#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

BOT insists its Bt6 trillion liability will not turn into public debt, but history says otherwise

EconJun 13. 2020Chantawan Sutcharitkul, BOT’s assistant governor.

By The Nation

The Bank of Thailand (BOT)’s obligation worth Bt6 trillion will not translate into public debt as feared by many, the central bank insists, though the explanation it has offered is far from clear.

Chantawan Sutcharitkul, BOT’s assistant governor, said on Friday (June 12) that many people misunderstood the central bank’s balance sheet, which shows it has liabilities worth Bt6 trillion. 

The central bank’s debts come from its normal market operations – when there is liquidity flooding into the market, the central bank issues bonds to manage the financial market and when the market faces tight liquidity, the central bank reduces the issuing of bonds in order to inject liquidity back into the market, she said. 

“The central bank also buys foreign currency when there is a large capital inflow into the Kingdom, so while the bank has obligations, it also has large assets in the form of foreign currencies,” she added. 

“Debts that appear in the central bank’s financial statement cannot be counted as public debts. It is standard practice by central banks across the world,” she said reassuringly. 

However, she did not explain how things are different this time compared to the past, when the central bank wrongly defended the baht, resulting in a financial crisis and a currency debacle in 1997-1998. 

At that time, the central bank depleted international reserves as part of a currency war, when speculators began selling out the baht heavily, forcing the central bank to abandon its fixed exchange rate and the country to borrow emergency funds from the International Monetary Fund. The consequence of the huge damages stemming from the central bank’s foreign exchange fiasco and subsequent efforts to rescue financial institutions later turned into public debts. 

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

U.S. consumer sentiment jumps most since 2016 on gain in jobs

EconJun 12. 2020Shoppers wearing protective masks browse clothing at a store in Long Beach, N.Y., on June 11 2020. MUST CREDIT: Bloomberg photo by Johnny Milano.

By Syndication Washington Post, Bloomberg · Olivia Rockeman · BUSINESS, US-GLOBAL-MARKETS, RETAIL U.S. consumer sentiment climbed in early June by the most since 2016 as more states began to reopen their economies and employers restored jobs.

The University of Michigan’s preliminary sentiment index increased 6.6 points to 78.9, according to data Friday. The median projection in a Bloomberg survey of economists called for a gain to 75. Even with the improvement, the gauge remains well below pre-pandemic levels.

The gauge of current conditions advanced 5.5 points to 87.8 this month, while a measure of expectations jumped 7.2 points to 73.1.

The increase in sentiment highlights optimism that the reopening of the U.S. economy will restore jobs and help spur the spending needed to dig out of a deep recession. Still, two-thirds of respondents anticipated unfavorable economic conditions in the year ahead because of concerns about a resurgence in the coronavirus as well as lingering weakness in the job market.

“Despite the expected economic gains, few consumers anticipate the reestablishment of favorable economic conditions anytime soon,” Richard Curtin, director of the survey, said in a statement.

The university’s sentiment data are consistent with a weekly Bloomberg measure. The index of consumer comfort advanced in the first week of June to a six-week high as higher stock prices and the return to work for Americans continued to lift attitudes about personal finances, a report showed Thursday.

The Michigan survey’s inflation expectations data continued to show a disconnect with government price figures indicating scant inflation in the economy. Consumers expect 3% inflation in the coming year, the sentiment report showed.

“It is likely that the recent rise in inflation expectations reflects a shift in consumer purchases from the full range included in the CPI to be more heavily focused on food purchases, which posted an annual gain of 4.8% in May,” Curtin said.

The data also showed a growing political divide, with the increase in consumer sentiment concentrated among Republicans and independent voters. At the same time, overall confidence in government economic policies declined, with the share judging policies as poor at the highest level since President Donald Trump was elected.

The Michigan survey was conducted May 27 to June 10. The Labor Department reported last week that 2.5 million jobs were added in May as reopenings generated more economic activity. Even so, Federal Reserve Chair Jerome Powell cautioned on Wednesday that longer-term unemployment challenges may linger as a result of the pandemic.

The share of respondents who reported they expect their finances to improve in the next year rose to 42% from 32%, the university said. The gain was due to rising income, with an expected annual improvement of 1.3%, up from 0.5%.

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

Dow pops nearly 700 points following worst sell-off since March

EconJun 12. 2020

By  The Washington Post · Taylor Telford · BUSINESS, US-GLOBAL-MARKETS 
Wall Street is back in buying mode, with the Dow Jones industrial average jumping nearly 700 points at the open, after a reality-check sell-off lopped 6.9% from the blue-chip index.

A steady rise in covid-19 cases and a sobering economic outlook from the Federal Reserve – which predicts unemployment will still be at 9.3% by year’s end – sparked a massive sell-off Thursday that sent the Standard & Poor’s 500 skidding 5.9% and the tech-heavy Nasdaq tumbling 5.3%. The drubbing capped a three-day losing streak that erased 9% from the Dow.

The Dow jumped 680 points, or 2.7%, on Friday before retreating slightly. The Standard & Poor’s 500 and Nasdaq Composite indexes each climbed more than 2.3%.

“Forecasts haven’t worried investors for now and we’ll need to see dramatically bigger spikes in new cases for states to even consider tightening lockdown measures again,” Craig Erlam, an analyst with OANDA, wrote in comments emailed Friday to The Washington Post. “This feels like more of an excuse to take some profit in a market that has bounced back remarkably to the point that there’s a huge disconnect between stock markets and economic reality.” 

The United States surpassed 2 million coronavirus cases on Thursday, a sobering tally that far exceeds the number of infections reported in any other country. Eleven states reached their highest seven-day rolling averages of new cases on Thursday, according to data tracked by The Post, suggesting a second wave could already be in motion.

President Donald Trump and his top economic aides fanned out Thursday to try to beat back the growing concern. They assailed the Fed’s projection that unemployment will remain elevated well into next year. The Trump administration also pushed back on the idea that it would allow the economy to shut down again in the face of rising cases, but Treasury Secretary Steven Mnuchin told reporters the administration is seriously considering a second round of stimulus payments.

Grim economic data poured in from around the globe this week, illustrating the depths of economic damage and indicating that the road to recovery will likely be rockier than many hoped. The United Kingdom reported its gross domestic product declined 20.4% in April – the largest drop on record; the Organization for Economic Development and Cooperation has warned the U.K. its economy will likely to be among the hardest hit, along with Spain and Italy. Germany’s industrial production took its biggest hit ever in April, prompting some economists to call it the country’s worst month ever for the economy. The World Bank said the pandemic has created the biggest global recession since World War II and predicted GDP will contract 5.2% this year.

Yet in early trading Friday, companies that have been walloped by the pandemic saw their stocks rise: both Carnival Corp. and United Airlines climbed more than 11%. American Airlines rose more than 12% after it reported seeing positive net bookings since mid-May. Aerospace giant Boeing rebounded more than 7% after shedding more than 10% Thursday.

The past three months have been “a dizzying Space Mountain-like rollercoaster for investors,” Wedbush Securities tech analyst Dan Ives said in comments emailed to The Post. “Yet, the stock market has come roaring back in a V shaped recovery.” 

The yield on the 10-year U.S. Treasury note ticked upward after a major drop Thursday as investors moved toward riskier ground. Bond yields rise as prices fall.

Oil markets also erased some of their losses after plummeting 8% Thursday as economic fears collided with a report from the U.S. Energy Information Administration indicating demand recovery may have stalled. Brent crude, the international oil benchmark, inched up .86% to trade at $38.88 a barrel. West Texas Intermediate crude, the U.S. oil benchmark, climbed .6% to $36.56.

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

SET plunges after second-wave of Covid-19 infections hits several countries

EconJun 12. 2020

By The Nation

The Stock Exchange of Thailand (SET) Index fell 14.21 points or 1.02 per cent, closing at 1,382.56 today (June 12). Total transactions amounted to Bt85.786 billion with an index high of 1,386.22 and a low of 1,353.51.

During the morning session, a stock analyst from Krungsri Securities said he expected the index to fall to between 1,350 and 1,365 due to uncertainty caused by a second wave of Covid-19 infections after several countries eased lockdown measures.

“Investors are also worried about the US economy after the US Federal Reserve forecast that the country’s gross domestic product this year would contract by 6.5 per cent and the unemployment rate would be 9.3 per cent,” the analyst said.

“In addition, energy stocks came under pressure after the price of crude oil dropped sharply due to uncertainty following a drop in demand for petrol with expectations of a second wave of Covid-19 emerging.”

The top 10 stocks with the highest trade value today were SUPER, BAM, PTT, MINT, CPF, PTTEP, AOT, STA, PTTGC and KBANK.

As of 4.30pm, the price of crude oil rose by US$0.07 or 0.19 per cent to $36.41 per barrel, while gold rose by $2.70 or 0.16 per cent, to $1,742.50 per ounce.

Asian indices mostly fell:

Japan’s Nikkei Index closed at 22,305.48, down 167.43 points, or 0.75 per cent.

China’s Shanghai SE Composite Index closed at 2,919.74, down 1.16 points, or 0.040 per cent, while Shenzhen SE Component Index closed at 11,251.71, up 8.09 points, or 0.072 per cent.

Hong Kong’s Hang Seng Index closed at 24,301.38, down 178.77 points, or 0.73 per cent.

South Korea’s KOSPI Index closed at 2,132.30, down 44.48 points, or 2.04 per cent.

Taiwan’s TAIEX Index closed at 11,429.94, down 105.83 points, or 0.92 per cent.

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

FTAs help Thailand become world’s top exporter of rice-flour snacks

EconJun 12. 2020

By The Nation

Thailand has become the world’s top exporter of rice-flour snacks after shipping out more than 13 billion tonnes worth US$41 million (Bt1.3 billion) in the first four months of this year, the Department of Trade Negotiations said.

The biggest buyers of the processed food were Asean countries.

Auramon Supthaweethum, director general of the department under Commerce Ministry, said snacks made from rice flour, such as crackers, biscuits and cookies, in Thailand are fast becoming popular thanks to the innovative processing method used and high-quality raw materials.

Thailand is now the top exporter of rice-flour snacks followed by Germany and Sweden.

In 2019, Thailand exported more than 42 billion tonnes of these snacks worth $129 million, and demand has risen because consumers have developed a preference for products made from natural ingredients.

From January to April this year, Thailand exported more than 13 billion tonnes of rice-flour snacks worth $41 million, up 9 per cent from the same period last year.

This boost in trade has been put down to free-trade agreements (FTA) that the Kingdom has signed with 17 countries, including nine Asean members, as well as with China, South Korea, Australia, New Zealand, India, Hong Kong, Chile and Peru.

Thailand’s FTA with Japan will go into effect from May 2022.

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

Sharp fall in NYSE pushes up gold price

EconJun 12. 2020

By The NationThe price of gold rose by Bt50 per baht weight in morning trade on Friday (June 12), the Gold Traders Association reported.

As of 9.36am, buying price of a gold bar was Bt25,350 per baht weight and selling price Bt25,450, while gold ornaments were priced at Bt24,892.72 and Bt25,950, respectively.

At close on Thursday (June 11), the buying price of a gold bar was Bt25,300 per baht weight and selling price Bt25,400, while gold ornaments were priced at Bt24,847.24 and Bt25,900, respectively.

Gold contracts in COMEX (Commodity Exchange) to be delivered in August rose by US$19.1 or 1.11 per cent, closing at $1,739.8 per ounce on Thursday.

Investors were buying gold as a safe haven asset after the New York Stock Exchange Index fell sharply due to uncertainty following the second wave of Covid-19 outbreak in the US.