- State firms plan investment spree to boost the economy — In the second half of this year, 55 state-owned enterprises will invest at least Bt100 billion, to add to the Bt130 billion in the first half, in order to boost economic growth by 0.3-0.4 of a percentage point. (Bangkok Post, 29/8/16)
- Auto decline brings down July exports — Thai exports contracted for the fourth consecutive month in July, by 4.4% year-on-year, bringing down shipment growth in the first seven months of the year to minus 2%, according to Commerce Ministry. The major factors for the July decline were slumping shipments of refined oil (-40.7%) and automobiles (-27.5%), which brought down industrial exports by 0.4%. (B angkok Post, 26/8/16)
- Q2 unemployment rate rises in the midst of declining exports – Despite recent signs of economic recovery, the jobless rate continued to rise in the second quarter, leading overall nonfarm sector employment to fall slightly from the first quarter. (Bangkok Post, 30/08/16)
- BoI offers raft of incentives towards medical hub in Thailand – AS PART of the effort to turn Thailand into a medical hub, the Board of Investment yesterday approved a raft of promotions, including a five-year waiver of corporate income tax for pharmaceutical firms. (The Nation, 30/08/16)
- Digital ad spending to hit Bt10 bn in 2017 – AD SPENDING on digital media will reach Bt10 billion next year, encroaching on territory held by mainstream media such as television and newspapers, the Digital Advertising Association (Thailand) projects. (The Nation, 30/08/16)
- Yellen: Case for raising rates has strengthened ‘in recent months’ — In a much-anticipated speech Friday at the central bank’s annual Jackson Hole summit, Fed Chair Janet Yellen voiced optimism about the economy and an expectation that interest rate hikes are ahead. Speaking as the market wonders when the Fed will resume a policy tightening that began in December, Yellen issued some cautionary tones, but pointed to more increases on the horizon. (CNBC, 26/8/16)
There isn’t any new information in his latest monthly commentary as he continues on the negative aspects of zero interest rates and negative rates. But at least he doesn’t talk about sex anymore…
I and others however, have for several years now, suggested that the primary problem lies with zero/negative interest rates; that not only do they fail to provide an “easing cushion” should recession come knocking at the door, but they destroy capitalism’s business models — those dependent on a yield curve spread or an interest rate that permits a legitimate return on saving, as opposed to an incentive for spending. They also keep zombie corporations alive and inhibit Schumpeter’s “creative destruction” which many argue is the hallmark of capitalism. Capitalism, almost commonsensically, cannot function well at the zero bound or with a minus sign as a yield. $11 trillion of negative yielding bonds are not assets — they are liabilities. Factor that, Ms. Yellen into your asset price objective. You and your contemporaries have flipped $11 trillion from the left side to the right side of the global balance sheet.
Several brokers sending this out this AM
FTSE Global Equity Index Series Asia Pacific ex Japan Regional Index and Japan Regional Index Semi-Annual Review.
Constituent changes can be accessed via the attachments below. The changes will be effective after the close of business on Friday, 16 September 2016 (i.e. on Monday, 19 September 2016).
Inclusion: SCC-R, KBANK-R
Inclusion: GPSC, VIBHA, IMPACT
Exclusion: BEM, THRE
Inclusion: SCC-R, KBANK-R
Inclusion: SCC-R, KBANK-R, GPSC, VIBHA, IMPACT