— This is the script of CNBC's news report for China's CCTV on May 8, Thursday.
Welcome to the CNBC Business Daily.
Thailand's political crisis does not look like it's going away any time soon.
A Thai court has removed Prime Minister Yingluck Shinawatra from office... accusing her of using her position to improperly remove a senior bureaucrat from office 3 years ago.
The court also removed several other ministers, but allowed others not implicated in the case to stay on.
Yingluck denies any wrongdoing.
Her cabinet remains in place with a caretaker prime minister appointed until new elections on July 20th.
Is Thailand really in danger of becoming a failed state with a partially functioning government?
[RICHARD MARTIN / Managing Director, IMA Asia] "No, but it's got high risk. Our forecast right now is for Thai growth of 1% or less this year. And that's half of what other people have been forecasting, 2.5 to 3%. 12:14:06 I think the IMF has it at 2.5 to 3. Because domestic demand has just dropped through the floor in Thailand, and it's both political risk and a household balance sheet issue."
Analysts say the country's new interim Prime Minister knows how to compromise, but is unlikely to solve the political crisis.
The opposition meantime is refusing to relax after its victory, saying it will keep up street protests.
So does this mean more limbo for Thailand political climate? And how is it going to affect the country's investment space?
[GAVIN GREENWOOD Risk Analyst, Allan and Associates] "I think in a way the Japanese Automakers are, while extremely important to the Thai economy, they are like the classic super tanker. Analogy is that when you want to turn a super tanker, you have to start thinking about 20 miles ahead. And if you have the investment of a Japanese Automaker, you have to think of very long term.
A more interesting metric, indicator, are the smaller Thai companies who are shifting their investments overseas into Cambodia, Myanmar, Vietnam. That is coming as an insider view from within the Thai capitalist group, mainly Chinese businessmen who come from the same group as Thaksin, and they seem to be shifting their investments out of the country. And that, I think, is a very good canary in the coal mine indeed."
A critical new phase developing for the Thai economy and politics.
That wraps up this edition of the Business Daily.
I'm Sri Jegarajah, reporting from CNBC's Asian headquarters