Malaysia

Strong Foreign Direct Investment Growth For M'sia, But Less Than Neighbours. Despite seeing the strongest growth in foreign direct investment (FDI) inflows among Asean countries last year, Malaysia continued to lag behind neighbouring countries in terms of total receipts. Malaysia’s net FDI inflows grew by an impressive 22.2% to US$12.3bil (RM39.6bil) in 2013, compared with US$10.1bil in the preceding year, according to the World Investment Report (WIR) 2014 published by the United Nations Conference on Trade and Development (Unctad). That put the country in the fourth spot among Asean FDI recipients, behind Singapore, Indonesia and Thailand. In Asia, as a whole, Malaysia ranked as the seventh top FDI recipient. “In Malaysia, as in the rest of the world, our concern is that the level of investment in sectors relevant to the achievement of sustainable development goals remains insufficient,” Michelle Gyles-McDonnough, United Nations resident coordinator for Malaysia. (The Star)

Asia

Asia The World's Top Recipient Of FDI. Amid scratchy global economic growth, Asia accounts for nearly 30% of global foreign direct investment (FDI) inflows, making it the world’s top recipient of FDI. Generally, developing countries were attracting more FDI than developed economies, according to the United Nations Conference on Trade and Development (Unctad) World Investment Report 2014, which said total inflows to developing Asia (excluding West Asia) amounted to US$382bil last year, 4% higher than the previous year. In the last two years, top 10 recipients of FDI flows in developing Asia were China, Hong Kong, Singapore, India, Indonesia, Thailand, Malaysia, South Korea, Vietnam and Taiwan. (The Star)

Japan Reveals Plans To Cut Corporate Tax To Below 30%. Japan has unveiled plans to cut the country's corporate tax to below 30% in several stages starting next year. The move is part of Prime Minister Shinzo Abe's plan to revive the economy, a pledge made when he took office in December 2012. Japan's corporate tax rate, at nearly 36% for large companies operating in the capital Tokyo, ranks among the highest in the industrialised world. The latest move has been dubbed as Mr Abe's "third arrow". (BBC)

Australia Says China Free Trade Deal Likely By Yearend. China and Australia, which have been trying to set up a bilateral free trade agreement for years, are determined to sign a deal by the end of this year, Australia's trade chief said on Tuesday after talks with Chinese leaders. But there has been little sign of a breakthrough despite Prime Minister Tony Abbott's expressed intent to seal an agreement before November. Australian Trade and Investment Minister Andrew Robb said the deal with China was on track, but declined to give details of the talks, saying he didn't want to "put his cards on the table". Free trade talks have been stymied by Beijing's concerns over opening markets to Australian food. There are fears in Australia that an influx of cheap Chinese goods could threaten domestic producers facing a strong local currency and high costs. China has expressed worries over Australia's stringent approval process on foreign investment by stateowned enterprises. Canberra, like many of China's trading partners, wants Beijing to improve access to key industries in which foreign investment is currently restricted. (Reuters)

USA

Consumer Confidence In U.S. Increases To Highest Since 2008. Consumer confidence in the U.S. rose in June to the highest level in more than six years as an improving job market bolsters households. The Conference Board’s index climbed to 85.2, the strongest reading since January 2008, from 82.2 in May, the New York-based private research group said today. The median projection in a Bloomberg survey of economists called for 83.5 in June. (Bloomberg)

Home Prices In 20 U.S. Cities Rise At A Slower Pace. Home prices in 20 U.S. cities rose at a slower pace than forecast in the year ended in April as declining affordability put a lid on appreciation. The S&P/Case-Shiller index of property values increased 10.8 % from April 2013, the smallest 12-month gain in more than a year, after rising 12.4 % in March, the group reported today in New York. The median projection of 25 economists in a Bloomberg survey called for an 11.5 % year-over year increase in April. (Bloomberg)

US New Home Sales Hit Six-Year High In May. Sales of new U.S. single-family homes jumped to a six-year high in May, the latest indication the housing market was starting to dig out of a recent soft patch. The Commerce Department said on Tuesday sales surged 18.6 % to a seasonally adjusted annual rate of 504,000 units. That was the highest level since May 2008, while the increase was the biggest since January 1992. April's sales pace was revised down to 425,000 units from a previously reported 433,000 units. Economists polled by Reuters had forecast new home sales rising to a 440,000-unit pace last month. (Reuters)

Europe

German Ifo Index Down On Crises. The German Ifo business confidence fell to a six-month low in June, data showed, as companies fret about the impact on their business from the crises in Ukraine and Iraq. The Ifo economic institute’s closely watched business climate index fell to 109.7 points in June – its lowest level since December 2013 – from 110.4 points in May. That is a slightly steeper fall than expected: analysts had been pencilling in only a fractional dip to 110.2 points. (AFP)

Currencies

Pound Below $1.70 As Rate-Hike Timing Questioned. The dollar rose against the pound Tuesday after comments from the head of the Bank of England cast into question the timing of the first interest-rate hike in the U.K. The pound fell to $1.6987 from $1.7025 late Monday. The dollar traded in tight ranges against the yen, buying ¥101.93 versus ¥101.90 late Monday. The ICE dollar index, which pits the greenback against six rivals, was at 80.311 versus 80.270 late Monday. (Market Watch)

Commodities

Brent Rises Above $114 On Iraq And Supply Concerns. Brent crude held above $114 a barrel on Tuesday, supported by continued fighting in Iraq, supply disruptions in Libya and expectations of a decline in U.S. crude inventories, while U.S. crude prices dipped slightly. Brent crude rose 34 cents to settle at $114.46 a barrel, after rising as high as $115.71 last Thursday. The benchmark had its biggest one-day drop since May 16 on Monday. U.S. crude fell 14 cents to settle at $106.03, remaining in a tight range as the market awaited weekly government data on oil stockpiles. (Reuters)

Gold, Silver Hit Multi-Month Highs As Stocks Retreat. Gold hit a two-month peak on Tuesday and silver reached its highest since mid-March as a drop in European stock prices after soft German economic data helped bullion build on last week's gains. Spot gold hit a high of $1,325.90 and was up 0.1 % at $1,319.55 an ounce by 1423 GMT, while silver was up 0.7 % at $20.97 an ounce. Silver earlier rose as high as $21.14. Platinum was up 1.1 % at $1,466.90 an ounce, while palladium rose 0.9 % to $827 an ounce. (Reuters)