Global

Global Business Confidence At Five-Year Low. Global business confidence slipped to five-year low in October, according to a survey of 6,100 companies. The number of firms that expect business activity to be higher in the year ahead exceeded those that expected a decline by about 28%. But, that net balance was lower than 39% in June and the lowest since the Markit Global Business Outlook Survey began in 2009. Hiring and investment plans also dipped to post financial crisis lows. "Clouds are gathering over the global economic outlook, presenting the darkest picture seen since the global financial crisis," said Chris Williamson, chief economist at Markit in a statement. (BBC)

Malaysia

No Inflationary Effects, Says Zeti. The removal of subsidies for RON95 petrol and diesel will not have any inflationary consequences on the economy as global crude oil prices are softening, said Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz. “The subsidy removal is a positive development as the oil prices are easing and consumers can benefit from the lower prices. There is no inflationary consequences. However, we do need to look at the overall risk of inflation and other implications to growth. “It will also help the government in terms of re-allocation of subsidies to other areas,” she said. (NST)

Govt To Intervene If Global Oil Prices Rise Too High. The government will intervene if global crude oil prices rise too high to cushion the impact on RON95 petrol and diesel, said Deputy Finance Minister, Datuk Chua Tee Yong. "However, the intervention mechanism has not been finalised yet, and the evaluation process being undertaken by the Domestic Trade and Consumer Affairs Ministry, is still ongoing," he told a press conference, after delivering his keynote address at the 19^th Malaysian Capital Market Summit here today. Chua said the government's move to let market forces determine fuel prices, via a managed float system, was to enable consumers to enjoy the current downtrend in global oil prices. He said the low oil prices backdrop would also result in some savings of between RM10b and RM20b annually in terms of subsidies, given that this expenditure normally consumes RM2b a month. (Bernama)

IMF: Malaysia Budget Deficit Could Fall Below 3% Of GDP In 2015. Malaysia's budget deficit could fall below 3% of gross domestic product in 2015, the International Monetary Fund said on Monday after it concluded a mission to the Southeast Asian nation. "Malaysia is on track to achieve the 2014 federal budget deficit target of 3.5%, down from 3.9% in 2013. With fuel subsidy removal locking in the impact of lower oil prices, the mission projects that the deficit could decline below 3% of GDP in 2015," the Fund said in a statement. (Reuters)

Asia

Vietnam Gets US$11.2b In Investments. Foreign investors have channelled an estimated US$11.2b (RM37.5b) into Vietnam-based projects during the first 11 months of this year, up 6.2% from a year ago, a government agency said on Monday. New pledged investment, which is funds that have been approved for licensed projects but not disbursed, reached US$13.41b in the 11-month period, down 2.7% from a year ago, the Foreign Investment Department said in a report on its website, confirming an earlier government estimate. (Reuters)

USA

U.S. Services Sector Activity Grows, November Rate Slows: Markit. The U.S. services sector expanded in November at a slower rate than the previous month as growth in new business slowed, an industry report showed on Monday. Financial data firm Markit said its "flash" services Purchasing Managers Index hit 56.3 in November, slightly below expectations and the lowest since April, compared with October's final reading of 57.1. The growth rate has slowed steadily since peaking this year at 61 in June, but is still above the 50 level that signals expansion in economic activity. (Reuters)

Europe

German Business Morale Rebounds In November. German business sentiment rebounded in November, breaking a streak of six straight declines, in a sign that Europe's largest economy may be gaining some momentum again after narrowly avoiding a recession in the third quarter. The Ifo's business climate index, based on a monthly survey of some 7,000 firms, rose to 104.7 from 103.2 in the previous month, the Munich-based think tank said on Monday. Economists polled by Reuters had predicted another decline to 103.0. (Reuters)

Russia Sees $140b Annual Loss From Oil, Sanctions. Russia stands to lose as much as $140b a year as a result of lower oil prices and U.S. and European sanctions, Finance Minister Anton Siluanov said, underlining the risks of a prolonged stalemate over Ukraine. “We’ve seen a contraction of capital inflows into the country,” Siluanov said today at conference in Moscow. “We’re losing about $40b a year because of geopolitical sanctions, and we’re losing about about $90b to $100b on the basis of a 30% decline in oil prices.” (Bloomberg)

Currencies

Dollar Shows Gains Against Yen After Two Sessions Of Losses. The dollar moved higher against the yen Monday after falling for two consecutive sessions, as investors prepared for the release of minutes from October’s Bank of Japan meeting Monday evening. The dollar traded at 118.25 yen, compared to ¥117.82 late Friday. A euro traded for $1.2444 Monday, compared to $1.2390 late Friday. Meanwhile, the pound traded flat at $1.5707. The ICE U.S. Dollar Index a measure of the greenback’s strength against a basket of six currencies, was down 0.22% to 88.1110 late Monday. (Market Watch)

Commodities

Oil Ends Down After Swinging On OPEC Speculation; Brent Below $80/Bbl. Crude prices ended lower, with Brent below $80 a barrel, after a volatile session on Monday as Russia's offer to add to OPEC output cuts led some to bet the group will agree on a higher production cut than thought when it meets this week. Benchmark Brent crude oil's front-month contract finished down 68 cents at $79.68 a barrel. It traded between a session low of $79.50 and a high of $80.85. U.S. crude's front-month ended 73 cents lower, moving between $75.48 and $77.02. (Reuters)

Gold Eases Slightly As Buying On China Rate Cut Wanes. Gold was slightly lower on Monday as buying that propelled bullion to three-week highs on Friday ran out of steam after a surprise rate cut in China raised hopes that demand from the top consumer would increase. At 3:28 p.m. (2028 GMT), spot gold was down 0.2% at $1,199.65 an ounce after hitting a three-week high of $1,207.70 on Friday. U.S. gold futures settled at $1,195.70 an ounce, down $2. Among other precious metals, platinum fell 1% to $1,208.5 an ounce, while palladium was up 0.06% at 791.5 an ounce. Silver was up 0.2% at $16.51. (Reuters)