Malaysia

· Malaysian SMEs Remain Positive On 2015 Despite Gloomy Outlook. Malaysian small and medium enterprises (SMEs) remain positive on the industry’s outlook next year despite external and internal challenges, aided by the Government’s continuous support, says the SME Association of Malaysia. Its national president Teh Kee Sin said the Government, under its Budget 2015 announcement, would allocate RM14.3bil for 18 programmes proposed for SME development, encompassing the services sector, bumiputra entrepreneurs, youths, graduates, micro-enterprises, petty traders, women, smallholders, cooperatives and trade associations. “The SMEs appreciate the incentives provided by the Government and I hope that they will fully utilise the allocation,” he told Bernama. Teh said although the economic situation was likely to be tough next year, SMEs could overcome the challenges by making full use of the Government’s assistance schemes. (Bernama)

Asia

· China Revises Up Size Of 2013 Economy, Sees No Effect On 2014 Growth. China revised up the size of its economy in 2013 but sees that having little effect on economic growth this year, amid expectations that Beijing may roll out more stimulus to support the slowing economy. Gross domestic product was up 3.4% to an estimated 58.8 trillion yuan ($9.5 trillion) in 2013, the National Bureau of Statistics said on Friday, following a new economic census. That marks a rise of 1.9 trillion yuan, or $305 billion, in the size of the Chinese economy that year, slightly below the entire gross domestic product of Malaysia during the same period, according to World Bank statistics. (Reuters)

· China Cuts Red-Tape For Foreign Bank Branch Openings, RMB Business. China has cut red-tape for foreign bank branch openings and entry into renminbi business, state media said on Saturday, the latest in a series of measures to liberalize the banking sector. The cabinet revised existing rules on Saturday, abolishing the requirement for foreign-owned and joint-stock banks to inject 100 million yuan ($16.08 million) or an equivalent in other currencies of working capital into a newly opened branch, the official Xinhua news agency reported. The revisions also lower the threshold for foreign banks to enter the renminbi business. The cabinet has cut the number of years a bank has to be registered before it conducts renminbi business from three to one, and scrapped a two-year profitability requirement. The rules will take effect on Jan. 1. (Reuters)

North America

· Canadian Inflation Slowed More Than Forecast on Gasoline. Canada’s inflation rate slowed more than economists forecast in November, returning to the central bank’s target on a drop in gasoline prices. The consumer price index rose 2.0% from a year ago following the October pace of 2.4%, Statistics Canada said today from Ottawa. The core rate, which excludes eight volatile products including fruit, vegetables and gasoline, slowed to 2.1% following the October pace of 2.3%, which was the fastest in almost three years. Bank of Canada Governor Stephen Poloz has said inflation will slow to a 1.4% pace in the second quarter of next year, ending a period of faster-than-expected gains linked to temporary factors such as a weaker currency and price increases for products such as meat. (Bloomberg)

Europe

· German Construction Orders Fall For Fifth Straight Month. German construction contracts dropped by 4.5% on the year in October, their fifth consecutive monthly fall, data from the Federal Statistics Office showed on Friday, suggesting this sector of Europe's largest economy is stuck in a rut. While construction started the year on a strong footing due to an unusually mild winter, orders plunged by 11.9% in June and have fallen every month since. Contracts declined by 1.0% in the first 10 months of 2014 compared with the same period last year, Friday's data showed. (Reuters)

· German Consumer Morale Highest In Eight Years Heading Into January: Gfk. German consumer sentiment hit its highest level in eight years heading into January as shoppers expect Europe's largest economy to gain momentum, a survey showed on Friday. Market research group GfK said its forward-looking consumer sentiment indicator, based on a survey of around 2,000 Germans, rose to 9.0 going into January from 8.7 in December. (Reuters)

Currencies

· Dollar Index Ends Week At Highest Level Since March 2006. The ICE U.S. dollar index finished the week Friday at its highest level since March 2006 as investors pushed the dollar higher against the euro, yen and pound after Federal Reserve Chairwoman Janet Yellen hinted Wednesday that the central bank would begin raising rates around the middle of 2015. The dollar pushed higher against the yen after the Bank of Japan reaffirmed its commitment to stimulus by continuing purchases of Japanese government bonds, exchange-traded funds, and real-estate investment trusts during its Thursday meeting. The dollar traded at 119.21 yen, compared with ¥118.94 Thursday. Euro traded at $1.22, compared with $1.23 Thursday. The pound traded at $1.56, compared with $1.57 Thursday. The dollar traded lower against the ruble for the third straight day, trading at 58.87, compared with 61.07 Thursday, as Russia attempts to stabilize the volatile currency. (Marketwatch)

Commodities

· Oil Surges 5 Pct As Bears Take Profits, Seeing $60 Floor. Oil closed up as much as 5% on Friday, its biggest gain in over two years, as some traders took profits on short positions after prices this week hit their lowest since 2009. A sharp bout of short-covering prior to expiry of the U.S. January crude oil contract alleviated pressure in a market dominated by sellers the past six months and lighter-than-usual pre-holiday volume exaggerated the rise on a day that otherwise lacked much in the way of headline news. Brent's front-month settled up $2.11, or 3.4%, at $61.38 a barrel, after closing twice this week below the psychologically key level of $60, and continued to rise as high as $62.66 in post-settlement trade. WTI's front-month crude settled up $2.41 at $56.52 a barrel, ending the day on an unusually strong note at just 39 cents off the intra-day peak. On average this month, the U.S. crude contract has settled at nearly $1.80 below the day's peak, according to data analyzed by Reuters. (Reuters)

· Russia Expanded Gold Reserves For 8th Month Amid Ruble Rout. Russia, the world’s fifth-biggest gold holder, added to its hoard for an eighth month even after having to use its international reserves on defending the ruble. The gold stockpile rose to 38.2 million ounces as of Dec. 1 from 37.6 million ounces a month earlier, the central bank said today on its website. Its value in dollar terms fell by $85 million. Total reserves shrank by $9.7 billion in November to $418.9 billion, the lowest level since 2009. (Bloomberg)

· Gold Below $1,200/Oz On Dollar, Shares; Heads For Weekly Loss. Gold edged lower on Friday, struggling with the $1,200 an ounce mark as the dollar firmed and investor appetite for risk increased on expectations of rising U.S. interest rates. Spot gold was down 0.2% at $1,195.06 an ounce by 2:11 p.m. EST (1911 GMT). The metal was heading for a 2.2% weekly fall after two weeks of gains. Among other precious metals, silver rose 1% to $16.01 an ounce. Platinum was down 0.3% at $1,191.10 an ounce and palladium gained 1.7% at $801.97 an ounce. (Reuters)