“Novice Traders trade 5 to 10 times too big. They are taking 5 to 10% risks on a trade they should be taking 1 to 2 percent risks.” – Bruce Kovner.

1. U.S. Treasury Issues Final “Tax Inversion” Rules — the U.S. Treasury has issued final inversion amendment rules in its effort to tackle “earnings stripping” – a common tax-reduction technique employed by multinationals. The new rules also provide some exemptions for short-term loans and cash pools, and signal further business tax reforms are to come.
2. New Zika Zone Identified in Miami — florida officials have announced a new area of Zika transmission in Miami, which has already infected five individuals, and called on the federal government for funding to help fight the virus. It’s the third established outbreak in the city, a hot zone for Zika because it has both the Aedes mosquitoes that transmit the disease and an influx of travelers from other areas where the virus is spreading.
3. Fed September Meeting Minutes Show Split On Rate Hike — minutes from the September FOMC meeting show a split among many members thought raising rates would be warranted “relatively soon” if the U.S. economy continued to strengthen, but internal divisions remained over the timing of the next move. A few participants also raised concerns that waiting too long could trigger a recession, while more dovish officials wanted more evidence that inflation is firming before hiking interest rates.
4. OPEC Production Hits Record Highs — OPEC’s oil production rose to record highs in September, rising by 160K barrels to 33.6M bpd, underscoring the challenges the group faces as it seeks to curtail output. “At this stage, it is difficult to assess how the OPEC supply cut, if enforced, will affect market balances,” the IEA said in its latest monthly report. Yesterday, WTI pushed above $51/bbl after Vladimir Putin said Russia was ready to join an output freeze, but not one world producer has willingly taken one solitary barrel off the table this fall.

The week ahead — Economic data from Econoday.com: