Cabinet nod for B2bn AIIB initial payment — The cabinet yesterday approved an initial payment of 2 billion baht from the central budget to the China-led Asian Infrastructure Investment Bank (AIIB). Thailand, which wants to become a full member of the bank, was required to make the payment before the AIIB holds its first annual meeting on June 25 and 26 in Beijing. (Bangkok Post, 25/5/16)
Exports fall 8% in April – Thai exports slipped back in April after two months of growth, hit by continued weak global demand and falling commodity and oil prices. (Bangkok Post, 26/5/16)
Three electric train auctions set for June – Three electric train projects worth a total of over 200 billion baht will be auctioned next month, says Deputy Prime Minister Somkid Jatusripitak. The three are the Orange Line connecting Thailand Cultural Centre with Min Buri, worth 110 billion baht; the Pink Line from Khae Rai to Min Buri, worth 56.6 billion baht; and the Yellow Line from Lat Phrao to Samrong, worth 54.6 billion baht. (Bangkok Post, 26/5/16)
THE PRICE of rice in the domestic market is expected to increase by about 5-10 per cent late in the year after drought lowers the supply – The price of packed rice has increased by about Bt5-7.50 per 5-kilogram pack since the beginning of this year, but is still under the government’s official ceiling, he said. However, the supply of rice continues to drop, the price could increase in the third or fourth quarter of the year, Somkiat said. However, rice packers will not immediately increase retail prices as there are still enough stocks to last until September. (The Nation, 24/5/16)
5 no-shows for auction fees – Five digital TV channel operators failed to appear yesterday to pay the third instalment of auction fees, saying they would wait to hear a court’s decision on their payment delay request.
Euro zone stuck in ‘low-growth phase’ as business activity falls to 16-month low – There was more gloom for the euro zone on Monday with the latest flash purchasing manager’s index (PMI) falling to a 16-month low despite attempts by the European Central Bank (ECB) to boost growth and business activity in the region. The preliminary PMI from Markit showed that business activity in the 19-country region fell to 52.9 in May versus 53.0 in April, failing to meet expectations for a reading of 53.2, according to a Reuters poll of analysts. (CNBC, 24/5/16)
It hasn’t been this bad for US manufacturing since the financial crisis – Markit’s flash manufacturing Purchasing Manager’s Index (PMI) out Monday was 50.5. Economists had estimated that it improved to 51 from 50.8, according to Bloomberg. A preliminary reading of activity in May showed that output fell for the first time since the peak of the Great Recession. (Business Insider, 24/5/16)
Crude Oil Stays Below US$50 After U.S. EIA Supply Report: Chart – West Texas Intermediate and Brent crude oil for July settlement maintained gains while remaining below US$50 a barrel after a report from the Energy Information Administration showed U.S. supplies fell by 4.23 million barrels last week. The contracts last breached US$50 in October and November, respectively. Data from the American Petroleum Institute Tuesday was said to show U.S stockpiles dropped by 5.14 million barrels last week. (Bloomberg, 26/5/16)
Fed’s Bullard: markets read latest Fed minutes correctly — The market has a more appropriate reading on the chances of a U.S. interest rate rise in June now than before, St. Louis St. Louis Federal Reserve President James Bullard said on Thursday. “I think they read the minutes correctly,” Bullard told reporters, referring to the minutes of the Fed’s latest policy meeting. (Reuters , 26/5/16)
U.S. rates may rise ‘fairly soon,’ Brexit a concern: Fed’s Powell — The U.S. Federal Reserve on Thursday continued to lay the groundwork for an interest rate increase in the next two months, with a senior policymaker saying the economy will likely be ready for such a move “fairly soon.” But he added that the uncertainty surrounding Britain’s June 23 referendum on whether to leave the European Union was an argument in favor of the Fed exercising “caution” as it ponders whether to raise rates at its June 14-15 policy meeting. (Reuters, 26/5/16)
Bo Stenberg
No 11: the Bank of Thailand is going private, http://www.reuters.com/article/bcam-ipo-idUSL3N18E1YS.
BCAM: “Break Creditors’ Arms, Muchachos!”