“The easiest thing to do is prepare. If you don’t, on behalf of the other market participants, we thank you.” – unknown

1. Bank Shares See More Brexit Fallout — global banks across the globe are taking another serious beating post-Brexit. The sector is getting battered on fears that fragile recoveries at many financial institutions will be delayed and that volatile markets could claim scalps. Sources have also revealed that Italy is considering a €40B capital infusion into its banks.
2. Panama Set For Opening of Canal Expansion — Panama officially opened an addition to its legendary sea canal last week, capping a nine-year, $5.4B expansion project that will double shipping capacity and affect global trade routes. A third lane has been added to the waterway that can accommodate a new generation of super cargo ships large enough to carry up to 14K containers, compared with around 5K currently.
3. S&P Strips U.K.’s AAA Credit Rating On Brexit Vote — the U.K. was stripped of its AAA credit rating by S&P Global Ratings last Monday after British voters last week voted to pull the country out of the European Union. S&P lowered the rating to AA. The downgrade also reflects worries about the risks of a “marked deterioration” in the U.K.’s external financing conditions given the country’s already elevated gross external financing requirements, S&P said. Competing ratings firms Moody’s and Fitch had lowered the U.K. credit rating ahead of last week’s referendum.
4. Oil Set For Best Quarter Since 2009 — oil is headed for its biggest quarterly advance since 2009, rising 29% in the last three months as falling American supply adds to speculation that the global surplus is easing. The latest data from the EIA showed U.S. crude stockpiles dropping to the lowest since March and output falling for a third week. Furthermore, supply disruptions in Nigeria and Canada, as well as fears over strike outages in Norway, have also given the commodity a big lift.
5. Driverless Car Collaboration Between BMW, Intel & Mobileye (MBLY) — BMW AG, Intel Corp.(INTC) and Mobileye NV (MBLY) are working to develop autonomous-car technology. BMW has been a client of Mobileye, along with General Motors Co. and Tesla Motors Inc. As automakers and their suppliers race to create systems to replace human drivers, most companies are betting on some form of artificial intelligence, which requires powerful processing. Senior executives from each company will hold an event on Friday to discuss the driverless-vehicle initiative.
6. Puerto Rico Set For Its Largest Default to Date as Obama Signs Rescue Bill — Puerto Rico is set for its largest default to date as $1.9B in debt payments come last friday, including more than $1B in general obligation bonds, the island’s highest tiered credit that carries a constitutional lien on revenues. Governor Alejandro Garcia Padilla declared the moratorium on GO debt payments just minutes after President Obama signed a law giving the territory access to a restructuring process that will put its finances under a federal oversight board.

The week ahead — Economic data from Econoday.com: