Thailand

• Pridiyathorn: Pickup just around the bend – Thailand’s economic recovery should gain momentum from September following a one-year downward correction resulting from the previous government’s distorted stimulus policies, says Deputy Prime Minister MR Pridiyathorn Devakula. He said the present government had focused on good governance in terms of administrative and economic policies by reducing market distortions and minimising liquidity generated from grey-area businesses. Therefore, the economy slowed down for a year to adjust its base, and growth is expected to regain its normal expansion rate subsequently. (Bangkok Post, 19/6/15)
• Fitch warns of debt threat for Thailand – High household leverage in Thailand and Malaysia remains a source of risk for both economies, while their asset quality outlook, underpinned by the macroeconomic environments, is being challenged by headwinds from China’s cooling economy, says Fitch Ratings. (Bangkok Post, 18/6/15)
• Mr Sommai said the government is estimating how much money is needed to fund measures aimed at boosting income for the poor. The measures are expected to be revealed next week. Extending the value-added tax at 7%, which comes due at the end of September, for another year is a government priority and will be tabled for cabinet approval next month, as a VAT hike could be a blow to the fragile economy, he said. (Bangkok Post, 18/6/15)
• Cabinet green lights plan for cash-strapped SMEs – The cabinet yesterday approved the Finance Ministry’s measures to help small and medium-sized enterprises (SMEs) that have been hit by the slowdown of domestic consumption or lack a proper guarantee to gain access to bank loans. (The Nation, 17/6/15)]
  Revenue Department requests 1-year extension of 7% VAT rate – The Revenue Department has proposed that the Finance Ministry leave the value-added-tax (VAT) rate unchanged at 7 per cent for one more year as a way to stimulate domestic consumption. (The Nation, 17/6/15)
• Factory Licenses Up – Industry Minister Chakramon Phasukavanich said the ministry has issued 4,000 factory licenses since September 2014, increased from 3,300 licenses last year. 60% of which has started the construction with investment value of Bt250bn. (Post Today, 16/6/15)

• Growth forecast of farm economy cut as drought hits production – The agriculture sector of the national economy is now expected to grow by only 1.45 per cent, compared with an earlier projection of 2.5-3 per cent, after declines in crop production as a result of drought, according to the Ministry of Agriculture and Cooperatives’ Office of Agricultural Economics. (The Nation, 16/6/15)
• Government Revenue below target – Krisada Chinavicharana, director-general of the ministry’s Fiscal Policy Office said in the first 8 months of 2015 fiscal year, the government has collected Bt1.37trn in revenue, 4% or Bt56.52bn below target, caused by a slowing economy, poor auto demand, and lower gasoline prices. (Daily News, 16/6/15)
• Soft baht pushing exports – Rungson Sriworasat, permanent secretary of the Finance Ministry, said the depreciation of the baht to Bt33-34/US$ from Bt31 raised exports by Bt500bn. The FPO is confident that GDP growth will reach the target of 3.7%. (Thai Post, 15/6/15)

Globally

• U.S. Jobless Claims Fall to 267,000 – The number of Americans seeking first-time unemployment benefits fell last week, the latest sign of steady job creation. Initial claims for unemployment benefits, a measure of layoffs across the U.S., decreased 12,000 to a seasonally adjusted 267,000 in the week ended June 13, the Labor Department said Thursday. Economists surveyed by The Wall Street Journal had expected 276,000 new claims. (WSJ, 18/6/15)
• U.S. consumer prices rise 0.4 pct in May – U.S. consumer prices recorded the largest gain in more than two years in May, led by the increases in gasoline prices, the Labor Department said on Thursday. Consumer Price Index (CPI), a main gauge of inflation, went up 0.4 percent in May on a seasonally adjusted basis, following a 0.1 percent increase in April and rising for the fourth consecutive month. In the month, the gasoline index increased 10.4 percent and accounted for most of the increase in the CPI. (Xinhua, 18/6/15)
• U.S. current account widens on weak exports, overseas profits – The U.S. current account deficit widened in the first quarter to its highest level since 2012 likely due to the strong dollar’s drag on overseas profits and exports. The Commerce Department said on Thursday the current account deficit increased 9.9 percent to $113.3 billion. That was the largest shortfall since the second quarter of 2012. (Business Insider, 18/6/15)
• U.S. fiscal deficit expected to be 6.6 pct of GDP by 2040 – U.S. federal budget deficits are projected to rise steadily over the next 25 years, mainly because of the aging population and rising health care costs, according to a report by the Congressional Budget Office on Tuesday. The non-partisan agency predicted that the U.S. budget deficit in 2040 will be 6.6 percent of the GDP, higher than the estimated 2.7 percent in 2015 and 3.8 percent in 2025. (Xinhua, 17/6/15)
• Job vacancy rate slightly down in eurozone – The job vacancy rate in the euro area slightly decreased in the first quarter of this year, according to figures published Thursday by Eurostat, the statistical office of the EU. The latest figures showed that job vacancy rate in 19-nation bloc was 1.7 percent in the first quarter of 2015, down from 1.8 percent recorded in the previous quarter but stable compared with the first quarter of 2014. (Xinhua, 18/6/15)
• IMF Warns No Leeway on Payment as Merkel Urges Greece to Bow – International Monetary Fund chief Christine Lagarde said Greece won’t be given a grace period if it fails to make a payment at the end of the month as Chancellor Angela Merkel said there’s still time to reach a deal on aid. Lagarde, whose policies were labeled “criminal” last week by Prime Minister Alexis Tsipras, said that Greece will immediately be considered in default unless it pays about 1.5 billion euros ($1.7 billion) due to the fund on June 30. (Bloomberg, 18/6/15)
• British retail sales increases by 0.2 pct in May – Britain’s retail sales volume increased by 4.6 percent in May 2015 compared with that of a year earlier, recording the 26th consecutive yearon-year growth, the longest period of sustained growth since May 2008, according to official data. (Xinhua, 18/6/15)
• China: Housing market continues to show signs of life – China’s housing market continues to show signs of improvement after a prolonged downturn, with new home prices dropping in fewer cities for a third consecutive month amid recovering market confidence and lower interest rates. On a monthly basis, new home prices fell in 43 of the 70 cities monitored by the government in May, down from 48 in April, according to data released on Thursday by the National Bureau of Statistics (NBS). Prices climbed in 20 cities, up from 18 in April. (Xinhua, 18/6/15)
• U.S. Fed signals interest rate hike on track this year – The Federal Reserve signaled that it was on track to move the benchmark interest rate this year despite the lower-than-expected economic outlook. In its quarterly economic projections, 15 out of the 17 Fed board members and Fed bank presidents expected the appropriate timing for the first interest rate hike in almost nine years will be in 2015, and only two officials saw 2016 will be the appropriate timing. (Xinhua, 18/6/15)
• Jobs and Wages Grew in Nearly Every Large U.S. County in 2014 – Employment and wages grew in the vast majority of large U.S counties last year, underscoring the job market’s momentum through much of 2014. More than 94% of large U.S. counties reported employment gains through December compared with a year earlier, and 98% saw average weekly wages increase, the Labor Department said Wednesday. The 339 largest U.S. counties have 75,000 workers or more. (WSJ, 17/6/15)
• Eurozone Q1 employment up by 0.1 pct – Seasonally-adjusted employment rose by 0.1 percent in the 19-member euro area and by 0.3 percent the 28-member European Union (EU) during the first quarter of 2015, up from the previous quarter, official figures showed on Tuesday. (Xinhua, 17/6/15)
• British unemployment rate reaches record low – The British unemployment rate fell to 5.5 percent in the three months to April 2015, hitting a record low since mid-2008, official data showed Wednesday. The unemployment rate is in line with the market estimation consensus. Meanwhile, the average Briton’s total pay increased substantially. (Xinhua, 17/6/15)
• Japan’s May trade deficit shrinks 76.5% on year – Japan’s trade deficit shrank 76.5 percent in May from a year earlier to 216.0 billion yen ($1.75 billion), as declining crude oil prices continued to push down imports, the government said Wednesday. (Kyodo, 17/6/15)
• U.S. housing starts plunge in May – U.S. new home starts in May fell from a record high in the previous month, but applications for building permits continued to increase, a sign of the housing market gaining steady improvement. The U.S. Department of Commerce said on Tuesday that U.S. privately-owned housing starts were at a seasonally adjusted annual rate of 1,036,000 in May, plunging 11.1 percent from the revised April estimate of 1,165,000, but 5.1 percent higher than the year-ago level. (Xinhua, 17/6/15)
• British house prices rise 5.5 pct in April – British house prices increased by 5. 5 percent in the year to April 2015, down from 9.6 percent in the year to March 2015, according to official data released on Tuesday. On a seasonally adjusted basis, average house prices fell by 1. 3 percent between March and April 2015, said the Office for National Statistics (ONS). (Xinhua, 17/6/15)
• China property market likely to bottom out – China’s real estate market, widely scrutinized for its significance to the world’s second largest economy, has shown glimmering signs of bottoming out in big cities. The property market remains largely anemic, but a string of indicators show the sector’s decline may be coming to an end in China’s major cities. In the first five months, home sales volume in first and second-tier cities increased by 41 percent and 13.4 percent, respectively, according to the National Bureau of Statistics (NBS). (Xinhua, 16/6/15)
• Confidence Among U.S. Homebuilders Increases to 9-Month High – Confidence among U.S. homebuilders rebounded in June to a 9-month high as warmer weather and a brighter economic outlook drew prospective buyers back. The National Association of Home Builders/Wells Fargo builder sentiment gauge rose to 59 this month, the strongest since September and exceeding all projections in a Bloomberg survey, from 54 in May, figures from the Washington-based group showed Monday. The median survey forecast called for 56. (Bloomberg, 15/6/15)
• U.S. industrial production continues to decline in May – The U.S. industrial production dropped below market expectation in May, as manufacturing and mining activities remained weak. The U.S. industrial production, an indicator of mines, factories and utilities output, decreased 0.2 percent in May, the Federal Reserve reported on Monday. April’s decrease was revised down to 0.5 percent from its previous estimate of 0.3 percent. (Xinhua, 15/6/15)
• Empire State Manufacturing activity whiffs – The June report on Empire State Manufacturing activity posted a huge miss, coming in at -2. Economists had forecast that the index rose to 6 from a prior reading of 3.1, according to Bloomberg. (Business Insider, 15/6/15)
• China’s power use rises 1.6 pct in May – Growth in China’s electricity consumption, an important indicator of economic activity, slightly recovered in May but still remained low, suggesting persistent weakness in the world’s second largest economy. Power-use rose 1.6 percent year on year to 456.7 billion kilowatt hours (KWh) in May, slightly up from the 1.3-percent rise seen a month earlier, the National Energy Administration (NEA) said on Monday. (Xinhua, 15/6/15)
  Gov’t retains economic assessment, lifts view on capital spending – The government on Monday retained its basic assessment of the Japanese economy in June, while upgrading the view on capital spending amid moves by companies to increase investment on the back of an economic recovery. “The Japanese economy is on a moderate recovery,” the Cabinet Office said in its latest monthly economic report, retaining the basic view since March. (Kyodo, 15/6/15)
• U.S. Consumer Sentiment Improves Much More Than Expected In June – Consumer sentiment in the U.S. has improved by much more than anticipated in the month of June, according to a report released by the University of Michigan on Friday. The report said the preliminary reading on the consumer sentiment index for June came in at 94.6 compared to the final may reading of 90.7. Economists had expected the index to show a much more modest increase to 91.2. (Nasdaq, 12/6/15)
• U.S. producer prices surge in May – The U.S. producer prices rose the most sharply in nearly three years in May, driven by rising gasoline and egg prices, the latest figures released by the Labor Department showed on Friday. The Producer Price Index (PPI), a gauge of inflation at the factory gate, rose 0.5% in May, following a 0.4% decline in April. Gasoline prices hiked 17% and the cost of eggs soared 56.4% due to an outbreak of avian influenza. (Xinhua, 12/6/15)
• Eurozone industrial production up by 0.1 pct in April – Seasonally adjusted industrial production in April rose by 0.1 percent on a monthly basis in both the euro area and the wider European Union, according to estimates from Eurostat, the statistical office of the European Union. The increase is due to production of durable consumer goods rising by 1.0 percent, capital goods by 0.7 percent and intermediate goods by 0.3 percent, while non-durable consumer goods fell by 0.8 percent and energy by 1.6 percent. (Xinhua, 12/6/15)
• UK growth set for boost as construction data changes kick in – Britain’s economic growth rate last year and in early 2015 looks to have been stronger than previously estimated after the country’s statistics office revised the way it measured the construction sector. The pace of growth in gross domestic product in 2014 could rise to 2.9 percent from a previous reading of 2.8 percent due to the changes in the construction data, the Office for National Statistics said on Friday. (Reuters, 12/6/15)
• Greece bailout talks end without deal – Negotiations between Greece and its creditors on Sunday evening ended without reaching a deal, a European commission spokesman said. The spokesman said there remains wide differences between Greece’s reform plan and the requirement of it’s international creditors. (Xinhua, 15/6/15)
• PBOC Seen Cutting Reserve Ratios as Early as This Weekend – China could cut banks’ reserve-requirement ratios as early as this weekend to spur economic growth and boost cash supply to counter a surge in municipal bond sales. (Bloomberg, 12/6/15)
• Japan industrial output revised upward to 1.2% rise in April – Japan’s industrial output in April rose a seasonally adjusted 1.2% from the previous month, revised upward from a preliminary 1.0% growth, the Ministry of Economy, Trade and Industry said Friday. (Kyodo, 12/6/15)