Fundamental Headlines • GM, Its Board Race to Craft a Convincing Viability Plan – Wall Street Journal • Morgan Stanley Blitzes Into Banking – Wall Street Journal • AIG sells Swiss private bank to Abu Dhabi group – Financial Times • BayernLB to Eliminate 5,600 Jobs in Reorganization – Bloomberg • U.S. Treasury Yields Drop to Record Lows on Recession Concern – Bloomberg • GBPUSD – The U.K. manufacturing PMI index contracted for the seventh consecutive month to reach a record low of 34.4 from a revised reading of 40.7 in October despite expectations for a 39.7 clip. The breakdown of the report showed that new orders and employment reached a record low in November, and firms could be forced to cut production even further as demands from home and abroad deteriorate. Meanwhile, mortgage approvals in the UK edged lower to 32K from 33K in September as falling home values paired with the ongoing turmoil in the credit market curbed demands for home investments. In addition, net lending for home purchases slipped to 0.5B from 1.5B in September, while net consumer credit increased to 0.8B from 0.3B. The data continues to reflect a dour outlook for the U.K. as the economy faces its first recession since 1991, and conditions may only get worse next year as a result of the ongoing weakness in the housing market. Discuss the topic and your trade ideas in the GBP/USD Forum. • EURUSD –Retail spending in Germany fell 1.6% in October following a 1.0% decline in the previous month despite expectations for a 0.5% gain. The breakdown of the report showed that discretionary spending of clothing and shoes plunged 4.4% from September, while sales for furniture slipped 1.6%. In addition, Germany’s manufacturing PMI index fell for the fourth straight month to 35.7 in November from an advanced reading of 36.7 as fading demands from home and abroad pushed businesses to lower outputs. The breakdown of the report showed that new orders slumped to its lowest level since recordkeeping began in 1996 as the index plunged to 29.1 from 39.2 in October, while the employment component dropped to 43.6 from 47.1. Furthermore, manufacturing activity in the Euro-Zone contracted for the sixth consecutive month as the final PMI reading slipped to 35.6 from an initial reading of 36.2. A deeper look at the report showed that new orders declined to 28.8 from 36.2 in the previous month, while the employment component fell to 41.0 from 44.4. The data continues to reflect a dour outlook for the euro-region, which could prompt the European Central Bank to lower borrowing costs well into the next year as growth prospects deteriorate at a record pace. Discuss the topic and your trade ideas in the EUR/USD Forum. • USDCHF – Manufacturing activity in Switzerland slipped to its lowest level since recordkeeping began in 1995 as firms reduced outputs at a record pace in November. The manufacturing PMI index fell to 35.2 from 47.0 in October as fading demands from the global economy prompted businesses to cut production, and conditions may only get worse as the Euro-Zone and the U.K., two of Switzerland’s biggest trading partners, heads into a recession. Fears of a severe economic downturn has lead the Swiss National Bank to lower the 3-month target LIBOR rate by 175bp to 1.00% over the last two months. For more news and resources, visit the new Swiss franc Currency Room.