The House of Representatives, at its special meeting on Wednesday, voted 272-1 to move 10 bills up to the top of the agenda, placing them ahead of the four reconciliation bills.
Source: Bangkok Post
Plenty of press over Yingluck’s government pushing the reconciliation bill further down the Things to do List for Thai parliament. This is short-term positive for the market as it removes the uncertainty regarding the potential political turmoil if the Pheu Thai party had attempted at changing the rewriting the constitution and pushing through its amendment bill. But it will be interesting to see what happens going forward and what strategies Thaksin will employ to attempt to return back to Thailand.
Overseas sales fell 8.8 percent in July from a year earlier, the biggest contraction since September 2009, the government reported today. The median estimate in a Bloomberg News survey was for a 3.7 percent decline. Consumer prices rose 1.5 percent, less than all 16 estimates in a Bloomberg survey. The Kospi Index (KOSPI) snapped a four-day rally even as overseas funds bought more Korean equities than they sold for a fourth day.
Why is this important? According to Jim O’Neill, Chairman of Goldman Sachs Asset Management, South Korea’s trade data is amongst one of the most reliable economic indicators (source: GoldmanSachs) in the world because of its linkage between manufacturers in the East and customers in the West. Thus the decline in Korea’s exports are no surprise given, as we’ve stated constantly, that due to the austerity measures in Europe a decline in manufacturing and global growth isn’t a surprise.
Thailand’s economy still expanded in June but at a lower rate b/c of Europe but it was good to see domestic demand and tourism expanding stronger than most peoples expectations.
- Manufacturing – contracted by -9.89% (Europe)
- Consumption – PCI rose +4.4%
- Investments – PPI rose +18.3% (Auto industry mainly)
- EXIM – Exports declined -4.3%, imports 5.0%
- Tourism – Foreign arrivals + 10.1% to 1.6 mn tourists led mainly by Chinese and Vietnamese travelers, interesting to note that European visitors still +6.8%
See below for full figures from the BOT
Continue reading Thailand’s economy slows slightly – June
Last week saw the SET wobble slightly with profit taking seen in the Banking sector and weakness in the Agro & Food sector because of rising soft commodity prices. Going forward expect the usual, crappy growth out of Europe because of the austerity measures put in place 3-6 months ago, China slowing, and Thai corporate earnings still going gang busters for the time being.
Continue reading Sector Updates – 23.07.12 to 27.07.12