MONEY MASTER

Malaysia’s economy expanded by 5% in Q4 2024 , surpassing the  4.8% forecast  and driven by a  strong services sector, resilient household spending, and investment growth . 📊 Key Economic Highlights 🔹  Q4 2024 GDP Growth:   5% y-o-y  (above the 4.8% estimate). 🔹  Full-year 2024 GDP Growth:   5.1% , up from  3.6% in 2023  but slightly below the  5.4% growth in Q3 2024 . 💬  BNM Governor Abdul Rasheed Ghaffour:   "Malaysia’s growth will continue to be supported by robust investments, resilient household spending, and export growth despite global challenges." 📈 Sector Performance in Q4 2024 Services:  Grew  5.5% y-o-y , leading the economy. Manufacturing:  Increased  4.4% y-o-y . Construction:  Surged  20.7% y-o-y , reflecting strong infrastructure activity. Mining:  Declined  0.9% y-o-y . Agriculture:  Contracted  0.5% y-o-y . 💰 Current Account & Trade 🔹  Curre...

The UK government reported a  smaller-than-expected budget deficit in November , offering a brief respite for  Finance Minister Rachel Reeves , who faces mounting challenges to balance public finances amid a slowing economy and rising inflation. Key November Borrowing Figures Public Sector Net Borrowing : £ 11.249 billion , lower than the £ 13 billion  forecast by economists polled by Reuters. A  £1.8 billion reduction  in inflation-linked debt compensation due to a  0.3% fall in the retail price index (RPI) in September helped narrow the deficit. Year-to-Date Borrowing April–November 2024/25 Financial Year : Borrowing totaled £ 113.2 billion , similar to the same period in 2023/24. Despite November’s improved figures, borrowing has exceeded expectations in  eight out of 11 months  in 2024. Challenges Ahead for Reeves Fiscal Rules Under Strain : Reeves pledged to balance  day-to-day spending with tax revenues  by the end of the decade. P...

Key Takeaway: Goldman Sachs joins Morgan Stanley in predicting the S&P 500 will hit 6,500 by the end of 2025 , driven by US economic growth , corporate earnings expansion , and Fed rate cuts . Goldman Sachs has projected a 10.3% upside for the S&P 500 from its last close of 5,893.62, aligning with Morgan Stanley's forecast. The bullish outlook comes as US corporate earnings are expected to grow by 11% , alongside a real GDP growth rate of 2.5% in 2025 . Key Drivers of Growth Broad Earnings Expansion: Both firms expect earnings growth to remain robust, fueled by improving business cycle indicators and the Federal Reserve's anticipated rate cuts. 'Magnificent 7' Stocks: Goldman predicts continued outperformance by Amazon, Apple, Alphabet, Meta, Microsoft, Nvidia, and Tesla. However, the margin of outperformance is expected to narrow, with the "Magnificent 7" outpacing the rest of the S&P 493 companies by only 7 percentage points , the slimmest mar...

Key Takeaway: Japan’s economy expanded by an annualized 0.9% in Q3 2024 , a slowdown from the previous quarter, as weak capital spending weighed on growth , though a surprising rise in consumption provided a bright spot. TOKYO (Nov 15): Japan’s economy grew at a slower pace in Q3 due to tepid capital expenditure and falling external demand , with net exports reducing GDP growth by 0.4 percentage points . However, private consumption surged by 0.9% , outperforming forecasts and offsetting some of the slowdown, government data showed. Key Highlights: GDP Growth: Annualized growth slowed to 0.9%, down from a revised 2.2% in Q2 but slightly above the 0.7% market estimate. On a quarterly basis, GDP rose 0.2%. Consumption: Private consumption, making up over half of Japan's GDP, jumped 0.9% , driven by a recovery in auto production and temporary income tax cuts. Capital Spending: Business investment fell 0.2%, matching expectations, as global economic weakness hit demand for machine...

  United Overseas Bank (UOB) expects Malaysia to revise its 2024 GDP growth target to 4.5% to 5.5% , up from the current 4% to 5% , during the upcoming Budget 2025 announcement on Oct 18 . This revision reflects the stronger-than-expected economic performance in the first half of 2024. UOB's Quarterly Global Outlook 4Q 2024 report highlighted that Malaysia's GDP growth reached 5.1% in the first half of 2024, surpassing earlier estimates. As a result, the bank raised its full-year GDP forecast to 5.4% , up from its previous prediction of 4.6% . Several key factors are driving this upward revision: Global tech cycle recovery Increased tourism activities Continued government cash aid to targeted groups The implementation of budget measures and national master plan initiatives UOB also noted that the seasonally adjusted growth rate rose to 2.9% quarter-on-quarter in the second quarter (2Q2024), marking the highest growth in two years and indicating steady recovery momentu...