What's new in business news: September 10, 2013

New "per rai" subsidy for rubber farmers, stocks up on disappointing US jobs data & oil falls below $109 on Syria disarmament plan.

AGRICULTURE 

B2,520 per rai rubber subsidy approved

The cabinet on Tuesday approved an increase in the subsidy for rubber farmers from 1,260 baht to 2,520 baht per rai with a limit of 25 rai per farmer for a seven-month period from September 2013 to March 2014. A fund of 21.2 billion baht has been allocated for the subsidy.

If farmer networks in 14 southern provinces and the two central provinces of Prachuap Khiri Khan and Phetchaburi, decide to accept the proposal in a meeting to be held this afternoon they will call off a mass rally scheduled for Sept 14.

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STOCK MARKET 

Disappointing US jobs data triggers SET bull market

Thai shares rallied 3.6% yesterday as investors' worries eased following China's upbeat export figures and the smaller-than-expected increase in employment in the US which means the US central bank (the Fed) will probably reduce economic stimulus more slowly. 

The number of workers on US payrolls rose by 169,000 last month, less than the 180,000 median forecast of economists surveyed. The employment rate is a dominant factor in the Fed's monetary policy stance. The Fed's meeting on Sept 17-18 will be closely watched as investors expect the US central bank to announce asset-purchase tapering.

On the Stock Exchange of Thailand (SET) Foreign investors were net buyers of 3 billion baht after several weeks of net selling. The main index has risen for the third straight day for a combined 6.22% gain.

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ENERGY 

Oil falls below $109 on Syria disarmament plan

AP News Agency 

Oil prices, which have shot up in recent days over the threat of a United States strike against Syria in retaliation for an alleged chemical weapons attack against civilians, fell below US$109 a barrel Tuesday after Syria reacted favourably to a proposal to turn over its chemical weapons.

A diplomatic solution now seems possible. Backed by the United Nations, Russia is arranging for Syria to turn over its chemical weapons to avert a confrontation. By deflecting the approaching strike, Russia has also created greater uncertainty in the US Congress on the vote over Syria though the US is still leaning towards a strike. Obama plans to address the nation from the White House on Tuesday about Syria.

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