Thailand

• PDMO to restructure the country’s debt – The Public Debt Management Office (PDMO) is planning to restructure the country’s debt after the BoT cut the policy rate to 1.5%. The plan is to convert ST loans made by the finance ministry to longer-term loans. (Daily News, 20/7/15)
• Fast-track budgets urged – The government has set up a committee to push investment and economic stimulus measures to address delays in budget disbursement and speed up liquidity injections. Finance Minister Sommai Phasee, who chairs the new committee, said it had been tasked with gathering information on the progress of each public investment project in order to increase investment efficiency. (Bangkok Post, 21/7/15)
• Good news for farmers: downpour in north, Isaan rain eases drought, prompts water release for farms in 3 provinces – The Irrigation Department is preparing to release more water for rice farmers in irrigated areas of Ayutthaya, Lop Buri and Sing Buri provinces following heavy rainfall in the North and Northeast over the past several days that boosted water reserve levels in major dams. The initial water discharge is aimed at paddy fields in the three provinces to help crop survival. (The Nation, 21/7/15)
• National state enterprise holding company to be set up next year – The government is expected to finish setting up the national state-enterprise holding company in the first quarter of next year, according to Kulit Sombatsiri, director-general of the State Enterprise Policy Office. The State Enterprise Policy Commission last week approved in principle the draft bill for governing and managing state enterprises and state enterprises’ securities. It will hold a focus group on the bill with relevant state enterprises soon, Kulit said. (The Nation, 21/7/15)

• The Thai Industries Sentiment Index (TISI) dropped again in June on concerns over the country’s economy and widespread drought in several areas, while cross-border trade has been expanding, according to the Federation of Thai Industries (FTI). Supan Mongkolsuthee, president of the FTI, said the TISI edged down to 84.0 in June, the sixth consecutive monthly decline, from 85.4 in May. Scores below 100 indicate low confidence. (The Nation, 22/7/15)
• SEPO to speed up SOE budget disbursement – The State Enterprise Policy Office (SEPO) is rushing all 46 SOEs to disburse their Bt350bn investment budget. Even though only Bt90bn or 25% of set budgets are disbursed so far but the agency still confident that it can reach the target of more than 80%, said Sepo directorgeneral Kulit Sombatsiri. (Bangkok Biz, 22/7/15)
• Makkasan development gets schedule – An auction to seek developers for a prime land plot owned by the State Railway of Thailand (SRT) in Bangkok’s Makkasan area is expected by early next year. The decision follows a recent agreement between the Treasury Department and the SRT over the lease period. Under the deal, the department will lease 497 rai of land for 99 years from the loss-ridden SRT in exchange for clearing 60-70 billion baht of the latter’s debt. The department will conduct a study of the details of the project’s development and lay down terms of reference, said Finance Minister Sommai Phasee. (Bangkok Post, 23/7/15)
• Export target elusive – The Commerce Ministry will soon need to revise down the country’s 1.2- per-cent export-growth target for this year because of the fragile global economic recovery. Commerce Minister Chatchai Sarikulya said yesterday that the ministry would next week estimate exports for this year. The ministry has admitted that Thai shipments to the world market would face difficulties reaching the goal of 1.2-percent growth after contracting by 4.2 per cent in the first five months. (The Nation, 23/7/15)
• June exports to be worse – A source from the Commerce Ministry said June’s export growth is expected to come out at -7% YoY, dragging down the 1H15 number to a contraction of 5-6% YoY. The official number will be released next week – (Khom Chad Luek, 23/7/15)
• Central bank monitoring weaker baht – The rapid weakening of the baht could cause problems for the real economic sector, says a senior official at the Bank of Thailand. The central bank is closely watching the baht’s movement, though no irregularity has been detected so far, said Chantavarn Sucharitakul, the assistant governor overseeing financial market operations. “Although the baht’s current weakening trend remains necessary to support the economic recovery, faster-than-expected depreciation could cause volatility and become an impediment towards adjustment of the real economic sector,” Mrs Chantavarn said. “The baht’s depreciation has been in accordance with the weakening trend of regional currencies since the beginning of the year, but the baht’s movement this week may be weaker than for other currencies, which have depreciated by 0.3% to 1.5%.” (Bangkok Post, 24/7/15)

Globally

• 7.16-bln-euro bridge loan to reach Greece by Monday: EC vice president – The 7.16-billioneuro (about 7.8 billion U.S. dollars) bridge loan will reach Greece on time by Monday, European Commission (EC) Vice President Valdis Dombrovskis said on Friday. (Xinhua, 17/7/15)
• Greek banks reopen Monday, capital controls remain: official – Greece’s banks will reopen on Monday after a three-week bank holiday, but capital controls will continue, according to an official statement released on Saturday. (Xinhua, 18/7/15)
• U.S. Fed chair prefers monetary policy tightening in prudent, gradual manner – U.S. Federal Reserve Chair Janet Yellen said on Thursday that the Central Bank will tighten the monetary policy in a way or at a pace that would not threaten continued progress in the labor market. “My own preference would be to proceed with tightening in a prudent and gradual manner,” Yellen told the Senate Banking Committee on Thursday on her second day of congressional testimony. (Xinhua, 17/7/15)
• U.S. consumer prices rise 0.3 pct in June – U.S. consumer prices rose for the fifth straight month in June, signaling the inflation pressure is gradually building up. Consumer price index (CPI), a main gauge of inflation, went up 0.3 percent in June on a seasonally adjusted basis, following a 0.4 percent increase in May, said the Labor Department on Friday. (Xinhua, 17/7/15)
• U.S. consumer sentiment falls in early July – U.S. consumer sentiment fell in early July affected by international uncertainties, the Thomson Reuters/University of Michigan index of consumer sentiment revealed on Friday. The preliminary reading of the consumer sentiment for July fell to 93.3 from 96.1 in June. (Xinhua, 17/7/15)
• Housing market continues to recover, pressure remains – China’s real estate market continued to warm up in June, with fewer cities seeing new home prices drop for the fourth consecutive month. On a monthly basis, new home prices fell in 34 of the 70 cities monitored by the government in June, down from 43 in May, according to data released on Saturday by the National Bureau of Statistics (NBS). (Xinhua, 20/7/15)
• China’s increased foreign debt down to new data method – China’s outstanding foreign debt is much higher than previous figures due to the use of new international statistical standards. China’s outstanding foreign debt hit 10.3 trillion yuan (1.67 trillion U.S. dollars) by the end of March, the country’s forex regulator said on Friday. (Xinhua, 17/7/15)
• Greece has officially paid the IMF – In a statement on Monday, IMF spokesman Gerry Rice said, “I can confirm that Greece today repaid the totality of its arrears to the IMF, equivalent to SDR 1.6 billion (about EUR 2.0 billion). Greece is therefore no longer in arrears to the IMF.” (Business Insider, 21/7/15)
• Fed’s Bullard sees 50% chance of September hike – Federal Reserve Bank of St Louis President James Bullard said in a television interview there are good odds the US central bank will raise rates at its September policy meeting. (Business Spectator, 21/7/15)
• SIC: China’s 2015 economic growth to reach 7 pct – China’s economic growth may return to a level around 7 percent in the second half of the year with the consumer price index (CPI) rising to 1.6 percent boosted by monetary easing measures, expanded fiscal expenditure and a series of major projects, says a report by State Information Center (SIC) published exclusively on China Securities Journal on Monday. (Xinhua, 20/7/15)
• China’s job market remains stable – China’s employment situation has remained stable thanks to a growing economy, rising tide of entrepreneurship and robust tertiary sector, according to new data. The surveyed unemployment rate compiled by the National Bureau of Statistics (NBS) showed on Monday that the jobless rate in 31 major Chinese cities fell to 5.06 percent in June after rising to 5.19 percent in March due to holiday distortion. (Xinhua, 21/7/15)
• China FDI growth to pick up amid challenges: vice minister – Foreign direct investment (FDI) in China will rebound in 2015 on the back of a robust expansion in the first six months, Vice Commerce Minister Wang Shouwen has said. Wang expected the FDI in China for the whole 2015 to grow around four percent to 125 billion U.S. dollars, compared with a 1.7-percent expansion recorded in 2014. (Xinhua, 21/7/15)
• Home sales in main Chinese cities surge in July 1-15, E-house – The floor space of new homes sold in 20 main Chinese cities monitored surged 55 percent year on year to 6.51 million square meters in the first half of July, up 5 percent over the second half of June, according to a report released by E-house Research Institute. (Xinhua, 20/7/15)
• Greek MPs prepare for second vote on bailout reforms – The Greek parliament will vote on Wednesday on a second set of reforms needed to secure its bailout deal. If MPs approve the financial and judicial reforms, Greece will be able to press ahead with negotiations for an €86 billion bailout from its creditors. Prime Minister Alexis Tsipras rallied his Syriza colleagues on Tuesday, saying the Greek people had “pinned their hopes” on staying in the euro. (BBC, 22/7/15)
• EU current account surplus grows in May – The current account surplus of the European Union (EU) in May increased compared with the previous month, first estimate data from Eurostat, the statistical office of the EU, showed Tuesday. The current account rose to 13.0 billion euros (about 14.17 billion U.S. dollars) in May from 11.9 billion euros in April and 4.8 billion euros in May last year. (Xinhua, 21/7/15)
• China FDI inflows up 0.7 pct in June – Foreign direct investment (FDI) in the Chinese mainland rose 0.7 percent year on year in June to 14.58 billion U.S. dollars, the Ministry of Commerce (MOC) said Tuesday. The growth slowed sharply from a 7.8-percent rise in May. (Xinhua, 21/7/15)
• Overseas investors pull back on yuan-denominated assets – The amount of money invested by overseas institutions and individuals in yuan-denominated assets declined in June, following two months of rises, new data from the People’s Bank of China (PBOC) showed. Foreign holdings in yuan-denominated assets last month dropped 10.24 billion yuan from May to 4.42 trillion yuan (722.55 billion U.S. dollars), a decline mainly seen in the stock market, with investors rushing to cash out in the recent market freefall. (Xinhua, 21/7/15)
• Chinese SOE profits edge down in H1 – The profits of China’s state-owned enterprises (SOEs) continued to fall in the first half of the year, but at a slower pace as the economy appears to be stabilizing with the filtering through of pro-growth measures, official data showed Tuesday. SOEs’ combined profits dipped 0.1 percent from a year earlier to 1.2 trillion yuan (201.5 billion U.S. dollars) in the January-June period, the Ministry of Finance said in a statement on its website. (Xinhua, 21/7/15)
• Gov’t maintains economic assessment, cuts view on production – The government on Tuesday maintained its basic assessment of the economy in July, but downgraded the view on production due to sluggish demand for automobiles and electronic devices at home and abroad. “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, 21/7/15)
• U.S. existing-home sales increased in June to their highest pace in over eight years, according to the National Association of Realtors Wednesday. Total existing-home sales increased 3.2 percent from a downwardly revised 5.32 million in May to a seasonally adjusted annual rate of 5.49 million in June, beating market consensus. (Xinhua, 23/7/15)
• U.S. mortgage applications rise in latest week: MBA – The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, rose 0.1% in the week ended July 17.The MBA’s seasonally adjusted index of refinancing applications fell 0.5%, while the gauge of loan requests for home purchases, a leading indicator of home sales, rose 1.0 percent. (Reuters, 22/7/15)
• World Bank raises forecast for 2015 global crude prices – The World Bank is nudging up its 2015 forecast for crude oil prices from 53 U.S. dollars in April to 57 dollars per barrel after oil prices rose 17 percent in the April to June quarter, according to the bank’s latest Commodity Markets Outlook released on Wednesday. (Xinhua, 22/7/15)
• British fiscal deficit narrows to 9.4 bln pounds in June – British government saw a fiscal deficit of 9.4 billion pounds (or 14.5 billion U.S. dollars) in June 2015, a decrease of 0.8 billion pounds compared to a year earlier, said the Office for National Statistics (ONS) Tuesday. The deficit is higher than the market estimation consensus of 8.7 billion pounds. (Xinhua, 21/7/15)
• China’s consumer confidence falls to record low – The ANZ-Roy Morgan Consumer Confidence of China slipped 2.5 points to 141.0 in July and reached the lowest level since the index was introduced in January 2014, according to a report released by ANZ Bank (China) on Wednesday. (Xinhua, 22/7/15)
• China’s industrial value added up 6.3 pct y-o-y in H1, MIIT – China’s industrial value added increased 6.3 percent year on year in the first half of this year, but the growth rate was 2.5 percentage points lower over the same period of 2014, according to figures released by the National Bureau of Statistics. (Xinhua, 22/7/15)
• U.S. initial jobless claims tumble to almost 42-year low – The number of Americans initially applying for unemployment aid tumbled last week to the lowest level in nearly 42 years, the latest sign of a strengthening job market, the U.S. Labor Department said Thursday. In the week ending July 18, the advance figure of seasonally adjusted initial claims for jobless benefits fell by 26,000 to 255, 000, the lowest level since November 1973, the department said. (Xinhua, 24/7/15)
• Chicago Fed National Activity Index Tilts to Stronger Growth – Spurred by gains in production and employment, a gauge of U.S. economic activity last month swung to growth above the historic trend. The Chicago Fed National Activity Index moved to +0.08 last month from May’s -0.08. Any result above zero indicates the national economy is expanding above its historic trend rate of growth. (Nasdaq, 23/7/15)
• U.S. leading economic indicator increases solidly – A gauge of future U.S. economic activity increased more than expected in June, boosted by a strengthening housing market, suggesting growth will continue to gain momentum for the remainder of the year. The Conference Board said on Thursday that its Leading Economic Index rose 0.6 percent after an upwardly revised 0.8 percent increase in May. (Reuters, 23/7/15)
• Greece, Creditors Get Ready to Open Bailout Talks, But Still Face Hurdles – Greece and its creditors got ready to open talks to complete a bailout deal after Athens passed a required set of austerity measures, but the negotiations must still clear numerous hurdles before the country gets any aid. (WSJ, 23/7/15)
• U.K. Retail Sales Unexpectedly Fall as Food, Furniture Drop – U.K. retail sales unexpectedly declined in June on a wide range of goods including food, furniture, sporting equipment and jewelry. The volume of sales including auto fuel fell 0.2 percent from May, the Office for National Statistics said in London on Thursday. Economists forecast a 0.4 percent increase, according to a Bloomberg survey. (Bloomberg, 23/7/15)