Malaysia

Malaysia Posts 9.1% Growth In Investments. Malaysia recorded a 9.1% growth in investments in the first nine months of this year compared to the same period in 2013. International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the total RM172.3b investments were in services, primary and manufacturing sectors. The services sector was the largest in terms of investments, number of projects and employment opportunities. Malaysia recorded RM63.5b for the period of January to September. (NST)

Asia

Japan Service Sector Sentiment Worsens In Nov. Japan's service sector sentiment index fell to 41.5 in November, a Cabinet Office survey showed on Monday, reflecting worries over the economic outlook after the April sales tax hike hit spending. The survey of workers such as taxi drivers, hotel workers and restaurant staff – called "economy watchers" for their proximity to consumer and retail trends – showed their confidence about current economic conditions declined from 44.0 in October. The Cabinet Office said the economy was showing weakness in its recovery recently and there are worries about price increases ahead. The outlook index, indicating the level of confidence in future conditions, fell to 44.0 in November from 46.6 the previous month. (Reuters)

Japan's Third Quarter Recession Deeper Than Estimated. Japan's economy shrank more than initially estimated in the third quarter of 2014, according to revised gross domestic product (GDP) figures. The economy contracted by 1.9% in annual terms from July to September, well above a preliminary reading of 1.6%. It also shrank 0.5% on a quarterly basis, compared with an initial estimate of 0.4%, data showed. A big fall in business spending plunged the economy into a deeper recession. The revised figures, which come just days before Japan's national elections, showed that business spending dipped by 0.4% from the previous quarter, instead of the 0.2% estimated in the preliminary reading. (BBC)

Indian Current-Account Gap Widens To Largest In A Year On Gold. India’s current-account deficit widened more than estimated to the largest since the quarter through June 2013 as exports slowed and gold imports surged. The July-September shortfall in the broadest measure of trade widened to $10.1b from $7.8b the previous quarter, the Reserve Bank of India said in a statement yesterday. That compared with a $9.4b median estimate in a Bloomberg survey of 16 economists. The gap amounts to 2.1% of gross domestic product, lower than the 2.5% the central bank considers sustainable. (Bloomberg)

Thai Fourth-Quarter GDP Growth Will Be At Least 2.5% Year-On-Year: Deputy PM. The Thai economy is expected to grow at least 2.5% from a year earlier in the fourth quarter, Deputy Prime Minister Pridiyathorn Devakula said on Monday. The estimate was lower than the finance ministry's forecast last month that annual GDP growth will be slightly more than 4% in October-December. Pridiyathorn said fourth-quarter growth could be 3% if the government accelerated budget spending. (Reuters)

World Bank Cuts Indonesia 2015 Growth Projection To 5.2%. The World Bank on Monday cut its projection for Indonesia's economic growth in 2015 to 5.2% from 5.6% due to the weak outlook for fixed investment and trade as well as a slowing pace of loan expansion. The lender also revised its forecast for growth in gross domestic product (GDP) this year to 5.1% from the 5.2% projection it made in July. Indonesia's GDP expanded 5.01% in the third quarter on yearly basis, the slowest pace since 2009, as the pace of investment and net exports slowed. (Reuters)

Europe

OECD Lead Indicators Show European Growth Losing Momentum. Economic growth is set to continue losing momentum in Europe while the outlook is stable for most other major economies and in the OECD area as a whole, according to the Organisation for Economic Cooperation and Development. The Paris-based OECD's monthly composite leading indicator (CLI) covering 33 member countries pointed to growth easing from relatively high levels in Britain, a loss of growth momentum in Germany and Italy, and stable growth momentum in France. The overall CLI indicator, meant to flag early signals of turning points in economic activity, was steady at 100.4, above the long-term average of 100. (Reuters)

EU Draws Up 1.3 Trillion-Euro Wish List To Revive Economy. The European Union has drawn up a wish list of almost 2,000 projects worth 1.3 trillion euros ($1.59 trillion) for possible inclusion in an investment plan to revive growth and jobs without adding to countries' debts. Investment has been a casualty of the financial crisis in Europe, tumbling around 20% in the euro zone since 2008, according to the European Central Bank, and countries want to ease off on the budget rigor that has dominated policy so far. Projects on the list, which officials stress is not definitive, also include housing regeneration in the Netherlands, a new port in Ireland and a 4.5b euro fast rail connection between Estonia, Latvia, Lithuania and Poland. Other job-creating schemes involve refueling stations for hydrogen fuel cell vehicles in Germany, expanding high-speed broadband networks in Spain and making public buildings in France more energy-efficient. Almost a third of the projects are energy related, another third are focused on transport and the remainder on innovation, the environment and housing. (Reuters)

Euro Zone Morale Improves In December On Prospect Of ECB Money-Printing. Sentiment in the euro zone picked up in December as investors took a brighter view of the future, probably due to expectations that the European Central Bank will start buying assets next year, a survey showed on Monday. Sentix research group's index tracking morale among investors in the euro zone climbed to -2.5 in December from -11.9 the previous month, faring much better than the -10.5 forecast in a Reuters poll. The rise was driven by the third-strongest increase in investor expectations in the index's 12-year history to 12.0 from their November reading of -2.0. (Reuters)

ECB Slows Asset Purchases Even Amid Draghi Balance-Sheet Pledge. The European Central Bank slowed asset purchases last week, underlining the challenge for policy makers trying to expand the institution’s balance sheet. The ECB settled 233 million euros ($286 million) of asset-backed-securities purchases in the week ended Dec. 5, after spending 368 million euros in the first week of the program. The Frankfurt-based central bank also bought 3.126b euros of covered bonds, down from 5.078b euros the previous week. (Bloomberg)

German Industry Output Edges Up Less Than Forecast In October. German industrial output rose less than expected in October, data showed on Monday, offering only feeble support for hopes that Europe's largest economy is returning to health after a weak third quarter. Production rose by 0.2% thanks to a pickup in construction activity, though energy output dropped, data from the Economy Ministry showed. The headline figure missed the consensus forecast for a 0.3% gain. (Reuters)

French Central Bank Sees Fourth-Quarter Growth At 0.1%. France's economy is on course to grow 0.1% in the final quarter of the year, led by a modest gain in industrial activity, the central bank said on Monday in a second estimate confirming its first. The forecast came after official data showed the euro zone's second largest economy eked out 0.3% growth in the third quarter after contracting 0.1% in the second. The central bank offered its latest take on French prospects in its monthly business climate survey which showed sentiment in the industrial sector stood at 97 in November, slightly higher than the 96 recorded in October. The survey showed that sentiment in the services sector was flat at 93. The October reading was revised down one point from a preliminary level of 94. (Reuters)

Currencies

Indonesia Moves To Rescue Rupiah. Indonesia central bank said yesterday it is conducting “measured intervention” in foreign exchange markets, after the rupiah fell to its lowest level against the United States dollar since 2008. “We don’t do excessive intervention, (we do) measured intervention. We will find a new equilibrium,” spokesman Peter Jacobs said. “We are not letting the rupiah depreciate too much.” Spot rupiah earlier slid to 12,348 to the dollar, down nearly 0.5% on the day and taking its fall so far this year to 1.6%. (NST, Agencies)

Dollar Gains Against Ruble As Oil Hits Five-Year Low. The dollar gained against the ruble Monday after falling during Friday’s session as crude oil prices again fell to five-year lows. The dollar traded at 53.6764 Monday, up from 52.68, its level from Friday afternoon. The buck fell as low as 14.2870 pesos, its lowest level since Friday, before recovering to 14.3675, around its Friday-afternoon level. The dollar depreciated to 120.5160 yen, its largest single-session drop since Oct. 15. It traded around ¥120.27 Friday. The euro traded at $1.2328 Monday, compared to $1.2300 Friday. The ICE U.S. Dollar Index, a measure of the greenback’s strength against a basket of six rival currencies, was down 0.26% to 89.1060, its first loss in two sessions. (Market Watch)

Commodities

Oil Drops $2 To Five-Year Low On Oversupply. Brent and U.S. crude oil each fell more than $2 a barrel on Monday to a new five-year low amid a rising number of predictions that oversupply would extend well into 2015. Brent for January was down $2.42 at $66.62 a barrel by 11:13 EST, its lowest since October 2009. U.S. crude was down $2.27 at $63.55 a barrel, a session low, its lowest since July 2009. (Reuters)

Gold Jumps Above $1,200/Oz On Chart-Based Buying Surge. Gold jumped more than 1% on Monday on a brief surge of late-day technical buying as it breached the $1,200-per-ounce level long after the U.S. dollar dropped from a more than five-year high. Spot gold was up 1% at $1,203.51 an ounce by 3:01 p.m. Platinum rose 1.2% to $1,229.45 an ounce. Silver was up 0.4% at $16.31 an ounce, and palladium rose 0.2% to $799.50 an ounce. (Reuters)