Thailand

• FPO to revise GDP projection — The Fiscal policy office has announced that it will revise Thailand’s GDP growth projection , currently at 1.5-2%, again at the end of October in response to slower than expected recovery while the export growth is -7.4% (Ban Meung, 16/10/14)
• Draft for new taxes done — The Revenue Department said it has finished the draft for inheritance and gift tax, which is expected to take effect by the end of this year. (Bangkok Biz, 16/10/14)
• FPO expects Thai economy to pick up compared to 4Q13 as the government plans to enact numerous stimulus measures, but there is a risk posed by a slow global recovery. (Thai Post, 17/10/14)

• FY2014 revenue misses target — The government reports FY2014 revenue at Bt2trn, Bt200bn short of target. (Khao Sod, 17/10/14)
• Stimulus measures presented — Finance Minister Sommai Phasi presented Thailand’s short- and long-term economic stimulus measures to credit rating agencies during the International Monetary Fund (IMF) and World Bank meetings last week in Washington D.C. The minister explained Thailand’s economic policies with a focus on urgent disbursement of government budget and infrastructure investment to the agencies’ representatives in the hope to earn a better credit rating for the country. (NNT, 10/13/14)
• The FTI expects bonuses at factories to be lower than last year dragged by both exports and domestic consumption. However, employment next year is expected to improve. The FTI said that the market will need more than 200,000 workers to help support the economic growth spurred by public and private investment. (Kom Chad Luek, 14/10/14)
• Cooperatives to recover in 3Q14 — The Cooperative Auditing Department said cooperatives are expected to recover in 3Q14 with growth of 0.5-1.0%. They will continue to implement measures to help lower costs and focus on the stability of cooperatives. (ASTV Manager, 10/10/14)
• Corporate tax cut for SMEs being considered — The Ministry of Finance is considering cutting corporate taxes for SMEs down to 15-20% on profit of Bt300,001-Bt3,000,000. The Revenue Department will submit a draft. (Thai Post, 10/10/14)
• BOI reports 23% plunge in investments in 9M14. It expects investment for the year to reach Bt700bn. Chinese investors have shown interest in investing in the motorway project and a conclusion is expected to be reached within the year so that the project can move forward while the current government is in place. (Thai Post, 10/10/14)

Globally

• U.S. retail and food services sales for September slipped 0.3%, said the U.S. Commerce Department. The decline was bigger than market consensus of a 0.2% drop. U.S. business inventories rose 0.2% for August, also lower than market expectations of a 0.4% increase. (Xinhua, 16/10/14)
• The Federal Reserve Bank of New York said the growth of manufacturing activity in the New York region slowed significantly in October, with the Empire State general business conditions index plunging to 6.2 from a five-year high of 27.5. (Xinhua, 16/10/14)
• The U.S. Producer Price Index for final demand unexpectedly fell 0.1% in September on a seasonally adjusted basis, said the U.S. Labor Department on Wednesday. The decline of U.S. wholesale prices was the first in more than a year and missed analysts’ expectations of a 0.1% increase, a sign that the U.S. economic growth is not as robust as expected. (Xinhua, 16/10/14)
• Chinese consumers using bank cards showed stronger confidence in September following a weaker confidence in August, mainly due to a strong holiday shopping season, according to the Bankcard Consumer Confidence Index (BCCI) released on Wednesday. (Xinhua, 16/10/14)
• China approved brokerages to offer trading services that pave the way for the start of a program allowing investors in Shanghai and Hong Kong access to each other’s stock markets, as evidence of China’s effort to effort to open up its financial system and promote wider use of the yuan. The link will start operating on Oct. 27. (Bloomberg, 15/10/14)
• U.S. budget deficit lowest in six years – The annual deficit for fiscal year 2014 fell 29% to US$483.35bn, the Treasury Department said Wednesday. That was slightly less than the US$486bn forecast last week by the Congressional Budget Office and was the lowest deficit since 2008. (WSJ, 16/10/14)
• U.S. builder confidence climbs to six-month high in July – The builder sentiment index rose to 53 this month from 49 in June, according to the National Association of Home Builders (NAHB) /Wells Fargo Housing Market Index (HMI). (Xinhua, 17/10/14)
• U.S. economy keeps expanding in all regions – U.S. economic activities kept growing in all regions of the country in recent weeks, indicating the recovery was on a solid pace, a survey by the Federal Reserve showed Wednesday. (Xinhua, 16/10/14)
• U.S. industrial production was up 1% in September versus expectations of 0.4%, the biggest gain in nearly two years as factory activity quickened and utilities output logged a big-weather related jump, a welcome sign on the pace of the economy’s recovery. With activity quickening, the amount of productive capacity in use rose to 79.3%, the highest level since June 2008. (CNBC, 16/10/14)
• Eurozone annual inflation fell to 0.3% in September from 0.4% in the previous month, recording a lowest level since October in 2009, Eurostat said on Thursday. (Xinhua, 16/10/14)
• China to step up property tax legislation – China will accelerate legislation on property tax and impose the tax at a proper time, Lou Jiwei, finance minister of China, wrote in an article on official Qiushi Journal recently. The government will arrange appropriate taxes levied on property construction, transactions and tenure to promote healthy development of China’s real estate market and make property tax a stable income source of local coffers, Lou said in the article. (Xinhua, 16/10/14)
• China FDI inflows rise 1.9% in Sept – Foreign direct investment (FDI) into the Chinese mainland rose 1.9% in September from a year earlier, standing at US$9.01bn, the Ministry of Commerce (MOC) said on Thursday. (Xinhua, 16/10/14)
• China’s auto sales rose 2.5% YoY to 1.98mn units in September, data from an industry association showed on Monday. Vehicle output increased 4.2% to 2mn units in the month, according to the China Association of Automobile Manufacturers (CAAM). In the first nine months, auto sales totaled 17mn units, up 7% from the same period last year. (Xinhua, 10/13/14)
• China will meet its growth target of around 7.5% this year helped by urbanization and economic restructuring, its central bank chief said. The country’s job market is stronger than expected and inflation remains at a relatively low level, the People’s Bank of China will continue with a prudent monetary policy, while pushing ahead with financial reforms and stepping up risk management. (Xinhua, 10/13/14)
• G20 optimistic on global economy despite challenges – Finance chiefs and central bank governors of the G20 group remained optimistic about the global economic growth despite many challenges, said Australia Treasurer Joe Hockey, whose country holds the G20 presidency, at a press conference on Friday. (Xinhua, 11/10/14)
• British trade deficit narrows to £1.9bn pounds in August – British trade deficit in goods and services was estimated to have been £1.9bn (US$3bn) in August 2014, compared with £3.1bn in July, data from the Office for National Statistics (ONS) showed Friday. (Xinhua, 10/10/14)