By Nigel Hodges of Currency Solutions

Lewis Hamilton's very decent showing in the inaugural Singapore Grand Prix and Arsenal's hilarious (for some!) defeat at home to Hull notwithstanding, the last sunny weekend of the year is always a time for some introspection.

Not least for the world's bankers, who continue to be the focus of both the financial and front pages.

Of course, the biggest story in the world at the moment and arguably of the century so far is the US government's USD700 billion bailout of the financial sector, and we make no apologies for the heavy American bias in this week's report.

Analysts had wondered whether the package would strengthen the US Dollar or whether such a level of government debt coupled with its risky nature would destabilise the currency and leave it weak for an extended period. Early indications were that the latter viewpoint was the correct one, but with news from this side of the Atlantic about the nationalisation of Bradford & Bingley and Fortis, the markets are now especially tumultuous.