Malaysia

· ARC Assigns “A” Rating To Malaysia. ARC Ratings SA (ARC), a global rating agency, has assigned a long-term foreign currency issuer rating to the government of Malaysia (Malaysia) of “A.” The agency also assigned a long-term local currency issuer rating of “A+” to Malaysia. The outlook on both ratings is stable. In addition, the agency assigned a foreign currency country ceiling of “AA-” and a local currency country ceiling of “AA” to the country. Short-term sovereign ratings of “A-1” were assigned. (NST)

· Review On Minimum Wage Policy. The minimum wage policy is up for a scheduled review this year and the trade unions are asking the Government to increase the current floor of RM900 a month by 30% to RM1,200. A more realistic figure of RM1,000 had been proposed, but even that may not go down well with employers, many claiming they are still struggling to adjust to the set minimum level. Malaysian Employee Federation (MEF) executive director Datuk Shamsuddin Bardan says any review to the policy this year is too soon given that it was only implemented in full for a year. “Employers should be given sometimes to adapt to the current policy especially at the current uncertainty in the economy,” he says. It is unclear whether the Government will go ahead its the scheduled review. (The Star)

Asia

· China January Factory Growth Stalls, Deflation Pressures Build, Bad Debt Rises. China's manufacturing growth stalled for the second straight month in January and companies had to cut prices at a faster clip to win new business, adding to worries about growing deflationary pressures in the economy, a private survey showed. The HSBC/Markit Flash Manufacturing Purchasing Managers' Index (PMI) hovered at 49.8 in January, little changed from December's 49.6 and just below the 50-point mark that separates contraction from growth on a monthly basis. (Reuters)

· South Korea Growth Hits Six Year Low In Fourth Quarter. Growth in Asia's fourth largest economy, South Korea, fell to a six year low in the fourth quarter of last year. The economy grew a seasonally adjusted 0.4% in the October to December period from the previous quarter when growth hit 0.9%. Fourth quarter growth of 2.7% from a year ago also missed market forecasts. Economists said a slump in infrastructure spending and exports had a big impact on the country's growth. (BBC)

· Japan Factories Start 2015 On Strong Note, Flash Jan PMI Rises To 52.1. Japanese manufacturers began the new year on a strong note as domestic and overseas orders picked up, a survey showed on Friday, suggesting the economy is shrugging off a slump in consumer spending last year that triggered a recession. The Markit/JMMA flash Japan Manufacturing Purchasing Managers Index (PMI) rose to a seasonally adjusted 52.1 in January from a final 52.0 in December. The index remained above the 50 threshold that separates contraction from expansion for the eighth consecutive month. The output component of the PMI index edged lower to a preliminary 52.3 from 52.5 in the previous month. (Reuters)

U.S.A.

· Leading Indicators In U.S. Climb For Fourth Straight Month. The index of U.S. leading indicators increased in December, extending its rise to four straight months, as the world’s largest economy expanded. The Conference Board’s index, a gauge of the outlook for the next three to six months, increased 0.5% in December, after a revised 0.4% gain in November, the New York-based group said today. The median forecast of 49 economists surveyed by Bloomberg called for a 0.4% advance. (Bloomberg)

· U.S. Existing Home Sales, Economic Activity Gauge Rise. U.S. home resales rebounded in December, but continued low participation by first-time buyers in the market suggested the housing recovery would remain gradual for now. The National Association of Realtors said on Friday existing home sales increased 2.4% to an annual rate of 5.04 million units last month. That was slightly below economists' expectations for a 5.06-million-unit pace. (Reuters)

· U.S. Factory Activity Expands At Lower Rate, New Orders Weigh. The U.S. manufacturing sector continued to expand in January but at a slightly slower pace than the month before, matching the lowest reading in a year, an industry report showed on Friday. Financial data firm Markit said its preliminary or "flash" U.S. Manufacturing Purchasing Managers Index fell to 53.7 in January, matching the 2014 low last January when severe weather impacted economic activity. (Reuters)

Europe

· Eurozone Growth Improving As Firms Cut Prices, PMI Survey Says. Eurozone business activity expanded to a five month high, according to a closely watched survey. Markit's "flash" purchasing managers' index for January hit 5.2, up from 51.4 in December. Any reading above 50 points indicates expansion. But Markit found that firms are cutting prices at their fastest for nearly five years, reinforcing the argument for Thursday's huge European Central Bank stimulus programme. The index for prices fell to 46.9 its lowest since February 2010. (BBC)

· UK Car Production At Seven-Year High. Car plants in the UK produced more than 1.5 million vehicles last year, the highest number since 2007, annual figures show. The Society of Motor Manufacturers and Traders (SMMT) said that demand for premium brands, such as Jaguar Land Rover, had helped boost annual sales by an overall 1.2%.However, for the second year running, the number of vehicles exported fell. In 2014, a car was produced every 20 seconds. (BBC)

· Draghi Says Euro Zone Governments Need To Redouble Reform Efforts. National governments in the euro zone need to redouble their reform efforts to create a "genuine" economic union, ECB Mario Draghi wrote in a German magazine published on Saturday after the European Central Bank's bond-buying programme was unveiled. "By requiring governments in an economic union to undertake structural reforms, they give credibility (to the idea) that they can actually overcome their debts through growth," Draghi wrote. (Reuters)

· Italy Cheers ECB Bond Buying Plan, Sees Big Boost To Economy. The European Central Bank's bond buying program will give a decisive boost to Italy's stagnant economy, business lobby Confindustria said on Saturday, while the Bank of Italy said it would make it easier to pass reforms. Confindustria said the plan could raise Italian gross domestic product by 0.8% this year and by a further 1% in 2016 by weakening the euro exchange rate, thus boosting exports, and by lowering long-term interest rates. The impact of the so-called quantitative easing (QE) program will be considerable, given that Confindustria forecast last month that Italy's economy would grow by just 0.5% this year. (Reuters)

 Currencies · Euro Records Largest Weekly Loss Since September 2011. The euro recorded its largest weekly decline against the dollar since September 2011 Friday. The euro traded in a tight range around $1.2400 against the greenback after falling to $1.1115, its lowest level since September 2003. The shared currency traded at $1.1361 late Thursday. The euro also pulled back from ¥130.93, its lowest level against the Japanese yen since October 2013. The shared currency was worth ¥132.4500 in recent trade, compared with ¥134.65 Thursday. The aussie extended its declines from earlier in the week, falling to below 80 cents for the first time since July 2009. It was last trading at a session low of 79.13 cents, compared with about 80 cents Thursday. The same issues have weighed on the New Zealand dollar, which fell to 74.51 cents Friday, its lowest level since late 2011. It traded around the 75-cent level Thursday. The Canadian dollar fell to 80.50 cents, its lowest level since early 2009. (Marketwatch)

Commodities

· Brent Closes Up, U.S. Crude Down After Saudi King Dies. Brent crude was buoyed on Friday by market uncertainty over the future of Saudi oil output, while U.S. crude fell on more signs of oversupply. Saudi Arabia's new king, Salman, who took the throne on Friday morning after the death of his brother Abdullah, is expected to continue OPEC's policy of keeping oil output steady to protect market share. Brent closed up 27 cents at $48.79 a barrel. U.S. crude settled down 72 cents at $45.59. (Reuters)

· Gold Slips 1.3 Pct As Dollar Climbs On ECB Move. Gold fell as much as 1.3% on Friday as the dollar rose and markets digested the mixed implications of a European Central Bank plan to pump about one trillion euros into the euro zone's flagging economy. The metal, often seen as a hedge against inflation, jumped more than 1% above $1,300 an ounce on Thursday after the ECB announcement. Spot gold dropped to a session low of $1,284.26 an ounce and was down 0.8% at $1,291.20 by 2:48 p.m. EST (1948 GMT). Bullion peaked at $1,306.20 on Thursday, its highest since Aug. 15, and was still headed for a third straight weekly gain. Among other precious metals, spot silver was down 0.2% at $18.25 an ounce. Palladium lost 0.1% to $771.20 an ounce, while platinum fell 1.3% to $1,264 an ounce. (Reuters)