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Making the Case for a German Bailout of Deutsche Bank

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Oil deal expectations fade, Trump and Clinton are neck and neck in a pre-debate poll, and Deutsche Bank falls to a new low. Here are some of the things people in markets are talking about today.

Oil deal unlikely

Hopes of a deal to limit crude production at talks in Algiers this week faded after Saudi Arabia said the meeting would be an opportunity to consult, rather than take a decision on output levels. With many producers still having conflicting priorities, the best chance of a deal now appears to be at the regular OPEC meeting in Vienna in November. A barrel of West Texas Intermediate was trading at $44.82 at 5:50 a.m. ET, after losing almost $2 on Friday for its biggest one-day drop since July 13. 

Deutsche Bank tumbles

Shares in Deutsche Bank AG dropped to 10.63 euros in trading this morning, a record low. A German magazine reported last week that Chancellor Angela Merkel has ruled out any assistance for the lender, and said that she would not be helping with the legal problems the bank is having in the U.S. Deutsche Bank shares were off the day's lows to trade at 10.75 euros as of 5:56 a.m. ET.

Turkey junked

In an interview in New York on Thursday, Turkey’s President Recep Tayyip Erdogan said he is not worried if his country is rated below investment grade. Moody's Investors Service cut Turkey's sovereign credit rating to junk late on Friday in an early test of the president's resolve. This morning, Turkish assets suffered their worst selloff since July's attempted coup, with the lira dropping to its lowest level in eight weeks, the Borsa Istanbul 100 Index becoming the day's worst performer of the gauges globally tracked by Bloomberg, and the nation's dollar-denominated debt sinking the most since July. 

Markets are down

Overnight, stocks in Asia dropped the most in two weeks, with the MSCI Asia Pacific Index down 0.9 percent and Japan's Topix index losing 1 percent. In Europe, the Stoxx 600 Index was 1.3 percent lower at 6:13 a.m. ET as banks and energy producers were hit. An Ifo survey which showed German business sentiment at the highest level since 2014 failed to lift equities. S&P 500 futures were down 0.6 percent. In currency news, the British pound has hit its lowest level against the euro since mid-August on rising fears of a "hard Brexit."

Neck and neck

A Bloomberg national poll released this morning shows that the race for the U.S. presidency has become a dead heat, with both the Republican and Democratic nominee tied at 46 percent. The close poll comes ahead of the critical first debate between the two leading candidates, which begins at 9 p.m. ET tonight. 

What we've been reading 

This is what's caught our eye over the weekend.

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