THAILAND: BJT Asks Speaker To Schedule PM Vote, PTP Seeks Parliament Dissolution
The Bhumjaithai Party (BJT) submitted a petition to House Speaker Wan Muhammad Noor Matha requesting an urgent meeting of parliament to elect a new Prime Minister after its leader Anutin Charnvirakul edged ahead in the race for the top job. Earlier in the day, Anutin signed an unprecedented confidence-and-supply pact with the People's Party (PPLA), which said it resolved to support his candidature under previously agreed conditions without joining his Cabinet.
- The Pheu Thai Party (PTP) promptly announced that caretaker Prime Minister Phumtham Wechayachai had sought royal approval of a dissolution of parliament. It is believed that the PTP stands to lose much from a potential snap election, given a collapse in its popular support. Furthermore, there is an ongoing discussion on whether a caretaker PM can dissolve parliament.
- The Council of State (the government's chief legal advisory body) reaffirmed its view that it falls beyond the mandate of an interim government. If the King agrees to a dissolution of the House, a potential legal dispute could be taken to the Constitutional Court. At this stage, however, the court cannot issue a pre-emptive ruling and would have to be petitioned to take action.
- PPLA Chief Whip Pakornwut Udompipatskul said that if party whips reach consensus today, the PM vote could take place as soon as this Friday. However, if the decision to dissolve parliament is approved and gazetted beforehand, the House will not be able to convene for the vote.
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EQUITIES: Indices are pulling away from Friday's lows
- European and US Equities are pulling away from Friday's lows, the Estoxx futures plummeted 5% from just Thursday's high to Friday's low, VGU5 is now up 0.77%.
- Looking at a Micro level, the Index is close to where it was trading at pre NFP, although we noted at the time of the Employment release the surprising lack of moves in Equities versus what was witnessed in Bonds, Rates and FX.
- This was most likely because of the already big sell off seen in Equities since Thursday into Friday's Data.
- VGU5 was trading at 5234.00, which is right here, and for the US Emini, it was trading at 6320.00, but fell 3.54% from last Thursday's high at 6468.50.
SWITZERLAND DATA: Transport Services Dragged Up July CPI Print
Looking at the details of the Swiss CPI print, upside momentum from transport and recreation categories stands out (contributing a combined 0.21pp more than in June). Overall it remains that this was the second consecutive positive print in Swiss CPI.
⦁ Transport services (airfares but also "public transport abroad" in particular) and package holidays (part of recreation category) were behind the acceleration here, having seen higher Y/Y prints this time - that might help explain parts of the unusual higher services / imported inflation combination.
⦁ Food inflation meanwhile has fallen this time, contributing 0.06pp less than in June.
⦁ Further details see table / chart below:
EGB OPTIONS: Bund Put Fly Buyer
RXU5 128.5/127.5/126.5p fly, bought for 11 in 6.5k.
