Open: London Session | Forex, Metals, Oil, Agriculture December 16, 2020



Even as the dollar index is hinting at a further weakness in the dollar, which is good for the rupee, traders need to wait for INR to breach 73.50. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03 per cent lower at 90.44. BL Research BureauThe rupee (INR) posted a marginal loss last session as it ended at 73.64 versus 73.57 against the dollar (USD) on Tuesday. Other investments in the banking industry include $5 billion in Goldman Sachs preferred stock, which generated a multi-billion dollar profit.
On Tuesday, the Indian rupee depreciated by eight paise to settle at 73.63 against the US dollar.


In his writing and research, Sumner specializes in monetary policy, the role of the international gold market in the Great Depression, and the history of macroeconomic thought. In the Sensex pack, Mahindra and Mahindra, Asian Paints, Tata Steel, Bajaj Finance, ONGC and HDFC were the prominent gainers.


The biggest near-term downside risk to oil demand expectations is the United States, predominately due to persistent weaknesses gasoline demand. These assets vary from Permian Basin unconventional assets to a massive TCO legacy position and the massive Gorgon and Wheatstone LNG assets. Chevron – NY Times Chevron is one of the world’s largest oil producers with operations and assets distributed across the world. Chevron Advantaged Portfolio – Chevron Investor Presentation Chevron is an integrated oil producer with a massive and diverse portfolio of assets.
The oil giant in late 2019 made a $5 million venture investment in Pennsylvania’s Finite Carbon, which helps landowners sell their forests as carbon sinks. However, it’s also focused on massively scaling up TCO, a large legacy oil position, at the cost of $45.2 billion. Chevron’s unique differentiator is the company’s focus on super-massive oil projects. For reference, that’s more than 25% of the company’s market capitalization, and it positions the company well for long-term LNG markets.
The company has significant potential at roughly $60/barrel Brent versus ~$50/barrel Brent current prices and ~$30/barrel Brent worst case. The company, even with the incremental debt needed at $30 Brent, can comfortably afford that and have the excess capacity in its portfolio.

United States

Yes, the Fed will earn interest on the bonds it purchases, but it will pay interest on the bank reserves that it injects into the economy. So let’s assume that the deficit is financed by issuing Treasury debt, and the Fed buys the debt with interest-bearing bank reserves. This is because a large permanent increase in the stock of zero interest currency would likely cause the Fed to overshoot its 2% inflation target. U.S total vehicle sales are trending lower in a similar cyclical pattern to 2006 which proceeded the crash.
U.S total vehicle sales have a strong correlation to the revenue of these firms. In that case, there is not likely to be much Fed profit to offset the interest burden on the Treasury. Traders said some depreciation could be expected during the day as market participants await the conclusion of the US Fed meeting. The company is still down over 80% from its price in 2017 and the prospects for the U.S and European auto industries are still unclear.
The company has nearly $260 billion in equity, almost $120 billion of which is its massive position in Apple (NASDAQ: AAPL). Wall Street has been enjoying a series of record highs lately with small-cap stocks leading the way higher.


Yet, as competitors have burst onto the EU market in greater numbers since 2018, Tesla has seen its market share shrink precipitously. Indeed, while Tesla was able to boast approximately 33% EV market share in the EU in Q4 2019, this has fallen to a hair over 10% market share today. Tesla enjoyed years of strong demand and market dominance in many of these key markets, especially in the EU.