Malaysia

ADB Lifts Growth Forecast For Malaysia. The Asian Development Bank (ADB) has upgraded its growth forecast for Malaysia in 2014 and 2015, based on the unexpected strong outcome in the first half and “good prospects” for the second half of the year. It is the only country in the Southeast Asia region which has revised upwards in its latest update in Hong Kong yesterday. The Malaysian economy is likely to grow 5.7% this year (from 5.1% previously) and 5.3% next year (from 5%). The Manila-based bank described the “rebounding exports by 8.3% joined by buoyant private consumption and investment” driving strong economic growth for Malaysia in the first half of this year. (NST)

Malaysia Ranks 29th In Net Financial Assets Per Capita. Malaysia ranked 29th in net financial assets per capita last year at 7,800 euros (RM32,457), according to the just-released Global Wealth Report by Allianz. The financial assets growth of Malaysia’s private households slowed down to 11.2%. Allianz said in a statement that this put the country at number five in the region in 2013, behind Japan, Taiwan, Singapore and South Korea. Malaysia dropped a notch from 28^th spot globally a year earlier “This was not only lower than last year’s 12.6% but also markedly below the average financial assets growth rate of 16.8% in the region. Nevertheless, since 2007 financial assets of the Malaysian private households have increased by 165 billion euros (RM686bil) or 64%,” it said. “In Malaysia, the liabilities of private households increased by 13.2% last year, more or less on par with the growth of previous years − but nearly three times as fast as nominal gross domestic product,” it said. (The Star)

July Unemployment Rate Falls To 2.8%. Malaysia’s unemployment rate for July 2014 dropped to 2.8%, from 3.0% in July last year, the Statistics Department said. The rate was unchanged from the previous month this year. In a statement here today, the department also said the labour force participation rate declined slightly in July 2014 to 67.4% from 67.5% in the previous month. “A reduction of 0.1%age point was the impact of a continuation of the decreased population in the labour market by 0.2% particularly in the food and beverage service activities and construction. “Year-on-year comparison showed that the labour force participation rate was 0.3%age point lower, from 67.7% in July 2013,” it added. (Bernama)

Asia

ADB Trims Southeast Asia 2014 Growth Forecast To 4.6%. The Asian Development Bank (ADB) has trimmed its growth forecast for Southeast Asia this year, citing factors such as political turmoil in Thailand earlier in the year and weaker commodity export prices in Indonesia. In its update to the 2014 outlook, ADB said on Thursday that Southeast Asia was now expected to grow 4.6% this year, down slightly from its forecast in July of 4.7% and 5.0% forecast in April. The ADB said growth in Southeast Asia was likely to accelerate in 2015 to 5.3%, although that was down from its July and April forecasts for 5.4% growth. "Next year, better performance in the major industrial economies and Thailand's recovery from its slump will spur Southeast Asian growth to 5.3%," it said. (Reuters)

USA

Capital Goods Orders Point To U.S. Investment Gain. American factories received more orders for machinery, communications gear and electrical equipment in August as an improving economy gave companies the confidence to expand. A 0.6% advance in bookings for non-military capital goods excluding aircraft followed a 0.2% decrease in July that was smaller than previously estimated, according to data from the Commerce Department issued today in Washington. (Bloomberg)

Jobless Claims In U.S. Climbed Less Than Forecast Last Week. Applications for unemployment benefits in the U.S. increased less than forecast last week as an improving economy prompted employers to retain staff. First-time jobless claims climbed 12,000 to 293,000 in the week ended Sept. 20, the Labor Department reported today in Washington. The median forecast of 46 economists surveyed by Bloomberg called for 296,000. Claims reached a 14-year low of 279,000 in mid-July. (Bloomberg)

Consumer Comfort In U.S. Falls To Lowest Since Early June. Consumer confidence fell last week to an almost fourmonth low as Americans’ views of the economy and their finances deteriorated. The Bloomberg Consumer Comfort Index declined to 35.5 in the period ended Sept. 21, the worst reading since the first week of June, from 37.2. The personal finances gauge dropped by the most since mid-May, while attitudes about the world’s largest economy were the dimmest in four months. (Bloomberg)

Europe

Portugal To Raise Minimum Wage By 4% From October. Portugal's government, representatives of labor unions and employers have reached a deal to raise the country's minimum monthly wage by 4% from next month to 505 euros (643 US dollars) after a four-year freeze. Employment and Social Security Minister Pedro Mota Soares said the deal, sealed late on Wednesday, was a good compromise that would help workers while also protecting gains in economic competitiveness made during Portugal's three-year international bailout program that ended in May. He said the 20-euro increase had become possible thanks to the return of economic growth and productivity. Portugal is expected to post its first full year of growth in 2014 after a three-year recession that has been its worst since the 1970s. (Reuters)

ECB's Draghi Says Russian Downturn To Affect European Demand. European Central Bank President Mario Draghi said on Thursday the downturn of the Russian economy would affect Europe, although the impact was likely to be limited given the relatively small scope of Europe's trade with Russia. "The Russian economy has been going down, growth has decreased considerably, and that certainly will have some effect on European demand," Draghi said at a news conference in Lithuania's capital Vilnius. (Reuters)

Russia's Central Bank Chief Says 2014 Inflation May Exceed 7.5%. Russian consumer price inflation may exceed 7.5% this year, its central bank governor said on Thursday, the latest admission by policymakers that international tensions over Ukraine are damaging the economy. The central bank has an inflation target of 5% plus or minus 1.5%age points for this year, but its latest forecasts make clear the target will be missed. "Inflation, pressured by external and unpredictable factors, has accelerated significantly," head of the central bank Elvira Nabiullina told a weekly government meeting. "It's already obvious that based on 2014 results, the 5% target cannot be met. Based on our estimates, inflation will come to 7.5% and may be even higher." (Reuters)

Currencies

Euro At Lowest Since 2012 On Draghi’s Dovish Comments. The euro fell to a 22-month low against the dollar on Thursday after comments on potential further easing by European Central Bank President Mario Draghi triggered selling, while the dollar retreated from earlier gains versus the Japanese yen. The euro traded at $1.2749 in recent action, down from $1.2780 late Wednesday in New York. The dollar lost ground versus the Japanese yen to trade at ¥108.75, down from ¥109.04, after touching ¥109.34, close to a six-year high last week. The ICE dollar index , a measure of the currency against a basket of six major rivals, notched another four-year high and traded at 85.201 in recent action, up 0.2%. (Market Watch)

Commodities

Oil Flat On Strong Dollar, Abundant Supplies. Brent crude oil prices held steady while U.S. crude dipped slightly in choppy trading on Thursday as abundant supply and a strong U.S. dollar largely outweighed worries that conflict in the Middle East would disrupt output. Brent rose by 5 cents to settle at $97.00 a barrel after swinging by more than $1 between $96.22 and $97.56 throughout the session. U.S. crude, also known as West Texas Intermediate (WTI) settled 27 cents lower at $92.53. (Reuters)

Gold Rebounds From 9-Month Low As US Equities Slide. Gold rose on Thursday, rebounding sharply from a ninemonth low touched earlier in the session, as a sharp sell-off in U.S. equities prompted investors to buy bullion as a safe haven. Spot gold was up 0.4% at $1,222 an ounce by 3:46 p.m. EDT (1946 GMT), having earlier hit a low of $1,206.85 an ounce, its weakest since Jan. 2. Among other precious metals, spot silver was down 0.7% at $17.52 an ounce, spot platinum was down 0.3% at $1,309.50 an ounce and spot palladium was down 1.8% at $799.47 an ounce. (Reuters)