Fundamental Headlines • Auto-Parts Makers Push for Aid – Wall Street Journal • Private Equity Sees Opportunity in China – Wall Street Journal • GE chief signals appetite for media assets – Financial Times • Toyota's Credit Rating May Be Cut as Fitch Reviews – Bloomberg • Tepper, Barakett Abandon Stocks as Hedge Funds Shrink Holdings – Bloomberg • EURUSD – The Euro-Zone trade deficit held steady at 5.7B for the second consecutive month in September, and may fall back towards the record low reading of 6.4B in July as fears of a global recession intensify. The breakdown of the report showed that exports gained 2.2% from the previous month, but the improvement in trade was offset by a 2.1% rise in imports. However, the depreciation of the euro may help to lower the trade gap over the coming months as cheaper export prices fuel demands from abroad. Meanwhile, Bundesbank President Axel Weber continued to hold a dovish outlook as he said that the ECB will use the appropriate steps to stave off further downturns in the economy, and expects economic activity to remain subdued throughout the fourth quarter. The comments suggests that the ECB may look to lower the benchmark interest rate further over the coming months, which could fuel bearish sentiment for the euro going forward. Discuss the topic and your trade ideas in the EUR/USD Forum. • USDJPY – The preliminary GDP reading for Japan showed that the country is slipping into a recession for the first time since 2001 as economic activity contracted 0.1% in the third quarter, followed by a 0.9% decline in the previous quarter. Fading demands from the global economy paired with higher living costs have certainly taken a toll on the world’s second largest economy, and has stoked increased fears of a global meltdown as the U.S. and Germany head into a recession. Meanwhile, the breakdown of the report showed that capital investments fell for the third consecutive quarter, which suggests that economic activity may deteriorate further over the coming months as firms cutback on spending. Moreover, exports increased 0.7% from the previous quarter, but the unexpected increased was counterbalanced by a 1.9% rise in imports. The dour outlook suggests that Japanese policymakers may increased their efforts in order to avoid a deep and severe recession, and may lead the BoJ to lower borrowing costs in the months ahead as growth prospects turn increasingly bleak. For more news and resources, visit the new Japanese Yen Currency Room.