The yield on German two-year notes drops to a record low as China’s devaluation of the yuan added to concern the world’s second-largest economy will curb global growth. U.S. Treasuries climbed as the People’s Bank of China cut its reference rate for the yuan for a second day. Source Bloomberg
The European Union is backing former Nigerian finance minister Ngozi Okonjo-Iweala to head the World Trade Organization, sending a signal of trust in Africa, an EU official said on Monday.
Okonjo-Iweala and South Korean trade minister Yoo Myung-hee are vying to be the first female leader in the WTO’s 25-year history, replacing Brazilian Roberto Azevedo, who quit a year earlier than expected at the end of August. Source Reuters
The US State Department on Oct. 20 widened the scope of sanctions against the Nord Stream 2 natural gas pipeline and warned companies involved in the final installation that they face sanctions if they do not wind down activities within 30 days. Source Spglobal
Whether or not S&P Global Ratings downgrades Italian debt this week is a coin toss, according to Deutsche Bank AG.
“We think it’s a 50-50 call as both an unchanged outlook as well as a downgrade could be justified,” wrote Ioannis Sokos, a strategist at Deutsche, citing S&P’s outlook criteria from April. Source Bloomberg
