Thailand

• FY2016 budget approved – The economic ministers’ meeting chaired by Prime Minister Prayut Chan-o-cha yesterday approved 2.72 trillion baht worth of expenditure to run a 390-billion-baht budget deficit in fiscal 2016. The budget framework is based on projected economic growth of 3.7% to 4%, with inflation of 1.2%. (Bangkok Post, 25/4/15)
• FIDF contribution kept at 0.46% – The cabinet approved the proposal by the Finance Ministry and BoT to keep the contribution rate to the Financial Institutions Development Fund (FIDF) at 0.46% of deposits. Debt currently stands at Bt1.07trn, which is expected to be paid off in 22 years. (Bangkok Biz, 27/4/15)
• Digital transformation, broadband holding co, national satellite among key ICTgoals: Pornchai – The Information and Communications Technology Ministry yesterday outlined three key plans: to finish transforming itself into a digital economy ministry by the end of August; to set up a national broadband holding company early next year; and to build a national satellite within 10 years. (The Nation, 25/4/15)

• Exporters face an array of problems, want help – Thai exporters have relayed various problems to the Commerce Ministry – chiefly non-tariff barriers, labor issues, and their low competitiveness – and have called on the government to help them solve the problems promptly warning that Thai shipments will continue to slump. (The Nation, 27/4/15)
• Range of issues drove down TISI in first quarter – The Thai Industries Sentiment Index (TISI) dropped every month in the first quarter of this year and, as of March, was sitting at its lowest point in five months because of the fragile domestic and global economic recoveries, flagging production competitiveness in some categories, stubborn slump in crop prices and the strong baht. (The Nation, 28/4/15)
• Ministry cuts 2015 forecast for exports – First-quarter exports fell by 4% year-on-year, prompting the Commerce Ministry to revise down its full-year forecast from 4% growth made earlier. (Bangkok Post, 28/4/15)
• Cabinet approves Bt2.72-trillion budget for fiscal 2016 – The Cabinet has approved the government’s Bt2.72-trillion budget bill for fiscal 2016, including a deficit of Bt390 billion on expected revenue of around Bt2.33 trillion. Budget Bureau director Somsak Chotrattanasiri said after the Cabinet meeting yesterday that the investment budget for 2016 was set at Bt543.635 billion, which is Bt94.16 billion or 20.9 per cent more than in fiscal 2015. Fixed expenditure under the 2016 budget will amount to around Bt2.101 trillion, which is Bt72.977 billion or 3.6 per cent more than the previous year’s. (The Nation, 29/4/15)
• Commerce Ministry cuts 2015 export growth target to 1.2% – The Commerce Ministry yesterday officially slashed this year’s export-growth target from 4 per cent to 1.2 per cent, for a total value of US$230.30 billion (Bt7.5 trillion). That translates to a loss in export value of about $6 billion from the previous projection of $236.67 billion. However, the ministry and private sector analysts share the hope that the export decline bottomed out in February, as March exports declined by only 4.45 per cent, compared with 6 per cent year on year in the previous month. (The Nation, 29/4/15)
• MPC injects ‘harsh drug’ with unexpected rate chop – In a surprise move, the Bank of Thailand’s Monetary Policy Committee (MPC) yesterday cut the policy rate by 25 basis points to 1.5%. It was the second time in a row that the MPC has cut the rate in a fresh effort to sustain economic momentum amid risks from shrinking exports and tepid domestic consumption. Mathee Supapongse, an assistant governor of the monetary policy group and the MPC’s secretary, said the majority of members called for further monetary easing to counter economic sluggishness. (Bangkok Post, 30/4/15)
• FPO cuts GDP view to 3.7% – The Fiscal Policy Office (FPO) has cut its forecast for Thai economic growth this year to 3.7% from 3.9% after its export projection was trimmed to almost zero growth. Even though the Finance Ministry’s think tank slashed its shipment projection to 0.2% this year from 1.4% in January, an increase in tourism could help partly offset the bleak outlook, said Krisada Chinavicharana, director-general of the FPO. (Bangkok Post, 30/4/15)

Globally

• San Francisco Fed Sticks to Rosy Forecast Despite Recent Weakness – A wobbly start to the year is not deterring economists at the Federal Reserve Bank of San Francisco from a fairly upbeat growth outlook for 2015. (WSJ, 24/4/15)
• U.S. durable goods orders rebound in March – New orders for U.S. manufactured durable goods rebounded in March after falling in February, the U.S. Commerce Department reported Friday. (Xinhua, 24/4/15)
• EU Finance Ministers: There is No Other Plan But for Greece to Remain in the Eurozone – European Union and eurozone Finance Ministers meeting in Riga was concluded with the common position (regarding Greece) that there is no other plan but Greece to remain in the eurozone. “There is no plan B or C or D for Greece (exit from the eurozone)” said French Finance Minister Michel Sapin after the end of the EU Finance Ministers meeting in Riga on Saturday. (Greek Reporter, 25/4/15)
• British public fiscal deficit down by 11.1 bln pounds in 2014/15 – British government reported Thursday that its public sector net borrowing excluding public sectors banks was 87.3 billion pounds (131 billion U.S. dollars), registering a decrease of 11.1 billion pounds compared with the financial year 2013/14. (Xinhua, 24/4/15)
• China employment growth weakens amid slowdown – Employment growth in China’s urban areas slowed in the first quarter of 2015 for the first time since the global financial crisis, the Ministry of Human Resources and Social Security (MOHRSS) said on Friday. (Xinhua, 24/4/15)
• US services sector activity slows in April – US services sector activity slowed in April, but last month saw the sharpest rise in service sector payroll numbers since June 2014. The latest flash reading on service sector activity from Markit Economics came in at 57.8.Economists were expecting the index to slip to 58.2 from 59.2 in March. Last month, it beat expectations for a reading of 58.6. (Business Insider, 27/4/15)
• Greek PM reshuffles team of negotiators with lenders on debt crisis – Greek Prime Minister Alexis Tsipras reshuffled the team of negotiators with international lenders on the resolution of the debt crisis, it was announced on Monday. The move comes after the latest episode in Riga on Friday of a two-month public “verbal war” between Finance Minister Yanis Varoufakis and European officials. (Xinhua, 27/4/15)
• Fitch cuts rating on Japan sovereign debt by one notch – Fitch Ratings said Monday it has downgraded its rating on Japanese government bonds by one notch to A from A-plus, citing the lack of sufficient fiscal measures to replace a deferred consumption tax hike in the country. (Kyodo News, 27/4/15)
• Chinese listed firms more profitable in Q1 – First-quarter business reports from Chinese companies listed on the Shanghai and Shenzhen stock exchanges show their combined profits were 5.85 percent higher than in the same period last year, according to research released on Monday. The 1,307 companies that had released first-quarter business reports as of Sunday raked in a profit of 111.34 billion yuan (18.19 billion U.S. dollars), the China Securities Journal reported. The companies registered a total business revenue of 1.44 trillion yuan in the first three months, up 2.24 percent from a year earlier.
• U.S. home prices gain in February – U.S. home prices showed widespread gains in February, according to S&P/Case-Shiller Home Price Indices released Tuesday. The 10-City Composite gained 4.8 percent year-over-year, up from 4.3 percent in January. The 20-City Composite gained 5 percent year-over-year, compared to 4.5 percent in January. (Xinhua, 28/4/15)
• U.S. consumer confidence declines in April – U.S. consumer confidence declined in April following an increase in the previous month, a research group said Tuesday. The Conference Board Consumer Confidence Index registered 95.2 in April, down from 101.4 in March, the New York-based Conference Board said in a report. (Xinhua, 28/4/15)
• British GDP growth in Q1 slows to 0.3 pct – British gross domestic product (GDP) was estimated to have increased by only 0.3 percent in the first quarter (Q1) of 2015 compared with growth of 0.6 percent in the fourth quarter of 2014, marking the slowest quarterly growth in two years, announced the Office for National Statistics (ONS) Tuesday. (Xinhua, 28/4/15)
• French Consumer Confidence at Five-Year High – French consumer confidence rose for the third consecutive month in April to reach the highest level in over five years, statistics showed Tuesday. Consumer confidence in the eurozone’s second-largest economy rose one point to 94 in April from March, the highest level since January 2010, national statistics agency Insee said. (Nasdaq, 28/4/15)
• Japan’s FY 2014 domestic auto output down 3.2% on tax hike – Japan’s domestic auto production fell 3.2 percent in fiscal 2014 from the previous year to 9,590,644 units, the first decline in five years, an industry body said Tuesday, amid weak private spending following a consumption tax hike. (Kyodo, 28/4/15)
• U.S. economy almost stalls in Q1 – U.S. real gross domestic product (GDP) increased at an annual rate of 0.2 percent in the first quarter this year, as uneven growth still haunted the world’s largest economy amid a protracted weak recovery, according to an advance estimate released by the U.S. Commerce Department on Wednesday. Personal consumption, which accounts for about 70 percent of the U.S. economy, grew 1.9 percent, compared with an increase of 4. 4 percent in the previous quarter. The U.S. economy typically experienced harsh times in the first quarter in recent years. It contracted 2.1 percent in the first quarter of 2014, as the unprecedented chilly winter weather pummeled business investment and consumer spending. The sharp slowdown this year is blamed for a bout of blizzards and a strong dollar’s drag on exports. (Xinhua, 30/4/15)
• Fed points to slower economy, offering no signal of rate hike – The Federal Reserve said on Wednesday that the U.S. economy slowed during the winter times, a downgrade from its March statement, which said growth had ” moderated somewhat.” It offered no signal of any rates hike in sight. Fed said the slowdown was in part due to transitory factors. The pace of job gains moderated, the unemployment rate remained steady, and the underutilization of labor resources was little changed, it said. (Xinhua, 30/4/15)
• U.S. Pending Home Sales Index Rises for Third Straight Month – The National Association of Realtors said Wednesday its pending home sales index, which is based on contract signings for purchases of previously owned homes, increased 1.1% to a seasonally adjusted level of 108.6 in March from an upwardly revised reading of 107.4 in February. The index rose 11.1% in March from a year earlier. (WSJ, 29/4/15)
• Greece drafts reform bill to unlock aid, PM upbeat on deal with creditors – The Greek government drafted a bill on Tuesday containing the reforms it pledges to implement in order to unlock further vital aid to stay afloat, as Prime Minister Alexis Tsipras appeared upbeat that a deal with international creditors was close. The outline of a draft bill based on the updated, detailed proposals the government has already presented to lenders this spring was to be examined during a cabinet meeting on Thursday, Greece’s finance ministry said. (Xinhua, 29/4/15)
• German inflation continues to rise in April – Annual inflation rate in Germany continued to increase in April, moving farther from a negative territory where Germany’s consumer prices just escaped in February, official data showed on Wednesday. Compared with the same month of previous year, German consumer prices increased by 0.4 percent in April, said German federal statistical office Destatis, citing preliminary calculations. It was the third consecutive month when the inflation rate measured by consumer price index (CPI) stood above zero. The annual inflation rate was 0.3 percent in March and 0.1 percent in February. In January, consumer prices declined by 0.4 percent year-on-year. (Xinhua, 29/4/15)
• British Retail Sales To Pick Up In May: CBI – U.K. retail sales are forecast to pick up next month after recording a slowdown in April, results of the Distributive Trades Survey from the Confederation of British Industry showed Wednesday. The retail sales balance fell to +12 percent from +18 percent in March. Economists had forecast it to rise to 25 percent. However, retailers expect sales growth to improve next month, to a balance of +40 percent. Orders placed on suppliers fell to -8 percent. But orders were expected to grow solidly next month, with the score expected to be at +22 percent. (RTT News, 29/4/15)