bangkok

Video: BoA’s Hume-Kendall Says IPOs `Complicated’ By Risks

by on March 28, 2011

March 28 (Bloomberg) — Rupert Hume-Kendall, chairman of global capital markets at Bank of America-Merrill Lynch, discusses the outlook for initial public offerings. He talks with Linzie Janis from Bangkok on Bloomberg Television’s “Global Connection.”

See the original post here:
Video: BoA’s Hume-Kendall Says IPOs `Complicated’ By Risks

Tagged as: , , , , , , , , , , , , ,

{ 0 comments }

Mubarak Resignation Cheered By World Markets

by AP on February 11, 2011

LONDON — Egyptian President Hosni Mubarak’s decision to hand power to the military boosted stocks around the world on Friday as hopes grew for a peaceful transition of power. Markets had earlier been lower after Mubarak defiantly held onto his position in a speech the day before, fueling concerns that the political standoff was a long way from being resolved. That sentiment was lifted when Vice President Omar Suleiman told state TV that Mubarak had resigned. “In these difficult circumstances that the country is passing through, President Hosni Mubarak has decided to leave the position of the presidency,” Suleiman said. He has commissioned the armed forces council to direct the issues of the state.” Stocks jumped across the board on the news. In Europe, Germany’s DAX traded up 0.4 percent to 7,371.01 while the FTSE 100 index of leading British shares gained 0.7 percent to 6,060.94. The CAC-40 in Paris was 0.3 percent higher at 4,092.51. All had been lower earlier in the day. After opening lower, Wall Street likewise rallied. The Dow Jones industrial average rose 0.2 percent to 12,254.34 while the Standard & Poor’s 500 index was 0.3 percent higher at 1,325.81. The news from Egypt also weighed down on oil prices, which had rallied in recent weeks on fears of the impact on crude transportation. By late afternoon in Europe, the benchmark crude for March delivery was down 30 cents at $86.43 a barrel in electronic trading on the New York Mercantile Exchange. Though Egypt is not a big oil producer, traders were worrying that the unrest might spread to other countries and affect the Suez Canal – a key route for oil tankers and cargo ships as they steer from the Persian Gulf to the major oil-consuming nations in Europe. In corporate news, Nokia Corp. shares slumped 14 percent after it revealed a strategic alliance with Microsoft Corp. to build smart phones that can compete with rivals Apple and Google. Analysts said the deal, which was more of a win for Microsoft, showed how desperate Nokia is to get back into the lucrative market. The company also warned its profits would be hurt in coming quarters as it adjusted and restructured. Fears that Europe’s debt crisis may be about to return have started to haunt the euro following a few weeks of relative calm amid signs that EU leaders were preparing a comprehensive solution. However, last week’s limited progress in a summit of EU leaders in Brussels reminded investors that the crisis is a long way from being settled and that Portugal could still end up joining Greece and Ireland in getting a bailout. “All is not well in the eurozone and we expect the pot to shift from the back burner to the front over the next few weeks,” said Jeremy Batstone-Carr, head of private client research at stockbrokers Charles Stanley. “We believe that the eurozone is approaching another crunch moment and that investors should be wary regarding the potential for a disorderly denouement.” As well as warning of the continued stresses in the banking sector, Batstone-Carr noted that the yield on Portugal’s ten-year bonds has spiked above 7 percent for the first time since a bond auction in January met with widespread investor support and eased concerns that the country would need a bailout imminently. Portugal has two major bond maturities soon, which it will have to roll over if it’s to avoid the fate of Greece and Ireland. “We are unsure as to whether the country has the funds necessary to redeem these bonds and we suspect that it will once again have to rely heavily on external sources,” Batstone-Carr said. Ireland is also in focus as the country gears up for a general election on Feb. 25. Leading ratings agency Moody’s Investors Service on Friday downgraded the creditworthiness of six Irish banks, citing doubts over whether the banks will get a new cash infusion which was due at the end of the month. The current government has put off the issue until after the election, and the opposition parties most likely to form the next government oppose further aid for banks. Polls indicate that the main Fine Gael opposition party will form the next government in coalition with Labour. By late morning London time, the euro was 0.4 percent lower at $1.3555 while the British pound was down 0.6 percent at $1.6003. The U.S. currency was also 0.1 percent firmer at 83.35 yen. Earlier in Asia, South Korea led the retreat, tumbling 1.6 percent after the country’s central bank suggested it will raise rates in coming months. The Bank of Korea unexpectedly raised the rate in January for the second time in three months. Australia’s S&P/ASX 200 let go of the previous day’s gains, dropping 0.7 percent, while Hong Kong’s Hang Seng rose 0.5 percent. Mainland Chinese shares ended the week on an upbeat note, with the benchmark Shanghai Composite Index gaining 0.3 percent and the Shenzhen Composite Index of China’s smaller, second exchange up 1.1 percent. ____ Pamela Sampson in Bangkok contributed to this report.

View original post here:
Mubarak Resignation Cheered By World Markets

Tagged as: , , , , , , , , , , , , , ,

{ 0 comments }

Video: Chart Partners’ Schroeder Sees $58 Oil, Recession Risk: Video

July 5, 2010

July 6 (Bloomberg) — Thomas Schroeder, managing director at Chart Partners Group Ltd., talks with Bloomberg’s Rishaad Salamat about technical analysis of the oil market. Speaking from Bangkok, Schroeder also discusses the outlook for U.S. and Asia-Pacific stocks, commodity demand and the Australian dollar. (Source: Bloomberg)

Read the full article →

Stocks Climb as Recovery Gathers Pace U.S. Futures Drop, Won Strengthens

June 18, 2010

By Yumi Teso and Anna Kitanaka June 18 (Bloomberg) — European and Asian stocks gained, driving their benchmark indexes to their longest winning streaks in 11 months, and the won climbed on signs investors are buying assets in the region as an economic recovery gathers pace. The Stoxx Europe 600 Index increased 0.7 percent to 256.64 at 8:49 a.m. in London as concerns eased that Europe’s debt crisis will worsen. The MSCI Asia Pacific Index rose 0.2 percent to 111.12, advancing for a seventh day. The euro strengthened to a three-week high against the dollar. South Korea’s won had its biggest weekly jump in 13 months after Finance Minister Yoon Jeung Hyun said growth will likely exceed 5 percent this year. Emerging-market equity and bond funds received net inflows in the week to June 16 as appetite for higher-yielding assets revived after concerns over European deficits eased, EPFR Global said. A government report showed Thai exports jumped 42 percent in May from a year earlier, the most in almost two years, and Japan’s government pledged to cut company tax to spur growth. “There has been optimism that the impact of Europe’s problem on the Asian economy may be limited, supporting the purchase of regional currencies,” said Minori Uchida , a senior analyst in Tokyo at Bank of Tokyo-Mitsubishi UFJ Ltd. South Korea’s won advanced 0.9 percent to 1,202.65 per dollar as foreigners pumped money into the stock market for a sixth day, the longest run of net purchases in two months. The Taiwan dollar gained 0.5 percent to NT$32.16 before a report next week that a Bloomberg survey of economists indicates will show exports increased 34 percent in May from a year earlier. The MSCI Emerging Markets Index rose 0.4 percent, extending an eight-day, 6.8 percent rally. The FTSE Bursa Malaysia KLCI Index added 0.4 percent. Emerging Markets Emerging equities funds took in $2.5 billion in the past week, the second-largest inflow this year, while emerging bond funds received $659 million, EPFR said in a statement. The MSCI Asia Pacific Index has slumped 10 percent from its high this year on April 15 as swelling budget deficits prompted Standard & Poor’s to cut ratings of Greece, Spain and Portugal. The retreat has driven down the average price of shares in the gauge to 14.7 times estimated earnings . The ratio sank to 13.8 times on May 18, the lowest level since December 2008. “There was a lot of pessimism about what’s happening in Europe that took the market down,” said Tim Leung , who helps manage about $1.5 billion at IG Investment Ltd. in Hong Kong. “Stabilization in the European funding probably made a lot of investors less worried about the situation.” Default Risk HSBC Holdings Plc, Europe’s biggest bank, gained 0.8 percent in Hong Kong after Spain yesterday sold 3.5 billion euros ($4.3 billion) of bonds at yields lower than the prevailing market rates. London-based Standard Chartered Plc jumped 3.5 percent. The cost of protecting Japanese corporate bonds from non- payment declined, according to traders of credit-default swaps. The Markit iTraxx Japan index dropped 3 basis points to 130, according to Morgan Stanley. The euro advanced to $1.2381, after earlier touching $1.2414, the highest level since May 28. The yen climbed 0.3 percent to 90.80 after the government pledged in its medium-term economic plan today to bring the corporate tax rate down to a level “commensurate” with other leading nations. Asian technology shares gained after Apple Inc. rallied 1.7 percent to a record yesterday. Morgan Stanley said the customer base for the iPhone may top 100 million users next year on demand for its latest version. Apple Link Softbank Corp., the exclusive supplier of the iPhone in Japan, climbed 2.7 percent. Nintendo Co., the world’s largest maker of video-game players, advanced 2 percent, its seventh consecutive gain. Wintek Corp. , a component maker for Apple Inc.’s iPad and iPhones, gained 2 percent. Japan’s Nikkei 225 Stock Average was little changed and futures on the Standard & Poor’s 500 Index fell 0.1 percent today. Toyota Motor Corp. , which gets 28 percent of its sales in North America, lost 1.7 percent in Tokyo after U.S. jobless claims increased. “The economic climate has to further improve in countries like the U.S. for the stock market to enter a full-fledged recovery phase, though investors are less anxious about Europe,” said Kazuhiro Takahashi , a general manager at Tokyo- based Daiwa Securities Capital Markets Co. Bullish on Gold Gold may advance to a record as investors take refuge in the precious metal to protect their wealth from Europe’s financial turbulence. Bullion for immediate delivery traded at $1,245.02, after jumping as much as 1.8 percent yesterday. The metal touched a record $1,252.11 on June 8. Newcrest Mining Ltd., Australia’s largest gold producer, gained 2.1 percent in Sydney. “We are still very bullish on gold,” said Hwang Il Doo , a senior trader with KEB Futures Co. in Seoul. “Gold will remain the main beneficiary of what’s happening in Europe unless the picture takes a turn for the better.” Crude oil fell for a second day in New York, dropping 0.6 percent to $76.37 a barrel, amid doubts about the pace of the economic recovery in the U.S., the world’s largest energy consumer. U.S. fuel consumption fell 0.9 percent to the lowest level in five weeks in the seven days ended June 11, the Energy Department reported June 16. “The U.S. economy is facing a major structural adjustment in the wake of the financial crisis and subsequent economic slump,” said Toby Hassall , a research analyst at CWA Global Markets Ltd. — Kim Kyoungwha and Christian Schmollinger in Singapore, Yusuke Miyazawa in Tokyo, Weiyi Lim in Taipei, Ronnie Koo in Hong Kong and Toshiro Hasegawa in Tokyo. Editors: Sandy Hendry , Patrick Chu To contact the reporters on this story: Yumi Teso in Bangkok at yteso1@bloomberg.net .

Read the full article →

Singapore, Thailand, Vietnam Added to Human-Trafficking Watchlist by U.S.

June 14, 2010

By Daniel Ten Kate and Nicole Gaouette June 15 (Bloomberg) — Singapore, Thailand and Vietnam all regressed last year in their efforts to battle trafficking of men, women and children for labor or commercial sex, according to the U.S. State Department . The three Southeast Asian countries were placed on a watch list of middle-tier countries, placing them one level above the worst offenders such as North Korea, Myanmar and Saudi Arabia, the report said. Malaysia was upgraded from the worst ranking, while Cambodia and Pakistan were removed from the watch list. The department’s 10th annual report grades 175 nations on their efforts to fight this modern form of slavery. The U.S. is listed for the first time, placed among those countries that are doing their best to comply with the Trafficking Victims Protection Act, the American law against human trade. Singapore’s government showed an “inadequate response” to sex trafficking in the city-state with only two convictions last year, the report said. Thailand and Vietnam similarly made little progress in prosecuting trafficking offenders, it said. Malaysia moved out of the worst tier with increased criminal charges against offenders, the report said. Cambodian authorities made a “significant increase” in convictions over the past year, including a public official, and Pakistan boosted efforts to combat bonded labor, the U.S. said. The U.S. is a source as well as a transit and destination country for people forced into labor, debt bondage and prostitution, the report said. The work is predominantly in manufacturing, janitorial services, agriculture, hotel services, construction, nail salons, elder care, strip-club dancing and domestic servitude, the U.S. said. ‘Tears of Families’ “Behind these statistics on the pages are the struggles of real human beings, the tears of families who may never see their children, the despair and indignity of those suffering under the worst forms of exploitation,” Secretary of State Hillary Clinton said at a State Department event to mark the release of the report yesterday in Washington. The International Labor Organization estimated there were 12.3 million victims of forced labor, sex trafficking, debt bondage and recruitment of child soldiers worldwide in 2009. In the same year, there were 4,166 successful prosecutions for trafficking, the State Department report said. The U.S. report lists three tiers of nations. Among those in the bottom section — nations that don’t comply with the law and make no effort to do so — are Zimbabwe, Cuba, Mauritania and Sudan. Japan, Israel and Oman are listed in the middle tier — nations that don’t fully meet the law’s minimum standards yet are making “significant” efforts to do so. Oil-rich Qatar is listed in between the middle and lowest tier on a watch list of countries that don’t meet minimum standards and whose progress is less certain. More Prosecutions Needed The trafficking report calls for better law enforcement, improved laws and more prosecutions for trafficking. The report changes each year, and countries can move from tier one, where the U.S. and others are, to the bottom tier. This year, 22 countries were upgraded, including Djibouti, which moved from the second tier to the first, while 19 lost ground, such as the Dominican Republic, which slipped from tier two to tier three. Sixty-two countries on the list have never prosecuted trafficking, according to the report. “Most countries that deny the existence of victims of modern slavery within their borders are not looking, trying or living up to the mandates” of a United Nations protocol mandate against trafficking, the report said. To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net ; Nicole Gaouette in Washington at ngaouette@bloomberg.net .

Read the full article →

BP Needs Equivalent of Lottery Win in August to Seal Leak at First Attempt

June 1, 2010

By James Paton June 1 (Bloomberg) — BP Plc would need the equivalent of a lottery win to succeed with its first attempt to end the Gulf of Mexico oil spill in August using a so-called relief well, the president-elect of the American Association of Petroleum Geologists said. A relief well intercepts the damaged well at an angle thousands of feet below the seabed and permanently closes it with heavy mud and cement. The method is the surest way for BP to end the largest oil spill in U.S. history, yet initial failure is “almost a certainty,” the association’s David Rensink said by phone from Houston. “It would be like winning the lottery to get it on the first shot.” BP faces some of the same challenges PTT Exploration & Production Pcl encountered last year in trying to stop a leak 2,600 meters (8,500 feet) below the seabed off northwest Australia. The Thai oil and gas explorer finally plugged the well in the Timor Sea after 10 weeks when a relief well enabled the company to pump 3,400 barrels of heavy mud to stanch the flow of oil. During one of the failed attempts to halt the leak on Nov. 1, a fire erupted while the Bangkok-based company was injecting the mud, engulfing and destroying the West Atlas drilling rig. BP forecasts it will finish the first of two relief wells it has started drilling in early August, according to Doug Suttles , the executive in charge of the spill response. The first well has reached a depth of 12,090 feet, London-based BP said today in a statement, two-thirds of the way to completion. A second has reached 8,576 feet. The challenge is intersecting the damaged well, not the actual drilling, said Rensink, who becomes president of the association in July. ‘Hit-or-Miss’ “What you’re doing is trying to intersect a well bore that is probably roughly a foot across with another well that is about a foot across,” he said. “It’s a hit-or-miss sort of thing. Ultimately the relief well will work. It’s just a matter of time, of continuing to poke at it until you intersect it.” BP is drilling two wells because there is a risk it may not reach the target with just one, said Edson Nakagawa, head of the petroleum and geothermal division of Australia’s Commonwealth Scientific and Industrial Research Organization. “Drilling in this kind of environment is challenging with the deep water, deep wells, high pressure and high temperature,” Nakagawa said from Perth today. The cost of responding to the leak has risen to $990 million, BP said today. The well has spewed 12,000 to 19,000 barrels of oil a day, a U.S. government panel estimated May 27. The spill began after the Deepwater Horizon rig hired by BP exploded April 20, killing 11 crew members. PTTEP estimated as much as 400 barrels of oil a day may have leaked into the ocean between Aug. 21 and Nov. 3. That would make it the third-biggest spill in Australian history, based on figures from the Maritime Safety Authority . A commission set up to investigate what happened at the Montara field, about 250 kilometers (155 miles) northwest of Australia’s Kimberley coast, is expected to issue a report and make safety recommendations in mid-June, Australia’s Resources and Energy Minister Martin Ferguson said last month. To contact the reporter on this story: James Paton in Sydney jpaton4@bloomberg.net .

Read the full article →

Thai AirAsia Plans IPO as Parent Mulls Dual Listing

May 31, 2010

By Suttinee Yuvejwattana and Susan Li May 31 (Bloomberg) — AirAsia Bhd. , Southeast Asia’s biggest budget airline, is considering an initial public offering of its unit in Thailand next year amid a surge in leisure travel in the region. Sepang, Malaysia-based AirAsia, whose shares are now traded in Kuala Lumpur, is separately considering a dual listing in Thailand, Thai AirAsia Chief Executive Officer Tassapon Bijleveld , said in an interview in Bangkok. He didn’t elaborate. Budget airlines in Asia-Pacific are expanding as travel within the region overtook intra-North America as the world’s biggest aviation market last year. Tiger Airways Holdings Ltd., a discount carrier part-owned by Singapore Airlines Ltd., raised S$233 million ($166 million) in an IPO in January as carriers in Vietnam and Indonesia also consider fund-raising plans. AirAsia rose 4.3 percent to close at 1.22 ringgit in Kuala Lumpur. The shares have fallen 12 percent so far this year. The Malaysian airline’s first-quarter profit increased 10 percent to 224.1 million ringgit ($68.7 million) because of rising passenger numbers, according to its filing to the stock exchange today. To contact the reporters on this story: Suttinee Yuvejwattana in Bangkok at suttinee1@bloomberg.net ; Susan Li in Hong Kong at sli31@bloomberg.net

Read the full article →

Video: Tassapon Says AirAsia Considering Thai IPO in 2011: Video

May 30, 2010

May 31 (Bloomberg) — Thai AirAsia Chief Executive Officer Tassapon Bijleveld talks with Bloomberg’s Susan Li about the outlook for an initial public offering of its unit in Thailand. Speaking from Bangkok, Tassapon also discusses the airline’s ticket promotions and the impact of political unrest in Thailand on the tourism industry. (Source: Bloomberg)

Read the full article →

Video: Tassapon Says AirAsia Considering Thai IPO in 2011: Video

May 30, 2010

May 31 (Bloomberg) — Thai AirAsia Chief Executive Officer Tassapon Bijleveld talks with Bloomberg’s Susan Li about the outlook for an initial public offering of its unit in Thailand. Speaking from Bangkok, Tassapon also discusses the airline’s ticket promotions and the impact of political unrest in Thailand on the tourism industry. (Source: Bloomberg)

Read the full article →

Daimler, Buffett-Backed BYD Set Up China Venture to Develop Electric Cars

May 27, 2010

By Chris Reiter May 27 (Bloomberg) — Daimler AG , the world’s second- largest manufacturer of luxury cars, and BYD Co. , the Chinese automaker backed by billionaire Warren Buffett , set up a 50-50 joint venture to develop electric cars in China. “Our new joint venture is well positioned to make the most of the vast potential of electric mobility in China,” Daimler Chief Executive Officer Dieter Zetsche said in an e-mailed statement today. Daimler and BYD plan to invest 600 million yuan ($88 million) in the venture. Daimler is pushing into electric-vehicle production as part of a challenge to Bayerische Motoren Werke AG for leadership in the luxury segment. BMW will introduce an electric-powered city car by 2013 and is working with partner Brilliance China Automotive Holdings Ltd. on battery-powered models for the country, which became the world’s biggest auto market last year. China’s government may announce subsidies in 2010 to encourage the use of cleaner vehicles. The country is likely to account for at least 25 percent of global demand for battery- powered models in 2015, according to a forecast by J.D. Power & Associates. “China is seeking to make itself a global leader with this technology,” Ben Asher, an analyst with J.D. Power in Bangkok, said in a phone interview before Daimler and BYD’s announcement. “Other countries don’t have the ability to strong-arm volumes like China.” Part-owned by Buffett’s Omaha, Nebraska-based Berkshire Hathaway Inc., BYD began mass production of the world’s first plug-in, gasoline-electric hybrid vehicle in 2008. The manufacturer, which has its headquarters in the southern Chinese city of Shenzhen, signed an agreement with Volkswagen AG in 2009 to explore cooperation in areas including hybrid cars and lithium-battery electric models. E6 Electric Car BYD plans to start selling the E6 electric car in the U.S. this year and in Europe next year. The company said on May 20 that it has an agreement to deliver at least 560 E6s to a taxi operator in Shenzhen in 2010, with 40 of the cars already in use as taxis in the city, as part of an effort to encourage individual purchases. Daimler ’s electric-vehicle strategy includes large-scale production of a battery-powered version of its Smart minicar starting in 2012. The company began assembling about 1,000 electric versions of the urban two-seater in November 2009. Daimler also plans to build more than 500 electric-powered Mercedes-Benz A-Class cars this year. The carmaker will make lithium-ion automotive power packs in a joint venture set up in late 2008 with Evonik Industries AG, Germany’s largest specialty-chemicals maker. Daimler also holds a stake in Tesla Motors Inc., the Palo Alto, California- based maker of electric sports cars and the battery supplier for the electric Smart. — Tian Ying in Beijing and Liza Lin in Singapore. Editors: Chad Thomas , Kenneth Wong To contact Bloomberg News staff for this story: Chris Reiter in Berlin at +49-30-70010-6226 or creiter2@bloomberg.net ; Tian Ying in Beijing at +86-10-6649-7571 or ytian@bloomberg.net .

Read the full article →

Video: Kim Eng’s Kawatra Says Too Early for Thai Stock Bargains: Video

May 23, 2010

May 24 (Bloomberg) — Vikas Kawatra, head of institutional broking at Kim Eng Securities (Thailand) Pcl, speaks with Bloomberg’s Paul Gordon from Bangkok about the impact of violent political unrest on Thai stocks. Since political clashes first began on April 10, 85 people have been killed, including 74 civilians and 11 security officials, army spokesman Sansern Kaewkamnerd said on May 22. (Source: Bloomberg)

Read the full article →

Phuket Villas Go Empty as Bangkok Riots Frighten Tourists Away From Island

May 21, 2010

By Chan Sue Ling May 21 (Bloomberg) — About 860 kilometers (534 miles) south of the rioting in Bangkok, the island of Phuket is again counting the cost of events beyond its control. The worst political violence in at least 18 years, which escalated yesterday as security forces struggled to clear rioters from buildings in the capital, is deterring travel to Thailand and damaging Phuket’s $3 billion tourism industry. Hotel occupancy there has dropped below 40 percent, about a third less than normal, according to the Bangkok-based Thai Hotels Association. At least 43 countries have warned people against visiting parts of Thailand during the standoff in Bangkok that began in March. From hoteliers to elephant handlers, workers in Phuket say the fighting may be more damaging to the island than the 2004 tsunami that wrecked its coastline. Tourism accounts for 70 percent of the resort’s economy. “The situation now is graver than during the tsunami,” said Vivian Ng, a resort sales director, who checks her Blackberry and iPhone for the latest news about the protests. “With the tsunami, the world knows it’s just a one-off.” Now, she said, “there are concerns about security and safety.” Ng says her employer, Minor International Pcl ’s Anantara resort, which has hosted American actor Kevin Spacey and the British fashion model Kate Moss , is now losing business by the day. Cancellations The Mai Khao coast resort’s 83 private-pool villas have received 70 cancellations for rooms between April and August, said Ng. The Anantara is asking workers to take vacation days and turn off unneeded air conditioning and lights to save on electricity, she said. Nationwide, tourism revenue may fall by about 20 percent to 480 billion baht ($15 billion) this year, Kongkrit Hiranyakit, president of the Tourism Council of Thailand , said in a telephone interview. “The impact will be the worst in 50 years of Thai tourism history” and it may take as long as eight months to win back confidence, he said. At Amazing Bukit Safari , a lack of customers has left elephant minders passing the time by sleeping in hammocks and watching television. “Tourists are scared to come to Thailand because of what’s happening in Bangkok,” said Oi Supawadee, who oversees the animals at Bukit’s elephant ride concession. “We only have about 20 rides a day since April compared with about 60 last year.” Travel Bargains The slump is also forcing down prices. Gogo.com.sg, a Singapore-based online travel agent, is offering seven-night stays at the JW Marriot Mai Khao for S$59 ($42) a night until June 10, about one quarter of the one-night room rate offered at the hotel’s own website . Thaianna Padgong, who takes tour bookings from a closet-sized booth in a shop she shares with a cell phone supplier at Phuket’s Patong Beach, said she’s cut some prices by 50 percent to win customers. “Some days, I had no bookings,” said Thaianna, manager of Thaianna Tour & Travel, watching TV for news from Bangkok. “I can’t sleep sometimes because I have bills to pay.” Battle of Bangkok Clashes in Bangkok between Thai security forces and so- called Red Shirt demonstrators, who want fresh elections and view Prime Minister Abhisit Vejjajiva ’s rule as illegitimate, have left more than 70 dead in the past six weeks. “Those travel advisories against Thailand are affecting everyone, not just travel to Bangkok,” said Somboon Chirayus, president of the Phuket Tourist Association. “Some insurance companies don’t cover if an advisory has been issued. What we worry about is the new bookings going forward.” Thailand’s $261 billion economy, Southeast Asia’s largest after Indonesia, may suffer from less foreign direct investment because of the riots, according to Fitch Ratings. Tourism accounts for as much as 20 percent of total employment nationwide, Finance Minister Korn Chatikavanij said today. The riots are “going to have a very disastrous impact on tourism.” Growth may be trimmed by “between 0.3 percent and 0.5 percent” because of the unrest, he said at a forum in Tokyo. Following the tsunami, Thailand’s economy contracted 0.6 percent in the first quarter of 2005 from the fourth quarter of 2004, partly due to a drop in tourism, which makes up 6.5 percent of the economy. ‘Self-Inflicted’ “This is a self-inflicted wound, where you shoot yourself in the foot not once but twice or three times,” said Wolfgang Meusburger, an Austrian living in Phuket for 19 years. “Something is broken and you hope that it can be mended, but this time, the damage is very great.” Thailand’s military today ended its mission to disperse anti-government protesters from their central Bangkok base after a May 19 assault left 15 people dead and sparked gunfights and arson attacks on shopping malls and banks. Reported disturbances in northeast Thailand, home to many of the Red Shirt demonstrators, underscore the widening social rifts that may thwart political reconciliation. “This unfortunate situation is yet another blow to Thailand’s recovering tourism industry,” said Robert Bailey, president of Singapore-based Abacus International Pte , Asia’s largest travel agency. “A protracted stand-off will only further dampen confidence in Thailand’s government and its country’s stability.” Feeling Safe For some, Phuket’s jungle groves and beaches are far enough away from the street battles in Bangkok. “We don’t think it’s going to impact us, because most of the problem is in Bangkok and not outside,” said Ken Brunton, a retired Sydney real-estate agent on his way to dinner in Patong Beach . “We are not overly concerned, although we have been reading the papers and following the news.” Thai Airways International Pcl has kept its two daily direct flights to Phuket from Tokyo, Minako Komata, a spokeswoman for the airline, said yesterday by phone. Passengers are avoiding Phuket flights that stop in Bangkok, she said. HIS Co ., Japan’s second-largest travel company, stopped offering travel packages that include Bangkok as of May 25, Manabu Shimizu, a spokesman for the company, said. The island’s past recoveries from tidal waves and virus scares showed an “incredible bounce-back for tourism,” said Bill Barnett, managing director of C9 Hotelworks Ltd. , a Phuket-based asset management and hospitality company. “We saw it after SARS, we saw it after the tsunami. It roars back.” Meantime, Oi said her 17 elephants may be the only ones benefiting from the lull, munching bananas and leaves under corrugated iron shelters and bathing at a nearby pool. “I think the elephants are happier these days because they have less work to do,” said Oi. “You could almost see them smiling.” For Related News and Information: Top transportation stories: TOP TRN Thai political news: TNI THAI POL

Read the full article →

Video: Control Risks’ Ramsay Expects Thai Protesters to Regroup: Video

May 20, 2010

May 21 (Bloomberg) — Jacob Ramsay, a senior analyst at Control Risks Group, talks with Bloomberg’s Susan Li about Thailand’s political unrest and the outlook for the nation’s government. Thailand’s military ended its mission to disperse anti-government protesters from their central Bangkok base after a May 19 assault left 15 people dead and sparked arson attacks on shopping malls and banks. (Source: Bloomberg)

Read the full article →

Thai Army Moves to Enforce Curfew After Ending Mission to Disperse Rioters

May 20, 2010

By Daniel Ten Kate and Supunnabul Suwannakij May 20 (Bloomberg) — Thai security forces struggled to clear rioters from high-rise buildings and extended a curfew as protests spread outside Bangkok a day after the forced surrender of anti-government demonstrators left 15 people dead. “Physically we can rebuild Bangkok quickly, but I don’t know how long it will take to cure the psychological damage,” Bangkok Governor Sukhumbhand Paribatra said in an interview with Channel 7. “We will never forget May 19 in our lifetime.” Fighting continued today after 39 buildings burned in Bangkok and armed groups remained in high-rises in the downtown commercial area, army spokesman Sansern Kaewkamnerd told reporters. There are about 13,000 protesters rallying in as many as 20 provinces outside Bangkok and the government is trying to prevent unrest from spreading, he said. The government extended a 9 p.m. to 5 a.m. curfew in a third of the country for the next three days, he said. Reports of disturbances in northeast Thailand, home to many of the Red Shirt demonstrators, underscore the widening social rifts that may thwart political reconciliation. “Clearing the demonstrators is the easy part,” said Duncan McCargo , a professor of Southeast Asian politics at the University of Leeds. By relying on force, “authorities have lost the opportunity to shape the aftermath of the protests and risk provoking an even more alarming conflict.” Collapsed Building A more than 10-hour fire at the Central World shopping and office complex has left the building in danger of collapse, Thanom Onketpol, an adviser to Bangkok’s governor, said by phone. Three other structures in the downtown area were still burning as of about 1 p.m., he said. One fire damaged the stock exchange, he told Thai PBS television. The death toll from yesterday’s clash is 15 people, the Bangkok Emergency Medical Service said on its Web site, after officials cited an additional fatality earlier in the day. The benchmark SET Index rose 0.7 percent yesterday before the exchange announced it would close for the rest of the week. Japan’s two largest automakers, Toyota Motor Corp. and Honda Motor Co. , suspended production in Thailand yesterday, citing ongoing violence. Toyota doesn’t expect to resume operations for a few more days, spokesman Paul Nolasco said today. Honda hasn’t decided whether to restart tomorrow, spokeswoman Yuki Watanabe said in Tokyo. Ten Bangkok Bank Pcl branches were damaged, together with two outlets each of Kasikornbank Pcl , Krung Thai Bank Pcl and Siam City Bank Pcl, Thanom said. Protesters also torched a city hall in Udon Thani province and seized a government building in Khon Kaen . Fire, Grenades Protesters also set fire to a Siam City branch north of the main protest site and fought security forces with grenades, INN reported. Authorities will protect communication and transportation systems in “various areas,” government spokesman Panitan Wattanayagorn said in a broadcast. Security been increased around embassies and tourist areas, he said. U.S. State Department spokesman Gordon Duguid condemned the violence and urged both sides to resolve their differences democratically. Sixteen people died and 81 were injured in clashes yesterday, including 9 bodies found at a temple in the protest zone, the Bangkok Emergency Medical Service said. Security forces found weapons caches in the central Bangkok protest site occupied by demonstrators since April 3, Prime Minister Abhisit Vejjajiva said last night. He vowed harsh punishments for “terrorists” vandalizing the city. Temple Shelter About 800 children, women and elderly protesters took shelter last night in a temple between two burning shopping malls, Thai PBS television network said. Street battles in the past week between security forces and demonstrators contributed to Thailand’s deadliest political turmoil in almost two decades. The health ministry said eight people were hurt in clashes outside Bangkok. Exiled former Prime Minister Thaksin Shinawatra , to whom many of the protesters express loyalty, said the decision to surrender prevented more casualties. “I appreciate the Red Shirt leaders’ move to save lives by surrendering to police,” he said on his Twitter account. Thaksin, a 60-year-old billionaire, won over the poor in the northeast of the country by giving them cheap health care and loans. The demonstrators, angered by one of Asia’s widest income gaps, say Abhisit, 45, embodies a privileged class of military officers, judges, bureaucrats and royal advisers that sits above the law. Address Inequality Abhisit’s five-part proposal to end the national divide includes measures to safeguard the monarchy, address economic inequality, ensure an independent media, create a body to investigate political violence and assess ways to change the constitution and disputed laws. Thaksin, who was ousted by the Thai army in 2006, fled the country in 2008 before a court sentenced him to two years in prison for helping his wife buy land from the government while still in power. Since 1946, when King Bhumibol Adulyadej took the Thai throne as an 18-year-old, Thailand has seen nine coups and more than 20 prime ministers. Only two of 17 constitutions since absolute monarchy ended in 1932 have mandated parliaments that are entirely elected. The king, who is revered across the nation, has been in a hospital since Sept. 19 and hasn’t spoken publicly about the current demonstrations. Abhisit’s party hasn’t won the most seats in a nationwide vote since 1992. He was picked by legislators in December 2008 after a court dissolved the pro-Thaksin ruling party for election fraud. The decision coincided with the seizure of Bangkok’s airports by protesters wearing yellow shirts who oppose Thaksin. To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Thai Army Moves to Enforce Curfew After Ending Mission to Disperse Rioters

May 20, 2010

By Daniel Ten Kate and Supunnabul Suwannakij May 20 (Bloomberg) — Thai security forces struggled to clear rioters from high-rise buildings and extended a curfew as protests spread outside Bangkok a day after the forced surrender of anti-government demonstrators left 15 people dead. “Physically we can rebuild Bangkok quickly, but I don’t know how long it will take to cure the psychological damage,” Bangkok Governor Sukhumbhand Paribatra said in an interview with Channel 7. “We will never forget May 19 in our lifetime.” Fighting continued today after 39 buildings burned in Bangkok and armed groups remained in high-rises in the downtown commercial area, army spokesman Sansern Kaewkamnerd told reporters. There are about 13,000 protesters rallying in as many as 20 provinces outside Bangkok and the government is trying to prevent unrest from spreading, he said. The government extended a 9 p.m. to 5 a.m. curfew in a third of the country for the next three days, he said. Reports of disturbances in northeast Thailand, home to many of the Red Shirt demonstrators, underscore the widening social rifts that may thwart political reconciliation. “Clearing the demonstrators is the easy part,” said Duncan McCargo , a professor of Southeast Asian politics at the University of Leeds. By relying on force, “authorities have lost the opportunity to shape the aftermath of the protests and risk provoking an even more alarming conflict.” Collapsed Building A more than 10-hour fire at the Central World shopping and office complex has left the building in danger of collapse, Thanom Onketpol, an adviser to Bangkok’s governor, said by phone. Three other structures in the downtown area were still burning as of about 1 p.m., he said. One fire damaged the stock exchange, he told Thai PBS television. The death toll from yesterday’s clash is 15 people, the Bangkok Emergency Medical Service said on its Web site, after officials cited an additional fatality earlier in the day. The benchmark SET Index rose 0.7 percent yesterday before the exchange announced it would close for the rest of the week. Japan’s two largest automakers, Toyota Motor Corp. and Honda Motor Co. , suspended production in Thailand yesterday, citing ongoing violence. Toyota doesn’t expect to resume operations for a few more days, spokesman Paul Nolasco said today. Honda hasn’t decided whether to restart tomorrow, spokeswoman Yuki Watanabe said in Tokyo. Ten Bangkok Bank Pcl branches were damaged, together with two outlets each of Kasikornbank Pcl , Krung Thai Bank Pcl and Siam City Bank Pcl, Thanom said. Protesters also torched a city hall in Udon Thani province and seized a government building in Khon Kaen . Fire, Grenades Protesters also set fire to a Siam City branch north of the main protest site and fought security forces with grenades, INN reported. Authorities will protect communication and transportation systems in “various areas,” government spokesman Panitan Wattanayagorn said in a broadcast. Security been increased around embassies and tourist areas, he said. U.S. State Department spokesman Gordon Duguid condemned the violence and urged both sides to resolve their differences democratically. Sixteen people died and 81 were injured in clashes yesterday, including 9 bodies found at a temple in the protest zone, the Bangkok Emergency Medical Service said. Security forces found weapons caches in the central Bangkok protest site occupied by demonstrators since April 3, Prime Minister Abhisit Vejjajiva said last night. He vowed harsh punishments for “terrorists” vandalizing the city. Temple Shelter About 800 children, women and elderly protesters took shelter last night in a temple between two burning shopping malls, Thai PBS television network said. Street battles in the past week between security forces and demonstrators contributed to Thailand’s deadliest political turmoil in almost two decades. The health ministry said eight people were hurt in clashes outside Bangkok. Exiled former Prime Minister Thaksin Shinawatra , to whom many of the protesters express loyalty, said the decision to surrender prevented more casualties. “I appreciate the Red Shirt leaders’ move to save lives by surrendering to police,” he said on his Twitter account. Thaksin, a 60-year-old billionaire, won over the poor in the northeast of the country by giving them cheap health care and loans. The demonstrators, angered by one of Asia’s widest income gaps, say Abhisit, 45, embodies a privileged class of military officers, judges, bureaucrats and royal advisers that sits above the law. Address Inequality Abhisit’s five-part proposal to end the national divide includes measures to safeguard the monarchy, address economic inequality, ensure an independent media, create a body to investigate political violence and assess ways to change the constitution and disputed laws. Thaksin, who was ousted by the Thai army in 2006, fled the country in 2008 before a court sentenced him to two years in prison for helping his wife buy land from the government while still in power. Since 1946, when King Bhumibol Adulyadej took the Thai throne as an 18-year-old, Thailand has seen nine coups and more than 20 prime ministers. Only two of 17 constitutions since absolute monarchy ended in 1932 have mandated parliaments that are entirely elected. The king, who is revered across the nation, has been in a hospital since Sept. 19 and hasn’t spoken publicly about the current demonstrations. Abhisit’s party hasn’t won the most seats in a nationwide vote since 1992. He was picked by legislators in December 2008 after a court dissolved the pro-Thaksin ruling party for election fraud. The decision coincided with the seizure of Bangkok’s airports by protesters wearing yellow shirts who oppose Thaksin. To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Thai Troops Clash With Rioters After Protests End as Fires Burn in Bangkok

May 19, 2010

By Daniel Ten Kate and Supunnabul Suwannakij May 20 (Bloomberg) — Thai authorities vowed to restore order after the forced surrender of anti-government protesters sparked riots across Bangkok, threatening renewed political instability as mobs burned banks, shopping malls and the stock exchange. The government imposed an 8 p.m. curfew in a third of the country and demanded all television stations run state programming. Reports of disturbances in northeast Thailand, where many of the demonstrators live, show the widening social rifts that may thwart political reconciliation. “Clearing the demonstrators is the easy part,” said Duncan McCargo , a professor of Southeast Asian politics at the University of Leeds. By relying on force, “authorities have lost the opportunity to shape the aftermath of the protests and risk provoking an even more alarming conflict.” Rioters set at least 25 buildings afire in Bangkok and northeast Thailand, including a luxury shopping mall and television news station. They torched a city hall in Udon Thani province and seized a government building in Khon Kaen . “We will continue to fight for democracy; this is not our day,” Nattawut Saikuar , one of several Red Shirt leaders, said when he arrived at the police station in comments broadcast by TNN News. “We have been trying to do our best for the country to be truly owned by the people.” Condemning the Violence The U.S. condemned the violence and urged both sides to resolve their differences democratically. “The U.S. deeply deplores the violence and the loss of life that has resulted from clashes between security forces and protests by the United Front for Democracy Against Dictatorship,” said State Department spokesman Gordon Duguid . Duguid praised Red Shirt leaders who surrendered to Thai authorities and encouraged their supporters to return home peacefully. The arson attacks drew a rebuke. “We are deeply concerned that Red Shirt supporters have engaged in arson, targeting the electricity infrastructure and media outlets and have attacked individual journalists,” Duguid said. “We condemn such behavior.” Security forces found weapons caches in the central Bangkok protest site occupied by demonstrators since April 3, Prime Minister Abhisit Vejjajiva said last night. He vowed harsh punishments for “terrorists” vandalizing the city among the protesters, who say his rule is illegitimate. Gun Threat Police and soldiers may use guns to “prevent any action that will further destabilize the country,” Tarit Pengdit, director-general of the Department of Special Investigation, said last night. Arsonists may face the death penalty, he said. Few cars traveled on Bangkok roads last night as citizens heeded the curfew, television footage showed. One fire in the city substantially damaged the stock exchange, Thamon Onketpol, an adviser to the governor of the Bangkok Metropolitan Administration , told Thai PBS television. After the military crackdown, about 800 children, women and elderly protesters took shelter in a temple between two burning shopping malls, Thai PBS television network said. Gunfire crackled and explosions rocked the city into the night after protest leaders were escorted from the camp’s main stage to a nearby police station. The Central World shopping mall was gutted by flames, fire official Narunart Boonkong said. Six Killed Street battles in the past week between security forces and demonstrators contributed to Thailand’s deadliest political turmoil in almost two decades. Yesterday’s clashes killed six people, including an Italian journalist, and injured 58, according to a statement on the website of the Bangkok Emergency Medical Service. The health ministry said eight people were hurt in clashes outside Bangkok. Nattawut and fellow activist Jatuporn Prompam told supporters from the main stage that they decided to surrender to avoid further bloodshed. Kasikornbank Pcl, Thailand’s third-biggest bank by assets, said a fire broke out at a branch on Rama IV Road near the main protest area. PBS reported fires in Siam Square at a Bangkok Bank Pcl branch , a Siam City Bank Pcl branch and a local theater. Power was cut at the JW Marriott Bangkok hotel . The benchmark SET Index rose 0.7 percent yesterday before closing for the day at the morning break. The baht fell 0.1 percent. ‘Special Programs’ Foreigners should carry identification when traveling, government spokesman Panitan Wattanayagorn said, vowing that security forces will provide stability and security during the night. Television channels will switch to “special programs,” he said. Exiled former Prime Minister Thaksin Shinawatra , to whom many of the protesters express loyalty, said the decision to surrender prevented more casualties. “I appreciate the Red Shirt leaders’ move to save lives by surrendering to police,” he said on his Twitter account. “I am so sorry for those who lost their lives and got injured.” Abhisit’s five-part proposal to end the national divide includes measures to safeguard the monarchy, address economic inequality, ensure an independent media, create a body to investigate political violence and assess ways to change the constitution and disputed laws. ‘Even Deeper’ “After today, the divisions in the country will get even deeper,” said Michael Nelson, a visiting scholar at Bangkok’s Chulalongkorn University. “How can you have a stable political system when two large areas of the country are no-go zones for the two major political parties?” Thaksin, a 60-year-old billionaire, won over the poor in the northeast of the country by giving them cheap health care and loans. The demonstrators, angered by one of Asia’s widest income gaps, say Abhisit, 45, embodies a privileged class of military officers, judges, bureaucrats and royal advisers that sits above the law. Thaksin, who was ousted by the Thai army in 2006, fled the country in 2008 before a court sentenced him to two years in prison for helping his wife buy land from the government while still in power. Since 1946, when King Bhumibol Adulyadej took the Thai throne as an 18-year-old, Thailand has seen nine coups and more than 20 prime ministers. Only two of 17 constitutions since absolute monarchy ended in 1932 have mandated parliaments that are entirely elected. The king, who is revered across the nation, has been in a hospital since Sept. 19 and hasn’t spoken publicly about the current demonstrations. Abhisit’s party hasn’t won the most seats in a nationwide vote since 1992. He was picked by legislators in December 2008 after a court dissolved the pro-Thaksin ruling party for election fraud. The decision coincided with the seizure of Bangkok’s airports by protesters wearing yellow shirts who oppose Thaksin. To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Riots, Fires Spread Across Bangkok as Army Forces Protesters to Surrender

May 19, 2010

By Daniel Ten Kate and Supunnabul Suwannakij May 19 (Bloomberg) — Rioting erupted across Bangkok after Thai security forces backed by armored vehicles cleared an anti- government protest camp and forced its leaders to surrender. “We completely control the area,” army spokesman Sansern Kaewkamnerd said in a televised broadcast, announcing an end to a six-week standoff that roiled the country and killed more than 60 civilians and soldiers. The government announced a curfew in the city from 8 p.m. until 6 a.m. tomorrow. Television footage showed fires burning across Bangkok, a city of nine million people. Thailand’s stock exchange was substantially damaged by fire, Thamon Onketpol, an adviser to the governor of the Bangkok Metropolitan Administration , told Thai PBS television. A blaze in the building where Channel 3 is based had trapped “many people,” he said. Gunfire and explosions continued to rock the city as protest leaders were escorted from the camp’s main stage to a nearby police station. Demonstrators shot out windows and set fires in the Central World and Siam Paragon shopping malls, Channel 9 television footage showed. The government was calling for volunteers to help put out fires, spokesman Panitan Wattanayagorn said. The Red Shirt demonstrators, who view Prime Minister Abhisit Vejjajiva ’s rule as illegitimate, drew thousands of mainly rural supporters to the encampment, underscoring a widening class divide. Reports of disturbances today in northeast Thailand, where many protesters came from, indicate that political reconciliation may be difficult to achieve. ‘Continue to Fight’ “We will continue to fight for democracy; this is not our day,” Nattawut Saikuar , one of several Red Shirt leaders, said when he arrived at the police station in comments broadcast by TNN News. “We have been trying to do our best for the country to be truly owned by the people.” Street battles in the past week between security forces and demonstrators contributed to Thailand’s deadliest political turmoil in almost two decades. Today’s clashes killed four people including an Italian journalist, said Petchpong Kumjornkijjakarn, head of Bangkok’s medical emergency unit. Nattawut and fellow activist Jatuporn Prompam told supporters from the main stage that they decided to surrender to avoid further bloodshed. Kasikornbank Pcl, Thailand’s third-biggest bank by assets, said a fire broke out at a branch on Rama IV Road near the main protest area. PBS reported fires in Siam Square at a Bangkok Bank Pcl branch , a Siam City Bank Pcl branch and a local theater. All financial institutions, including the stock exchange, will be closed for the rest of the week. Power was cut at the JW Marriott Bangkok hotel . Stocks Gain The benchmark SET Index rose 0.7 percent before closing for the day at the morning break. The baht fell 0.1 percent. Red shirt supporters set fire to a city hall in Udon Thani Province in northeast Thailand, INN News reported. In neighboring Khon Kaen , protesters broke into the city hall to demand an end to the military assault in Bangkok, Channel 3 TV said. The government remains committed to a new election and measures to bring about reconciliation, Finance Minister Korn Chatikavanij said in an interview on Bloomberg Television. “Hard-core” protesters are still roaming the capital’s streets and tourism has suffered because of the violence, he said. Thaksin Loyalty Foreigners should carry identification when travelling, Panitan said, vowing that security forces will provide stability and security during the night. Television channels will switch to “special programs,” he said. Exiled former Prime Minister Thaksin Shinawatra , to whom many of the protesters express loyalty, said the decision to surrender had prevented more casualties. “I appreciate the Red Shirt leaders’ move to save lives by surrendering to police,” he said on his Twitter account. “I am so sorry for those who lost their lives and got injured.” Abhisit’s five-part proposal to end the national divide includes measures to safeguard the monarchy, address economic inequality, ensure an independent media, create a body to investigate political violence and assess ways to change the constitution and disputed laws. “After today the divisions in the country will get even deeper,” said Michael Nelson, a visiting scholar at Bangkok’s Chulalongkorn University. “How can you have a stable political system when two large areas of the country are no-go zones for the two major political parties?” Corruption Conviction Thaksin, a 60-year-old billionaire, won over the poor in the northeast of the country by giving them cheap health care and loans. The demonstrators, angered by one of Asia’s widest income gaps, say Abhisit, 45, embodies a privileged class of military officers, judges bureaucrats and royal advisers that sits above the law. Thaksin, who was ousted by the Thai army in 2006, fled the country in 2008 before a court sentenced him to two years in prison for helping his wife buy land from the government while still in power. Since 1946, when King Bhumibol Adulyadej took the Thai throne as an 18-year-old, Thailand has seen nine coups and more than 20 prime ministers. Only two of 17 constitutions since absolute monarchy ended in 1932 have mandated parliaments that are entirely elected. The king, who is revered across the nation, has been in hospital since Sept. 19 and hasn’t spoken publicly about the current demonstrations. Abhisit’s party hasn’t won the most seats in a nationwide vote since 1992. He was picked by legislators in December 2008 after a court dissolved the pro-Thaksin ruling party for election fraud. The decision coincided with the seizure of Bangkok’s airports by protesters wearing yellow shirts who oppose Thaksin. To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Gunfire, Explosions Rock Bangkok as Troops Surround Protesters’ Camp Site

May 18, 2010

By Daniel Ten Kate and Supunnabul Suwannakij May 19 (Bloomberg) — Gunfire and explosions rocked central Bangkok as troops backed by helicopters and armored vehicles converged on a camp occupied by several thousand anti-government demonstrators seeking to oust Prime Minister Abhisit Vejjajiva . Security forces are setting a perimeter around the site to restore order, government spokesman Panitan Wattanayagorn said in a televised broadcast. The operation, covering several locations, will last throughout the day, he said. Plumes of black smoke rose above the edge of the site close to the financial district of Silom Road and near a highway on Rama IV about a kilometer away. A projectile was shot at troops from Lumpini Park as two armored personnel carriers pulled up to a barrier. Soldiers advanced along Wireless Road and television footage showed army vehicles smashing through barricades. Today’s operation “seems like the final war, the final battle,” Senator Lertrat Ratanavanich , a retired general who has tried to mediate a peace deal, said by phone in Bangkok. “I don’t think they will stop short because they are coming very close to the center.” A military assault on an encampment containing many women and children would risk triggering protests outside the capital, escalating a conflict that has laid bare a widening class divide. Street battles in the past week between security forces and Red Shirt demonstrators have killed at least 39 people in Thailand’s deadliest political conflict since 1992. Deepening Divisions “After today the divisions in the country will get even deeper,” said Michael Nelson, a visiting scholar at Bangkok’s Chulalongkorn University. “How can you have a stable political system when two large areas of the country are no-go zones for the two major political parties?” The benchmark SET Index dropped 0.8 percent as trading began. The market will close at 12:30 p.m. local time after the morning session, the Stock Exchange of Thailand said in a mobile phone text-message alert. The cost of credit-default swaps insuring Thai government debt from default climbed 8 basis points to 158 basis points as of 9:15 a.m. in Singapore, according to BNP Paribas SA prices. The baht weakened 0.15 percent. Water Cannon Soldiers fired warning shots and water cannons at Lumpini Park, and fires burned at commercial buildings close to a boxing stadium, Channel 3 Television reported. Demonstrators sang songs around the main stage of a camp that has been their makeshift home since April 3, a live broadcast from the group showed. Casualties from today’s clashes are being rushed to a hospital next to the stage, MCOT TV reported. Many demonstrators are loyal to exiled former Prime Minister Thaksin Shinawatra , a billionaire who won over the poor in the northeast of the country by giving them cheap health care and loans. The demonstrators, angered by one of Asia’s widest income gaps, say Abhisit embodies a privileged class of military officers, judges bureaucrats and royal advisers that sits above the law. Korbsak Sabhavasu, an Abhisit aide who is leading negotiations with the Red Shirts, said yesterday in an interview that Thaksin is blocking a negotiated settlement by insisting that his corruption conviction be overturned. Thaksin Case Thaksin, who was ousted by the Thai army in 2006, said in a statement on May 16 that he wanted both sides to step back. He fled the country in 2008 before a court sentenced him to two years in prison for helping his wife buy land from the government while still in power. Protest leaders yesterday said they’d be willing to accept an offer by the Senate to mediate a cease-fire agreement. The main stumbling block has been demands from both sides that the other make the first move. The protest site contains dozens of office buildings and condominiums, as well as two hospitals, including one right next to the main stage. Using loudspeakers, authorities told women and children to leave the protest site, the state-owned NBT television network reported today. Since 1946, when King Bhumibol Adulyadej took the Thai throne as an 18-year-old, Thailand has seen nine coups and more than 20 prime ministers. Only two of 17 constitutions since absolute monarchy ended in 1932 have mandated parliaments that are entirely elected. The king, who is revered across the nation, has been in hospital since Sept. 19 and hasn’t spoken publicly about the current demonstrations. Abhisit himself has never won a national election: He was picked by legislators in December 2008 after a court dissolved the pro-Thaksin ruling party for election fraud. The decision coincided with the seizure of Bangkok’s airports by protesters wearing yellow shirts who oppose Thaksin. To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Thai Government Renews Election Offer to End Days of Clashes in Bangkok

May 18, 2010

By Daniel Ten Kate and Supunnabul Suwannakij May 18 (Bloomberg) — Thailand’s government said it is willing to reopen talks on holding an early election to help avoid bloodshed after six days of gun battles in Bangkok that have killed at least 36 people. “We are willing to renegotiate the election,” Korbsak Sabhavasu, the government’s chief negotiator and a former deputy prime minister said in a phone interview today. “We are not holding onto power, we want to do the best for the country.” Thai protest leader Nattawut Saikuar said today his group is willing to accept an offer by the Senate to mediate. Korbsak, who spoke yesterday to Nattawut, indicated the government is anxious to avoid further loss of life. Prime Minister Abhisit Vejjajiva is also bidding to keep the Red Shirt protest movement from expanding beyond Bangkok to rural areas where his administration has less control. Failure to contain the deadliest political clashes in two decades has exposed a widening social rift that threatens to undermine growth in the $260 billion economy. “We don’t want innocent people to get killed,” Korbsak said. “We are working hard for a political solution.” Abhisit withdrew an offer to hold a Nov. 14 election when protesters failed to disperse by a May 12 deadline. The group, which says his rule has no legitimacy, attached new conditions to his offer, including criminal charges against his deputy. ‘Stop Firing Now’ “We want the government to stop firing now,” so we can hold talks, Nattawut said today from the main stage at the central Bangkok protest site. “No prime minister will ever win by killing people.” “Time is running out,” Chaturon Chaisang , a former Cabinet member aligned with the protesters, said by phone yesterday. “It could go either way” between a peaceful settlement and forced dispersal, he said. Thailand’s benchmark SET Index, which fell 2 percent yesterday, was trading 0.3 percent lower at 11:37 a.m. local time. The baht climbed from a seven-week low. Korbsak said Nattawut had initially agreed to call fighters back to the main base, only to renege on the agreement. Nattawut said troops are preventing supporters from rejoining the main group, making it harder for Red Shirt leaders to keep the peace. Struggle to Contain Protest leaders yesterday struggled to contain armed elements battling soldiers around the main site, making cease- fire talks difficult, Chaturon said. The United Nations called on both sides to find a peaceful solution to the situation and prevent further casualties. “I urged leaders to set aside pride and politics for the sake of the people of Thailand,” UN High Commissioner for Human Rights Navi Pillay said in a statement late yesterday. “I appeal to the protesters to step back from the brink, and the security forces to exercise maximum restraint.” The government yesterday extended its deadline for thousands of mostly poor, rural protesters to leave their fortified camp after many stayed. About 3,000 people, including many women, remained at the main site, army spokesman Sansern Kaewkamnerd told reporters. Two-Month Campaign The number of people wounded in clashes during the past four days climbed to 256, according to a statement on the website of Bangkok’s Emergency Medical Service. The two-month street campaign for a new election has claimed 65 lives in total. Pro-Thaksin parties have won the past four elections on a platform of improved health care and cheap loans. Abhisit took power in a December 2008 parliamentary vote after a court disbanded the ruling party for election fraud. His Democrat party hasn’t won the most seats in a nationwide vote since 1992. “The crisis in Thailand is not an issue that will be resolved in the short term,” said Ernest Bower , an analyst with the Center for Strategic and International Studies in Washington. “Thais are redefining themselves and their country, and the journey has started out to be a bloody one.” To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Thai Riots Empty Bangkok Luxury Hotels, Ravaging Nation’s Tourist Industry

May 17, 2010

By Suttinee Yuvejwattana and Wendy Leung May 18 (Bloomberg) — Bangkok hotels are less than 30 percent full, about half the usual rate for this time of year, as deadly protests deter tourists from visiting the city, according to the Thai Hotels Association. “When they hear about burning tires, bombs and shootings, they decide not to come,” Prakit Shinamornpong, the group’s president, said yesterday by phone. “It’s very bad.” Occupancy in hotels on the Sathorn Road, near some of the worst violence, has dropped to as low as 10 percent, Prakit said, while the 517-room Dusit Thani Hotel in central Bangkok closed yesterday on security concerns. Tourists are avoiding the capital after at least 36 people were killed in clashes between troops and anti-government protesters over the past four days. “I won’t go into the city now,” said Lisa Ischane, an event coordinator, as she queued in Hong Kong for a flight to Bangkok. “I was planning to spend a few days there just to relax.” Ischane will instead connect onto a flight to Koh Phangan, a resort destination in southern Thailand, rather than visiting shops and restaurants in Bangkok. “The airport should be fine,” she said. Thailand’s deadliest political clashes in two decades threaten to undermine tourism, which accounts for about 7 percent of the economy, according to Credit Suisse Group AG. The number of foreign tourists may drop to as few as 12.7 million from 14.1 million last year, costing the country as much as 100 billion baht ($3.1 billion) in tourism revenue, the Tourism Council of Thailand said last month. Travel Advisories At least 43 countries have issued advisories against travel to at least parts of Thailand, according to Credit Suisse, including Australia, the U.S. and the U.K. JTB Corp., Japan’s largest travel agency, canceled tours to Bangkok until May 31, extending a block that began on April 24. “The tourism industry just stops amid a situation like this,” Charoen Wangananont, president of the Thai Travel Agents Association, said by phone yesterday. “There have been no new bookings for about two or three weeks already.” Hong Kong travel agents have lost more than HK$30 million ($3.8 million) in sales since late March because of disruptions in Thailand, said Michael Wu, chairman of the Travel Industry Council of Hong Kong , which represents about 1,500 travel agents. The group will likely announce that it is canceling all trips to the Thai capital until May 31, he said. ‘We are Suffering’ “We are suffering as Bangkok is a popular travel destination among Hong Kong people,” he said. “We hope things will be settled by mid-June and the protests won’t affect our summer peak-season bookings or we will see a greater loss.” Cathay Pacific Airways Ltd.’s Bangkok bookings this month are 50 percent down from last year, predominately because of tour-group cancelations, the carrier said in an e-mailed reply to Bloomberg News questions. The airline will maintain services because most of its flights continue onto other destinations where demand is unaffected, it said. Hotels in Kao Lak, a resort in Phang Nga province, are less than 6 percent full, Prakit said. On the island of Phuket, occupancy is below 40 percent, compared with a usual level of about 60 percent, he said. Thai tourism-related shares have tumbled since the protests intensified on April 10. Thai Airways International Pcl , the nation’s biggest airline, has fallen 11 percent to 25 baht. Hotel operator Minor International Pcl has lost 7 percent to 9.65 baht, while Dusit has lost 1 percent. The benchmark SET Index has fallen 4.6 percent. The baht yesterday weakened to the lowest level in seven weeks, dropping to 32.50 to the dollar. Foreign funds sold more Thai shares last week than at any time since November 2007. ANA, JAL All Nippon Airways Co. and Japan Airlines Corp. have both closed downtown ticket offices in Bangkok because of the protests. They haven’t canceled any flights so far. Singapore Airlines Ltd. is offering full refunds for bookings on Bangkok flights before May 31. Qantas Airways Ltd., Australia’s largest carrier, said services to and from the Thai capital are operating as normal and that passengers can change their tickets. Few customers have changed travel plans so far and the airline hasn’t removed any staff from Thailand, Olivia Wirth , a spokeswoman for the Sydney- based carrier, said by phone. Thai protesters in 2008 occupied the nation’s main international airport for eight days, helping topple Prime Minister Somchai Wongsawat . The protests, which also included an occupation of Bangkok’s second airport, stranded as many as 400,000 travelers. The latest demonstrations began two weeks after a court seized 46.4 billion baht from the family of ex-leader Thaksin Shinawatra , who was ousted in coup in 2006. Officials banned financial transactions of 106 companies and individuals linked to Thaksin on May 16 in a bid to cut off funds for the demonstration. “The hotel operators don’t know what to do because this is a political issue,” Prakit said. “We just hope it will end soon.” To contact the reporters on this story: Suttinee Yuvejwattana in Bangkok at suttinee1@bloomberg.net ; Wendy Leung in Hong Kong at wleung12@bloomberg.net

Read the full article →

Thai Growth May Falter as Violence Saps Confidence, Drives Away Tourists

May 16, 2010

By Wendy Pugh and Daniel Ten Kate May 17 (Bloomberg) — The escalation in violence stemming from a political stand-off in Thailand threatens to undermine investor confidence and see the nation’s economy slip behind neighbors that are helping Asia lead the global recovery. “This latest round of violence is unprecedented in recent memory and it takes the current confrontation into an unpredictable and a potentially quite harrowing phase,” said Nicholas Farrelly , researcher at the Canberra-based Australian National University’s College of Asia & the Pacific. At least 30 people have been killed since the Thai military moved to seal off a business district as large as New York’s Central Park four days ago as they seek to end an occupation of the city center by political demonstrators. Deteriorating consumer demand may impair spending and has prompted the central bank to keep interest rates at a five-year low. “What matters is the man in Toledo or Paris or Sydney or Tokyo watching his TV and seeing piles of tires burning in the middle of Rama IV road,” said Alastair Henderson , a partner in Bangkok at the London-based law firm Herbert Smith LLP. “Is that going to affect investor confidence? Of course it is.” Thai stocks and its currency have so far indicated little sign of an investor exodus, with the benchmark SET share index closing little changed last week at 768.79 and remaining 15 percent higher than the low reached in November. The baht has advanced 2.9 percent against the dollar this year. Singapore Concern The limited impact so far is due to the conflict being contained in the nation’s capital, Bangkok. At the same time, the situation threatens to slip out of control unless all parties exercise restraint and resume dialogue, Singapore’s Ministry of Foreign Affairs said in a statement on its website May 15. “If this happens the consequences for Thailand and for Asean will be extremely grave,” the Singapore ministry said. Thailand is the second-biggest economy in the 10-member Association of Southeast Asian Nations. Thai Finance Minister Korn Chatikavanij said on May 14 growth has already been shaved by as much as 0.5 percentage points, and warned in an interview with Bloomberg Television three days ago that the disturbances will “significantly” reduce tourism in the coming months. TUI AG, the German owner of Europe’s largest travel company, said May 14 that it stopped travel and accommodation for guests going to the city of Bangkok until the end of the month after Germany’s Federal Foreign Office advised against traveling there. Passengers can still fly to Bangkok airport, Anja Braun, a spokeswoman for TUI, said by phone yesterday. European Beachgoers “We don’t expect clients being put off from going to the south of Thailand,” where more than 90 percent of TUI’s Thailand travelers go, Braun said. “Most of our clients are regular visitors to the region — they know it well. Bangkok is usually just a stop-off for travelers where they can spend a few days before going to the bathing regions.” Richard Han , chief executive officer of Hana Microelectronics Pcl, Thailand’s biggest semiconductor packager, said that he’s seen little evidence so far of damage to his business, while expressing concern at the longer-term dangers. “As long as the airports are not shut down, our power is not cut off, we’ll be able to continue,” Han said, noting the company’s operations are “far away in business zones” outside the area of conflict. “In the longer term, who knows what customers will think about the situation and their dependence on companies such as ourselves,” said Han, whose firm makes parts for computers and phones including Apple Inc.’s iPhone. Confidence Falls Prime Minister Abhisit Vejjajiva ’s government has already seen consumer confidence drop to a nine-month low, leaving economic growth reliant on exports. The central bank forecasts that Southeast Asia’s largest economy after Indonesia may grow as much as 5.8 percent this year on overseas demand. The Bank of Thailand last month kept the benchmark one-day bond repurchase rate unchanged at 1.25 percent, the lowest level since July 2004, and warned about the potential impact on tourism. Neighboring Malaysia has by contrast raised borrowing costs twice this year as its economy’s expansion accelerated. Fitch Ratings cut its outlook on Thailand’s local-currency credit rating to negative from stable last month, citing “an escalation in political uncertainty.” Australia ‘Worried’ Australia warned its nationals to reconsider the need to travel to Thailand because of the deterioration in security. The government was “very worried” by the violence in Bangkok and the high risk of further unrest, according to a Department of Foreign Affairs and Trade statement e-mailed to Bloomberg. The Japanese Embassy in Bangkok was relocated on a temporary basis because of the clashes, according to the Kyodo News website. Qantas Airways Ltd. hasn’t experienced any effect on passenger travel plans or bookings, said Olivia Wirth , a spokeswoman at the Sydney-based carrier. Tiger Airways Holdings Ltd., the budget airline backed by Singapore Airlines Ltd., may adjust capacity to Bangkok as political unrest in the city damps travel demand, Chief Executive Officer Tony Davis said May 14. “We’re looking very carefully at capacity and if we have to, we will adjust capacity accordingly,” Davis said in a Bloomberg Television interview in Singapore. “We have seen some softening on Bangkok but the rest of Thailand hasn’t been affected and is still strong and we are monitoring the situation very carefully.” “As Thailand’s friendly neighbors, we are deeply concerned about the present situation, and we hope the relevant parties show restraint and work towards restoring social stability,” Ma Chaoxu, a spokesman at China’s Ministry of Foreign Affairs, said in a May 15 statement on the ministry’s website. To contact the reporters on this story: Wendy Pugh in Melbourne at wpugh@bloomberg.net ; Daniel Ten Kate at dtenkate@bloomberg.net

Read the full article →

Thailand Tells Women, Children to Leave Protest Site With Death Toll at 30

May 16, 2010

By Daniel Ten Kate and Supunnabul Suwannakij May 17 (Bloomberg) — Thai authorities set a deadline for women, children and other unarmed protesters to leave their Bangkok site as the group battled to prevent soldiers from sealing off the area, turning downtown Bangkok into a war zone. Loud explosions and gunfire rocked the outskirts of the main demonstration zone for a fifth day. At least 30 people have been killed and more than 215 wounded since Prime Minister Abhisit Vejjajiva ordered the army to surround a business district as large as New York’s Central Park on May 13. “There is no reason for protesters to urge the government to stop the operation,” spokesman Panitan Wattanayagorn told reporters yesterday. “Authorities do not threaten anyone nor use arms against innocent people as we’ve been accused.” Thai security forces are seeking to deprive protesters of food and water to end two months of rallies that have spurred the country’s worst political violence in 18 years, claiming at least 59 lives. Abhisit’s opponents failed to disperse after he offered to cut his term short, prompting the military action. Fighting spread around the capital as protest leaders called for supporters to gather in other parts of Bangkok and provincial areas. The escalation prompted the government to extend a state of emergency to more parts of the poor northeast region where many demonstrators live, putting about a third of the country in a state of emergency. Gun Battles “There will be more people joining and they will set up their own stages in five different points around Bangkok,” Arisaman Pongruangrong, one of two dozen protest leaders, said in an interview from behind the main stage. “We will stay here no matter what the government announces. This is our base.” Thick black smoke rose from several locations around the city as gun battles raged day and night. About 100 people took shelter in the basement of the luxury Dusit Thani hotel when it came under fire, Agence France-Presse reported, citing a photographer staying at the hotel. If the army moves to disperse protesters, they will break into luxury malls and high-rise buildings housing the offices of companies such as Philip Morris International Inc., Arisaman said. “If we have no choice, we need to break the doors in to save lives,” he said. Security forces withdrew plans for a curfew in parts of the city and asked civil society groups to assist anyone who wants to leave the protest site until 3 p.m. today. Abhisit said on May 15 that forces “cannot retreat” against an armed protest movement and its leaders were “willing to sacrifice the lives of innocent people to achieve their goals.” Women, Children at Risk Pond Chamnan, a 35-year-old farmer from the northeast, sat with her husband and three children — aged 8, 12 and 14 — under a tent near the main stage. She feared government reprisals if she left the site. “We want to go back as soldiers shoot at anyone and I fear that my kids won’t be safe,” she said as her son played with panda figurines that lay next to a quiver of fireworks. “I’m afraid the government may hurt us. I prefer the demonstration leaders to arrange transportation for us.” Other women vowed to stay on no matter what. Bangkok food vendor Juer Saengrattana said the group’s leaders routinely announced that people are free to leave. “If I have to die, I’ll die,” said Juer, 63, wearing an amulet with a picture of King Bhumibol Adulyadej’s mother. “I won’t leave. Only the king can end this chaos.” King Bhumibol, 82, has been hospitalized since September and hasn’t commented on the deadly skirmishes. The monarch has served as head of state for more than six decades through nine coups, including one in 2006 that ousted ex-leader Thaksin Shinawatra and triggered the current clashes. Thaksin Calls for Cease Fire The latest protests began two weeks after a court seized 46.4 billion baht ($1.5 billion) from Thaksin’s family. Officials banned financial transactions of 106 companies and individuals linked to Thaksin yesterday in a bid to dry up funds for the demonstration. “The pictures that I have seen go beyond any nightmare,” Thaksin said in a statement yesterday. “I have no choice but to state resolutely the need for all sides to step back from this terrible abyss to begin a new, genuine and sincere dialogue.” The government rejected protester pleas for talks brokered by the United Nations. “We can deal with this situation ourselves,” Panitan said. Government offices will be closed through tomorrow. Banks will remain open around the city and the stock exchange will end trading an hour earlier than normal. All of Bangkok’s 435 schools will close. Death Toll Rises Thailand’s SET Index has risen 4.7 percent this year, compared with a 0.4 percent decline for the MSCI Asia-Pacific Index , as investors speculated the violence will have little long-term effect on the country’s economy. Thai stocks are the third-cheapest in Asia after South Korea and Pakistan, according to data compiled by Bloomberg. The death toll from clashes over the past three days rose to 29, according to a statement on the website of Bangkok’s Emergency Medical Service. One other protester died on May 12. Abhisit withdrew an offer to hold a Nov. 14 election when protesters failed to disperse by a May 12 deadline. The group attached new conditions to his offer, including criminal charges against Deputy Prime Minister Suthep Thaugsuban . To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Thai Street Battles Kill 25; Premier Declares Curfew, Vows to End Protests

May 16, 2010

By Daniel Ten Kate and Supunnabul Suwannakij May 16 (Bloomberg) — Battles between Thai troops and protesters escalated in downtown Bangkok as Prime Minister Abhisit Vejjajiva declared a curfew after vowing to disperse his opponents from the city’s business district. At least 25 people have been killed and more than 187 injured since the army moved to seal off an area as large as New York’s Central Park four days ago. Explosions and gunfire rang out at the protest site as the military declared two “live-fire zones” in which “terrorists” could be shot on sight. “We cannot retreat,” Abhisit said in a nationally televised address last night. “The best way to stop the loss of lives is to end the protest.” Thai authorities are seeking to choke off food and water to end an occupation of the city center that has spurred the country’s worst political violence in 18 years, claiming at least 54 lives. Demonstrators failed to disperse after Abhisit offered to cut his term short, prompting the military action. “Please stay,” protest leader Weng Tojirakarn told supporters from the main stage today. “If there are fewer people, that will be a chance for us to be dispersed.” Civil society groups plan to enter the main protest site to escort women, children and other unarmed people from the area, army spokesman Sansern Kaewkamnerd told reporters. The government will provide them housing, food, water and transportation, spokesman Panitan Wattanayagorn said by phone. “It will be very clear to the rest of the country that the people remaining in the area are determined to stay,” he said. Schools to Close The city’s 435 schools will close, Education Minister Chinnaworn Boonyakiat said. Thailand’s stock exchange will open tomorrow and has prepared a backup computer system to facilitate trading, President Patareeya Benjapolchai said by phone. “If political unrest persists, foreign investors may continue selling, reducing their risk,” she said. Thailand’s SET Index has risen 4.7 percent this year, compared with a 0.4 percent decline for the MSCI Asia-Pacific Index , as investors speculated the violence will have little long-term effect on the country’s economy. Thai stocks are the third-cheapest in Asia after South Korea and Pakistan, according to data compiled by Bloomberg. Thick black smoke rose from several locations amid the capital’s high-rise buildings today. One fire burned near a minimart affiliated with U.K.-based retailer Tesco Plc after demonstrators torched a barricade, Channel 7 reported. Army snipers fired rifles in one part of the city, video from CNN showed. Soldiers shot at a group of protesters, one armed with a slingshot, as they huddled behind a stack of tires, according to Nick Nostitz, a photographer on the scene. Protesters, Soldiers “We were met with armed men hiding among the ranks of the protesters, making it inevitable for injuries and deaths,” army spokesman Sansern said yesterday. Protesters fired M-79 grenades and guns at soldiers, who returned fire and detained 40 armed combatants, he said. United Nations Secretary-General Ban Ki-moon yesterday urged Thailand’s government and protesters to “urgently return to dialogue” to find a peaceful resolution. Thailand’s foreign ministry has regularly updated the U.N. and other organizations, spokesman Thani Thongphakdi said by phone. Fugitive former Thai leader Thaksin Shinawatra , whom many of the red-shirted protesters support, called on Abhisit to restart talks. The government blames Thaksin for scuttling peace efforts last week. Thai protesters may ask head of state King Bhumibol Adulyadej for help to reduce losses, INN News agency reported, citing demonstration leader Jatuporn Prompan . Protest Zone Trash littered parts of the protest zone near the Four Seasons Hotel and elevated train line where many demonstrators from poor rural areas have set up makeshift shelters. Food supplies are running low, Petcharin Udompad, who heads the main kitchen, said by phone. “We’re facing food and water shortages as people can’t get in to bring us fresh supplies,” she said. “It may last until this evening. We had some people going out to get food and water but they got shot.” The 5,000 demonstrators remaining at the protest site today are mostly rural people who camp there permanently, government spokesman Panitan said. Bangkok residents who normally join the demonstration at night have tried to set up stages in other parts of the city without much success, he said. Black-shirted guards walked around the protest site with fireworks and slingshots behind barricades of rubber tires, bamboo and razor wire. A charred-out bus blocked one part of a road next to Lumpini Park, the site of many blasts. Death Toll The death toll from clashes over the past three days rose to 24 as of 8 a.m., according to a statement on the website of Bangkok’s Emergency Medical Service. Another 200 people were injured, it said. One other protester died on May 12. Abhisit withdrew an offer to hold a Nov. 14 election when protesters failed to disperse by a May 12 deadline. The group attached new conditions to his offer, including criminal charges against Deputy Prime Minister Suthep Thaugsuban . Pro-Thaksin parties have won the past four elections on a platform of improved health care and cheap loans. Abhisit took power in a December 2008 parliamentary vote after a court disbanded the pro-Thaksin ruling party for election fraud in the first nationwide vote since he was ousted in a 2006 coup. To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Thai Battles Intensify as Abhisit Vows to Disperse Protesters; 23 Killed

May 15, 2010

By Daniel Ten Kate and Supunnabul Suwannakij May 15 (Bloomberg) — Battles between Thai troops and protesters escalated in a third day of violence in downtown Bangkok as Prime Minister Abhisit Vejjajiva vowed to disperse his opponents from the city’s business district. At least 23 people have been killed and more than 170 injured since the military moved to seal off a business district as large as New York’s Central Park three days ago. Loud explosions and gunfire rang out throughout the protest site and black smoke rose above high-rise buildings. “We cannot retreat,” Abhisit said in a nationally televised address, the first since the clashes began. “The best way to stop the loss of lives is to end the protest.” Thai authorities are seeking to choke off food and water to end an occupation of the city center that has spurred the country’s worst political violence in 18 years, claiming at least 52 lives. Demonstrators failed to disperse after Abhisit offered to cut his term short, prompting the military action. “Bangkok has become a war zone,” Nattawut Saikuar, one of about two-dozen protest leaders, said today. “Withdraw troops first and then we will start talking.” Several dead bodies were lying on a sidewalk in one of six flashpoints in central Bangkok, pictures showed . The government declared two “live bullet zones” where soldiers can shoot anyone they suspect of creating violence. “We were met with armed men hiding among the ranks of the protesters, making it inevitable for injuries and deaths,” army spokesman Sansern Kaewkamnerd told reporters. Protesters fired M-79 grenades and guns at soldiers, who returned fire and detained 40 armed combatants, he said. Homemade Rockets Protesters ducked bullets as they set vehicles ablaze and launched homemade rockets to defend the area, television footage showed. Thousands of protesters began gathering in areas outside the main protest site to confront soldiers, reports said. United Nations Secretary-General Ban Ki-moon today urged Thailand’s government and protesters to “urgently return to dialogue” to find a peaceful resolution. Former Thai leader Thaksin Shinawatra , whom many of the red-shirted protesters support, called on Abhisit to restart talks. The movement’s chiefs are divided “about 50-50” on whether to continue the demonstrations, leader Kokaew Pikulthong said in an interview yesterday. About 6,000 demonstrators remain at the protest site, government spokesman Panitan Wattanayagorn said today. Middle- aged women and children listened to speeches around the main protest stage near luxury malls and high-rise buildings that are home to offices of companies such as Ogilvy & Mather and New York-based Philip Morris International Inc . “We’ll hide in the malls to save ourselves,” protest leader Kwanchai Sarakam said today. “You’ll have to build them again.” ‘Will Stay to the End’ Thailand’s SET Index has risen 4.7 percent this year, compared with a 0.4 percent decline for the MSCI Asia-Pacific Index , as investors speculated the violence will have little long-term effect on the country’s economy. Thai stocks trade at 11 times estimated 2010 earnings, the third-cheapest in Asia after South Korea and Pakistan, according to data compiled by Bloomberg. Black-shirted guards walked around the protest site with fireworks and slingshots behind barricades of rubber tires, bamboo and razor wire. A charred-out bus blocked one part of a road next to Lumpini Park, the site of many blasts. “We are just rural people who think the country’s political system is not fair,” said Pong Kalong, sitting next to a group from a village in northeast Thailand. “I am scared but I will stay to the end.” Journalists Injured Nelson Rand, a correspondent with France 24 television network, was shot yesterday next to Lumpini Park, images on CNN showed . Elsewhere, protesters tending to wounded victims ran away as gunshots rang out, the footage showed. The government is “ready and willing to defend its operations in a court of law,” spokesman Panitan said. Abhisit withdrew an offer to hold a Nov. 14 election when protesters failed to disperse by a May 12 deadline. The group attached new conditions to his offer, including criminal charges against Deputy Prime Minister Suthep Thaugsuban . Pro-Thaksin parties have won the past four elections on a platform of improved health care and cheap loans. Abhisit took power in a December 2008 parliamentary vote after a court disbanded the pro-Thaksin ruling party for election fraud in the first ballot since he was ousted in a 2006 coup. To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Thai Troops Clash With Demonstrators in Bangkok, Leaving at Least 18 Dead

May 15, 2010

By Daniel Ten Kate and Supunnabul Suwannakij May 15 (Bloomberg) — At least 16 people were killed and more than 100 wounded as Thai troops battled anti-government demonstrators in a Bangkok commercial area to end a two-month street campaign for an immediate election. Security forces aiming to seal off a business district as large as New York’s Central Park fought protesters in at least three locations. Demonstrators set fires and launched explosives at troops, who shot bullets and tear gas in return, local television footage showed. “There could be attempts by people who have ill intentions to create instability,” government spokesman Panitan Wattanayagorn said in a nationally televised briefing. “We hope that in the next few days the situation will return to normal.” The government is seeking to force protesters to end rallies in central Bangkok that have spurred the country’s worst political violence in 18 years, claiming at least 46 lives since they began March 12. The protesters, drawn mostly from poor rural areas, say they are fighting for democracy. Former Thai leader Thaksin Shinawatra , whom many of the red-shirted protesters support, called on Prime Minister Abhisit Vejjajiva to restart reconciliation talks. The Red Shirts have defied a state of emergency since April 7 and failed to disperse after Abhisit offered to cut his term short, prompting the military action. Protesters may assault buildings and train lines if troops use force, TNN television station reported, citing leader Jatuporn Prompan. The movement’s leaders are divided on whether to continue the demonstrations. Split Down Middle “It’s about a 50-50 split,” Kokaew Pikulthong, one of about two dozen protest leaders, said in an interview. “I myself prefer to stop.” Thailand’s SET Index rebounded after dropping as much as 1.4 percent earlier yesterday, closing 0.3 percent higher. The benchmark has risen 4.7 percent this year, compared with a 0.4 percent decline for the MSCI Asia-Pacific Index . Thailand’s economy has been hurt by the anti-government rallies, which will “significantly” reduce tourism in the coming months, Finance Minister Korn Chatikavanij said in an interview with Bloomberg Television yesterday. “We’ll be as patient as we can be,” he said. “The best thing that could possibly happen would be for the protesters to see that ongoing protests will lead to unnecessary loss of life and damage to the country.” TUI AG and Thomas Cook Group Plc , Europe’s two largest tour operators, have canceled all city trips to Bangkok from Germany through May 31, they said yesterday in e-mailed statements. Renegade General Shot Sixteen Thai civilians were killed in the fighting yesterday and overnight, according to a statement from Bangkok’s medical emergency unit. Another 141 people were injured, including three foreigners from Canada, Myanmar and Poland, the report said. Battles two days ago killed one person after a renegade general was shot. Major-General Khattiya Sawisdipol, who sided with the anti-government protesters, “can die any second,” Chaiwan Charoenchokethavee, head of Vajira hospital in Bangkok, told reporters yesterday. The general is one of nine demonstration leaders wanted on terrorism charges. About 500 “terrorists” with weapons are interspersed among the 5,000 protesters, army spokesman Sansern Kaewkamnerd told reporters, adding that troops seized grenade launchers and rifles from demonstrators. Soldiers used live bullets as a “last measure,” he said. The government is “ready and willing to defend its operations in a court of law,” spokesman Panitan said. Correspondent Wounded Nelson Rand, a correspondent with France 24 television network, was shot and wounded while covering the clashes. A cameraman for Thai-language Matichon newspaper was shot in the leg, it reported on its website. Authorities on May 13 extended an emergency decree to northern parts of the country to cover 17 of 76 provinces. “The government is clearly worried that whatever happens in central Bangkok will trigger a much broader pattern of unrest through areas that are very loyal to the Red Shirts,” said Michael Montesano , a visiting research fellow at Singapore’s Institute of Southeast Asian Studies. The U.S. Embassy in Bangkok was closed yesterday and authorities asked residents and businesses to vacate the area. Abhisit withdrew an offer to hold a Nov. 14 election when protesters failed to disperse by a May 12 deadline. The group attached new conditions to his offer, including criminal charges against Deputy Prime Minister Suthep Thaugsuban . Pro-Thaksin parties have won the past four elections on a platform of improved health care and cheap loans. Abhisit took power in a December 2008 parliamentary vote after a court disbanded the ruling party for election fraud. His Democrat party hasn’t won the most seats in a nationwide vote since 1992. To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Thai Troops Clash With Demonstrators in Bangkok, Leaving at Least 16 Dead

May 14, 2010

By Daniel Ten Kate and Supunnabul Suwannakij May 15 (Bloomberg) — At least seven people were killed and more than 100 wounded as Thai troops battled anti- government demonstrators in a Bangkok commercial area to end a two-month street campaign for an immediate election. Security forces aiming to seal off a business district as large as New York’s Central Park fought protesters in at least three separate locations. Demonstrators set fires and launched explosives at troops, who shot bullets and tear gas in return, local television footage showed. “There could be attempts by people who have ill intentions to create instability,” government spokesman Panitan Wattanayagorn said in a nationally televised briefing. “We hope that in the next few days the situation will return to normal.” The government is seeking to force protesters to end rallies in central Bangkok that have claimed at least 37 lives since they began March 12. The protesters, drawn mostly from poor rural areas, say they are fighting for democracy. Former Thai leader Thaksin Shinawatra , whom many of the red-shirted protesters support, called on Prime Minister Abhisit Vejjajiva to restart reconciliation talks. The Red Shirts have defied a state of emergency since April 7 and failed to disperse after Abhisit offered to cut his term short, prompting the military action. Protesters may assault buildings and train lines if troops use force, TNN television station reported, citing leader Jatuporn Prompan. The movement’s leaders are divided on whether to continue the demonstrations. Split Down Middle “It’s about a 50-50 split,” Kokaew Pikulthong, one of about two dozen protest leaders, said in an interview. “I myself prefer to stop.” Thailand’s SET Index rebounded after dropping as much as 1.4 percent earlier yesterday, closing 0.3 percent higher. The benchmark has risen 4.7 percent this year, compared with a 0.4 percent decline for the MSCI Asia-Pacific Index . Thailand’s economy has been hurt by the anti-government rallies, which will “significantly” reduce tourism in the coming months, Finance Minister Korn Chatikavanij said in an interview with Bloomberg Television yesterday. “We’ll be as patient as we can be,” he said. “The best thing that could possibly happen would be for the protesters to see that ongoing protests will lead to unnecessary loss of life and damage to the country.” TUI AG and Thomas Cook Group Plc , Europe’s two largest tour operators, have canceled all city trips to Bangkok from Germany through May 31, they said yesterday in e-mailed statements. Renegade General Shot Seven civilians were killed in the fighting yesterday, Channel 9 reported, citing Petchpong Kumjornkijjakarn, head of Bangkok’s medical emergency unit. Another 101 people were injured, with nine in critical condition, the report said. Battles two days ago killed one person and wounded 11 after a renegade general was shot. Major-General Khattiya Sawisdipol, who sided with the anti-government protesters, “can die any second,” Chaiwan Charoenchokethavee, head of Vajira hospital in Bangkok, told reporters yesterday. The general is one of nine demonstration leaders wanted on terrorism charges. About 500 “terrorists” with weapons are interspersed among the 5,000 protesters, army spokesman Sansern Kaewkamnerd told reporters, adding that troops seized grenade launchers and rifles from demonstrators. Soldiers used live bullets as a “last measure,” he said. The government is “ready and willing to defend its operations in a court of law,” spokesman Panitan said. Correspondent Wounded Nelson Rand, a correspondent with France 24 television network, was shot and wounded while covering the clashes. A cameraman for Thai-language Matichon newspaper was shot in the leg, it reported on its website. Authorities on May 13 extended an emergency decree to northern parts of the country to cover 17 of 76 provinces. “The government is clearly worried that whatever happens in central Bangkok will trigger a much broader pattern of unrest through areas that are very loyal to the Red Shirts,” said Michael Montesano , a visiting research fellow at Singapore’s Institute of Southeast Asian Studies. The U.S. Embassy in Bangkok was closed yesterday and authorities asked residents and businesses to vacate the area. Abhisit withdrew an offer to hold a Nov. 14 election when protesters failed to disperse by a May 12 deadline. The group attached new conditions to his offer, including criminal charges against Deputy Prime Minister Suthep Thaugsuban . Pro-Thaksin parties have won the past four elections on a platform of improved health care and cheap loans. Abhisit took power in a December 2008 parliamentary vote after a court disbanded the ruling party for election fraud. His Democrat party hasn’t won the most seats in a nationwide vote since 1992. To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Thai Troops Clash With Bangkok Demonstrators, Leaving at Least Seven Dead

May 14, 2010

By Daniel Ten Kate and Supunnabul Suwannakij May 14 (Bloomberg) — Thai troops battled anti-government demonstrators on the perimeter of their main Bangkok protest site in running clashes that killed at least five people and wounded scores more, including two journalists. Security forces aiming to seal off a business district as large as New York’s Central Park fought protesters in at least three separate locations. Demonstrators set fires and launched explosives at troops, who shot bullets and tear gas in return, local television footage showed. “There could be attempts by people who have ill intentions to create instability,” government spokesman Panitan Wattanayagorn said in a nationally televised briefing. “We hope that in the next few days the situation will return to normal.” The government is aiming to force protesters to end two months of rallies in central Bangkok that have claimed at least 35 lives since they began March 12. The protesters, drawn mostly from poor rural areas, say they are fighting for democracy. Former Thai leader Thaksin Shinawatra , whom many of the red-shirted protesters support, called on Prime Minister Abhisit Vejjajiva to restart reconciliation talks. The Red Shirts have defied a state of emergency since April 7 and failed to disperse after Abhisit offered to cut his term short, prompting the military action. Protester Leadership Divided Protesters may assault buildings and train lines if troops use force, TNN television station reported, citing leader Jatuporn Prompan. The movement’s leaders are divided on whether to continue the demonstrations. “It’s about a 50-50 split,” Kokaew Pikulthong, one of about two dozen protest leaders, said in an interview. “I myself prefer to stop.” Thailand’s SET Index rebounded after dropping as much as 1.4 percent earlier today, closing 0.3 percent higher. The benchmark has risen 4.7 percent this year, compared with a 0.5 percent decline for the MSCI Asia-Pacific Index . Thailand’s economy has been hurt by the anti-government rallies, which will “significantly” reduce tourism in the coming months, Finance Minister Korn Chatikavanij said in an interview with Bloomberg Television today. “We’ll be as patient as we can be,” he said. “The best thing that could possibly happen would be for the protesters to see that ongoing protests will lead to unnecessary loss of life and damage to the country.” TUI AG and Thomas Cook Group Plc , Europe’s two largest tour operators, have canceled all city trips to Bangkok from Germany through May 31, they said today in e-mailed statements. Renegade General Shot Five people died and 81 were injured in clashes today, according to hospital officials and the government. Battles last night killed one person, including a renegade general who is one of nine demonstration leaders wanted on terrorism charges. About 500 “terrorists” with weapons are interspersed among the 5,000 protesters, army spokesman Sansern Kaewkamnerd told reporters, adding that troops seized grenade launchers and rifles from demonstrators. Soldiers used live bullets as a “last measure,” he said. The government is “ready and willing to defend its operations in a court of law,” spokesman Panitan said. Nelson Rand, a correspondent with France 24 television network, was shot and wounded while covering the clashes. A cameraman for Thai-language Matichon newspaper was shot in the leg, it reported on its website. Emergency Degree Extended Authorities yesterday extended an emergency decree to northern parts of the country to cover 17 of 76 provinces. “The government is clearly worried that whatever happens in central Bangkok will trigger a much broader pattern of unrest through areas that are very loyal to the Red Shirts,” said Michael Montesano , a visiting research fellow at Singapore’s Institute of Southeast Asian Studies. The U.S. Embassy in Bangkok was closed today and authorities asked residents and businesses to vacate the area. Abhisit withdrew an offer to hold a Nov. 14 election when protesters failed to disperse by a May 12 deadline. The group attached new conditions to his offer, including criminal charges against Deputy Prime Minister Suthep Thaugsuban . Pro-Thaksin parties have won the past four elections on a platform of improved health care and cheap loans. Abhisit took power in a December 2008 parliamentary vote after a court disbanded the ruling party for election fraud. His Democrat party hasn’t won the most seats in a nationwide vote since 1992. To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Thai Troops Clash With Bangkok Demonstrators, Killing Five, Hurting Dozens

May 14, 2010

By Daniel Ten Kate and Supunnabul Suwannakij May 14 (Bloomberg) — Thai troops battled anti-government demonstrators on the perimeter of their main Bangkok protest site in running clashes that killed at least five people and wounded scores more, including two journalists. Security forces aiming to seal off a business district as large as New York’s Central Park fought protesters in at least three separate locations. Demonstrators set fires and launched explosives at troops, who shot bullets and tear gas in return, local television footage showed. “There could be attempts by people who have ill intentions to create instability,” government spokesman Panitan Wattanayagorn said in a nationally televised briefing. “We hope that in the next few days the situation will return to normal.” The government is aiming to force protesters to end two months of rallies in central Bangkok that have claimed at least 35 lives since they began March 12. The protesters, drawn mostly from poor rural areas, say they are fighting for democracy. Former Thai leader Thaksin Shinawatra , whom many of the red-shirted protesters support, called on Prime Minister Abhisit Vejjajiva to restart reconciliation talks. The Red Shirts have defied a state of emergency since April 7 and failed to disperse after Abhisit offered to cut his term short, prompting the military action. Protester Leadership Divided Protesters may assault buildings and train lines if troops use force, TNN television station reported, citing leader Jatuporn Prompan. The movement’s leaders are divided on whether to continue the demonstrations. “It’s about a 50-50 split,” Kokaew Pikulthong, one of about two dozen protest leaders, said in an interview. “I myself prefer to stop.” Thailand’s SET Index rebounded after dropping as much as 1.4 percent earlier today, closing 0.3 percent higher. The benchmark has risen 4.7 percent this year, compared with a 0.5 percent decline for the MSCI Asia-Pacific Index . Thailand’s economy has been hurt by the anti-government rallies, which will “significantly” reduce tourism in the coming months, Finance Minister Korn Chatikavanij said in an interview with Bloomberg Television today. “We’ll be as patient as we can be,” he said. “The best thing that could possibly happen would be for the protesters to see that ongoing protests will lead to unnecessary loss of life and damage to the country.” TUI AG and Thomas Cook Group Plc , Europe’s two largest tour operators, have canceled all city trips to Bangkok from Germany through May 31, they said today in e-mailed statements. Renegade General Shot Five people died and 81 were injured in clashes today, according to hospital officials and the government. Battles last night killed one person, including a renegade general who is one of nine demonstration leaders wanted on terrorism charges. About 500 “terrorists” with weapons are interspersed among the 5,000 protesters, army spokesman Sansern Kaewkamnerd told reporters, adding that troops seized grenade launchers and rifles from demonstrators. Soldiers used live bullets as a “last measure,” he said. The government is “ready and willing to defend its operations in a court of law,” spokesman Panitan said. Nelson Rand, a correspondent with France 24 television network, was shot and wounded while covering the clashes. A cameraman for Thai-language Matichon newspaper was shot in the leg, it reported on its website. Emergency Degree Extended Authorities yesterday extended an emergency decree to northern parts of the country to cover 17 of 76 provinces. “The government is clearly worried that whatever happens in central Bangkok will trigger a much broader pattern of unrest through areas that are very loyal to the Red Shirts,” said Michael Montesano , a visiting research fellow at Singapore’s Institute of Southeast Asian Studies. The U.S. Embassy in Bangkok was closed today and authorities asked residents and businesses to vacate the area. Abhisit withdrew an offer to hold a Nov. 14 election when protesters failed to disperse by a May 12 deadline. The group attached new conditions to his offer, including criminal charges against Deputy Prime Minister Suthep Thaugsuban . Pro-Thaksin parties have won the past four elections on a platform of improved health care and cheap loans. Abhisit took power in a December 2008 parliamentary vote after a court disbanded the ruling party for election fraud. His Democrat party hasn’t won the most seats in a nationwide vote since 1992. To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Thai Troops Clash With Bangkok Demonstrators, Killing Three, Wounding 45

May 14, 2010

By Daniel Ten Kate and Supunnabul Suwannakij May 14 (Bloomberg) — Thai troops battled anti-government demonstrators on the perimeter of their main Bangkok protest site in clashes that killed at least two people and wounded 22 others, including two journalists. Security forces aiming to seal off a business district as large as New York’s Central Park fought protesters in at least three separate locations. Protesters set tires and a bus on fire and threw explosives at troops, who shot bullets and tear gas in return, local television footage showed. “We expect there will be more incidents tonight and the security forces stand ready to handle the situation,” army spokesman Sansern Kaewkamnerd told reporters. “We haven’t thought about dispersing them from the main area today.” The government is aiming to force protesters to end two months of rallies in central Bangkok that have claimed at least 31 lives since they began March 12. The protesters, drawn mostly from poor rural areas, say they are fighting for democracy. Former Thai leader Thaksin Shinawatra , who many of the red- shirted protesters support, called on Prime Minister Abhisit Vejjajiva to order soldiers back to their barracks and restart reconciliation talks. The Red Shirts have defied a state of emergency since April 7 and failed to disperse after Abhisit offered to cut his term short, prompting the military action. Protester Leadership Divided Protesters may assault buildings and train lines if troops use force, TNN television station reported, citing leader Jatuporn Prompan. The movement’s leaders are divided on whether to continue the demonstrations. “It’s about a 50-50 split,” Kokaew Pikulthong, one of about two dozen protest leaders, said in an interview behind the main stage. “I myself prefer to stop.” Thailand’s SET Index rebounded after dropping as much as 1.4 percent earlier today, closing 0.3 percent higher. The benchmark has risen 4.7 percent this year, compared with a 0.5 percent decline for the MSCI Asia-Pacific Index . Thailand’s economy has been hurt by ongoing anti-government rallies that will “significantly” reduce tourism in the coming months, Finance Minister Korn Chatikavanij said in an interview with Bloomberg Television today. “We’ll be as patient as we can be,” he said. “The best thing that could possibly happen would be for the protesters to see that ongoing protests will lead to unnecessary loss of life and damage to the country.” TUI AG and Thomas Cook Group Plc , Europe’s two largest tour operators, have canceled all city trips to Bangkok from Germany through May 31, they said today in e-mailed statements. Package tours to other destinations in the country are still operating, the companies said. Renegade General Shot Two rioters, including a 30-year-old taxi driver, were killed in clashes today, TNN said. Battles last night killed one person and injured 11, including a renegade general who is one of nine demonstration leaders wanted on terrorism charges. Major-General Khattiya Sawisdipol, who sided with the anti- government protesters, “can die any second,” Chaiwan Charoenchokethavee, head of Vajira hospital in Bangkok, told reporters. The shooting “effectively removed the one symbol that was preventing some sort of closure to the protests,” said Jacob Ramsay , an analyst with Control Risks Group. Nelson Rand, a correspondent with France 24 television network, was shot and wounded while covering the clashes. A cameraman for Thai-language Matichon newspaper was shot in the leg, it reported on its website. Emergency Degree Extended Authorities yesterday extended an emergency decree to northern parts of the country to cover 17 of 76 provinces. “The government is clearly worried that whatever happens in central Bangkok will trigger a much broader pattern of unrest through areas that are very loyal to the Red Shirts,” said Michael Montesano , a visiting research fellow at Singapore’s Institute of Southeast Asian Studies. The U.S. Embassy in Bangkok was closed today and authorities asked residents and businesses to vacate the area. Abhisit withdrew an offer to hold a Nov. 14 election when protesters failed to disperse by a May 12 deadline. The group attached new conditions to his offer, including criminal charges against Deputy Prime Minister Suthep Thaugsuban . Pro-Thaksin parties have won the past four elections on a platform of improved health care and cheap loans. Abhisit took power in a December 2008 parliamentary vote after a court disbanded the ruling party for election fraud. His Democrat party hasn’t won the most seats in a nationwide vote since 1992. To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Thai Troops Prevent Protesters Reaching Rally Site After Night of Violence

May 13, 2010

By Daniel Ten Kate and Supunnabul Suwannakij May 14 (Bloomberg) — Thai security forces set up checkpoints near a Bangkok protest site to stop reinforcements from joining demonstrators after a night of violence that followed the shooting of a renegade general at the camp. Gunfire and grenade attacks overnight killed one protester and injured eight others, Bangkok’s medical emergency unit said. Authorities extended an emergency decree to northern parts of the country to cover 17 of 76 provinces. “The government is clearly worried that whatever happens in central Bangkok will trigger a much broader pattern of unrest through areas that are very loyal to the Red Shirts,” said Michael Montesano , a visiting research fellow at Singapore’s Institute of Southeast Asian Studies. “That is where things really get scary and where the grip of the Thai government gets very shaky.” Thailand’s SET Index fell 1.1 percent as of 12:11 p.m. after dropping as much as 1.4 percent on concern further bloodshed will deter tourism and curb economic growth. The benchmark has risen 3.5 percent this year, compared with a 0.6 percent decline for the MSCI Asia-Pacific Index. “We’ll be as patient as we can be,” Finance Minister Korn Chatikavanij said in an interview with Bloomberg Television today. “We very much would like a couple hours for protesters to stand down to avoid further violence.” Major-General Khattiya Sawisdipol, who sided with the anti- government protesters, “can die any second,” Chaiwan Charoenchokethavee, head of Vajira hospital in Bangkok, told reporters. The government is investigating who shot him, Korn said, adding that “it pretty much could be anybody.” ‘Own Side’ The general “might have been shot by someone on his own side because he was standing in the way of a settlement with the government,” Jacob Ramsay , an analyst with Control Risks Group, said on Bloomberg Television. “If he was shot by the government, they’ve effectively removed the one symbol that was preventing some sort of closure to the protests.” The cost of protecting Thai government debt from default jumped. Credit-default swaps on Thailand climbed 25 basis points to 140 basis points as of 9:10 a.m. in Singapore, according to Royal Bank of Scotland Group Plc. Khattiya, who helped build barricades around the business district, was shot during an interview with the New York Times, the newspaper reported. He is one of nine protest leaders facing terrorism charges for their role in violence that has killed 30 people since round-the-clock rallies began on March 12. ‘Combat Experience’ “Protesters were counting on him to provide combat experience to the guards” protecting demonstrators, Sean Boonpracong , a spokesman for the Red Shirt protest group, said by phone, referring to the general, who is also known as Seh Daeng . “It’s a psychological blow.” The Red Shirts, who mostly support ex-leader Thaksin Shinawatra , have defied a state of emergency since April 7. The demonstrators are coordinating with supporters in northern areas of the country to fight back in the event of a crackdown. Gunfire, at times heavy, and explosions could be heard around Lumpini Park, on the outskirts of the protest site. Most high-rise buildings in the area were completely dark overnight and most street lights were off last night. Behind a barricade of rubber tires and bamboo sticks on one street next to the park, one of about six scattered around the area, about three dozen protesters wore helmets and facemasks. Scores of small bottles filled with gas lay next to the barricades. ‘Not Scared’ “I’m not scared of dying,” said Sorn Omsakul, 34, from northeastern Thailand, dressed in black from head to toe. “We’ve been ready to fight for many days.” The U.S. Embassy in Bangkok, located on one of the streets the army is trying to clear, is closed today, according to a posting on the embassy’s website. Residents and businesses were asked to vacate the downtown Ratchaprasong shopping district . The army began cutting electricity, water and phone signals and blocking off roads and canals around the site to “block and squeeze” the area, army spokesman Sansern Kaewkamnerd told reporters. Anyone seeking access to the protest faces two years in jail, according to an announcement read on television. Prime Minister Abhisit Vejjajiva withdrew an offer to cut short his term and hold a Nov. 14 election when protesters failed to disperse by a midnight deadline. The group backed away from supporting Abhisit’s election plan this week, attaching new conditions, including criminal charges against Deputy Prime Minister Suthep Thaugsuban . Pro-Thaksin parties have won the past four elections on a platform of improved health care and cheap loans. Abhisit took power in a December 2008 parliamentary vote after a court disbanded the ruling party for election fraud. His Democrat party hasn’t won the most seats in a nationwide vote since 1992. The Red Shirts will rally “indefinitely,” leader Jatuporn Prompan said yesterday. “We will continue to fight.” To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Video: Montesano Says Thai Government Fears Spread of Unrest: Video

May 13, 2010

May 14 (Bloomberg) — Michael Montesano, a visiting research fellow at Singapore’s Institute of Southeast Asian Studies talks with Bloomberg’s Susan Li about Thailand’s political standoff. One Thai protester was killed and eight others injured in overnight clashes, Bangkok’s medical emergency unit said in a statement on its website. (Source: Bloomberg)

Read the full article →

Thai Troops Prepare to Eject Protesters From Bangkok After Talks Collapse

May 13, 2010

By Daniel Ten Kate and Yumi Teso May 13 (Bloomberg) — Thai authorities made preparations to forcibly remove protesters from Bangkok streets, risking a violent confrontation after reconciliation efforts to end a two- month standoff broke down. Armored vehicles will surround the protest site from 6 p.m. local time and troops are prepared to use live rounds if necessary, police spokesman Prawut Thavornsiri said by phone. Residents and businesses were asked to vacate the downtown shopping district. Thailand’s SET Index fell 0.9 percent, bucking gains across Asia, on concern further bloodshed will deter tourism and curb economic growth. Clashes between authorities and the red-shirted protesters have killed 29 people since April 10, Thailand’s worst political violence in 18 years. “The political situation is worsening and people are scared,” said Chatchawan Jumruswittayawong, a foreign-exchange trader at Bank of Ayudhya Pcl in Bangkok. “The situation is still very uncertain and people are worried about the impact on the economy.” The baht fell 0.1 percent to 32.34 per dollar, reversing earlier gains. The MSCI Asia Pacific Index rose 1.7 percent after pledges by Spain and the U.K. to cut their budget deficits eased concern Europe’s debt crisis will spread. ‘Become Intransigent’ “The Red Shirts presumably now will be emboldened to stay in the streets and provoke a crackdown that results in bloodshed,” Thitinan Pongsudhirak , a political science lecturer at Bangkok’s Chulalongkorn University, said in an interview in Hong Kong today. “They have become intransigent.” The government move to seal off the site is the first attempted blockade since demonstrators claimed the area on April 3. Prime Minister Abhisit Vejjajiva last week said he would cut his term short by 13 months in a bid to end the rallies, which have disrupted businesses and hurt the economy. Protesters refused to disperse even after saying they agreed with the Nov. 14 election date. “Since they didn’t end the protest, that means they reject the offer,” Abhisit told reporters in Bangkok today. “The election date is now up to me to decide.” The Red Shirts will rally “indefinitely,” leader Jatuporn Prompan said today, urging supporters to join them before police surround the area. “We will continue to fight,” he said. Election Plan The protesters backed away from supporting Abhisit’s election plan this week, attaching new conditions including possible criminal charges against Deputy Prime Minister Suthep Thaugsuban . The Red Shirts, who mostly support fugitive ex-leader Thaksin Shinawatra , have defied a state of emergency since April 7. The group has set up barricades of bamboo spears and rubber tires around an area as large as New York’s Central Park. The protest site contains dozens of office buildings and condominiums, as well as two hospitals, including one right next to the main stage. As many as 40 schools scheduled to open for classes on May 17 may be affected, Education Minister Chinnaworn Boonyakiat said. To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net ; Yumi Teso in Bangkok at yteso1@bloomberg.net

Read the full article →

Thai Troops Prepare to Eject Protesters From Bangkok After Talks Collapse

May 13, 2010

By Daniel Ten Kate and Yumi Teso May 13 (Bloomberg) — Thai authorities made preparations to forcibly remove protesters from Bangkok streets, risking a violent confrontation after reconciliation efforts to end a two- month standoff broke down. Armored vehicles will surround the protest site from 6 p.m. local time and troops are prepared to use live rounds if necessary, police spokesman Prawut Thavornsiri said by phone. Residents and businesses were asked to vacate the downtown shopping district. Thailand’s SET Index fell 0.9 percent, bucking gains across Asia, on concern further bloodshed will deter tourism and curb economic growth. Clashes between authorities and the red-shirted protesters have killed 29 people since April 10, Thailand’s worst political violence in 18 years. “The political situation is worsening and people are scared,” said Chatchawan Jumruswittayawong, a foreign-exchange trader at Bank of Ayudhya Pcl in Bangkok. “The situation is still very uncertain and people are worried about the impact on the economy.” The baht fell 0.1 percent to 32.34 per dollar, reversing earlier gains. The MSCI Asia Pacific Index rose 1.7 percent after pledges by Spain and the U.K. to cut their budget deficits eased concern Europe’s debt crisis will spread. ‘Become Intransigent’ “The Red Shirts presumably now will be emboldened to stay in the streets and provoke a crackdown that results in bloodshed,” Thitinan Pongsudhirak , a political science lecturer at Bangkok’s Chulalongkorn University, said in an interview in Hong Kong today. “They have become intransigent.” The government move to seal off the site is the first attempted blockade since demonstrators claimed the area on April 3. Prime Minister Abhisit Vejjajiva last week said he would cut his term short by 13 months in a bid to end the rallies, which have disrupted businesses and hurt the economy. Protesters refused to disperse even after saying they agreed with the Nov. 14 election date. “Since they didn’t end the protest, that means they reject the offer,” Abhisit told reporters in Bangkok today. “The election date is now up to me to decide.” The Red Shirts will rally “indefinitely,” leader Jatuporn Prompan said today, urging supporters to join them before police surround the area. “We will continue to fight,” he said. Election Plan The protesters backed away from supporting Abhisit’s election plan this week, attaching new conditions including possible criminal charges against Deputy Prime Minister Suthep Thaugsuban . The Red Shirts, who mostly support fugitive ex-leader Thaksin Shinawatra , have defied a state of emergency since April 7. The group has set up barricades of bamboo spears and rubber tires around an area as large as New York’s Central Park. The protest site contains dozens of office buildings and condominiums, as well as two hospitals, including one right next to the main stage. As many as 40 schools scheduled to open for classes on May 17 may be affected, Education Minister Chinnaworn Boonyakiat said. To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net ; Yumi Teso in Bangkok at yteso1@bloomberg.net

Read the full article →

Abhisit Cuts Water, Power Supplies in Bangkok Protest Zone as Talks Fail

May 12, 2010

By Supunnabul Suwannakij and Daniel Ten Kate May 12 (Bloomberg) — Thai authorities will cut water, electricity and phone signals in a central Bangkok business area to pressure protesters to leave after the group wavered on a peace offer from Prime Minister Abhisit Vejjajiva . The measures will take effect at midnight, army spokesman Sansern Kaewkamnerd told reporters in Bangkok today. Bus, rail and boat services to the area will also stop, he said. “The security team may use measures which may affect people in the area, not only protesters,” Abhisit told reporters late yesterday in Bangkok. The demonstrators earlier vowed to extend their occupation of the capital until police charged his deputy for ordering a military crackdown last month. The measures may prompt more aggressive action from protesters, who have set repeated conditions to disperse even after Abhisit offered to hold elections Nov. 14. The government has refrained from carrying out previous threats to seal off the city’s commercial district since demonstrators began their occupation of the area six weeks ago. “Abhisit, you don’t need to threaten us,” protest leader Weng Tojirakarn said from the main protest stage today. “We aren’t afraid. We will continue to fight.” The demonstrators, many loyal to exiled former premier Thaksin Shinawatra , first took to the streets in March and have defied a state of emergency since April 7. The group has set up barricades of bamboo spears and rubber tires around a central business area as large as New York’s Central Park. The demonstrators have agreed to the election date and suggested earlier this week that they were ready to disband. Abhisit’s five-part proposal to end the standoff includes measures to safeguard the monarchy, address economic inequality, ensure an independent media, create a body to investigate political violence and assess ways to change the constitution and disputed laws. “Not ending the protest means that they reject the reconciliation road map,” Abhisit said. Thailand’s SET Index of stocks, which jumped 4.4 percent the day after Abhisit made the election offer last week, gained 0.8 percent at 11:39 a.m. local time. The benchmark has climbed 5.9 percent since the beginning of the year, compared with a 1.4 percent decline in the MSCI Asia Pacific Index . To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Thai Premier Calls Special Cabinet Meeting, Says Protests Are Contained

May 1, 2010

By Supunnabul Suwannakij and Daniel Ten Kate May 2 (Bloomberg) — Thai Prime Minister Abhisit Vejjajiva will hold a special Cabinet meeting today after he said government measures have helped contain protests from spreading outside of Bangkok’s commercial center. The government has worked to stop demonstrators from publicizing their rallies and setting up illegal checkpoints, Abhisit said. Security officials who fail in their duties will be transferred, he said. “You can see that protesters haven’t rallied to other areas,” the prime minister said in a weekly television address. “This has helped the government to concentrate on Ratchaprasong,” he said, referring to the area of shopping malls and office buildings the group has occupied for 29 days. Protesters have defied emergency rule since April 7, clashing with troops and disrupting mass transit lines to pressure Abhisit into calling a general election. The group has cordoned off an area roughly the size of New York’s Central Park with barricades of rubber tires and bamboo sticks. Security forces fired rubber bullets and live rounds on April 28 to prevent the group from rallying support in other areas of the capital. One soldier was killed, a death that is under investigation. The cabinet will discuss laws to help security forces “perform their duty in the area efficiently,” Abhisit said. Martial law is not necessary to end the protests, he said. ‘Civil War’ Abhisit ordered police to take back part of a road in front of a hospital where patients were evacuated two days ago after demonstrators stormed the building, the Bangkok Post reported, citing army spokesman Sansern Kaewkamnerd . Demonstration leaders apologized for entering the hospital on the outskirts of their protest site, saying that the incident may cost them support. The group moved back its barricade to allow one lane of traffic to access the hospital. A failed attempt to clear demonstrators on April 10 killed 25 people and wounded more than 800 others. One person died in an April 22 grenade attack on an elevated train. “The government must recognize that a violent crackdown would severely damage them and likely lead to more conflict,” the International Crisis Group, a Brussels-based policy research group, said in an April 30 report that called for outside parties to help facilitate a compromise. The Thai political system has broken down and seems incapable of pulling the country back from the brink of widespread conflict, it said. The stand-off in the streets of Bangkok between the government and Red Shirt protesters is worsening and could deteriorate into an “undeclared civil war,” according to the report. Thaksin The protesters “must also accept that further provocations or violence will only do more damage to their democratic credentials, as well as undercut the credibility of their entire campaign for change,” it said. Thailand’s stock exchange is closed tomorrow for a public holiday. The benchmark SET Index has gained 3.9 percent this year, compared with a 4.5 percent increase for the MSCI Asia Pacific Index . The protesters mostly support fugitive ex-leader Thaksin Shinawatra , ousted in a 2006 coup. The billionaire fled a two- year jail sentence in Thailand for abuse of power in 2008 and has helped orchestrate protests from abroad since then. Abhisit has refused to bow to protester demands, saying he will not give in to threats of violence. Abhisit took power in a parliamentary vote in December 2008 after a court disbanded the pro-Thaksin ruling party for election fraud. To contact the reporters on this story: Supunnabul Suwannakij in Bangkok at ssuwannakij@bloomberg.net ; Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Thai Soldier’s Death in Clash With Protesters Raises Tensions in Bangkok

April 28, 2010

By Daniel Ten Kate and Supunnabul Suwannakij April 29 (Bloomberg) — Thai security forces stopped anti- government protesters from rallying north of the capital in clashes that killed one soldier, raising tensions in a seven- week standoff that has paralyzed Bangkok’s commercial center. One soldier was shot dead and another injured in the skirmish, police official Worapong Chiewprecha said in a televised briefing last night. Seventeen protesters were also wounded after authorities opened fire to prevent a convoy of about 5,000 people from traveling to a fresh-food market north of Bangkok, he said. The incident may add pressure on Prime Minister Abhisit Vejjajiva to scatter demonstrators who have disrupted businesses and irked residents by occupying a business district since April 3. The country’s worst political violence in 18 years has now killed 27 people this month. “The situation has been aggravated to the point where the government has to do something, either disperse them or negotiate,” said Somjai Phagaphasvivat , a lecturer at Bangkok’s Thammasat University. “The protesters are on the defensive and they know the cost of resistance is getting higher every day.” Thailand’s SET index fell 1.6 percent as overseas investors posted their biggest net selling in five months, making it Asia’s second-worst performer in April after the benchmark in Shanghai. Thai stocks have risen 2 percent for the year compared with a 4.1 percent gain for the MSCI Asia Pacific Index . Bag of Grenades Security forces arrested 14 protesters and found a bag with 62 M-79 grenades left by another demonstrator who escaped, Anon Jarayapan, an air force commander, said in a televised broadcast. The clash showed the government’s aim “to control any law-breaking,” spokesman Panitan Wattanayagorn told reporters. A grenade attack last week on an elevated train line station next to the protest site left one person dead, and 25 died in an army crackdown on April 10. The government and protesters blame each other for the casualties. Soldiers carrying rifles were stationed yesterday on Silom and Sukhumvit roads, Bangkok business arteries that connect with the cordoned-off protest site. Water cannon trucks and riot police are also positioned in the area. Protest leader Nattawut Saikuar said fellow troops shot the soldier who died yesterday, citing reports from CNN and BBC. Three demonstrators were wounded with real bullets, he said. Live Rounds The army is investigating the cause of the soldier’s death, spokesman Sansern Kaewkamnerd told reporters. Troops used fake bullets and live rounds, he said. “Soldiers and policemen have flesh and blood,” he said. “When protesters use weapons against them, they have to protect themselves.” The protesters mostly back fugitive ex-leader Thaksin Shinawatra , who was ousted in a 2006 coup. They say Abhisit’s rule is illegitimate because his party finished second in the last election and took power in a parliamentary vote after a court disbanded the ruling pro-Thaksin party for election fraud. The demonstrators, concerned about a military offensive after yesterday’s clashes, poured gasoline over one of the barricades of bamboo sticks and tires erected around their protest site, an area roughly the size of New York’s Central Park. Protesters manning the makeshift walls aimed slingshots at people taking photographs. Abhisit has asserted the right to complete his term, which expires at the end of next year. He has called for political talks that include all parties and said the government will fight “terrorists” who hide among the demonstrators. Thaksin has seen parties linked to him win the past four elections on heavy support from rural northern areas. Abhisit’s Democrat party hasn’t won a nationwide vote since 1992. To contact the reporters on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Thai Army Fires Rubber Bullets as Protesters Try to Rally Outside Bangkok

April 28, 2010

By Daniel Ten Kate and Suttinee Yuvejwattana April 28 (Bloomberg) — Thai security forces fired rubber bullets at a procession of about 5,000 anti-government protesters, thwarting their attempt to rally support outside the capital. Authorities opened fire at a checkpoint to prevent demonstrators from traveling to a fresh-food market north of Bangkok, police spokesman Prawut Thavornsiri said by phone. The army is also attempting to arrest convoy members, army spokesman Sansern Kaewkamnerd said by phone. The protester plan to send “task forces” out from their Bangkok base threatens to provoke clashes after the government yesterday threatened a stern response. A grenade attack on the elevated train line killed one person last week and a failed attempt to disperse the group April 10 left 25 people dead. “We want to show the people at the market that we stand with them,” protest spokesman Sean Boonpracong said by phone. “We will see if the army cracks a whip on us.” The demonstrators, who mostly support fugitive ex-leader Thaksin Shinawatra , have occupied an area roughly the size of New York’s Central Park for the past 25 days. Yesterday they blocked a commuter train line during morning rush hour, prompting the government to warn of a crackdown. “We have been patient for two months,” Deputy Prime Minister Suthep Thaugsuban said yesterday. “But we will use decisive measures under the law from now.” Carrying Rifles Soldiers carrying rifles this morning were stationed on Silom and Sukhumvit roads, Bangkok business arteries that connect with the cordoned-off protest site. Water cannon trucks and riot police are also positioned in the area. The SET index fell 0.6 percent as of the mid-day break, and is Asia’s second-worst performer this month after the benchmark in Shanghai. Thai stocks have risen 3 percent for the year compared with a 4 percent gain for the MSCI Asia Pacific Index . Prime Minister Abhisit Vejjajiva , who last weekend rejected direct talks with the demonstrators, said yesterday the government would provide assistance for businesses affected by the protests. Measures would include rescheduling of tax payments, assistance with wages and help in making rent payments, he said. To contact the reporters on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Thai Protesters Disrupt Bangkok Train Service With Threat to Throw Tires

April 26, 2010

By Daniel Ten Kate April 27 (Bloomberg) — As many as 40 Thai protesters disrupted one of Bangkok’s two mass transit lines during the morning commute by threatening to throw tires in front of incoming trains, Keeree Kanjanapas, chief executive of Bangkok Mass Transit Pcl, said by phone. Security forces are negotiating with the protesters, who are standing on the platform of Chidlom inside their demonstration site with “tires in their hands and something else,” Keeree said, without elaborating. “They claim they don’t want to see a train, and if they see a train they will throw tires on the tracks,” said Keeree, who also heads Tanayong Pcl, which owns a stake in Bangkok Mass Transit Pcl, which operates the line. “Whenever we see it is safe we will resume service.” To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Video: S&P’s Tan Says Thai Instability Could Lead to Downgrade: Video

April 25, 2010

April 26 (Bloomberg) — Tan Kim Eng, sovereign debt ratings director at Standard & Poor’s, talks with Bloomberg’s Melissa Long about the implications of Thailand’s political unrest for the nation’s credit rating. Thai protesters readied themselves for a military offensive on the Bangkok business district they have shut down for 23 days after Prime Minister Abhisit Vejjajiva called off peace talks and pledged to disperse them. (Source: Bloomberg)

Read the full article →

Video: Ramsay Says Thai Protesters Determined to Oust Abhisit: Video

April 25, 2010

April 26 (Bloomberg) — Jacob Ramsay, an analyst at Control Risks Group in Singapore, talks with Bloomberg’s Susan Li about political unrest in Thailand, and its impact on the nation’s economy and financial market. Thai protesters readied themselves for a military offensive on the Bangkok business district they have shut down for 23 days after Prime Minister Abhisit Vejjajiva called off peace talks and pledged to disperse them. (Source: Bloomberg)

Read the full article →

Abhisit Backs Inclusive Talks to Resolve Thai Crisis, Rejects Intimidation

April 25, 2010

By Suttinee Yuvejwattana and Daniel Ten Kate April 25 (Bloomberg) — Thai Prime Minister Abhisit Vejjajiva said all parties should be included in talks on a political solution to their crisis, a day after rejecting an offer by protesters to end demonstrations if an election were to be held in three months. “The key is not whether we should dissolve the house in 30 days, three months or six months,” Abhisit said today in a nationally televised address. “The question is, if we want to create reconciliation in the country, what should we do? We need to listen to all parties.” The demonstrators, who largely support fugitive ex-leader Thaksin Shinawatra , have defied emergency rule since April 7 and occupied a key business area as part of a six-week campaign for an election. The government has blamed armed groups within the protesters for violence this month that killed 26 people. The protracted stalemate threatens to scare away tourists and deter investment as hotels, shopping malls and offices within the demonstration site shut their doors. Government agencies may need to revise their economic forecasts, Abhisit said today. “Big companies that planned to invest earlier are now waiting,” Abhisit said, adding that tourists are canceling trips. The government “underestimated” protesters when a failed attempt to disperse them April 10 left 25 people dead and more than 800 injured, the prime minister said. He also blamed the group for a grenade attack on an elevated train line in another business artery last week that killed one person. The demonstrators warned in a text message yesterday that police and troops were preparing to disperse them. The group denied any connection to the grenade attacks and called on the government to release any evidence. Dispute Over Attacks “Surely if this incriminating evidence exists it would have by now been made public, instead of being reported only in media sympathetic to the government,” protest leader Weng Tojirakarn said in a statement. Army chief Anupong Paojinda , who joined Abhisit in the televised briefing today, said the army remains unified and would follow government policy. Ex-soldiers within the protest group may be responsible for the violent clashes, he said. “We will not take sides and we will follow the government’s policy for the national benefit,” Anupong said. About 6,000 protesters remained inside their encampment, army spokesman Sansern Kaewkamnerd said yesterday. They have cordoned off an area roughly the size of New York’s Central Park with bamboo barricades, setting up showers next to the Four Seasons Hotel and sleeping under Louis Vuitton advertisements. Thaksin and his allies have won the past four elections on a platform of improved health care and cheap loans, including the last nationwide vote in 2007 that restored democracy after a coup the previous year. Abhisit took power in a December 2008 parliamentary vote after a court disbanded the pro-Thaksin party for election fraud. His Democrat party hasn’t won a nationwide vote since 1992. To contact the reporters on this story: Suttinee Yuvejwattana in Bangkok at suttinee1@bloomberg.net Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Abhisit Rejects Thai Protesters’ Call for Elections, Vows to `Enforce Law’

April 24, 2010

By Suttinee Yuvejwattana and Daniel Ten Kate April 24 (Bloomberg) — Thai Prime Minister Abhisit Vejjajiva rejected talks with protesters, who warned that security forces were mobilizing to disperse them from Bangkok’s streets within 48 hours. The protest group said in a text message that 8,400 police with shotguns were heading to Bangkok and troops were moving around the capital. Security was stepped up after five grenades exploded this week on Silom Road, a business artery that is home to several of the nation’s largest banks. Abhisit said today that security forces will enforce the rule of law, rejecting a proposal to dissolve parliament in 30 days. “Most people will see that house dissolution is not the protesters’ last demand and the proposal for 30 days is just to help their image among the foreign media,” Abhisit told reporters today in Bangkok. “The most important thing now is for our country to have the rule of law and enforce the law.” The demonstrators, who largely support fugitive ex-leader Thaksin Shinawatra , have defied emergency rule since April 7 and ignored warnings to avoid certain areas of the capital. They cordoned off an area roughly the size of New York’s Central Park with bamboo barricades, setting up showers next to the Four Seasons Hotel and sleeping under Louis Vuitton advertisements. The protesters yesterday offered to end their demonstrations if Abhisit dissolved parliament in 30 days, raising hopes that a political solution may be found to end the six-week standoff that has killed 26 people. A vote must take place 45 to 60 days afterward, according to the constitution. ‘We’re Willing’ “We’re willing to open a new round of negotiations under new conditions,” leader Veera Musikapong told supporters yesterday from the protest site. Talks last month collapsed after Abhisit rejected the group’s demands to dissolve parliament immediately, offering instead to call an election by year’s end. “The best way out for both sides right now is to sit down together and agree on the timing of the election,” said Somchai Phagaphasvivat, a lecturer at Bangkok’s Thammasat University. “A lasting solution for the Thai conflict will still take a few years,” he said. Security forces still plan to disperse the group from Bangkok’s commercial district, known as Ratchaprasong, army spokesman Sansern Kaewkamnerd said today, estimating that as many as 6,000 demonstrators remained camped at the site. A failed crackdown on April 10 killed 25 people and left more than 800 injured. ‘Not Appropriate Yet’ Demonstrators will be dispersed “one day when the time is right,” Sansern said. “But the situation at Ratchaprasong is not appropriate yet.” Some rallies are being held in other Thai provinces though they are “under control,” he said. The government and protesters blamed each other for grenade attacks that killed at least one person and injured more than 70 earlier this week. Many office buildings on Silom Road were closed yesterday as curious onlookers stood amid the debris of smashed windows and dried blood. The explosives were shot from across the street in a park occupied by red-shirted protesters, Deputy Prime Minister Suthep Thaugsuban said on national television. Protest leader Jatuporn Prompan disputed the government’s claim, saying the projectiles came from an area outside their control. Thaksin and his allies have won the past four elections by appealing to northerners with improved health care and cheap loans, including the last nationwide vote in 2007 that restored democracy after a coup the previous year. Abhisit took power in a December 2008 parliamentary vote after a court disbanded the pro-Thaksin party for election fraud. His Democrat party hasn’t won a nationwide vote since 1992. To contact the reporters on this story: Suttinee Yuvejwattana in Bangkok at suttinee1@bloomberg.net Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Thai Protesters Offer to End Rallies if Abhisit Holds Vote in Three Months

April 23, 2010

By Supunnabul Suwannakij and Daniel Ten Kate April 24 (Bloomberg) — Thai protesters offered to end their demonstrations if Prime Minister Abhisit Vejjajiva holds an election three months from now, easing tensions in a six-week standoff that has killed 26 people and paralyzed Bangkok. “We regret the loss of life and hope such incidents won’t happen again,” leader Veera Musikapong told supporters yesterday from the protest site. “We’re willing to open a new round of negotiations under new conditions.” At least five grenades exploded this week on Silom Road, a business artery that is home to several of the nation’s largest banks. Talks last month collapsed after Abhisit rejected the group’s demands to dissolve parliament immediately, offering instead to call an election by year’s end. The proposal for negotiations may lead to a peaceful solution as rising tensions prompted the U.S. and United Nations to call for dialogue. A failed effort to disperse protesters on April 10 killed 25 people and left more than 800 injured. “The best way out for both sides right now is to sit down together and agree on the timing of the election,” said Somchai Phagaphasvivat, a lecturer at Bangkok’s Thammasat University. “A lasting solution for the Thai conflict will still take a few years,” he said. The demonstrators, who largely support fugitive ex-leader Thaksin Shinawatra , have defied emergency rule since April 7 and ignored warnings to avoid certain areas of the capital. They cordoned off an area roughly the size of New York’s Central Park with bamboo barricades, setting up showers next to the Four Seasons Hotel and sleeping under Louis Vuitton advertisements. No More Violence “I’d like to express my condolences to families of those who died and to those who are injured,” Abhisit said. The protesters called for Abhisit to dissolve parliament in 30 days, Veera said. A vote must take place 45 to 60 days afterward, according to Thailand’s constitution. Abhisit didn’t say whether he’d accept the proposal, saying only that a “political problem requires a political solution.” “I have done my best in my duty and won’t allow any clashes,” he told reporters late yesterday. “If I can’t perform my duty, I don’t deserve to be in my position.” The mostly rural-based group also wants the government to stop threatening protesters with troops near their demonstration site and allow an independent investigation into the deadly incidents this month, Veera said. Army chief Anupong Paojinda confirmed that soldiers wouldn’t use violence against protesters and would separate rival groups, INN news agency reported. Grenade Attack The government and protesters blamed each other for grenade attacks that killed at least one person and injured more than 70 others. Many office buildings on Silom Road were closed yesterday as curious onlookers stood amid the debris of smashed windows and dried blood. The U.S. condemned the violence, which is not “an acceptable means of resolving political differences,” State Department spokesman Philip Crowley told reporters this week in Washington. United Nations Secretary-General Ban Ki-moon called for “restraint on all sides” after the attacks, spokesman Martin Nesirky told reporters in New York. Bangkok Mass Transit System Pcl shut down the capital’s elevated rail system at 6 p.m. local time. Bangkok Metro Pcl, operator of the city’s subway system, provided services to nine of 16 stations until midnight, according to its Web site. The benchmark SET index fell 0.9 percent yesterday. The explosives were shot from across the street in a park occupied by red-shirted protesters, Deputy Prime Minister Suthep Thaugsuban said on national television. Protest leader Jatuporn Prompan disputed the government’s claim, saying the projectiles came from an area outside their control. Thaksin and his allies have won the past four elections by appealing to northerners with improved health care and cheap loans, including the last nationwide vote in 2007 that restored democracy after a coup the previous year. Abhisit took power in a December 2008 parliamentary vote after a court disbanded the pro-Thaksin party for election fraud. His Democrat party hasn’t won a nationwide vote since 1992. To contact the reporters on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net ; Supunnabul Suwannakij in Bangkok at ssuwannakij@bloomberg.net

Read the full article →

Thai Baht Falls Most in 10 Months After Deadly Grenade Attacks in Bangkok

April 22, 2010

By Yumi Teso April 23 (Bloomberg) — Thailand’s baht dropped the most in 10 months after grenade blasts killed three people and injured 75 others near an anti-government protest site in Bangkok. The SET Index of Thai equities may fall on concern the six- week-long protests will hurt economic growth and prompt foreign investors to trim their holdings of the nation’s assets, said Minori Uchida at Bank of Tokyo-Mitsubishi UFJ Ltd., a unit of Japan’s biggest bank. Overseas investors sold 138 million baht ($4.3 million) more domestic stocks than they bought yesterday, according to stock-exchange data. “There is real uncertainty over when and how the protests will end, boosting concern about the impact on the economy and putting downward pressure on the baht,” said Uchida, a senior analyst in Tokyo. “The worsening situation has also led to concern foreigners will pull money out from the country.” The baht weakened 0.4 percent to 32.35 per dollar as of 8:55 a.m. in Bangkok, the biggest decline since June 8, 2009, according to data compiled by Bloomberg. The currency may trade between 32.30 and 32.60 this month, Uchida said. At least five grenades exploded last night on Silom Road, including one in a crowd near a hotel and another at Bangkok Bank Pcl’s headquarters, government spokesman Panitan Wattanayagorn said by phone. The explosives were shot from across the street in a park occupied by protesters, Deputy Prime Minister Suthep Thaugsuban said on national television. The central bank hasn’t seen any evidence of significant capital outflows even as overseas investors have pared holdings of Thai equities, Wongwatoo Potirat, senior director for the financial markets and reserve-management department at the Bank of Thailand, said on April 20. The stock market will open at 10 a.m. in Bangkok. To contact the reporter on this story: Yumi Teso in Bangkok at yteso1@bloomberg.net

Read the full article →

Thai Baht Falls Most in 10 Months After Deadly Grenade Attacks in Bangkok

April 22, 2010

By Yumi Teso April 23 (Bloomberg) — Thailand’s baht dropped the most in 10 months after grenade blasts killed three people and injured 75 others near an anti-government protest site in Bangkok. The SET Index of Thai equities may fall on concern the six- week-long protests will hurt economic growth and prompt foreign investors to trim their holdings of the nation’s assets, said Minori Uchida at Bank of Tokyo-Mitsubishi UFJ Ltd., a unit of Japan’s biggest bank. Overseas investors sold 138 million baht ($4.3 million) more domestic stocks than they bought yesterday, according to stock-exchange data. “There is real uncertainty over when and how the protests will end, boosting concern about the impact on the economy and putting downward pressure on the baht,” said Uchida, a senior analyst in Tokyo. “The worsening situation has also led to concern foreigners will pull money out from the country.” The baht weakened 0.4 percent to 32.35 per dollar as of 8:55 a.m. in Bangkok, the biggest decline since June 8, 2009, according to data compiled by Bloomberg. The currency may trade between 32.30 and 32.60 this month, Uchida said. At least five grenades exploded last night on Silom Road, including one in a crowd near a hotel and another at Bangkok Bank Pcl’s headquarters, government spokesman Panitan Wattanayagorn said by phone. The explosives were shot from across the street in a park occupied by protesters, Deputy Prime Minister Suthep Thaugsuban said on national television. The central bank hasn’t seen any evidence of significant capital outflows even as overseas investors have pared holdings of Thai equities, Wongwatoo Potirat, senior director for the financial markets and reserve-management department at the Bank of Thailand, said on April 20. The stock market will open at 10 a.m. in Bangkok. To contact the reporter on this story: Yumi Teso in Bangkok at yteso1@bloomberg.net

Read the full article →

Thailand’s Army Warns Protesters That `Time Is Running Out’ to End Protest

April 21, 2010

By Daniel Ten Kate and Supunnabul Suwannakij April 22 (Bloomberg) — Thailand’s army warned anti- government protesters camped in central Bangkok that soldiers plan to disperse them soon, raising tensions after a failed crackdown earlier this month left 25 dead. “I would like to warn protesters at the Ratchaprasong area that your time is running out,” Army spokesman Sansern Kaewkamnerd told reporters in Bangkok, referring to the area of luxury shopping malls and hotels. “We are waiting for an appropriate time to take back the area.” About 14,000 opponents of Prime Minister Abhisit Vejjajiva joined the demonstration last night and about 6,000 remained this morning, Sansern said. Anyone found inside the encampment will be subject to legal action, he said. The fresh threat comes days after soldiers with assault rifles took up positions in a business district adjacent to the demonstrators, prompting them to erect walls of bamboo sticks and rubber tires in defense. An attempt to disperse the group near Government House on April 10 left more than 800 injured in addition to the fatalities. The army is also negotiating with protesters after they blocked a train carrying weapons and soldiers yesterday in northeastern Thailand, Sansern said. Authorities are stepping up security at oil refineries, power plants and other infrastructure after an affiliate of PTT Plc , Thailand’s biggest energy company, was struck with grenades, Energy Minister Wannarat Charnnukul said. Resume Talks Rally organizers in Bangkok say they are willing to resume talks with the government provided troops vacate areas surrounding their base. Signs that crowds were dwindling after a canceled march on April 20 helped stocks surge the most in 15 months. The SET index advanced 0.7 percent as of 11:37 a.m. “First take away the gun and then we can talk,” Weng Tojirakarn , a protest leader who participated in televised negotiations with the prime minister last month, said in an interview yesterday. He plans to lead 2,000 protesters today to the United Nations building in Bangkok to submit a letter to Secretary-General Ban Ki-moon requesting a peacekeeping force to protect them. Immediate Election Abhisit has rejected demands from the mostly lower-class protesters to call an immediate election and pledged to enforce the law. Demonstrators who largely support fugitive ex-leader Thaksin Shinawatra have defied emergency rule since April 7 and ignored previous government warnings to avoid certain areas. Abhisit said yesterday the protesters are armed with “war weapons,” a charge organizers deny. The prime minister has blamed “terrorists” within the rallies for violence and said the movement wants to “change the country’s political system.” Such allegations suggesting that demonstrators are disloyal to King Bhumibol Adulyadej are being used as a justification to break up the protest, another leader, Jaran Ditapichai , said April 20. Abhisit backers clashed with his opponents in the early morning today, with both sides hurling bottles, marbles, rocks and small bits of metal. A pro-government group that plans to gather at a separate location in Bangkok this afternoon is pushing for 100,000 supporters to join them at a rally tomorrow, organizer Tul Sittisomwong said by phone. “Those protesters don’t want democracy, they are only trying to destroy our king,” said Suwit Aroonwejkul, 43, an Abhisit supporter who scuffled with his opponents. “We can’t compromise on this. It may be a civil war.” To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Armed Thai Troops Block Protesters From Entering Bangkok Business District

April 18, 2010

By Anuchit Nguyen and Daniel Ten Kate April 19 (Bloomberg) — Hundreds of Thai soldiers armed with rifles took up positions in Bangkok’s financial district across the street from anti-government protesters, the biggest deployment since clashes killed two dozen people on April 10. Troops and riot police fanned out along Silom Road blocking off sidewalks with razor wire. Dozens of armed soldiers were stationed inside the headquarters of Bangkok Bank Pcl , which was protected by yellow fencing. Prime Minister Abhisit Vejjajiva is under pressure to put an end to five weeks of protests led by opponents who consider his rule illegitimate and want a new election. Several protest leaders evaded capture last week, prompting him to put the army chief in direct control of imposing order in the city. “The protest site is a dangerous area with a group of armed people using it to harm security officials and innocent people,” army spokesman Sansern Kaewkamnerd said yesterday. “We will warn people to stay away.” Thailand’s SET index of stocks hit a one-month low on April 16 after the government said the demonstrations, which began March 12, would hurt Southeast Asia’s second-biggest economy. Security forces will also set up checkpoints on the outskirts of the city to prevent people in the countryside from joining the rallies, Sansern said. Organizers will “call another major rally” in Bangkok April 20, protest leader Nattawut Saikuar said in a media briefing yesterday. Today, a small group of red-shirted demonstrators blasted music and waved national flags across from Silom Road as traffic flowed normally. The protesters, who mostly support fugitive ex- leader Thaksin Shinawatra , have cordoned off an area roughly the size of New York’s Central Park that contains luxury shopping malls and hotels including the Four Seasons, Intercontinental and Grand Hyatt. To contact the reporters on this story: Anuchit Nguyen in Bangkok at anguyen@bloomberg.net

Read the full article →

Thai Security Forces Surround Hotel in Bangkok to Arrest Protest Suspects

April 15, 2010

By Supunnabul Suwannakij April 16 (Bloomberg) — Thai security forces surrounded a Bangkok hotel where suspects in last weekend’s deadly clashes between protesters and soldiers are staying, Deputy Prime Minister Suthep Thaugsuban told reporters. The government plans to arrest protest leaders and “terrorists” staying at SC Park hotel in Bangkok, he said. Another 60 suspects have been told to report themselves to security forces, Suthep said in Bangkok. To contact the reporter on this story: Supunnabul Suwannakij in Bangkok at ssuwannakij@bloomberg.net

Read the full article →

Ousting Abhisit May Not End Protests as Thais Target `Autocratic Rulers’

April 13, 2010

By Daniel Ten Kate April 14 (Bloomberg) — For all the pressure on Thai Prime Minister Abhisit Vejjajiva to step aside, his removal might not be enough to end the deadliest political unrest in 18 years. Anti-government protesters, who yesterday rejected his offer of an election in six months, may have another target in mind. The Privy Council, a body that advises King Bhumibol Adulyadej and is led by an 89-year-old former army chief, is “an autocratic institution” that backs coups and manipulates legal decisions to thwart the will of voters, protest leader Jaran Ditapichahi said in an interview April 12. “The protesters aren’t fighting against Abhisit per se, they are fighting for democracy,” said Kongkiat Opaswongkarn , chief executive at Bangkok-based Asia Plus Securities Pcl, Thailand’s third-largest brokerage by trading volume. “Abhisit says the country is a full democracy, but in reality it’s not.” Abhisit, 45, this week signaled he may dismiss parliament to stem violence that killed 21 people on April 10. The army is calling for a dissolution and the Election Commission on April 12 recommended his party be disbanded for legal infractions, the method used to oust his predecessor when rival demonstrations paralyzed the capital 16 months ago. Bangkok residents and tourists yesterday mingled with the red-shirted demonstrators on the city’s streets, drenching one another with water and smudging their faces with white powder in a traditional salute to the first day of the Thai New Year . Political Risk The festival atmosphere contrasted with the weekend bloodshed. The country has been roiled by rallies and street battles since former Prime Minister Thaksin Shinawatra was removed in a 2006 coup, one of nine since King Bhumibol ascended to the throne in 1946. The benchmark SET stock index , closed for three days for holidays, fell the most in six months on April 12 and the baht weakened 0.3 percent against the dollar. Thai bond risk climbed to a six-week high. Overseas investors reacted to the weekend’s bloodshed by selling a net 3.2 billion baht ($99 million) of Thai equities in the past two trading days, ending 31 days of net purchases. Bangkok-based Thai Airways International P cl tumbled 14 percent on April 12, reflecting the reliance on foreign tourist spending for 6.5 percent of the $261-billion economy. “Top-down investors haven’t favored Thailand for years and they won’t until this political deadlock gets resolved,” said Adithep Vanabriksha, Bangkok-based head of Thai equities at Aberdeen Asset Management Co. Live Television King Bhumibol, 82 has been hospitalized since September and has yet to comment since the deadly skirmishes. In 1973, he allowed student protesters into a palace to provide refuge after troops opened fire. In 1992, his admonishments prompted a military commander and middle-class protest leader to prostrate before him on live television after clashes left dozens dead. The monarch’s advisory body consists of 19 people appointed “at the King’s pleasure,” the constitution says. The council’s president takes over as regent in the event that the monarch can’t perform his duties and hasn’t named a replacement. It also oversees royal succession. The head of the Privy Council is Prem Tinsulanonda , a member since he stepped down as prime minister in 1988. Twelve months ago, about 100,000 protesters marched to Prem’s house in Bangkok to demand he quit for backing the 2006 coup, a charge he denies. Last weekend, the army deployed tanks to protect Prem’s house, according to the INN news service. Last Coup “We will always attack General Prem for being behind the last coup,” Jaran said. “If the Privy Council stopped acting like an autocratic institution, we would stop attacking it,” he said, adding that protest leaders support King Bhumibol. A phone call to the Privy Council April 12 was answered by a person who did not give a name and said no one would be available until April 19, after the New Year’s holiday. The king’s advisers are “good guys” who stand as examples to society of ethical leadership, said Parnthep Pourpongpan, a spokesman for the People’s Alliance for Democracy, whose airport takeover in 2008 helped remove the last pro-Thaksin government. The council’s powers are restricted to advising the king and protesters have “no evidence” to prove their allegations of hidden influence, he said. “The protesters and Thaksin always say that General Prem is behind the scenes because they want to hide their own corruption and illegal behavior,” Parnthep said. “It’s just a rhetorical trick.” Short List The council’s 19 members include seven retired military officials and six former judges. After Thaksin was removed, the military junta’s short list for prime minister was composed of two judges, the army chief and two privy councilors. Court rulings have brought down two pro-Thaksin administrations since democracy was restored in 2007. “This is not about Thaksin Shinawatra any more, it is about people’s rights to be treated as equals,” said Jakrapob Penkair , a former Cabinet minister and government spokesman who advises the billionaire-turned-politician. “The presence of the Privy Council is the most concrete evidence that Thailand is anything but a democracy.” The current constitution, written after the 2006 coup, set up a Senate in which almost half the members are appointed. It also offered amnesty for generals such as Army Chief Anupong Paojinda , who helped oust Thaksin and is now calling for parliament to be dissolved. “Abhisit may resign or dissolve parliament, but that doesn’t necessarily get us anywhere,” said Prudhisan Jumbala, a lecturer at Bangkok’s Chulalongkorn University . “Nobody can implement the rule of law without the cooperation of society, and neither side trusts the authority of the state.” The conflict underpins a split within Thailand’s 67 million people over the extent to which the country’s leaders should be elected. Abhisit’s rule lacks legitimacy, opponents say, because he came to power without winning an election after the court disbanded the ruling party. “The privy councilors must be shivering in their boots,” said Kevin Hewison , a professor in the Department of Asian Studies at the University of North Carolina. “It would be a defeat for them if the protesters have a victory.” To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

Read the full article →

Thai Protesters Reject Offer of Polls in Six Months, Demand Abhisit Quit

April 13, 2010

By Supunnabul Suwannakij and Anuchit Nguyen April 13 (Bloomberg) — Thai Prime Minister Abhisit Vejjajiva called for a political solution to a showdown with antigovernment protesters, signaling he may dissolve parliament and hold elections earlier than previously suggested. “I, the government and coalition parties have been working together to revise proposals discussed prior to announcing the emergency decree, in an attempt to find a political solution,” Abhisit said yesterday in a televised address. A senior military official said elections may be the only way to end the stalemate. Abhisit’s comments came after month-long protests in Bangkok erupted into violence over the weekend, killing 21 people. Demonstrators, many of them loyal to former premier Thaksin Shinawatra , claimed another victory yesterday when the nation’s election commission said Abhisit’s party should be disbanded for receiving illegal campaign contributions. Protesters remained camped in two areas of the capital, and won’t disperse unless Abhisit dissolves parliament immediately, said Nattawut Saikuar, one of the group’s leaders. Pressure to accommodate the demonstrators came from the military, as Army chief Anupong Paojinda called for parliament to be dismissed and new elections set. Abhisit earlier this month proposed dissolving parliament at the end of the year. “Political problems need to be resolved by political means,” Anupong said at a briefing yesterday. “I believe that a house dissolution should be the answer.” Stocks Slump Overseas investors reacted to the weekend’s bloodshed by selling a net 3.2 billion baht ($99 million) of Thai equities in the past two trading days, the most since Feb. 8, ending 31 days of buying. The SET Index closed 3.6 percent lower at 760.9, the biggest drop since Oct. 15, 2009. Bangkok-based Thai Airways International Pcl , the nation’s largest carrier, tumbled as much as 16 percent. Spending by foreign tourists accounts for about 6.5 percent of the $261- billion economy, Southeast Asia’s second largest after Indonesia. “Some overseas investors will be so jittery that they may rush to reduce their investments,” said Vana Bulbon , chief executive officer in Bangkok of UOB Asset Management (Thailand) Co., which oversees the equivalent of $1.6 billion of investments. “No one expected that many deaths.” Thailand’s financial markets are closed until April 16 for the Thai New Year, which started today. Judicial Process Any judicial process to remove Abhisit probably will take months. Thailand’s Election Commission recommended yesterday that his Democrat Party be disbanded after investigating claims that it received illegal campaign contributions. The recommendation will probably be submitted to the Attorney-General in about one month and then be taken to the nation’s Constitutional Court, Ruangroat Jomsueb , head of public relations for the electoral body, said by phone from Bangkok. The decision won’t interrupt the work of the government or the party executives as it has to go through the courts, Democrat Party spokesman Buranaj Smutharaks said on the TNN television channel. The government’s coalition partners support a proposal to dissolve parliament by October, Somsak Prisananthakul , an adviser for the Chart Thai Pattana Party, said by phone yesterday. Abhisit’s opponents earlier this month rejected his offer to call an election within nine months, demanding he step down before the Thai New Year holiday. “We will continue our demonstration until Abhisit dissolves the parliament,” Jaran Ditapichai, a protest leader, said yesterday by phone. “It might take another week” given the holiday. Red Shirts The government and security forces are cooperating to protect the safety of the public, Anupong and Defense Minister Prawit Wongsuwan said at a joint briefing yesterday, denying rumors of a rift. They said troops didn’t use live rounds during the April 10 clashes, blaming the violence on a third group that infiltrated the rally armed with guns and grenades. Protesters, many of whom wear red shirts to distinguish themselves from their political rivals, rejected calls to restart negotiations with the government. Their stance raises concerns that the worst political violence since 1992, when more than 40 people were killed in four days of fighting, may be repeated. “Red Shirt leaders, whose bargaining position has been fortified by the security debacles on Friday and Saturday, will be less likely to compromise on important points and would likely reject an offer of elections six months hence,” PSA Asia, a Bangkok-based security and risk assessment consulting firm, said in a note to clients yesterday. No Retreat Troops and protesters maintained a cease-fire in Bangkok. Demonstrators are in makeshift camps near Government House and in the tourist and shopping heartland. “We will not retreat from protest areas,” Nattawut Saikuar, a protest leader, said at a camp in Bangkok’s commercial district. “We will continue to fight here.” Thaksin, the exiled former premier, won over the poor by giving them cheaper health care and loans before he was ousted in a 2006 coup. The protesters say Abhisit, who declared a state of emergency in the capital last week, embodies a privileged class of military officers, judges, bureaucrats and royal advisers that sit above the law. “Neither side wants to give in and there is no trust between them, so you need someone else to come in and build confidence,” said Prudhisan Jumbala, a political science lecturer at Bangkok’s Chulalongkorn University. “Who that will be remains to be seen.” To contact the reporters on this story: Supunnabul Suwannakij in Bangkok at ssuwannakij@bloomberg.net ; Anuchit Nguyen in Bangkok at anguyen@bloomberg.net .

Read the full article →

← Previous Entries