Median Monthly Household Income Increased to RM4,585 In 2014. The median monthly household income for Malaysians in 2014 increased to RM4,585 from RM3,626 in 2012, the Department of Statistics said in its latest Household Income and Basic Amenities Survey. The Statistics Department said Federal Territory of Kuala Lumpur recorded the highest median monthly household income of RM7,620 followed by Putrajaya at RM7,512 and Selangor at RM6,214. The survey was conducted using personal interview approach in a 12-month period in 2014, covering both the urban and rural strata. Household income is composed of income from paid employment, self-employed, income from property & investments and current transfers received. (Bernama)
Bank Negara’s International Reserves at RM390.2 Billion. Bank Negara’s international reserves amounted to RM390.2 billion, equivalent to US$105.3 billion, as at June 15, 2015. The reserves position was sufficient to finance 8.1 months of retained imports and was 1.1 times the short-term external debt, the central bank said in a statement on Monday.
Japan Aims for Productivity Reform as Key to Growth. The Japanese government on Monday revealed a draft economic strategy to ramp up productivity amid a declining population. Productivity reform is the buzzword for the third growth strategy under Prime Minister Shinzo Abe. With labor shortages already intensifying, Japan expects the trend to continue as its population decreases. The government thus concluded that economic growth will not be attainable without an increase in investment and productivity. Specifically, the blueprint urges companies to offer job training for employees and calls for establishment of higher-level vocational schools. The government also plans to help develop technology to make up for the shrinking labor force. (Nikkei)
Indonesia Lowers Official 2016 GDP Growth Target. Indonesia’s Finance Minister Bambang Brodjonegoro said the government is lowering its economic growth assumption for 2016 to 5.5% - 6%, compared with the previous target of 5.8% - 6.2% set last month. "Next year is a period of uncertainty," minister told parliament on Monday. Speaking at the same parliamentary meeting, central bank governor Agus Martowardojo said Bank Indonesia is maintaining its economic growth target at 5.4% - 5.8% for next year.
First-time Buyers Lift U.S. Home Sales to 5-Year High. U.S. home resales surged to a more than 5-year high in May as first-time buyers stepped into the market. The National Association of Realtors said on Monday existing home sales increased 5.1% to an annual rate of 5.35 million units, the highest level since November 2009. Economists had forecast home resales rising to a 5.26 million-unit pace last month. First-time buyers accounted for 32% of transactions, the largest share since September 2012. Still, the share remains well below the 40% to 45% that economists and realtors say is required for a robust housing market. (Reuters)
Eurozone Consumer Confidence Stable in June. Eurozone consumer confidence was unchanged in June, figures released on Monday showed. The European Commission said a flash estimate showed the eurozone consumer morale indicator was -5.6 points. The May figure was revised down to that level because of a revision of the historical consumer survey series for Ireland. In the European Union as a whole, consumer sentiment rose by 0.7 points to -3.3. (Reuters)
EU Proposes More Eurozone Integration. EU chief executive Jean-Claude Juncker laid out a vision on Monday for tighter joint control over the currency zone's economies, including, one day, a potential common eurozone treasury. In a report issued in cooperation with the European Central Bank and other EU bodies, the European Commission president proposed more help for states in distress, combined with tougher discipline for countries that miss fiscal targets. It recommended "quick fix" steps that could be introduced in the next two years, such as setting up a common bank deposit insurance system and promoting competitiveness. (Reuters)
Greece Offers New Proposals to Avert Default. Greece took a step back from the abyss on Monday with the presentation of new budget proposals that euro zone leaders welcomed as a basis for a possible agreement in the coming days to unlock frozen aid and avert a looming default. European Council President Donald Tusk, who chaired an emergency summit of leaders of the 19-nation currency bloc, called the Greek proposals "a positive step forward". The Greek proposals included higher taxes and welfare charges and steps to curtail early retirement, but not the nominal pension and wage cuts first sought by lenders. (Reuters)
Euro Underwhelmed as Greece Inches Forward, Dollar Higher. The euro barely budged early in Asia on Tuesday, having drifted sideways overnight as fatigue mounted over a seemingly endless stream of headlines indicating progress in Greek debt talks. The euro last stood at $1.13430, little changed from late New York levels but down from Monday's high of $1.14105. For its part, the U.S. dollar was aided by upbeat housing data and a jump in Treasury yields. The dollar index climbed to 94.307, from Monday's trough of 93.807. Versus the yen, the greenback fetched 123.35, holding onto Monday's 0.5% gain. The dollar also pushed higher against commodity currencies, particularly on the New Zealand dollar, which slid to a five-year low of $0.6860. (Reuters)
Oil Up as U.S. Crude Contract Expires. Oil reversed losses to end slightly higher on Monday as short-covering ahead of the expiry of the front-month contract in U.S. crude lifted a market burdened by concerns about creeping gasoline inventories. Worries about the potential fallout from the Greek debt crisis also weighed on oil prices initially, offsetting positive impact from a stockpile draw at the Cushing, Oklahoma. Brent crude settled up 32 cents, or 0.5%, at $63.34 a barrel, after falling almost $1 earlier. U.S. crude closed up 7 cents, or 0.1%, at $59.68 a barrel, as its front-month July contract expired and went off the board after losing nearly 70 cents at one point. (Reuters)
Gold Slips on Equities Strength, Greek Deal Hopes. Gold fell more than 1% on Monday as global equities jumped on possible signs of progress in Greek debt talks, which curbed safe-haven demand for the metal. Spot gold fell as much as 1.5% to a session low of $1,181.90 an ounce and was down 1.3% at $1,184.01 an ounce by 1816 GMT. Platinum fell to a fresh six-year low of $1,053.75 an ounce. Silver was up 0.8% at $16.19 an ounce, while palladium fell to the lowest since September 2013 at $688.25 an ounce. (Reuters)