Thailand

• Aid schemes set at B100bn a year – The military-appointed interim government’s policy of helping the underprivileged and farmers in sustainable ways will cost an estimated Bt100bn a year, says Finance Minister Sommai Phasee. (Bangkok Post, 19/09/14)
• Veg fests to boost Q4 growth – Thais are expected to splurge 27.7% more, or altogether Bt51.27bn – the highest amount in seven years – for this year’s “Kin Je” vegetarian festival, as it will be celebrated twice. (The Nation, 19/09/14)
• China wants to revive joint panel on trade and investment – China’s ambassador to Thailand, Ning Fukui, yesterday met Deputy Prime Minister MR Pridiyathorn Devakula at Parliament to discuss the possibility of boosting trade and investment between the countries. (The Nation, 19/09/14)

• Dept. of Revenue planning to rebase all the import duties to a similar base to ease the tax calculation process and minimize errors. (Post Today, 19/09/14)
• ICT Minister met with NBTC chief to iron kinks in the NBTC’s working processes and minimize overlapping work between the two organizations. (Post Today, 19/09/14)
• MPC leaves policy rate at 2% – The Bank of Thailand’s Monetary Policy Committee yesterday agreed unanimously that the economy was still on shaky legs and that it would leave the policy interest rate unchanged at 2% until it finds clearer signs of strengthening. (The Nation, 18/09/14)
• FPO forecasts 4-5% GDP growth in 2015 — The Fiscal Policy Office forecasts that the Thai economy will grow by 4-5% next year, spurred by government spending. However, it estimates that exports will continue to grow at a slow rate next year since the global economy has not yet shown real signs of significant recovery. (IQ Biz, 17/09/14)
• Spas, golf may elude excise levy – The Excise Department is considering scrapping taxes on spas and golf courses to boost the tourism industry, the department’s chief says. Director-general Somchai Poolsawasdi also asked whether it was worth the department’s time and effort collecting such taxes. (Bangkok Post, 18/09/14)
• Government adjusts payment plan for Bt700bn rice pledged. Deputy prime minister Pridiyathorn is extending the payment to 30 years, saying the government would be short of the amount needed for investment if it attempts to pay this back in just five years. (Kom Chad Luek, 18/09/14)
• Repaying rice scheme debt to take 7 years, BAAC says – Paying off the Bt705bn debt incurred by the Pheu Thai Party-led government’s rice-pledging scheme will take around seven fiscal years if the governments pays a flat amount of Bt131.3bn each year, the state backed farm bank’s chief says. (Bangkok Post, 17/09/14)
• Govt will push for a digital-based economy: Pridiyathorn – The government plans to push for a digital-based economy for long-term economic development and expects to see concrete results within one year, Deputy Prime Minister MR Pridiyathorn Devakula said yesterday. (Bangkok Post, 16/09/14)
• New commerce minister outlines short and long-term policies – Newly appointed Commerce Minister General Chatchai Sarikulya plans for export growth of 4% next year, while maintaining this year’s target at 3-3.5%, as well as making the management of crop prices, rice stocks, and retail prices more efficient, with transparency and minimal intervention. (The Nation, 16/09/14)
• Thai Logistic Association says Thailand remains attractive as logistics hub for ASEAN businesses. The association said that Thai companies such as Thai Bev and Sahapat are still expanding their logistics networks. (Krunghtep Thurakij, 16/09/14)
• Finance Ministry looking at possible VAT increase late next year. It wants to target the high income bracket to contribute more taxes as it tries to address inequalities. (Krungthep Thurakij, 16/09/14)

Globally

• U.S. initial jobless claims fall to 280,000 — In the week ending Sept. 13, the advance figure of seasonally adjusted initial claims for jobless benefits fell to 280,000, the lowest level in two months, 36,000 less than the revised level of the previous week, the U.S. Labor Department said Thursday. (Xinhua, 19/09/14)
• Fed reaffirms highly accommodative stance of monetary policy – The U.S. Federal Reserve reaffirmed on Wednesday that a highly accommodative stance of monetary policy remains appropriate and it decided to make a further measured reduction in the pace of its asset purchases. (Xinhua, 19/09/14)
• U.S. housing starts fall in August – U.S. privately-owned housing starts were at a seasonally adjusted annual rate of 956,000 homes last month. It was 14.4% below the revised July estimate of 1,117,000, but was 8% above the year-ago level. (Xinhua, 19/09/14)
• Homebuilder confidence in U.S. increases to nine-year high – Confidence among U.S. homebuilders rose in September to a nine-year high, showing the industry is gaining ground and will be a source of momentum for the economy. The National Association of Home Builders/Wells Fargo sentiment measure climbed to 59 exceeding the highest estimate in a Bloomberg survey of economists, from 55 in August, the Washington-based group reported today. Readings above 50 mean more respondents said conditions were good. (Bloomberg, 17/09/14)
• U.S. consumer prices edge down in August – U.S. consumer prices dropped in August, the first decline since April 2013, the Labor Department reported Wednesday. The consumer price index, a main gauge of inflation, fell 0.2% on a seasonally adjusted basis in August, said the department. Over the past 12 months, the index increased 1.7% before seasonal adjustment. (Xinhua, 17/09/14)
• British central bank’s policy makers split on interest rates – Two out of the nine-member Monetary Policy Committee (MPC) of Bank of England (BoE) voted to raise benchmark interest rate, according to the central bank’s meeting minutes published on Wednesday. It is the second month of opinion split. (Xinhua, 17/09/14)
• British unemployment rate drops to 6.2% in July – The British unemployment rate dropped to 6.2% in the three months to July 2014, down from 6.4% in the three months to June, recording the lowest level since late 2008, the Office for National Statistics (ONS) said Wednesday. (Xinhua, 17/09/14)
• Crude prices retreat as supplies increase – Crude price dropped Wednesday as U.S. crude inventories gained more than expected. Energy Information Administration (EIA), the Energy Department’s statistical arm, released Wednesday its report covering U.S. crude supplies of last week. U.S. crude stockpiles added 3.7 million barrels to 362.3 million barrels for the week ending Sept. 12, topping market expectation. (Xinhua, 17/09/14)
• U.S. producer prices unchanged in August – U.S. producer prices remained unchanged in August, the Labor Department said Tuesday. The Producer Price Index, a gauge of inflation at the factory gate, remained the same in August, following a 0.1% rise in July. In the month, a 0.3% increase in prices for final demand services offset a 0.3% decrease in the index for final demand goods, said the Labor Department. (Xinhua, 16/09/14)
• British inflation slows to five-year low – British inflation slowed to more than five-year low last month, as prices of motor fuels and food and non-alcoholic drinks dropped dramatically. The Britain’s consumer prices index (CPI) grew by 1.5% in the year to August 2014, down from the 1.6% in July, said Office for National Statistics (ONS) Tuesday. (Xinhua, 16/09/14)
• China very likely to cut RRR or interest rate in Q4, CICC – The People’s Bank of China (PBOC), sees a strong possibility it will cut required reserve ratio (RRR) or interest rate in the 4Q14 in view of pressures from economic growth slowdown, according to the China International Capital Corporation’s (CICC) latest report released on Tuesday. (Xinhua, 16/09/14)
• OECD cuts growth outlook for G-7, worried about euro area – The euro area is estimated to grow 0.8% in 2014 and 1.1% in 2015, compared with the earlier growth forecasts of 1.2% and 1.7%, according to the report. The U.S. economy is projected to grow 2.1% in 2014 and 3.1% in 2015. In May, the OECD estimated that it would expand 2.6% and 3.5%. (Kyodo, 15/09/14)
• U.S. industrial production index edged down 0.1% in August, marking the first monthly decline since January. Analysts had expected the index to increase 0.3%. (Xinhua, 15/09/14)
• China’s value-added industrial output expanded 6.9% YoY in August, down from the 9% growth in July, the National Bureau of Statistics said Saturday. (Xinhua, 15/09/14)