• 26 of 27 European Union nations agreed to plans leading to tighter fiscal integration. The U.K. stopped short of agreement without provisions protecting its financial services industry. Absent unanimous agreement, the governing structure within the union does not support enacting the proposed treaty changes. From the Financial Times.
• Moody’s cut ratings on three of France’s large banks due to declining funding conditions and still high exposure to weakening sovereign debt. BNP and Credit Agricole were cut to double A3, and Soc Gen was cut to single A1. From the Wall Street Journal.
• The Chinese Yuan has traded at the bottom of its established range for 7 straight sessions. Traders seem to have shifted focus to potential export weakness from China. In that scenario the government would most likely stabilize the exchange rate, or even manage it lower to help exporters. From the Wall Street Journal.
• A raft of data out of China points to slowing output growth and tamed inflation. Industrial output slowed to 12.4% in November from 13.25% in October. The number was the weakest since August 2009. It’s expected to see more accommodating policy roll out in China. From Reuters News.
• The average hedge fund manager has lost 4.37% year-to-date through November. Barring a miraculous recovery in December, hedge fund mangers are looking at the second worst annual performance rate in 20 years behind 2008. High volatility and correlation are plaguing the funds. From The Financial Times.