Economic Happenings

Malaysia and Singapore have finally broken the deadlock that has plagued their bilateral relations for almost two decades. They have agreed that the KTM railway station in Tanjung Pagar be relocated to Woodlands in Singapore and the republic's investment in Iskandar Malaysia has been secured.(The Star)

China and the U.S. focused their first day of talks in Beijing on joint efforts to prop up the world's economy in the face of a European sovereign-debt crisis that pushed off a showdown on the yuan's value. President Hu Jintao said China will move gradually and independently in altering exchange-rate policy after keeping the yuan pegged to the U.S. dollar for 22 months. (Bloomberg)

Manmohan Singh, India's prime minister, clearly set out striking getting on terms with China's economic growth as top priorities for his second term in office. Addressing the country's press, Mr Singh said investment and savings rates in India's economy made economic growth of 10 per cent a year "an achievable target" in the medium term. He also said he was working with Islamabad to bridge a "trust deficit" to heal six decades of conflict. (Bloomberg)

Thai economy grew by 12% in 1Q10, but investors were far more interested in what the government had to say about the impact of the political crisis on the current quarter and beyond. Warut Siwasariyanon, head of research at Finansia Syrus Securities said: "Investors may be temporarily relieved that a semblance of normalcy has returned, but political risk remains high and investors will likely be cautious".(Reuters)

Thai authorities launched a massive clean-up operation in Bangkok's charred commercial district yesterday as the city prepared for the resumption of business after the worst riots in modern history. Financial markets, government offices and schools are scheduled to reopen today. (FinancialDaily)

Higher transport, housing and food costs have sent inflation rising at its fastest pace in 14 months. The consumer price index (CPI) rose 3.2 per cent last month over April last year. This beat the median estimate of 2.6 per cent by five economists surveyed by Bloomberg News. (Bloomberg)