Income from government infrastructure to be taxed. The Ministry of Finance plans to tax income from parties who generate income from government infrastructure projects. It will open discussion before proposing this to cabinet. Those with revenue higher than Bt50mn are expected to pay this tax. (Thai Post, 2/6/17)
BoT eases up on forex regulations. The Bank of Thailand yesterday loosened a set of foreign exchange regulations, including allowing Thais to invest directly in securities abroad at an amount of up to $1 million a year, in a fresh bid to accommodate capital outflows, curb the appreciating baht (which briefly slipped below 34 to the US dollar) and make doing business easier. (Bangkok Post, 6/6/17
Big construction services to bid for AOT’s project. AOT says eight companies have bought documents to bid for building construction in the expansion of Suvarnabhumi airport. The project is in total worth Bt16bn. ITD, CK, STEC, PLE, CNT, and UNIQ are all joining . (Khao Hoon, 8/6/17)
Confidence dips in May on bombing, weak crop prices. Consumer confidence dropped for the first time in six months in May because of the bomb blast at a Bangkok hospital and low crop prices reining in provincial purchasing power. ( Bangkok Post,9/6/17)
Fed’s Harker still sees three rate hikes this year, calls May payrolls number ‘good’. Philadelphia Federal Reserve Bank President Patrick Harker said on Friday that the U.S. central bank remains on track to meet its inflation goal and reiterated his support for a further two interest rate increases this year. “Turning to inflation, things are still on track, despite a couple of months trending in the wrong direction,” Harker said in prepared remarks for a speech to an economics conference in Reading, Pennsylvania. (CNBC, 2/6/17)
ISM non-manufacturing index hits 56.9 in May, vs. 57 estimate. Economic activity in the non-manufacturing sector grew in May for the 89th consecutive month, The Institute of Supply Management, or ISM, said on Monday. The non-manufacturing index reached 56.9 for the month, falling slightly short of expectations. Economists polled by Thomson Reuters had forecast the index to fall slightly to 57 for the month of May. (CNBC, 6/6/17)
ECB drops reference to a future rate cut, says ready to extend QE. The European Central Bank (ECB) left its benchmark interest rate unchanged on Thursday and dropped any reference to a future rate cut. In a statement it said it expected interest rates to “remain at present levels for an extended period of time,” but added that it would be ready to extend its quantitative easing (QE) program if needed. The ECB’s message sent the euro dipping down to $1.1229 against the greenback from around $1.1240. The decision marked the fifth consecutive quarter that the central bank has held rates steady at 0.00 percent and will come as little surprise to market watchers, who were largely anticipating a continuation of the status quo. (CNBC, 9/6/17)
U.S. job openings hit record high; skills mismatch rising. U.S. job openings surged to a record high in April and employers appeared to have trouble finding suitable workers, pointing to a tightening labor market that could encourage the Federal Reserve to raise interest rates next month. The Labor Department’s monthly Job Openings and Labor Turnover Survey, or JOLTS, published on Tuesday also suggests that a recent moderation in job growth could be the result of a skills mismatch rather than easing demand for labor. (Reut ers, 7/6/17)
UK election: Theresa May could lose parliamentary majority, exit poll shows. British Prime Minister Theresa May’s Conservative Party appears on course to lose her parliamentary majority in the UK general election, according to a shock exit poll compiled for the UK’s main television broadcasters. If the results are confirmed, it will be a huge embarrassment for May, who called a snap election in April in the hope of gaining an even greater majority of seats to give her a stronger mandate for upcoming Brexit. The poll suggests the Conservatives will be the largest party but will secure only 314 of the 650 seats in Parliament’s House of Commons — a loss of 17 seats. The main opposition Labour Party is tipped to win 266 seats, a gain of 34. (CNN,9/6/17)
U.S. job openings hit record high; skills mismatch rising. U.S. job openings surged to a record high in April and employers appeared to have trouble finding suitable workers, pointing to a tightening labor market that could encourage the Federal Reserve to raise interest rates next month. The Labor Department’s monthly Job Openings and Labor Turnover Survey, or JOLTS, published on Tuesday also suggests that a recent moderation in job growth could be the result of a skills mismatch rather than easing demand for labor. (Reut ers, 7/6/17)
