State firms plan investment spree to boost the economy — In the second half of this year, 55 state-owned enterprises will invest at least Bt100 billion, to add to the Bt130 billion in the first half, in order to boost economic growth by 0.3-0.4 of a percentage point. (Bangkok Post, 29/8/16)
Auto decline brings down July exports — Thai exports contracted for the fourth consecutive month in July, by 4.4% year-on-year, bringing down shipment growth in the first seven months of the year to minus 2%, according to Commerce Ministry. The major factors for the July decline were slumping shipments of refined oil (-40.7%) and automobiles (-27.5%), which brought down industrial exports by 0.4%. (B angkok Post, 26/8/16)
Q2 unemployment rate rises in the midst of declining exports – Despite recent signs of economic recovery, the jobless rate continued to rise in the second quarter, leading overall nonfarm sector employment to fall slightly from the first quarter. (Bangkok Post, 30/08/16)
BoI offers raft of incentives towards medical hub in Thailand – AS PART of the effort to turn Thailand into a medical hub, the Board of Investment yesterday approved a raft of promotions, including a five-year waiver of corporate income tax for pharmaceutical firms. (The Nation, 30/08/16)
Digital ad spending to hit Bt10 bn in 2017 – AD SPENDING on digital media will reach Bt10 billion next year, encroaching on territory held by mainstream media such as television and newspapers, the Digital Advertising Association (Thailand) projects. (The Nation, 30/08/16)
Yellen: Case for raising rates has strengthened ‘in recent months’ — In a much-anticipated speech Friday at the central bank’s annual Jackson Hole summit, Fed Chair Janet Yellen voiced optimism about the economy and an expectation that interest rate hikes are ahead. Speaking as the market wonders when the Fed will resume a policy tightening that began in December, Yellen issued some cautionary tones, but pointed to more increases on the horizon. (CNBC, 26/8/16)
BOJ’s Kuroda vows ‘no hesitation’ on more QE, lower negative rates — The recent dip in inflation in Japan may mean inflation expectations are not yet anchored at the Bank of Japan’s 2 percent target, and the bank will approve more quantitative easing or lower negative interest rates “without hesitation,” BOJ Governor Haruhiko Kuroda said on Saturday. The Bank of Japan will continue to carefully examine risks and take additional easing measures without hesitation,” Kuroda said at the Federal Reserve’s monetary policy symposium in Jackson Hole, Wyoming. “It could be that long-term inflation expectations are yet to be anchored in Japan.” (CNBC, 29/8/16)
US Q2 gross domestic product up 1.1% vs. 1.2% increase expected — U.S. economic growth was a bit more sluggish than initially thought in the second quarter as businesses aggressively ran down stocks of unsold goods, offsetting a spurt in consumer spending. Gross domestic product expanded at a 1.1 percent annual rate, the Commerce Department said on Friday in its second estimate of GDP. That was slightly down from the 1.2 percent rate reported last month. (CNBC, 29/8/16)
Eurozone set for more money printing as inflation stays flat – The European Central Bank’s attempts to increase inflation and boost the economy by printing money and imposing negative interest rates are struggling to work, and may be increased, economists believe. Inflation in the eurozone held steady at 0.2pc in the 12 months to August, despite the ECB easing monetary policy with the goal of pushing inflation up towards 2pc. (Telegraph, 1/9/16)
China services and manufacturing PMIs expanded in August. Factory activity in China expanded at its fastest pace in nearly two years in August, an official survey showed Thursday, although analysts cautioned that the world’s second-largest economy wasn’t out of the woods yet. The official manufacturing Purchasing Managers’ Index (PMI), which mainly tracks large state-owned companies, rose to 50.4 last month, the highest reading since October 2014. August’s print was well above Reuters estimates for a 49.9 result and beating July’s reading of 49.9 and the 50.0 logged in June. Another PMI survey focused on small and mid-sized firms by Markit/Caixin came in at 50 last month, slightly missing estimates for 50.1 and below July’s 50.6 reading. A third survey meanwhile revealed the official services PMI fell to 53.5 in August, down from 53.9 in July. (CNBC, 2/9/16)
