Global

- OECD Sees Stable Momentum Among Major Economies, Germany Losing Steam. Growth momentum in most major developed economies is stable although Germany and Japan both show signs of losing steam, the OECD said on Monday, as it flagged a turnaround in growth prospects for India. The Paris-based Organisation for Economic Cooperation and Development said its leading indicator covering 33 member countries was unchanged in June at 100.5, above its long-term average of 100. However, growth was losing momentum in Germany, where the indicator had dropped to 100.2 in June from 100.4 in May, and Japan, where it fell to 100.1 from 100.4 the previous month. Italy's growth momentum improved, to 101.7 from 101.6 in May. (Reuters)

Malaysia

- Industrial Production In June Saw An Annual Growth Of 7.0% YoY, higher than the revised 5.9% (6.0% previously) gained in May. This is above market expectations for a 5.0% rise. This is on account of continued strong growth from manufacturing, particularly from electrical and electronics (E&E) and transport equipment & machinery sectors. On a monthly comparison, production rose by just 0.1% MoM whilst the seasonally adjusted index saw a 0.5% MoM expansion. For the whole of 2Q14, industrial production increased by 5.9% YoY, compared to 4.6% seen in the 1Q14 (or 4.4% QoQ) and saw a 5.3% increase in production for the whole of 1H14 (1H13: 2.6%). The manufacturing sector expanded by 9.1%, stronger than the revised 8.0% (7.8% pre-revision) in May and by 7.4% based on the 3mma, from 6.5% in May. (Please refer to Economic Viewpoint for further comments)

- Q2 Construction Work Up 10.8%. The total value of construction work done in the second quarter of 2014 rose by 10.8% year-on-year to RM25.2bil. In a statement yesterday, the Statistics Department said the sector continued to register a positive growth since the third quarter of 2011. It said for the quarter under review, the construction activities by type, the highest%age share contribution was from non-residential buildings and civil engineering sub-sector with 32.4% respectively. This was followed by residential building (30.4%) and special trades (4.7%), it said. The department said the private sector continued to dominate the sector in the second quarter this year with 70.2% share, a marginal increase from 69.6% registered in the same quarter last year. (Bernama)

Asia

- Jaitley Backs Rajan’s India Inflation Fight Amid Rain Risk. Indian Finance Minister Arun Jaitley backed the central bank’s moves to keep interest rates elevated to fight the highest inflation among Asia’s biggest economies as a weak monsoon threatens to damp growth. “This is an issue which the Reserve Bank decides, and I am sure they factor in various circumstances,” Jaitley told reporters in New Delhi yesterday when asked if he agreed with central bank Governor Raghuram Rajan’s monetary policy measures announced on Aug. 5. It was the first formal joint media briefing by Rajan and Jaitley since Prime Minister Narendra Modi in May won India’s biggest electoral mandate in 30 years. (Bloomberg)

- Rajan Urges Cash Transfers To Dilute Power Of Indian Oligarchs. Indian central bank Governor Raghuram Rajan urged the government to directly transfer cash to the poor instead of offering public services, saying the money would liberate millions from corrupt middlemen and politicians. Cash would empower the poor to choose where to buy goods, providing an alternative to government-run monopolies and creating competition in the private sector, Rajan said in a speech in Mumbai yesterday. Prime Minister Narendra Modi’s plan to bring bank accounts to the poor -- set to be unveiled this week -- would facilitate the transfers, Rajan said. (Bloomberg)

- Turkish Economy Minister Sees Lower Rates As Vital After Erdogan Victory. Turkey's government will maintain its calls for lower interest rates following Prime Minister Tayyip Erdogan's victory in the country's first direct presidential election, the economy minister said on Monday. Turkey has emerged as a regional economic force during more than a decade under Erdogan as prime minister, his firm leadership following a long period of economic chaos and political drift in the nation of 77 million. (Reuters)

Americas

- U.S. Jobs Rose Since '08 Crisis, But Pay Is 23% Less. Jobs growth in the U.S. since the 2008 recession has been undermined by lower wages, with workers earning an average 23% less than earnings from jobs which were lost, a report by an organization representing U.S. cities said on Monday. The average annual salary in sectors where jobs were lost - particularly manufacturing and construction - during the 2008-9 financial crisis was $61,637, according to the report by the United States Conference of Mayors (USCM), which represents cities with populations of more than 30,000. Job gains through the second quarter of 2014 in comparative sectors showed average wages of $47,171, implying $93bil in lower wage income, the report said. (Reuters)

- Mexico's Industrial Output Unexpectedly Falls In June. Mexican industrial production unexpectedly shrank in June, the first contraction since December, casting doubt on the strength of a recovery in Latin America's second largest economy. Industrial activity fell 0.2% in June compared with May, the national statistics agency said on Monday. The figure was below expectations for a 0.19% increase and down from the upwardly revised 0.3% expansion in May. A weak start to the year prompted Mexico's finance ministry in May to cut its annual growth forecast for 2014 to 2.7% from 3.9%. Analysts have trimmed their outlooks to around 2.6% after sluggishness in the second quarter. (Reuters)

Europe

- UK Firms Bullish As Plans To Hire Hit 16-Year High. U.K. companies are set to boost their headcounts in the next three months, with firms in both the manufacturing and services sectors planning to hire new members of staff at the fastest rate in 16 years, a new survey shows. Job creation in the U.K. will continue to accelerate for the remainder of the year, according to the BDO Employment Index, compiled by the accountancy firm, suggesting that university students graduating in 2014 face better job prospects than any other class year since the financial crisis. (CNBC)

Currencies

- Dollar Strengthens As Global Tensions Ease. The U.S. dollar edged up against the Japanese yen and the euro on Monday as investor concerns about geopolitical conflicts eased. The U.S. dollar bought ¥102.18 on Monday, versus ¥102.07 late Friday. The euro traded at $1.3384, down from $1.3413. Sterling traded at $1.6789, compared with around $1.6775 late Friday. The U.S. dollar index, which tracks the greenback against a basket of its rivals, was at 81.452, up

slightly from 81.386 on Friday. (MarketWatch)

Commodities

- U.S. Oil Edges Up On Expectations Of Inventory Drawdown. U.S. crude oil edged up on Monday on an expectation of further draws in U.S. crude inventory, while Brent trended down despite a number of geopolitical risks. Brent was weaker despite a number of geopolitical risks carrying over from last week, including President Barack Obama's authorization for the first U.S. air strikes on Iraq since he pulled all troops out in 2011. By 2:30 p.m. (1830 GMT), U.S. crude increased 43 cents to settle at $98.08 a barrel, while Brent slipped 34 cents to settle at $104.68 a barrel. (Reuters)

- Gold Flat As Equities Rise, Easing Tensions Limit Gains. Gold prices were little changed on Monday as rising global equities, and an apparent easing of tensions over Ukraine and the Middle East, prompted bullion investors to lock in profits above $1,300 an ounce. Spot gold inched down 44 cents to $1,308.90 an ounce by 2:23 p.m. EDT (1823 GMT), below a three-week high of $1,322.60 reached on Friday. Among other precious metals, silver gained 0.7% to $20.05 an ounce. Platinum fell 0.5% to $1,464.56 an ounce, while palladium gained 1.7% to $873 an ounce. (Reuters)