Malaysia

Total Vehicle Sales In 2013 Hit New High. Total vehicle sales in 2013 has hit an all-time high of more than 652,000 units, surpassing the Malaysian Automotive Association’s (MAA) forecast of 640,000 units. “As of Dec 31, the total industry volume (TIV) for 2013 was 652,120 units, which is a new high for Malaysia,” said Malaysia Automotive Institute (MAI) chief executive officer Madani Sahari. MAI is a government body under the International Trade and Industry Ministry that charts the direction of the local automotive sector under the revised National Automotive Policy. The official vehicle sales data will be announced by the MAA at its first bi-annual press conference later this month. (The Star)

Asia

Jakarta Warns On 2014 Deficit. Indonesia’s central bank says the country’s current account deficit will remain wide this year, due to risks from lower commodity prices and a mineral export ban. The widest measure of the flow of goods, services and money in and out of the country could exceed 3% of gross domestic product, the central bank said. “For 2014, the current account deficit could be below 3%. But if not carefully managed, it could hit above 3% because of lower commodity prices and the impact from mineral export ban,” governor Agus Martowardojo told reporters. (Reuters)

Bank Of Korea May Intervene. South Korea’s central bank will carry out appropriate measures to stabilise local financial markets if needed, according to its chief, echoing the finance ministry’s warning that volatility in the foreign exchange market has to be curbed. “We will strengthen our monitoring for offshore flows and when needed will carry out stabilising measures for financial and foreign exchange markets,” said Bank of Koreagovernor Kim Choongsoo in a New Year’s address to financial institutions in Seoul. The Bank of Korea regularly intervenes in FX markets. (Reuters)

China Service Industry Index Falls After Manufacturing Declines. A China services index fell to a four-month low in December, highlighting limits on the strength of economic growth after declines in manufacturing gauges. The nonmanufacturing Purchasing Managers’ Index slid to 54.6 in December from 56 in November, the Beijing-based National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing. A number more than 50 indicates an expansion. (Bloomberg)

USA

US Vehicle Sales Hit Six-Year High. The United States motor vehicle industry limped to its best year since the boom times before 2008 as results came up short in December as a late Thanksgiving holiday robbed sales from the year's final month. In addition to the late Thanksgiving holiday weekend, December sales were hurt by snow and ice storms that kept consumers away from dealerships, said carmakers and analysts. US car industry sales last year finished at 15.6 million vehicles, up 7.6 % from 2012, while December results inched up 0.3 %. The annualised sales rate in the final month was 15.4 million vehicles, well below the 16 million expected by economists surveyed by Thomson Reuters. The late December holiday season is generally one of the heaviest sales periods at US motor vehicle dealerships. (Reuters)

Europe

U.K. Home Prices Cap Best Year Since 2006 As Mortgages Surge. U.K. house prices rose and mortgage lending surged more than forecast as the property market’s momentum continued to build at the end of 2013. Nationwide Building Society said home values increased 1.4 % in December, taking their gain last year to 8.4 %, the biggest annual increase since 2006. Separate reports in London showed mortgage approvals are now at the highest in almost six years and growth in construction is being led by homebuilding. (Bloomberg)

Currencies

Euro Falls To One-Month Low After Bernanke Speech. The U.S. dollar jumped to a one-month high against the euro Friday after outgoing Fed Chairman Ben Bernanke defended his tenure at the helm of the central bank at an economic conference. The euro dropped to $1.3583 from $1.3668, falling below $1.36 for the first time since Dec. 4, according to FactSet data. The British pound also moved lower to $1.6407 from $1.6446 late the previous day. The dollar was at ¥104.77, near ¥104.73 late Thursday, while the Australian dollar edged higher to 89.44 U.S. cents from 89.08 U.S. cents. The ICE dollar index — a gauge of the U.S. unit against a trade-weighted basket of six other currencies — rose to 80.882 from 80.555 late Thursday. (Market Watch)

Commodities

Crude Oil Extends Losses; Traders Anticipate Libyan Supply. U.S. crude lost over $1 on Friday as data showing a larger-than-expected build in distillates dragged the oil complex lower. Brent fell 89 cents to $106.89. The losses followed Thursday's 2.7 % fall and capped a week in which the European benchmark dropped 4.7 %, its biggest weekly percentage loss in six months. U.S. crude fell $1.48 to settle at $93.96. It posted a weekly fall of more than 6 %, its sharpest since September 2012. (Reuters)

Gold Up 1 Pct, Extending Rally After Sharp 2013 Losses. Gold rose 1 % on Friday, rallying for a second consecutive day with a boost from renewed fund buying and equities' weakness after bullion posted its worst annual decline in 2013 in more than 30 years. Spot gold was up 1.1 % to $1,237.40 an ounce by 2:01 p.m. EST (1901 GMT). Among other precious metals, silver rose 0.4 % to $20.08 an ounce. Platinum gained 0.4 % to $1,406.74, and palladium eased 0.1 % to $725.72 an ounce. (Reuters)