Market Action

• Energy shares led the market this week, rising over 4% thanks to news that OPEC agreed to broad principles of a production cut. The cartel will target a range of production and final details will be worked out in November.
• The U.S. Department of Justice is weighing a $14 Billion fine on Deutsche Bank for how it packaged and sold assets during the Financial Crisis. The news sent shares to their all time low. The German government has said a bailout will not be forthcoming.
• Japan’s headline inflation figures continue to be in negative territory and core inflation fell last month to its lowest level in 18 months.
• UK growth came in higher than expected for the second quarter but still weak overall. The Office for National Statistics reiterated that the Brexit vote did not show any signs of an immediate shock.
• Italy has set December 4^th as a referendum for constitutional reforms aimed at streamlining the electoral and legislative systems. PM Renzi has indicated he will resign if he loses. He currently trails in polls by roughly 10%.
• Global bond issuance year-to-date is at its fastest pace since 2007 according to an analysis by Dealogic released this week.
• The yuan will officially join the IMF’s Special Drawing Rights basket tomorrow. The currency still makes up a small portion of global reserves but China hopes this status will help accelerate usage.

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