Tony Cross – CEO of Monk Communications – and James Hughes – Chief market commentator for eToro – discuss that latest news on a Federal Reserve interest rate hike, and why the declining oil prices are a disaster for North Sea oil.
Fear in the driving seat of global selloff
Following an 8% falloff of Chinese stocks, Tony Cross and James Hughes talk about why the market response may be due to overhyped fears of a financial crash. This also means that an interest rate hike in the US will most likely not occur until 2016.
Oil continues to cause trouble
With oil prices now below $40 a barrel, companies such as North Sea Oil, who have extremely high costs are facing the risk of having to scrap their operations. Many companies are making substantial losses on the supply side of the market, and will continue to do so until a price bounce occurs, or develops in cheaper and more efficient technologies are made.
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