Global

Global Debt Exceeds $100 Trillion As Governments Binge, BIS Says. The amount of debt globally has soared more than 40 % to $100 trillion since the first signs of the financial crisis as governments borrowed to pull their economies out of recession and companies took advantage of record low interest rates, according to the Bank for International Settlements. The $30 trillion increase from $70 trillion between mid-2007 and mid-2013 compares with a $3.86 trillion decline in the value of equities to $53.8 trillion in the same period, according to data compiled by Bloomberg. The jump in debt as measured by the Basel, Switzerland-based BIS in its quarterly review is almost twice the U.S.’s gross domestic product. (Bloomberg)

Malaysia

Exports For The First Month Of The Year Expanded By 12.2%, beating market expectations of 7.8%. However, it is of a slightly slower pace than December’s 14.4%. The strong start of the year can be attributed to robust demand from Asia and the EU, on deliveries of electrical and electronics (E&E) and mining commodities. Imports also began the year on a relatively high note, rising by 7.2%. Even though this is slower than the previous month’s 14.8% rise, it is still stronger than market expectations for a 2.8% fall as well as managing to remain positive despite a high base. Despite exports outperforming imports on an annual basis, trade surplus narrowed to RM6.4b from RM9.6b seen in December. However, it should be noted that it is a 94.4% annual increase. Total trade increased by 9.8% from 14.4% seen previously. (Please refer to Economic Viewpoint for further comments)

Foreign Reserves Down As Sell-Off Continues. Malaysia’s international reserves declined for a fourth straight month in February, falling at a faster rate than in January, despite a tapering sell-off on local equities and bonds by foreign investors. The ringgit advanced to 3.2578 against the US dollar, its strongest level so far this year. The local currency had appreciated 2.5% over the past one month, signalling that the outflow of foreign funds since August last year may have been reversed. Bank Negara said yesterday that its foreign reserves stood at RM427.6bil (US$130.6bil) as of Feb 28, which was US$2.5bil lower than the US$133.1bil reported at the end of January. The reserves, the central  bank said, was sufficient to finance nine months of retained imports and was 3.3 times the country’s short-term external debt. Foreign investors sold RM1.6bil worth of local equities in February, down from the RM3.6bil recorded in January. (The Star)

Asia

Li Target Challenged By China Exports, Producer Prices. China’s Biggest Drop In Exports Since 2009 And Deepening Factory-Gate Deflation Highlight The Challenges For Premier Li Keqiang in achieving this year’s economic-growth target of 7.5 %. Overseas shipments unexpectedly declined 18.1 % in February from a year earlier, customs data showed March 8, compared with analysts’ median estimate for a 7.5 % increase. Producer prices fell 2 %, the most since July, according to a statistics bureau report yesterday, extending the longest decline since 1999. (Bloomberg)

China Inflation Slows To 13-Month Low. China’s inflation slowed more than estimated to a 13-month low in February while factory-gate deflation deepened as prices cooled following a week-long holiday. The consumer price index rose 2 % from a year earlier, the National Bureau of Statistics said today in Beijing, compared with the 2.1 % median estimate in a Bloomberg News survey of analysts. The producer-price index fell 2 %, more than estimated, extending to 24 months the longest decline since 1999. (Bloomberg)

USA

US Economy Adds 175,000 Jobs In February. The US economy added 175,000 new jobs in February, but the unemployment rate rose slightly to 6.7%. The jobs figures, from the US Labor Department, were better than many had been expecting and marked a rebound from two weak months. It had been thought the figures would be affected by recent harsh weather, which had hit much of the country. But the unemployment rate, based on different statistics, went up slightly from January's 6.6% to 6.7%. (BBC)

US Trade Deficit Steady In January, Exports Bounce Back. The U.S. trade deficit was little changed in January as a rebound in exports matched an increase in imports. The Commerce Department said on Friday the trade gap was at $39.1 billion from December's revised shortfall of $39.0 billion. December's trade gap was previously reported as being $38.7 billion. January's trade deficit was in line with economists' expectations. When adjusted for inflation, the trade gap dipped to $48.5 billion in January from $49.2 billion the prior month. (Reuters)

Europe

Italy's Renzi Says Tax Cuts Will Not Imperil EU Limits. An ambitious Italian plan for tax cuts to be announced this week will respect European Union deficit limits, Prime Minister Matteo Renzi said on Sunday. Before replacing Enrico Letta as the head of government last month, Renzi had said an EU rule that member states should not run deficits of over 3 % of gross domestic product ceiling should be renegotiated. However, he told a Sunday television talk show that the limit was "a conceptually antiquated idea, but we will respect it as long as it is not changed". Hoping to spur growth in the euro zone's third largest economy as it struggles to keep out of recession amid record unemployment, Renzi has vowed to cut 10 billion euros ($13.86 billion) from the tax wedge, the difference between what an employer pays and what a worker takes home. (Reuters)

Currencies

Dollar Turns Broadly Higher After Jobs Report. The dollar turned broadly higher Friday after data showed the U.S. economy in February added far more jobs than expected, providing a more upbeat read on economic growth this year. The ICE dollar index, a measure of dollar strength against six rivals, rose to 79.714 from 79.658 late Thursday. The dollar rose to ¥103.28 from ¥103.13, off its intraday high of ¥103.76 in the wake of the jobs report. The euro traded at $1.3873 versus $1.3865 late Thursday, giving up earlier gains that put the shared currency at its highest in nearly two and a half years. The U.S. dollar rose to 1.1088 Canadian dollars from 1.0991 Canadian dollars in the prior session. The British pound fell to $1.6719 from $1.6742 late Thursday. The Australian dollar fell to 90.70 U.S. cents from 90.86 U.S. cents. (Market Watch)

Commodities

Oil Gains, But Ends Nearly Flat For The Week. Oil futures closed higher on Friday after data showed U.S. nonfarm payrolls rose more than expected in February, but ended nearly flat for the week as fading worries about an imminent conflict in Ukraine pressured prices in recent days. Crude for April delivery rose $1.02, or 1%, to settle at $102.58 a barrel on the New York Mercantile Exchange. On the ICE Futures exchange, April Brent crude tacked on 90 cents, or 0.8%, to $109 a barrel. The European benchmark oil fell 0.1% for the week. (Market Watch)

Gold Down 1 Pct After U.S. Jobs Data; Posts Weekly Gain. Gold tumbled nearly 1% on Friday after data showed U.S. job growth accelerated sharply, easing fears of an abrupt economic slowdown and keeping the Federal Reserve on track to continue reducing its monetary stimulus. Spot gold fell as much as 1.5 % to a session low of $1,329.35 an ounce, and was last trading down 0.9 % at $1,338.09 by 3:22 p.m. EST (2022 GMT). Palladium posted its biggest weekly gain in nearly eight months, with a 5 % increase. It was last trading up 0.1 % on the day at $778.25 an ounce, having hit a one year high of $781.50 an ounce earlier. Platinum also notched its second straight weekly gain, up 2.6 %. It edged down 35 cents on the day to $1,477.25. Silver fell 2.9 % to $20.82 an ounce. (Reuters)