Thailand

• NCPO to push Bt900bn out this week — The NCPO will expedite the budget spending that has been stuck in the pipeline out this week. The Permanent Secretary of Finance will urge government offices to start spending on approved projects in September. This is an attempted to boost government spending after only Bt190bn was spent in the first eight months of the fiscal year. (Than Settakit, 09/06/14)
• NCPO boosts China trade ties – Junta chief Prayuth Chan-ocha has assured Chinese investors that an interim government will be installed within three months as he sought to shore up economic ties. (Bangkok Post, 07/06/14)
• Gen. Prayut expected to sit at the head of the newly formed Rice Board. The details of its makeup and function are expected to be decided this week. (Post Today, 07/06/14)

• ECB rate cut won’t hurt — The Ministry of Finance and BoT have both assured the public that the ECB’s rate cut will not materially affect Thailand’s economy and inflation as it was long expected. NCPO policies designed to reduce living expenses will also help with inflation. The Ministry of Finance said it will revise forecasts at the coming MPC meeting. (Thai Post, 09/06/14)
• Tax reform beginning to take shape, with possible cuts to BoI and SME benefits, a hike in idle land tax and pollution tax. Energy tax will have to wait on Oil Fund decision. If scrapped, LPG will see a rise of Bt5/kg, while petrol will see a drop of Bt10/lt. (Prachachat Thuruakit, 09/06/14)
• Water scheme firms accept NCPO delay – Thai and foreign contractors picked to work on the Bt350bn flood and water management scheme set up by the ousted Yingluck government say the National Council for Peace and Order (NCPO)’s decision to put the project on hold is a positive move. (The Nation, 09/06/14)
• NCPO approves Rice Board chaired by Gen. Prayut. The body will clean up the mess caused by the ill-fated rice scheme, while also improving the rice market condition. (Krungtep Thurakit, 10/06/14)
• Office of Transport Planning to submit expedited proposal to NCPO today on the matter of infrastructure development. OTP said the projects will only include those deemed very beneficial and crucial to AEC integration. (Thai Post, 10/06/14)
• BoT still concerned on SME loan growth: 1Q14 saw growth of 11% but this fell to 8% when including April, or a mere 2% growth per month. (Post Today, 10/06/14)
• Govt pressing CLMV countries for zero import duties – The Trade Negotiations Department will urge neighbours Cambodia, Laos, Myanmar and Vietnam (CLMV) to lower their duties on products to zero in preparation for the ASEAN Economic Community’s fruition next year. (The Nation, 11/06/14)
• Double-tracking approved — The Transport Ministry and NCPO have approved two double-tracking projects connecting Bangkok to the north and northeastern provinces. The Ministry expects to be able to skip EIA approvals, a move well supported by local business along the northern boarder of Thailand. (Than Setakit, 11/06/14)
• BAAC approves loan of Bt376mn to fund this season’s rice price, covering production from 1.5mn rai and at a cost of Bt494mn. (Post Today, 11/06/14)
• BoT fully supports NCPO intention of government reform. The reform will include more concrete guidelines for government banks and less political influence in day-to-day operations. (Prachachart Thurakit, 11/06/14)
• BoI applications dip 42% year-to-date — Investment applications sent to the Board of Investment (BoI) dropped by 42% year-on-year in the first five months to Bt300bn, but the investment promotion agency says new investors are still interested in Thailand. (Bangkok Post, 11/06/14)
• World Bank sees dimmer Thai outlook for 2014 – Thailand’s economic growth will keep tapering this year and the outlook remains uncertain due to continued political tensions, while global growth is also lacking vigour, according to the World Bank. (The Nation, 12/06/14)
• NCPO faces calls to scrap water agencies – The junta is being urged to dissolve water-related agencies set up by the previous government after the 2011 flood crisis. (Bangkok Post, 12/06/14)
• Bt3trn transport infrastructure plan – The Transport Ministry has drawn up the outline of a Bt3trn eight-year investment plan for infrastructure projects, including high-speed trains in the second phase. (Bangkok Post, 13/06/14)
• Water board meeting — Gen. Prayut chaired a Water Board meeting on Thursday, discussing all the water management projects approved by the previous government. The meeting included over 36 participants discussing relevant issues. (Post Today, 13/06/14)
• BoT cautions of economy in 2H14 — The governor of the BoT warns that the Thai economy may not yet recover strongly in the second half, though he expect some improvement. He said the economy would not yet be able to operate at its full potential despite the best efforts of the NCPO, as consumer spending will continue to be hampered by high household debt. (Daily News, 13/06/14)

Globally

• US: Non-farm beats expectations — Total nonfarm payroll employment added 217,000 in May, with the unemployment rate unchanged at 6.3%, the Labor Department said Friday. Economists had expected the payroll number to increase 213,000 and the jobless rate to rise to 6.4% percent from 6.3% in April. (Xinhua, 07/06/14)
• Consumer credit in U.S. climbs more than 10.2% in April – The US$26.8bn surge in total credit exceeded the highest estimate in a Bloomberg survey and followed a revised US$19.5bn gain in March, Federal Reserve figures showed today in Washington. Revolving lending, which includes credit cards, jumped US$8.8bn. (Bloomberg, 07/06/14)
• China’s exports up 7% in May – In May, total foreign trade volume increased by three percent to US$355bn with exports up 7% YoY, while imports were down 1.6% to US$159.55bn, the General Administration of Customs (GAC) said. (Xinhua, 08/06/14)
• OPEC set to stick by oil production quota – OPEC is set to stick by its oil output ceiling when it meets this week, as supply tensions linked to global crises help to keep crude prices high, benefitting producers. (Gulf Daily News, 09/06/14)
• Moody’s cuts view on China property sector – The rating firm cited the expectation of a significant slowdown in residential-property sales growth, high inventory levels and weakening liquidity over the coming 12 months. (WSJ, 09/06/14)
• Japan’s current account surplus plummets 76.1% in April – Japan’s current account surplus plunged 76.1% from a year earlier to ¥187.4bn in April, the smallest in 32 years for the month, with a surge in fossil fuel imports and the yen’s slide boosting the trade deficit, government data showed Monday. (Kyodo, 09/06/14)
• Job openings in U.S. climb to highest Since September 2007 – Job openings in the U.S. climbed to an almost seven-year high in April as employers sought more workers to help manage stronger demand in a rebounding economy. The number of positions waiting to be filled in the U.S. rose by 289,000 to 4.46 million in April. (Bloomberg, 10/06/14)
• U.S. wholesale inventories up. Wholesale inventories, a key component of gross domestic product changes, rose 1.1% in April from the prior month, the Commerce Department said Tuesday, above market consensus of 0.5%. (Xinhua, 10/06/14)
• The NFIB’s Small Business Optimism Index for May rose 1.4 points to 96.6, the highest reading since September 2007. But the NFIB cautioned that the index, up for the third month in a row, is still far below readings that have normally accompanied an expansion. (Xinhua, 10/06/14)
• EIA forecasts a slight slow down in natural gas demand as a fuel source due to slower economic growth, and high competition from coal energy and alternative renewable sources of energy. (IQ Biz, 10/06/14)
• World Bank cuts global economic growth forecast — The World Bank forecast the global economy to grow 2.8% this year, down from its January estimate of 3.2%, as developing countries are heading for “disappointing growth,” while high-income countries are gaining momentum, according to the report. (Xinhua, 11/06/14)
• British unemployment rate drops to 6.6% in April — British unemployment rate dropped to 6.6% in the three months to April 2014, down from 6.8% in the first quarter, marking the lowest level over the past five years, Office for National Statistics (ONS) data showed on Wednesday. (Xinhua, 11/06/14)
• US: U.S. retail and food services sales rose 0.3% in May following an upwardly revised 0.5% increase in April, which fell short of market consensus, the Commerce Department reported Thursday. In a separate report, the Commerce Department said that U.S. business inventories rose 0.6% in April from the prior month, beating analyst expectations. Meanwhile, the number of Americans who initially applied for jobless benefits in the week ending June 7 increased 4,000 to 317, 000 on a seasonally adjusted basis, said the Labor Department. But analysts had expected jobless claims to decline last week.
• Additionally, U.S. import prices ticked up 0.1% in May, after a 0.5% decrease in April, the Labor Department said Thursday. The price index for U.S. exports also advanced 0.1% in May following a 1.0% drop in April. (Xinhua, 13/06/14)
• U.S. business inventories up 0.6% in April — Inventories rose 0.6% in April, the largest gain this year. The combined sales by manufacturers, wholesalers and retailers increased 0.7%. (Xinhua, 13/06/14)
• ECB sees no deflation risk in euro area — Although price pressures will remain subdued for a longer period in the euro area, inflation rates will gradually increase and there is no risk of deflation, the European Central Bank (ECB) said in its monthly bulletin released on Thursday. According to Eurostat’s flash estimates, euro area annual HICP inflation was 0.5% in May 2014, after being 0.7% in April. (Xinhua, 13/06/14)