Politics and inflation threaten Thailand’s stock index
Economy March 2nd, 2010
Thailand’s benchmark stock index that had the biggest gain in 6 years, is estimated to fall down the middle of next year due to political instability and high inflation.
Siam City Securities analyst Sukit Udomsirikul Co. predicts the SET Index fell to the lowest level at 540 Second or third quarter of 2010. That means fell 26% from yesterday’s closing position.
“There was a sharp correction in the Thai market in the mid of next year due to political confrontation which could reach a critical point. Interest rates may start rising in the second half due to acceleration of inflation,” said Sukit, which ranked third best analyst of the Securities Analysts Association selection in 2008, the day it.
Thai stock index followed in Indonesia, Malaysia, Philippines, and Singapore since the 2006 coup which removed former Prime Minister Thaksin Shinawatra. While PM Abhisit Vejjajiva, who came to power about a year, facing pressure of demonstrations security of Thaksin’s supporters in April.
Moody’s Investors Service in September of Thailand held a negative credit rating outlook by considerations of political unrest and the potential collapse of confidence. Inflation rate probably rose to 3% -4% this year and continue early next year due to fuel prices.
SET Index rose 63% during this year which is the best performance since 2003 and better than 2008 which fell 48%. Expectations of economic recovery that will be able to raise revenue to support stock index.
Ministry of Finance reported Thailand’s economic growth estimated at 4% in 2010 supported by higher government spending and exports rebound.
Sukit explains stock index could rebound to the level of 880 in the first quarter triggered IV/2010 government spending to stimulate consumption and rising exports following the restoration of global conditions.
Abhisit implement a stimulus package worth 116.7 billion baht (U.S. $ 3.5 billion) for the construction of roads, bridges, and other public purposes to create jobs and economic growth.
U.S. consumer credit fell U.S. $ 17.5 billion
Credit and Loan March 2nd, 2010
U.S. consumer credit fell at a record U.S. $ 17.5 billion in November after the unemployment rate close to the highest position in 26 years and banks restrict credit access.
According to the Federal Reserve reports consumer credit decline exceeds the October projection of U.S. $ 4.2 billion. With the decline of consumer credit to U.S. $ 2.46 trillion. While the median estimate of economists fell U.S. $ 5 billion.
Consumer credit was recorded using a credit card and other types such as the purchase of motor vehicles.
Number of workers fell 7.2 million since the recession began in December 2007 erode consumer spending. Fed policy tightening credit standards and reduced credit lines holding recovery.
“Unemployment is achieving double-digit erode consumer confidence and uncertainty caused the credit card payment delays. It’s never happened before credit card decline since the recession of the 80s,” said Chris Rupkey, chief financial economist of Bank of Tokyo-Mitsubishi UFJ Ltd. New York.
Consumer loans decreased 10 times in a row is the longest since 1943.
The Fed said revolving credit such as credit card down the largest U.S. $ 13.7 billion during November. While non-revolving debt, including auto loans and home run, off of U.S. $ 3.8 billion. The report did not mention the credit for real estate.
Automotive sales in the U.S. rose during November to 10.92 million, from 10.45 million in October
China targeting moderate credit growth
Credit and Loan March 2nd, 2010
China’s central bank targets a moderate credit growth this year signals the government’s efforts to curb the expansion of the loan.
People’s Bank of China said the government needs to support economic growth relatively quickly but still controlling inflation expectations.
China was trying to consolidate the recovery by preventing excess liquidity in the financial system could cause inflation spikes, the manipulation of assets, and bank bad debts.
Liu Mingkang, the banking authority officials, in an opinion written to Bloomberg News this week said that while this sector has more than enough capital, but the structural bubbles are still a threat.
“I can not doubt that excessive credit and it explains why the authorities began to worry about credit portfolio this year,” said Qu Hongbin, chief China economist at HSBC Holdings Plc in Hong Kong.
Qu provides estimates of new loans will be limited to 7 trillion yuan (U.S. $ 1 trillion) in 2010. A number of banks including Industrial & Commercial Bank of China Ltd., to distribute credit in the amount of unexpected reach 9.21 trillion yuan during the 11 months in 2009, higher than 4.15 trillion yuan a year earlier.
China’s central bank also limit the volatility of credit and oversee the property market and will stabilize the stock market operations.
The price of gold in the spot market this morning was recorded at the position of U.S. $ 1124.36 per ounce, or down from yesterday’s position in the level of U.S. $ 1136.76 per ouonce, the data revealed.
Meanwhile, from Singapore reported contract price of gold also fell on the second day because of the strengthening U.S. dollar pushed the demand for the precious metal as an alternative asset.
Greenback currency strengthened against the currencies of six out of basketball ahead of today’s employment report, which economists predicted would show a contraction in the 2 years running, an indication that the country with the world’s largest economy began to rise from recession. Gold rose 24% in 2009 because the Federal Reserve keep interest rates near zero in order to encourage growth.
U.S. dollar experienced gains of 0.8% against the basket of six currencies yesterday.
Gold for immediate delivery stumbled 0.6% to U.S. $ 1125.18 per ounce at 9:19 pm in Singapore. February gold contract trimmed 0.6% to as low as U.S. $ 1125.30 per ounce.
Among the other precious metals, silver-trimmed 0.7% to U.S. $ 18.105 an ounce, platinum stumbled 1.1% to U.S. $ 1537.70 per ounce and palladium fell 0.4% to U.S. $ 424.74 per ounce
Nexus One bridge Google became the first MDP
Company Info March 2nd, 2010
Launch Nexus One considered as a bridge for Google to pursue his ambitions as a vendor management platform (managed device platform / MDP) was first in the world.
Google launches Nexus One, a high-class handsets as a super phone calls yesterday. Handset made by HTC is the manufacturer using Google software platform that is Android. Nexus One mentioned angsung would compete with other expensive Android phone.
However, according to information from Datamonitor, a key aspect of the launch of Nexus One issue not just devices but Google’s entry can now be accessed by retail by telephone.
Nexus One may not modifiers permainanan direction in terms of technology or price, but this will strengthen Google’s ambitions for the vendor to reach the first MDP in the world.
The presence of this sophisticated device allows Google to control the full experience of end users (end-to-end user) of the handset, starting from procurement device to provide site services to the device.
“We believe that MDP will determine a new powerful tool in the next five years. The presence of smartphones are forced to enter the mass market make a difference rather than a smart phone or not but managed or not,” writes Datamonitor, a leading provider of online data in the world.
Google’s investment being poured in to the Nexus One is a bad news for the original device manufacturer Android. On the other hand, Google Inc. stock price actually fell 2.5% after introducing the new telephone products. This stock price decline brought the Nasdaq Composite index fell 0.3% to 2301.09 at the closing level yesterday afternoon in New York.
It seems the gadget fans in Indonesia had to wait until the Nexus One arrived at Indopnesia. The problem, for while this device is limited only in the U.S. through online orders.
