Fundamental Headlines • A New Odd Couple: Google, P&G Swap Workers to Spur Innovation – Wall Street Journal • U.S. Car Makers Fail to Improve Resale Values – Wall Street Journal • Citigroup liquidates fund that fell 53% in a month – Financial Times • Sumitomo Mitsui to Sell Securities to Raise Capital – Bloomberg • Toyota Cuts Output; Nissan Predicts `Zero' Profit – Bloomberg • GBPUSD – The Bank of England Minutes from the November 6th policy meeting showed that the MPC voted unanimously to lower the benchmark interest rate by 150bp to 3.00% from 4.50% in order to stave off further downturns in the economy. However, the central bank noted that the policymakers considered lowering borrowing costs even further, but refrained to avoid a shock to the market. In addition, the BoE stated that a ‘very significant reduction in the bank rate’ is needed in order to meet the bank’s 2% target for inflation, and went onto say that they may lower borrowing costs by more than 200bp over the foreseeable future as growth prospects falter. The comments suggests that economic activity is slowing at an even faster pace than the MPC had initially expected, and may aggressively lower the interest rate well into the next year in order to avoid deflation. Discuss the topic and your trade ideas in the GBP/USD Forum. • EURUSD –Construction outputs in the Euro-Zone plunged 1.3% in September, and may fall further over the coming months as the economy slips into a recession. A breakdown of the report showed that building activity in Spain fell 7.8% from the previous month, followed by a 1.7% decline in Germany. The data suggests that the European Central Bank will deliver another rate cut at the December 4th policy meeting, and may continue to ease policy further well into the next year as growth prospects deteriorate. Meanwhile, ECB President Trichet stated that the financial crisis will be a ‘very turbulent and difficult episode,’ and went onto say that a joint effort will be needed in order to restore confidence in the financial market. Discuss the topic and your trade ideas in the EUR/USD Forum.