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Illustration: Rebecca Zisser/Axios
Saudi Crown Prince Mohamed bin Salman is raking in international capital, and reviving chatter about a possible IPO for Saudi Aramco as the world continues to move past the killing of journalist Jamal Khashoggi.
Driving the news: This week Saudi Arabia rolled out its first-ever bond denominated in euros — a 3 billion euro issue ($3.37 billion) — which was nearly five times oversubscribed.
The big picture: The wild success of Saudi's bond offerings, its strong stock market and continued investor hunger has reinvigorated talk of what would be the largest IPO ever, a public offering of state oil company Saudi Aramco.
The big picture: Even before the murder of Khashoggi, Saudi Arabia had an awful human rights record. And with Khashoggi's killing having negligible impact on its relationship with the U.S., investors continue scooping up Saudi Arabian assets.
Between the lines: The Saudi stock market also is taking off, thanks to its upgrade from international index maker MSCI, which moved Saudi Arabia into its emerging markets index starting this year. The index is followed by close to $2 trillion of global passive flows.
It was the long-expected end of an era for Deutsche Bank, as it announced Sunday it will pull out of its global equities sales and trading business, cut its dividend and slash risk-weighted assets by about 40% in some parts of the business, as part of a restructuring plan to save billions.
What happened: Deutsche's struggles in equities and investment banking are not new. The company's stock tumbled during the financial crisis, after peaking at more than $145 a share in May 2007, and has never recovered.
The U.S. added 224,000 jobs last month. More importantly, nominal average hourly earnings rose by 3.1% year over year, the White House noted in a recent post. "Prior to 2018, nominal average hourly wage gains had not reached 3% since April 2009."
What to watch: The education and health services sector has been been one of the strongest in the economy for much of this year and beyond.
Friday's strong U.S. jobs report certainly got investors to rethink their expectations for the Fed's upcoming July 30–31 policy meeting, but Fed funds futures prices show they still see a 0% chance Jay Powell and company don't cut U.S. interest rates.
Things were finally starting to go right for Turkey, and then President Recep Tayyip Erdogan decided to fire the central bank governor.
Good things were happening: Turkish stocks and bonds had been rallying thanks to a global search for yield that prompted investors to reconsider Turkey despite its myriad problems. The rethink had made the lira the best performing currency in the world against the dollar since early May.
Then they stopped: The lira fell 2% as traders sold, expecting that Erdogan has essentially taken control of the central bank and will work to lower rates in an effort to boost the economy.