodity revenue ran surpluses.
The ratings on Mexico are supported by its track record of and commitment to macroeconomic stability, as its prudent macroeconomic management, which political parties at the national level support, demonstrates. The ratings also reflect conservative management at the Finance Ministry, a formally and operationally independent central bank, and recent steps to improve tax administration at Servicio de Administractión Tributaria, the national tax-collection agency.
In addition, Mexico's external accounts do not, in our view, pose the same risk to its credit profile as they do in some other peer 'BBB' category credits. Mexico's external debt, net of liquid assets, is in line with the 'BBB' median of about 31% of current account receipts. Despite the fall-off in oil revenues, the current account deficit declined to an estimated 0.8% of GDP this year from 1.5% in 2008. Although we expect that the deficit will widen over the forecast horizon toward 1.4% of GDP in 2011, this is below the projected 2%-2.5% for the 'BBB' median for 2009-2011. The absence of imbalances feeds into comparatively strong external financing needs vis-à-vis peer credits. Mexico's gross external financing needs as a percent of current account receipts and usable reserves average 93% in 2009-2011 versus the 'BBB' median of 114%.
"The stable outlook reflects our expectation that cautious macroeconomic policies should contain the rise in Mexico's debt burden in coming years," Ms. Schineller added. The government's commitment to maintaining macroeconomic stability, combined with recent changes in taxation, should contain the slippage in Mexico's fiscal and external indicators and keep them at levels that are consistent with the 'BBB' median.
"The ratings could come under downward pressure if fiscal dynamics were to deteriorate, such as if the recently passed tax measures fail to generate sufficient revenues to offset lower oil revenue," Ms. Schineller notes. "The ratings could benefit from stronger-than-expected GDP growth prospects that facilitate better fiscal dynamics or other measures that enhance fiscal flexibility."
RELATED RESEARCH
"Sovereign Credit Ratings: A Primer," May 2008.
Complete ratings information is available to RatingsDirect on the Global Credit Portal subscribers at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.
Thursday, December 3, 2009
First Data Reveals Success Factors for Prepaid Cards in Europe
In a new study of consumer attitudes believed to be unique in its scope, First Data, a global technology and payments processing leader, offers insight into the European prepaid market. Study findings are expected to help banks and retailers build more successful business cases for prepaid products. Conducted in June and July of 2009, the First Data survey asked consumers to evaluate five prepaid card types (gift, general spending, travel, youth and remittance) in four countries representing various stages of market maturity: Germany and Austria are considered to be embryonic, the UK is more established and Italy is the most advanced prepaid market in Europe. “The high level of consumer interest in learning more about prepaid products is, in my opinion, one of the key findings of this research,” said Tony Craddock, CEO of Global Prepaid Exchange. “Consumers are increasingly aware of the products and are now evaluating the benefits; a process that should certainly produce improved sales. When you couple increased interest with consumers’ predictions of their own behaviour, the clear implication is that the industry is set for near-term, significant growth across the countries investigated.” Key findings from the study include: · More than half (57 percent) of consumers who expect to buy a prepaid card within the next 12 months describe themselves as creditworthy consumers with incomes above £/€40,000 annually. They consider themselves to be financially savvy and avid savers. It is clear that prepaid market opportunities extend well beyond consumers who are unable or unwilling to open bank accounts.
In every country, the number of consumers expecting to buy a prepaid card in the next 12 months exceeds the number who did so in the previous 12 months. This indicates good potential for prepaid growth in the markets surveyed.
Fifty-five percent of all respondents see benefit in using a prepaid card to help control spending and manage their money. Marketing messages that focus on the benefits of using prepaid cards for budgeting, and also broad card acceptance, are likely to be very well received by consumers when deciding to purchase prepaid products.
Consumers are more willing to accept charges based on one-off actions such as balance top-up or cash withdrawals than monthly fees or fees charged when making a purchase at the point of sale. In all countries, between 50 percent and 70 percent of respondents indicated a preference for offers featuring fee structures that include an initial purchase fee but no monthly charge.
Thirty-eight percent of consumers surveyed said they would be willing to pay additional fees in order to personalise a prepaid gift card with a customised colour scheme, picture or message. This represents a significant potential, incremental revenue stream for banks and retailers looking to introduce prepaid card offerings. In Germany, the level of interest in personalising a Gift card either by selecting the colour scheme, personal picture or customised message was the highest of all four countries surveyed with 41% of consumers expressing interest.
Consumer preference for individual distribution channels varied by market. In the UK, a strong preference (74 percent of consumers) was shown for supermarkets as a distribution channel – for all except a travel card, which 50 percent of consumers were more comfortable buying at the post office. In Germany, banks are the preferred purchase channel for all card types except gift cards, which consumers would prefer to purchase in department stores. In Italy, the majority of consumers surveyed (50 percent – 64 percent, depending on the prepaid card type) would look to purchase prepaid cards at a post office, probably due to the current dominance of the national PostePay products.
Sixty-four percent of consumers stated that they would prefer to receive information about prepaid offerings through online media. In addition, 46 percent of respondents would like to be able to purchase a prepaid gift card online. Levels were similar for other card types. It is clear from the research that there is a significant opportunity to increase prepaid card sales by using the Internet as a supplementary distribution channel to traditional bricks and mortar outlets.
"Our research suggests strongly that retailers and financial institutions could formulate prepaid sales and marketing strategies that are universal or broad in reach, rather than focusing entirely on selling by product, geography or socio-economic groups,” said Lisa Walker, head of Prepaid for First Data’s international business. “Marketing strategies should include online channels as a priority, clearly describe how the product can be used and, importantly, allow consumers to define their own benefits and card usage.”
In every country, the number of consumers expecting to buy a prepaid card in the next 12 months exceeds the number who did so in the previous 12 months. This indicates good potential for prepaid growth in the markets surveyed.
Fifty-five percent of all respondents see benefit in using a prepaid card to help control spending and manage their money. Marketing messages that focus on the benefits of using prepaid cards for budgeting, and also broad card acceptance, are likely to be very well received by consumers when deciding to purchase prepaid products.
Consumers are more willing to accept charges based on one-off actions such as balance top-up or cash withdrawals than monthly fees or fees charged when making a purchase at the point of sale. In all countries, between 50 percent and 70 percent of respondents indicated a preference for offers featuring fee structures that include an initial purchase fee but no monthly charge.
Thirty-eight percent of consumers surveyed said they would be willing to pay additional fees in order to personalise a prepaid gift card with a customised colour scheme, picture or message. This represents a significant potential, incremental revenue stream for banks and retailers looking to introduce prepaid card offerings. In Germany, the level of interest in personalising a Gift card either by selecting the colour scheme, personal picture or customised message was the highest of all four countries surveyed with 41% of consumers expressing interest.
Consumer preference for individual distribution channels varied by market. In the UK, a strong preference (74 percent of consumers) was shown for supermarkets as a distribution channel – for all except a travel card, which 50 percent of consumers were more comfortable buying at the post office. In Germany, banks are the preferred purchase channel for all card types except gift cards, which consumers would prefer to purchase in department stores. In Italy, the majority of consumers surveyed (50 percent – 64 percent, depending on the prepaid card type) would look to purchase prepaid cards at a post office, probably due to the current dominance of the national PostePay products.
Sixty-four percent of consumers stated that they would prefer to receive information about prepaid offerings through online media. In addition, 46 percent of respondents would like to be able to purchase a prepaid gift card online. Levels were similar for other card types. It is clear from the research that there is a significant opportunity to increase prepaid card sales by using the Internet as a supplementary distribution channel to traditional bricks and mortar outlets.
"Our research suggests strongly that retailers and financial institutions could formulate prepaid sales and marketing strategies that are universal or broad in reach, rather than focusing entirely on selling by product, geography or socio-economic groups,” said Lisa Walker, head of Prepaid for First Data’s international business. “Marketing strategies should include online channels as a priority, clearly describe how the product can be used and, importantly, allow consumers to define their own benefits and card usage.”
Pool Assets sends off THRU Thonglor, a 1.8-billion-Baht condominium project set to answer the urban lifestyle of the new generations in Thonglor area.
Pool Assets sends off THRU Thonglor, a 515-unit condominium project with a combined value of 1.8 BN in Thonglor area. Adjacent to Airport Link, BTS and MRT, the project is meant to answer the urban lifestyle of the new generations. At a starting price of 59,000 Baht per SQM or 1.8 MB for one bedroom suite, the project will be officially on sale on this coming October 17, 2009. With Century 21 (Thailand) as project marketing and sale consultant, the company targets 60% presales by the end of this year.
Mr. Sombat Sangratkanjanasin and Mr. Kitimet Kittiakkarapat, Managing Director of Pool Assets Co., Ltd., discloses today that the company is launching THRU Thonglor, a 35-story condominium project on New Petchburi Road adjacent to Thonglor Intersection. With a combined project value of 1.8 BN, the project has a total of 515 residential units and 18 commercial units. Designed to serve the lifestyle of the new generations; it targets at working adults or modern tasteful families yearning for a convenient life in Thonglor area. With its superb location in a high potential downtown area, the project is easily commuted via Airport Link, BTS, and MRT as well as conveniently connected to several main roads,e.g. New Petchburi Road, Ratchadapisek Road, Sukhumvit Road, Rama 9 Road, and Ramkamhaeng Road. All these add up and make all travels, either for business or pleasure, easy and comfortable ones. And as the project is strategically located in a high quality neighborhood, the company is confident that it would receive good response from its targets.
Given the improving general economic outlook, when Airport Link starts its services in the beginning of December 2009, this will activate extensive activities and travelling along Airport Link line and attracts all kinds of investments to the area. Since it is difficult to find a sizable plot of land at reasonable price in Sukhumvit area, the general outlook of New Petchburi would turn more positive in the future. Old shop houses would then be converted into new office buildings and condominiums, as the rising trend would make it more feasible for investments. As concretely seen today, while many developers have just expressed their interest to build more condominiums in the area, Pool Assets is among the far-sighted pioneers to have announced the launch of this project.
“Our shareholders have more than 20 years of extensive experience in real estate business. We have developed many successful low-rise and high-rise projects, e.g. The Station, which offers two 17-story buildings totaling 675 units in Sathorn-Bangrak area. This project has achieved almost 100% presales to date. And so far 60% have been transferred, while the remaining is expected to be transferred by the end of this year. In each and every project that we operate, we conduct thorough market feasibility study as well as dig deep into our customers’ needs and wants. Therefore, we are highly confident that the project potential and location will naturally make it a success. Now with Mr. Kittisak Champathippong of Century 21 Realty Affiliates (Thailand), as project marketing and sale consultant, it is even more convinced that the project will beautifully succeed. As a test, we have unofficially put the project on sale at Centrual 21 Pavillion in the 21st Home and Condo Expo at the Queen Sirikit National Convention Center last week and received very good response from our targets”.
“As a promotional price to go with the official project launch on this coming October 17, 2009, we will initiate our starting price at only 59,000 Baht per SQM or 1.8 MB for one bedroom suite. Since our first presales at the beginning of September 2009, we have already achieved 25% presales and expect that we would be able to achieve 60% presales by the end of 2009.” Mr. Sombat and Mr. Kitimet concluded.
The THRU Thonglor is a 35-story residential condominium project. With 515 residential units and 18 retail units, the project has a combined value of 1.8 BN. It is conveniently located on New Petchburi Road adjacent to Thonglor Intersection. It is developed by Pool Assets Co., Ltd. on a 2-3-72-rai plot of land. The project offers a variety of suites to choose from, for example, one-bedroom suite with usable area of 31-44 SQM and two-bedroom suite with usable area of 56-65 SQM. Designed to serve true urban lifestyles, all units are crafted out with full functions. With a wide space of 6 meters, every one-bedroom suite is distinctively separated into bedroom, dressing room, toilets, shower room, and kitchen. To make it totally comfortable, all units are equipped with air conditioner, built-in electric stove, and hood. The project offers complete facilities including swimming pool, fitness center, sauna room, stream room, and activity area. It is 100% safe and secured with access control card system, CCTV, five passenger and service lifts, separate elevator on car park levels (2nd – 8th Floor), as well as 24-hour security system. The THRU Thonglor is scheduled to start its construction in March 2010 and is expected to complete by mid 2012.
Mr. Sombat Sangratkanjanasin and Mr. Kitimet Kittiakkarapat, Managing Director of Pool Assets Co., Ltd., discloses today that the company is launching THRU Thonglor, a 35-story condominium project on New Petchburi Road adjacent to Thonglor Intersection. With a combined project value of 1.8 BN, the project has a total of 515 residential units and 18 commercial units. Designed to serve the lifestyle of the new generations; it targets at working adults or modern tasteful families yearning for a convenient life in Thonglor area. With its superb location in a high potential downtown area, the project is easily commuted via Airport Link, BTS, and MRT as well as conveniently connected to several main roads,e.g. New Petchburi Road, Ratchadapisek Road, Sukhumvit Road, Rama 9 Road, and Ramkamhaeng Road. All these add up and make all travels, either for business or pleasure, easy and comfortable ones. And as the project is strategically located in a high quality neighborhood, the company is confident that it would receive good response from its targets.
Given the improving general economic outlook, when Airport Link starts its services in the beginning of December 2009, this will activate extensive activities and travelling along Airport Link line and attracts all kinds of investments to the area. Since it is difficult to find a sizable plot of land at reasonable price in Sukhumvit area, the general outlook of New Petchburi would turn more positive in the future. Old shop houses would then be converted into new office buildings and condominiums, as the rising trend would make it more feasible for investments. As concretely seen today, while many developers have just expressed their interest to build more condominiums in the area, Pool Assets is among the far-sighted pioneers to have announced the launch of this project.
“Our shareholders have more than 20 years of extensive experience in real estate business. We have developed many successful low-rise and high-rise projects, e.g. The Station, which offers two 17-story buildings totaling 675 units in Sathorn-Bangrak area. This project has achieved almost 100% presales to date. And so far 60% have been transferred, while the remaining is expected to be transferred by the end of this year. In each and every project that we operate, we conduct thorough market feasibility study as well as dig deep into our customers’ needs and wants. Therefore, we are highly confident that the project potential and location will naturally make it a success. Now with Mr. Kittisak Champathippong of Century 21 Realty Affiliates (Thailand), as project marketing and sale consultant, it is even more convinced that the project will beautifully succeed. As a test, we have unofficially put the project on sale at Centrual 21 Pavillion in the 21st Home and Condo Expo at the Queen Sirikit National Convention Center last week and received very good response from our targets”.
“As a promotional price to go with the official project launch on this coming October 17, 2009, we will initiate our starting price at only 59,000 Baht per SQM or 1.8 MB for one bedroom suite. Since our first presales at the beginning of September 2009, we have already achieved 25% presales and expect that we would be able to achieve 60% presales by the end of 2009.” Mr. Sombat and Mr. Kitimet concluded.
The THRU Thonglor is a 35-story residential condominium project. With 515 residential units and 18 retail units, the project has a combined value of 1.8 BN. It is conveniently located on New Petchburi Road adjacent to Thonglor Intersection. It is developed by Pool Assets Co., Ltd. on a 2-3-72-rai plot of land. The project offers a variety of suites to choose from, for example, one-bedroom suite with usable area of 31-44 SQM and two-bedroom suite with usable area of 56-65 SQM. Designed to serve true urban lifestyles, all units are crafted out with full functions. With a wide space of 6 meters, every one-bedroom suite is distinctively separated into bedroom, dressing room, toilets, shower room, and kitchen. To make it totally comfortable, all units are equipped with air conditioner, built-in electric stove, and hood. The project offers complete facilities including swimming pool, fitness center, sauna room, stream room, and activity area. It is 100% safe and secured with access control card system, CCTV, five passenger and service lifts, separate elevator on car park levels (2nd – 8th Floor), as well as 24-hour security system. The THRU Thonglor is scheduled to start its construction in March 2010 and is expected to complete by mid 2012.
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