Thailand

• Rice scheme payments begin – Farmers waiting for delayed rice-pledging scheme payments can begin claiming their money from today, coup-makers announced yesterday. (Bangkok Post, 26/05/14)
• Reform plans to be discussed today — The NCPO will meet with several economic experts and government officials today to launch a new policy plans to reform the economy before the next election. It assured the nation that the coup will allow the FY2015 government budget to be completed in time. (Krungtep Thurakit, 26/05/14)
• No BoI board – again— The new BoI board has been dissolved as a result of the coup, meaning another stop to FDI inflow. BoI will, however, continue its roadshow to promote Thailand as an investment destination. (Than Setakit, 26/05/14)

• Roadmap seeks route to stimulus – National Council for Peace and Order (NCPO) approval of an economic roadmap will be sought as early as next week in a bid to move rapidly towards revitalising the sagging economy. (Bangkok Post, 27/05/14)
• FPO forecast that 2014 GDP can grow at 3% if the government with full authority can push on infrastructure projects such as the dual rail track, or the sky train projects. While the Revenue Dept. will continue the VAT cut for another year, with a possible income tax cut from the current level of 35%. (Krungtep Thrurakit, 27/05/14)
• Ministry of Industry to submit proposal to quicken factory setup approval from 90 days to within 30-45 days, in an attempt to cut down red tape and promote investment. (Kom Chat Leuk, 27/05/14)
• Finance seeks Bt50bn term loans to pay off rice farmers – The Finance Ministry has invited 32 state and private banks to bid for the first phase of a three-year program of bridge loans totaling Bt50bn to pay rice farmers still owed under the pledging program. The first Bt30bn tender will be called early next month. (The Nation, 27/05/14)
• Infrastructure projects to be expedited — Permanent secretary of transport has expedited the planning process of several key infrastructure projects to submit to NCPO. Heading the list are projects that will ease ASEAN integration such as dual rail tracks and 3,000 NGV buses. He also hopes that the free buses in Bangkok will be expended beyond the expiration date in June. (Post Today, 27/05/14)
• More than Bt500bn lost on rice scheme — The Ministry of Finance says that total losses generated from the rice scheme exceed Bt500bn, with over 3mn tonnes missing. BAAC and NCPO promise that it will pay all Bt92bn outstanding to famers this month, using credit lines available to the government. (Krungtep Thurakit, 27/05/14)
• Job openings down — Jobs DB, a job hunting website, reports that job openings for Jan.-Apr. are down by 40% YoY as politics has forced corporations to cut back. While openings are down, job seekers have risen by 20% YoY for the same reason. (Thai Post, 27/05/14)
• Another export revision coming — Permanent Secretary of Commerce admits that the forecast for Thai exports will likely be revised after receiving little positive responses from commerce attaché. The new forecast will likely come out next week. She said the forecast will likely improve if things normalize. (Thai Post, 27/05/14)
• Free TV cutting ad rates to gain market share. ‘Channel 7’ will price prime time at Bt500k per minute, with free HD package. While ‘MCOT’ cuts price by 50% from Bt450k to Bt220-280k per minutes. Nelson Surveys said that the first months of Digital TV say rating drop over 8-15% due the customers trying new channels. (Than Setakit, 28/05/14)

Globally

• US: U.S. sales of new single-family houses in April stood at a seasonally adjusted annual rate of 433,000, 6.4% above the revised March rate of 407,000, the Commerce Department reported Friday. The reading easily surpassed market consensus. (Xinhua, 24/05/14)
• U.S. orders for manufactured durable goods unexpectedly rose 0.8% to US$239.9bn in April thanks to a surge in demand for defense capital goods, the U.S. Commerce Department said Tuesday. The reading stood largely above market consensus.
• Germany: Business confidence declines — The Ifo institute’s business climate index fell to 110.4 in May from 111.2 in the previous month, which showed German business confidence weakened more than forecast and indicated the country’s economic growth may slow in the second quarter. (Xinhua, 24/05/14)
• German consumers less concerned about Ukraine crisis, but risks remain: survey – Market research institute GfK found its forward-looking indicator for consumers’ morale stood at 8.5 points for the fourth straight month into June, and the indicator for German economic outlook in May climbed to 38.5 points, the highest level since July 2011. (Xinhua, 26/05/14)
• China injects 200 bn yuan subsidy for housing projects – The Chinese central government appropriated 200.3 billion yuan in 2013 to help facilitate the building of government-subsidised housing, the rebuilding of dilapidated areas and related infrastructure. (Xinhua, 26/05/14)
• Draghi says “preemptive action may be necessary” — European Central Bank’s chief Mario Draghi said on Monday that “pre-emptive action” may be needed to head off deflation, reinforcing speculations that the ECB will cut interest rate or engage in a large-scale bond-buying program next month. (Xinhua, 26/05/14)
• Japan holds fire on new easing measures, says economy improving – The Bank of Japan held off expanding its monetary easing campaign and said the world’s number three economy was picking up pace, despite fears that a sales tax rise will dent consumer spending. (AFP, 23/05/14)