Further bad economic news hits us this morning, the key data points to note from Japan I think are that its exports to Europe drop 22.9% and its exports to China drop 9.9%. Austerity measures in Europe are hitting everyone quite hard.
The Tankan index for large manufacturers fell in the July to September quarter to minus 3 from minus 1, the fourth negative reading, the Bank of Japan said today in Tokyo. The median estimate of 18 economists surveyed by Bloomberg News was for minus 4. A negative figure means pessimists outnumber optimists.
The Purchasing Managers’ Index was 49.8 in September after a 49.2 reading in August, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing. That compares with the median forecast of 50.1 in a Bloomberg News survey.
This isn’t much a surprise for us to hear, a public company here in Thailand has to deal with an extremely strict (albeit archaic) SEC and I’ve heard on on the odd occassion from CEO’s “The SEC wants us to disclose everything, our competitors will know too much about us!” But this is great for us as investors, and if you think about it when was the last time you heard about a huge corporate scandal here in Thailand for a public company? In the US, England, Singapore even (all the chinese co’s listed there) you’d hear about corporate scandals annually, but here the only one I can think off the top my head is the auto-car import company where the CEO disappeared overseas with some of the company’s cash. Other than that Thailand can, in my opinion, be considered a “safe” market to invest in.
According to the CG Watch 2012 report by the Asian Corporate Governance Association and CLSA Asia-Pacific Markets, Thailand beat Japan and Malaysia, which tied for fourth, while first and second went to Singapore and Hong Kong, respectively.
The Thai capital market has shown the biggest improvement in the region in most aspects except for corruption in the public sector, a clear obstacle to the country’s development.
Source: Bangkok Post