Highlights
- The US labour market deteriorated sharply in November.
- G7 leading economic indicators are declining at an alarming pace.
- The monetary transmission mechanism remains impaired.
- Brent crude oil briefly fell below $40 a barrel last week.

Views
- US non-farm payrolls fell 533,000 in November and are expected to continue to decline by 300,000-400,000 a month for the next six months.
- The global PMI hit its lowest level on record in November and until monetary transmission re-normalises, leading indicators are likely to continue declining.
- Commercial banks continue to raise cash levels on their balance sheets at the expense of household and corporate sector lending. Central banks have a number of additional policy options available to them to combat the credit crisis.
- It appears as if speculators may increasingly be participating in the oil sell off.

....