Thailand Live Friday 20 Jul 2012

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Special Report: PM urged to exclude alcohol deal from FTA with EU

BANGKOK: -- The National Economic and Social Advisory Council (NESAC) has urged Prime Minister Yingluck Shinawatra to be cautious about the free trade area on alcoholic beverages with the European Union (EU), saying the deal could encourage new Thai drinkers.

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Thai PM makes first visit to France in 7 years

BERLIN, July 20 - Thai Prime Minister Yingluck Shinawatra arrives in France today on the second leg of her official visit to Europe since taking office last year and the first visit to France by a Thai premier in seven years.

Ms Yingluck is scheduled to stay in Paris for two days at the invitation of French President François Hollande. The visit will underscore the importance of the Thai-French strategic partnership under the Thai-French joint action plan.

Speaking to reporters before leaving Berlin for Paris later Friday, Ms Yingluck said Thailand and France have been longtime trade partners. She will take this opportunity to exchange viewpoints on the eurozone debt crisis. Thailand will affirm its readiness to support European Union policies to promote good governance, upgrade policy coordination and prevent economic imbalances in the regional grouping's member countries, as well as financial bailouts for troubled economies.

Ms Yingluck said she expects to gather first-hand information on eurozone economic problems which will be useful for Thailand in handling their possible impact on the Thai economy.

She emphasised that Thailand will foster trade and investment with France and expand Thai business opportunities as well as persuade more French companies to invest in Thailand as it is a regional hub connecting to other member countries of the Association of Southeast Asian Nations (ASEAN).

An official statement posted on the Thai foreign ministry's website said Prime Minister Yingluck is scheduled to meet with President François Hollande, who is playing a crucial role in resolving the current economic crisis in Europe. Afterward she will have a discussion followed by a working lunch with French Prime Minister Jean-Marc Ayrault.

During her visit, the Thai premier will witness the signing of the “Intergovernment Agreement for Cooperation in Education and Research between the Government of Thailand and the Government of the French Republic”, which will further strengthen Thai-French academic and scientific cooperation.

Representatives from important Thai business sectors including the Federation of Thai Industries, the Board of Trade of Thailand, the Thai Bankers’ Association and other associations accompanying the prime minister will attend a business seminar to exchange views on how to expand trade and investment with French economic experts and business counterparts.

The visit will further strengthen the bilateral relations and cooperation between the two countries. The scheduled visit will be the first visit to France by a Thai Prime Minister in 7 years.

The last visit was in 2005 when then prime minister Thaksin Shinawatra, Ms Yingluck's brother, officially visited France at the invitation of French President Jacques Chirac.

Ms Yingluck met German Chancellor Angela Merkel at the Chancellery on Wednesday, the first day of her official visit in Europe marking the 150th Anniversary of the establishment of diplomatic relations between Thailand and Germany.

The two countries planned to increase trade and investment value through bilateral cooperative mechanisms such as the Joint Thai-German Economic Committee (JEC).

The Thai premier said she was satisfied with her visit in Germany which resulted in various kinds of cooperation and that German Economic Minister Philipp Roesler will visit Thailand next month to follow up and proceed to apply this week's agreements. (MCOT online news)

-- TNA 2012-07-20

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RT @RichardBarrow: Have you seen this boy? Missing from Bangkok since 10th July. Please call 086-5403989 - http://bit.ly/MciPHY

UPDATE 4:10pm

RT @RichardBarrow: Good news about the missing boy I tweeted about earlier. His parents have said that he has been found in Songkhla

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RT @191Thailand: Pictures by @SpringNews_TV of the car bombing in Narathiwat this morning http://bit.ly/O1OzSN

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Pheu Thai to discuss charter change next week

The Nation

BANGKOK: -- The ruling Pheu Thai Party will next week hold a meeting to map out its next move on charter change, PM's Office Minister Woravat Auapinyakul said on Friday.

The meeting will take place on Friday and Saturday.

"I expect things will become clear on what the party will do in regard to amending the charter," Woravat said.

He said by next week the Constitution Court would have released the verdict accompanied by individual opinions of eight judges, allowing the party to study the ruling before finalising its move.

He said the party was prepared to choose a number of options, such as amending provision by provision and designating the Constitution Drafting Assembly to rewrite the entire charter.

One possible option was to amend certain provisions before framing a new charter, he said.

Commenting on the charter amendment bill, he said he detected a legal dilemma because the bill had passed its second reading and could not be dropped but had to undergo a vote on the third and final reading.

-- The Nation 2012-07-20

[Lite Beer]

RATING ACTION

S&P may downgrade ThaiBev on proposed acquisition

The Nation

On July 19, 2012, Standard & Poor's Ratings Services placed its 'BBB' long-term corporate credit rating on Thailand-based beverage manufacturer Thai Beverage Plc on CreditWatch with negative implications, reflecting the debt burden to be incurred by the acquisition of Singapore-based conglomerate Fraser and Neave Ltd.

ThaiBev on the day announced the agreement to buy the 22 per cent stake of F&N for 2.8 billion Singapore dollar.

In the next 3 months, S&P said it may lower the rating by one notch if the company’s deleveraging potential reduces its debt-to-EBITDA ratio to remain above 3 times over the next 24 months. The rating would be affirmed if Thai Bev’s financial risk profile improves to "intermediate" in the next 24 months. When the ratio of debt to EBITDA is less than 2.5 times and the ratio of debt to debt plus equity lower than 40 per cent by the end of 2014, that could indicate such improvement.

"The CreditWatch placement reflects our expectation that Thai Bev’s proposed debt-funded acquisition will weaken its financial risk profile, which we currently assess as "modest", over the next 24 months," S&P said in a statement.

It estimated that Thai Bev’s debt-to-EBITDA ratio could weaken to about 3.2 times in 2012, following the acquisition, from 1 time in 2011. The ratio is expected to improve to less than 2.5 times by 2014 at the earliest, based on share of income from F&N.

S&P also anticipated that Thai Bev’s capital structure will weaken substantially over the next two years with a ratio of debt to debt plus equity above 50 per cent until 2014 compared with 25.6 per cent in 2011, on the assumption that the company’s dividend payout will be 75-80 per cent of net income - in line with that in the past three years - and that the acquisition would be fully debt-funded.

"The proposed acquisition is unlikely to positively influence our "satisfactory" assessment of Thai Bev’s business risk profile for the next 24 months at least. We believe commercial synergies of the acquisition could take time to materialise, particularly given Thai Bev’s minority stake," it noted.

At "BBB", the rating reflects ThaiBev’s dominant domestic market position in spirits and high and stable cash flows. Geographic concentration in Thailand, a still weak performance of Thai Bev’s beer division, and a growth strategy that may translate into more aggressive financial policies partly offset these strengths.

S&P noted that ThaiBev’s liquidity is adequate, if the acquisition worth nearly Bt70 billion is not factored in. As of March 31, 2012, ThaiBev’s funds from operations stood at Bt16 billion. Domestic financial institutions have also been committed to extend Bt4.6 billion loans, and ThaiBev also has access to more than Bt36 billion in uncommitted credit lines.

Meanwhile, ThaiBev needs to repay loans worth Bt3.7 billion within 12 months and is expected to need working capital of Bt2-Bt3 billion during the period.

-- The Nation 2012-07-20

[Lite Beer]

Canadian, 81, injured in Phuket car crash

Phuket Gazette

Canadian Mr Bellach refuted the van driver’s claim he cut off the van, which was en route to Phuket Town from Phuket Airport. Photo: Thawit Bilabdullar,

The Suzuki SJ413, sold in Phuket as a Suzuki Caribbean, was once among the best-selling vehicles on the island. Photo: Thawit Bilabdullar.

Full Story: http://www.thaivisa.com/forum/topic/571269-canadian-81-injured-in-phuket-car-crash/#entry5502101

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'It's time to face and talk,' Thaksin

The Nation

BANGKOK: -- Former prime minister Thaksin Shinawatra has called for talks about his return to Thailand, Bloomberg reported on Friday quoting Thaksin interview given to Channel News Asia.

Full Story: http://www.thaivisa.com/forum/topic/571293-its-time-to-face-and-talk-thaksin/#entry5502168

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Myanmar Township Border Committee informs Thai counterpart 1st batch of Thai detainees charged with illegal entry,land encroachment to be tried July 27 /MCOT

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US offers technical assistance to Thailand

BANGKOK, July 20 -- The United States is ready to provide technical assistance including training for Thai army personnel, according to a top US Army officer.

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10 killed at “The Dark Knight Rises” opening night in Denver (Voice of Russia): http://bit.ly/OLKAWP

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Narathiwat governor orders security tightened after car bomb

NARATHIWAT, July 20 - Narathiwat Governor Apinun Suethanuwong ordered all districts in the provinces to fine-tune their security plans after a car bomb injured eight people and set ablaze a commercial building in the province Friday morning.

The authorities in the provincial seat have already met to adjust the plan.

Firefighters fought more than three hours to control the blaze and rescue four people stranded on the rooftop safely after a 50-kilogramme bomb placed in a pick-up truck exploded, causing the fire on four blocks of the four-storey commercial building.

Four cars and motorcycles parked nearby were damaged.

The bomb was set off shortly after 6am in front of a computer shop.

Investigators inspecting pickup truck wreckage found that the vehicle was carrying a counterfeit automobile license plate and the bomb, believed triggered by community radio, was placed in a gas cylinder.

Pol Col Maitree Chimsherd, superintendent of the Sungai Kolok police station, inspected surveillance camera images but found that some units were out of order.

Chamnan Muandam, Sungai Kolok district chief, ordered setting up a relief centre for affected people to report about the damage incurred to their property for rehabilitation.

Army Region 4 commander Lt-Gen Udomchai Thammasarorat ordered special local military units to tighten security measures in checking suspicious vehicles and persons to prevent a repeated incident, according to Col Pramote Prom-in, deputy spokesman of the Internal Security Operations Command (ISOC) in the region.

Similar measures have been introduced in inbound route to Songkhla’s Hat Yai district, a major commercial and tourist centre of the South.

In Yala, where a bombing killed a villager and injured another, a joint force of police and soldiers set up checkpoints on all main roads connecting to the provincial seat. Following recent bombings in the southern border provinces, Songkhla province has also tightened security.

The region's majority Muslim community began fasting for the first day of the annual Ramadan fasting period on Friday. (MCOT online news)

-- TNA 2012-07-20

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RT @abcnews: Police chief says 14 confirmed dead after shooting at Batman movie premiere in Denver.

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Police chief Priewpan rules out early exit

The Nation

BANGKOK: -- National police chief General Priewpan Damapong on Friday dismissed speculation about leaving the police service to accept a ministerial appointment.

Priewpan said he will carry on his job until his retirement at the end of September.

"I have not been approached to join the government nor intend to quit my job," he said.

He added he did not want to supervise the police service because incumbent Deputy Prime Minister Chalerm Yoobamrung was already doing a good job.

He said following his retirement, he might continue his involvement in the suppression of illicit drugs.

He confirmed he would not be in the Cabinet line-up if the ministerial reshuffle took place next month as speculated.

He also said neither former prime minister Thaksin Shinawatra nor his ex-wife Khunying Pojaman na Pombejara had offered him a ministerial portfolio.

-- The Nation 2012-07-20

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SET index closed at 1208.55, down 4.41; Bt/USD31.58; GBP49.49; AUD32.75; EUR38.64; CAD31.16; HKD4.07; SGD25.02; JPY39.90

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RT @RichardBarrow: Visit Japan Travel Fair 2012 at Terminal 21 & Experience Australia Unlimited at Central World until Sunday

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14 confirmed dead after shooting at Batman movie premiere in Denver: Police

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Phuket weekend weather outlook

Phuket Gazette

The weather radar at Phuket Airport showed little storm activity in the region at 2pm today.

PHUKET: -- Blue skies over Phuket late this afternoon raise hopes for a fine weekend of sailing at the The 2012 Cape Panwa Hotel Phuket Raceweek this weekend.

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Thailand Live Saturday 21 Jul 2012