[News Snippets ] | Sunday Observer

[News Snippets ]

8 November, 2020

US Dollar to remain weak

New York (CNN Business) - The United States dollar has been weak for most of Donald Trump’s presidency. Tax cuts, a bigger deficit and several interest rate cuts from the Federal Reserve have pushed the greenback lower. But even if Trump loses to Joe Biden, the dollar may not dramatically rebound anytime soon.
A Biden administration would likely push for even more stimulus for consumers and small businesses because of the Covid-19 pandemic -— especially if a blue wave gives Democrats control of the Senate. This spending would likely weaken the dollar further or, at a bare minimum, keep it relatively flat.


Asia’s richest man loses billions

Mukesh Ambani has long been trying to reduce his company’s reliance on oil. Last week showed why.
The wealth of Asia’s top billionaire fell by about $6.5 billion on Monday after shares in his conglomerate plunged as much as 8.6%, according to the Bloomberg Billionaires index,  which tracks the world’s wealthiest people.
Shares of Reliance Industries dropped in Mumbai after the company posted disappointing earnings late Friday, mainly due to a tough quarter for its giant oil refinery business. Earnings for that unit “were much weaker than our estimate,” analysts at Nomura wrote in a research note following the report.


Oil prices to fall further

The main oil benchmarks fell below $40 a barrel again this week as clouds gathered over the outlook for demand and supply amid a surge in Covid-19 cases in Europe and the United States. And they might have further to fall. 

Reuters’ John Kemp reported on Tuesday that hedge funds had sold enough oil last week to offset the previous week’s purchased that supported prices at around $40 a barrel. But now, the resurgence in Covid-19 is fueling fears of a double-dip recession in two key markets, driving a warier attitude to crude oil.