What happened this week 02/12 – 05/12

Thailand

Consumer confidence dips yet again – Consumer confidence hit a 22-month low in November due largely to political tensions and anti-government protests that held back spending. (Bangkok Post, 04/12/13)

Rice: Corruption, yes, but not enough evidence — The NACC says there isn’t enough evidence to file corruption charges against all parties in the G2G rice deal. However it said there is definitely some corruption involved, so will further investigate five more parties involved in the transaction. (Krungtep Thurakit, 04/12/13)

Conflicts put rating in jeopardy, credit downgrade on cards if unrest persists – Two international credit rating agencies have warned that Thailand’s sovereign rating is at risk if the political unrest is prolonged, says finance permanent secretary Rangsan Sriworasart. (Bangkok Posts, 04/12/13)

CPI up 1.92% in November — The MoC released November CPI yesterday of 1.92%. The target for 2013 inflation is at +2.2 to +2.3% as petrol prices and staple goods maintain steady prices. It forecasts 2014 inflation rate at 2-2.8%. (ASTV Manager, 03/12/13)

Moody’s warns of mounting credit risks, investment losses – The protests will likely undermine investor confidence and an already fragile growth outlook for next year, a credit negative factor for Thailand, according to Moody’s Investors Service. Thailand is currently rated Baa1 with a stable outlook by the rating agency. (Bangkok Post, 03/12/13)

Private sector organizations unite to plead for solution – As protests begin to be marred by violence, representatives of the private sector have united to voice concerns on the negative consequences on the nation and the economy from political conflicts. (The Nation, 03/12/13)

CAT: Protest damages at Bt300mn plus —  CAT Telecom estimated that internet disruptions due to the political protest have resulted in damages of over Bt300mn, with over 9,200 users affected. It said that this crisis has shown that it needs to revise its current crisis management plan. (Kom Chat Leurk, 03/12/13)

New factory permits up 24.6% — The Department of Industrial Works reports new factory permits for the first 11 month of the year of 4260 units, an increase of 24.6% YoY. The department expects the new factories to employ 106K. (Matichon, 02/11/13)

BoT remains confident — The Bank of Thailand (BoT) is confident that it will be able to control fund outflows and said that foreign exchange rate was not the only main factor considered in the interest rates decision. Kittirat Na Ranong said that the political situation is affecting the government and that GDP may fall below 3%. (Krungthep Turakij, 30/11/13)

Globally

Europe: Eurozone PPI falls slightly in October – The eurozone industrial producer prices index (PPI) dropped by 0.5% in October. In the 28-nation EU, the same index posted a monthly fall of 0.6% in October, according to Eurostat. On an annual basis, industrial producer prices in October decreased by 1.4% and 1.1% in the eurozone and in the EU respectively. (Xinhua, 03/12/13)

Portugal to issue new debt bonds in attempt for market return – Portugal has decided on a bond swap to test investors’ appetite as the bailed-out country nears the end of its three-year bailout program due in June 2014, Portugal’s public debt agency IGCP said on Monday. IGCP said it will buy bonds maturing in June and October 2014, and October 2015 while offering a yield of 4.677% on the 2017 bond and 4.956% on the 2018 debt. (Xinhua, 03/12/13)

China: China’s non-manufacturing PMI drops in November – The purchasing managers index (PMI) for China’s non-manufacturing sector stood at 56% in November, down from 56.3% for October, according to official data released on Tuesday. (Xinhua, 03/12/13)

Japan: Japan economic stimulus package to total ¥5.5trn – The government and ruling parties decided Tuesday to compile a ¥5.5trn economic stimulus package, higher than the ¥5trn they envisioned in October, as tax revenues in fiscal 2013 may be higher than expected, officials said. The package, aimed at easing the potential negative impact on the economy of the scheduled sales tax hike to 8% next April from the current 5%, is slated to be approved by Prime Minister Shinzo Abe’s Cabinet on Thursday, the officials said. (Kyodo, 03/12/13)

US: U.S. reports rise in construction spending – The U.S. construction spending posted a solid increase in October, fueled mainly by higher outlays on public construction, U.S. Department of Commerce reported Monday. Total construction spending was estimated at a seasonally adjusted annual rate of about US$908.40bn in October, up 0.8% above the revised level in September or 5.3% higher than the year-ago estimate. (Xinhua, 02/12/13)

The U.S. manufacturing sector expanded in November for the sixth consecutive month, but failed to push the equity market to positive territory. The manufacturing activity index edged up to 57.3 in the past month, the highest level since April 2011, said the Institute for Supply Management (ISM). Meanwhile, U.S. construction spending posted a solid 0.8% increase in October, said the Commerce Department Monday. (Xinhua, 03/11/13)  

Japan: Ultra-loose monetary policy may stay until 2015, BOJ chief says – Bank of Japan (BOJ) Governor Haruhiko Kuroda suggested on Monday that the central bank may not end its ultra-loose monetary policy before fiscal year 2015 to underpin the Japanese economy and counter decades-old deflation. (Xinhua, 02/12/13)

Britain: British manufacturing hits new high in November – The British manufacturing sector continued its strong momentum into November with production and orders rising to a record high, according to a report issued on Monday. The market-sensitive report jointly issued by Markit and CIPS said the purchasing managers’ index (PMI) rose to 58.4 in November from an upwardly revised reading of 56.5 in the previous month, the highest level since February 2011. (Xinhua, 02/12/13)

Europe: Activity in the eurozone’s factories increased by a little more than expected, propelled by better conditions in Germany, Italy and Greece. The manufacturing purchasing managers’ index for the single-currency area, compiled by data firm Markit, rose to 51.6 – up from an initial flash estimate of 51.5 and the highest level since June 2012. It is the fifth successive month that the reading has been above 50. (Financial Times, 02/13/13)

CPI up 1.92% in November — The MoC released November CPI yesterday of 1.92%. The target for 2013 inflation is at +2.2 to +2.3% as petrol prices and staple goods maintain steady prices. It forecasts 2014 inflation rate at 2-2.8%. (ASTV Manager, 03/12/13)

Moody’s warns of mounting credit risks, investment losses – The protests will likely undermine investor confidence and an already fragile growth outlook for next year, a credit negative factor for Thailand, according to Moody’s Investors Service. Thailand is currently rated Baa1 with a stable outlook by the rating agency. (Bangkok Post, 03/12/13)

Private sector organizations unite to plead for solution – As protests begin to be marred by violence, representatives of the private sector have united to voice concerns on the negative consequences on the nation and the economy from political conflicts. (The Nation, 03/12/13)

CAT: Protest damages at Bt300mn plus —  CAT Telecom estimated that internet disruptions due to the political protest have resulted in damages of over Bt300mn, with over 9,200 users affected. It said that this crisis has shown that it needs to revise its current crisis management plan. (Kom Chat Leurk, 03/12/13)

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2 thoughts on “What happened this week 02/12 – 05/12”

  1. I’ve been wondering how the new Ticon REIT will affect the existing property funds, TFUND and TLOGIS. Any thoughts on the matter?

  2. Very simply that I don’t see any new assets going into any of the three property funds and the impact of this is simple, the dividend per share will only increase with the rental price of the existing assets.

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