OPEC was said to be "close" to reaching a deal to cut supply by 1.4 mmbpd, assisted by a 600kbpd cut coming from non-OPEC nations. However, as Reuters adds, if such a deal is agreed it would be conditional on non-OPEC involvement as OPEC would need non-OPEC members, such as Russia to agree to the 600kbpd and may require another meeting as early as December.
European, Asian stocks rise as do S&P futures as OPEC ministers gathering in Vienna appeared to be set to announce a deal to cut oil production and prop up global prices. Oil has surged over 7% as a result, also pushing US TSY yields and the dollar higher.
In the latest scandal set to rock Germany, Spiegel reports that a German intelligence officer has been arrested over a suspected Islamist plot to bomb the agency's headquarters in Cologne, raising fears that the spy agency itself has been infiltrated. The 51-year-old official had made a "partial confession" to the plot, Spiegel reports.
With the last day of OPEC pre-negotiations almost over, the latest from Vienna is that Iran and Iraq appear to have softened their positions ahead of a crucial OPEC meeting on Wednesday, however as the WSJ reports, "it may not be enough to satisfy Saudi Arabia’s demands for a broad-based oil-production cut." Here are the latest hurdles to reach a deal.
"We find it impossible to imagine the current QE programme being use to intervene in Italy without prior approval from the Governing Council. Finally, even if the ECB were minded to intervene in Italy, bond yields would likely have to rise dramatically from current levels before it acted." - JPM
Last week, the newly formed group “Veterans Stand for Standing Rock” called on veterans to nonviolently stand up to militarized law enforcement at the site of the Dakota Access Pipeline protests. Since its initial call to action, the veterans’ movement has grown exponentially, from a couple hundred veterans to their maximum capacity of 2,000.
In the first of what Mike Pence called "several very important announcements," Politico reports that former Labor Secretary Elaine Chao is set to be announced later Tuesday as President-elect Donald Trump’s choice to lead the Department of Transportation.
In what appears to be a material shift in the perceived OPEC balance of power, while Iran (and Iraq) have so far refused to concede to Saudi demands for production cuts, moments ago Reuters reported that in what can only be described as a demonstration of power, Iran proposed that it be Saudi Arabia that foots the entire proposed production cut, by reducing its own production to 9.5 million barrels.
At least seven members of Philippines President Rodrigo Duterte's security team and two soldiers were injured in a roadside bombing ambush by suspected Muslim militants. The attack took place ahead of the president's planned visit to the south of the country, AFP reported citing the president and the Armed Forces.
In a report confirming that the ECB is preparing for a rerun of a post-Brexit scenario, Reuters writes that the ECB is ready to temporarily step up purchases of Italian government bonds if the result of next Sunday's crucial referendum "rocks markets" and sharply drives up borrowing costs for the euro zone's largest debtor. BTP futures briefly spike higher, gaining ~30 ticks in 2 minutes, to session high of 135.46 following the news.
In a choice that confirms Trump's intentions to dismantle Obamacare, Reuters reports that President-elect Donald Trump will shortly announce he has chosen vociferous Obamacare critic Tom Price (R. Ga), an orthopedic surgeon from Georgia, as his Health and Human Services secretary to help him overhaul the U.S. healthcare system.
A plane carrying 81 people, including top Brazilian football team Chapecoense, heading for the biggest game in its history, crashed on its approach to the city of Medellin in Colombia. 76 of those on board have perished.