Asia

S&P: Asia Pacific To See Better Times. Asia-Pacific economies are losing momentum as they approach the finish line this year, but Standard & Poor’s (S&P) says the next two years are “setting up to be pretty good”. The pace of activity in China and Japan has been slowing due to a weak property market (China) and recession (Japan), while external demand remains weak due to a delay in the recovery of the United States economy. “But 2015 and 2016 appear a bit better, especially if we look beyond the headline numbers and factor in a higher-quality gross domestic product (GDP) growth, more external demand and hopefully smaller credit expansion,” said economists Paul F. Gruenwald and Vincent R. Conti in a report. “We expect to see less reliance on domestic demand and a welcome rotation towards a larger external contribution as the US recovery takes hold.” The sovereign rating agency has projected Malaysia to grow by six% this year, 5.5% next year and 5.4% in 2016. (NST)

Japan Inflation Slows In October, Highlights Challenge Facing Abe. Japan's annual core consumer inflation slowed for a third straight month in October due to falling oil prices, highlighting the economic gloom facing Premier Shinzo Abe as he campaigns for a new mandate to implement his stalled recovery plan. The core consumer price index (CPI), which excludes volatile fresh food but includes oil products, rose 2.9% year-on-year in October. That matched economists' median estimate and was slower than a 3.0% annual gain in the prior month. Excluding the effects of April's tax hike, inflation was estimated at 0.9%, less than halfway to meeting the BOJ's 2% goal, a level investors see as impossible to reach next year. Household spending fell 4.0% in the year to October, down for seven months in a row, slower than a 5.6% annual decline in the previous month. (Reuters)

Japan Bond Yield Goes Negative As BOJ Faces Oil Threat. Japanese government bonds traded at a negative yield for the first time ever on Friday, thanks to the Bank of Japan's massive asset-purchase scheme as it seeks to stoke inflation and revive an economy that slipped into recession in the third-quarter. The two-year JGBs traded at the yield of minus 0.005%. Negative yield is an unusual, but not uncommon occurrence - record-low interest rates in Europe, for instance, have flipped bond investing on its head with Germany and Switzerland seeing negative yields. (Reuters)

Indian Economic Growth Slows To 5.3%. India's economy grew by 5.3% in the July-to-September period from a year earlier, down from a rate of 5.7% in the previous quarter. Although the rate was slower than earlier in the year, it was still better than many analysts had expected. The figures cover the first full quarter under the government of Prime Minister Narendra Modi. Both the service sector and agriculture performed better than anticipated, despite a weak start to the monsoon. Investors were also encouraged by the news that the government is to cut its holdings in state-run banks, such as State Bank of India. (BBC)

Americas

Post-Thanksgiving Spending Tumbles 11% As Shoppers Stay Home. The holiday shopping season got off to a slow start in the U.S. this weekend, with consumers cutting spending by an estimated 11% and far fewer bargain hunters hitting stores than predicted. Consumer spending fell to $50.9b over the past four days, down from $57.4b in 2013, the National Retail Federation said today in a statement. It was the second year in a row that sales declined during the post-Thanksgiving Black Friday weekend, which had long been famous for long lines and frenzied crowds. (Blooomberg)

Brazil Scrapes Out Of Recession On Government Spending. Brazil's economy crawled out of a recession in the third quarter as public spending rose before presidential elections, suggesting growth could be short-lived as the government plans to tighten its budget. The economy grew 0.1% in the third quarter from the previous period, resuming expansion after two consecutive quarters of contraction, government statistics agency IBGE said on Friday. The result missed the median forecast of 0.3% growth in a Reuters poll of 36 analysts. Third-quarter expansion was mostly driven by a steep 1.3% increase in government spending. That stimulus is set to end as newly re-elected President Dilma Rousseff seeks to restore market confidence and avoid a credit-rating downgrade. (Reuters)

Europe

Eurozone Inflation Rate Falls In October. The eurozone's inflation rate fell to 0.3% in November, from 0.4% in October, suggesting that deflation remains a threat for the 18-nation bloc. Eurostat, the European Union's statistics agency, said that the rate was pulled down by lower energy prices. The European Central Bank considers anything below 1% to be in its deflation "danger zone". The eurozone's low inflation is blamed for undermining growth, which has prompted ECB stimulus measures. (BBC)

German Retail Sales Bounce Back Strongly In October. German retail sales bounced back strongly in October after a steep drop in September as the private consumption that has become vital for growth in Europe's biggest economy showed signs of renewed strength. Data from the Federal Statistics Office on Friday showed retail sales were up 1.9% in October in real terms from September and climbed 1.7% from October 2013 -- exceeding the consensus forecast for a month-on-month rise of 1.5%. The statistics office also reported a revision to September's figure, saying retail sales were down 2.8% in real terms from August after first reporting on Oct. 31 that they had fallen 3.2% on the month. (Reuters)

Portugal Economy Grows 0.3% In Third Quarter. Portugal's economy grew 0.3% in the third quarter, the same as in the previous three-month period, with private consumption driving the expansion, data showed on Friday. The second reading for gross domestic product in July-September also showed that compared with a year earlier, GDP expanded 1.1% after 0.9% growth in the previous quarter of this year, data from the country's National Statistics Institute showed. In the first reading of GDP, the institute had said the economy expanded by 0.2% from the previous quarter and 1.0% compared with a year earlier. The institute said domestic demand contributed 1.9% to yearly growth while trade made a negative contribution of 0.9% as imports outpaced exports. (Reuters)

UK Consumer Morale Holds Steady In November: GfK. British consumer morale held steady in November in the face of slipping confidence about the economy's prospects over the next 12 months, a survey by polling company GfK showed on Friday. The headline consumer confidence index hovered at -2 for a second month in a row, a shade weaker than the forecast of -1 in a Reuters poll. Despite sluggishness seen in recent months after a sharp rise earlier in the year, it was still close to the nine-year high of +1 touched in August and June and households showed a strong appetite to make major purchases. (Reuters)

Sweden’s Economy Expanded More Than Estimated Last Quarter. Sweden’s economy expanded more than estimated last quarter as unprecedented monetary easing helped underpin business investment even as household spending stalled. Gross domestic product grew 0.3% from the second quarter, just beating a 0.2% median estimate in a Bloomberg survey of analysts. (Bloomberg)

Currencies

Dollar Gains As Oil Slide Increases Disinflation Fears. The dollar gained on Friday as low oil prices added to disinflation fears in the euro zone and Japan, while investors also looked ahead to a heavy week of central bank meetings and the U.S. monthly employment report. The dollar neared seven-year highs against the yen at 118.70 yen. The dollar index, which measures the greenback against a basket of major currencies, gained 0.79% to 88.301, just below four-year highs of 88.44 set on Monday. The euro weakened to $1.2437. (Reuters)

Commodities

U.S. Crude Down 10% Post-OPEC, Brent Breaks Below $70. U.S. crude tumbled 10% in its biggest one-day drop in more than five years on Friday, and benchmark Brent broke below $70 a barrel, as OPEC's decision not to cut output sent oil traders and analysts scurrying to find a new trading floor. U.S. West Texas Intermediate (WTI) light crude settled down $7.54 at $66.15 a barrel, and fell further post-settlement, reaching a four-year low of $65.69. The last time the market lost 10% in a day was in March 2009. North Sea Brent finished down $2.43, or 3.3%, at $70.15. It fell to as low as $69.78 on the day, a bottom since May 2010. Brent also finished down 18% for November for a fifth straight month of declines, or the longest losing streak since the 2008-2009 financial crisis. (Reuters)

Gold Falls, Silver Drops On Dragging Oil Prices, Strong Dollar. Gold fell over 2% on Friday, extending a three-day slide to a two-week low, and silver dropped the most since September 2013 on free-falling oil prices and a strong dollar. Spot gold was down 1.9% at $1,168.56 an ounce by 1:28 p.m. EDT (1816 GMT), after hitting a low of $1,165.04. Silver was down 4.3% at $15.52 an ounce after tumbling as much as 5%, while spot platinum was down 0.8% at $1,201.70 an ounce. Spot palladium bucked the trend, up 0.5% at $808 an ounce. (Reuters)