Crude oil prices are set to drop further still. Prices have already sunk a dramatic 17% after the Organization for Petroleum Exporting Countries met on 27^th November; they decided against cutting production, despite the new high supplies from US shale producers. Now, to add to the pressure, OPEC has said in their monthly report that global demand for crude is weakening.

As prices drop, discord heightens. The economies of OPEC countries are all heavily dependent on the commodity, and current prices are below what 10 of the 12 members (Kuwait and Qatar are the exceptions) require so that their annual budgets break even.

The group’s largest member, the world’s biggest oil producer, Saudi Arabia, is staying stubborn. “Why should I cut production?” asked the country’s oil minister.

Saudi Arabia has huge financial reserves and a long-term interest in pushing other oil producers aside. Yet it is facing ever-increasing opposition. An Iranian Oil Minister expressed concern that prices could drop to below $50 per barrel. Iraq is being forced to offer the biggest price discounts in Asia in 11 years. Venezuela’s Foreign Minister added his voice to the debate too: “Our position on OPEC is that they defend the fair price of our oil…we don’t believe in the free market.”

Is the Ruble a Risk?

The Russian government is desperate to ensure that the slide of the Ruble doesn’t continue into 2015. The currency has lost 40% this year, largely due to falling oil prices and the international sanctions imposed during Russia’s war in Ukraine. That’s why Prime Minister Dmitry Medvedev is now encouraging large companies to curb their sales of foreign revenues, at the same time as asking the Russian public to be patient.

He warned yesterday that people risk losing out long term if they convert their savings into foreign currency, and repeated the Kremlin’s official line that they are not responsible for imposing or lifting the sanctions. He also said that he keeps his own money in Rubles. Will the Russian public believe and trust him?

In hopes of expanding their businesses into the Chinese market, the CEO’s of three major tech companies (Apple, Facebook, and Amazon), met this week with the Chinese minister of Cyber Administration, Lei Wei. Lei Wei visited the US on what some say was a diplomatic mission.

Upon visiting the offices of Facebook, Minister Wei was delighted to see a copy of “The Governance of China,” a book written by Chinese President, Xi Jinping, on Zuckerberg’s desk. As mentioned in an earlier Daily News Bit, Mark Zuckerberg does speak Mandarin Chinese, and was not afraid to showcase his skills in front of the Chinese diplomat. With China’s population equaling over 1 billion people, and the country industrializing rapidly, America’s top tech CEO’s know that Chinese officials are a good friend to have on their side.

Due to the Communistic nature of China’s government, censorship in internet access is a big issue. We will just have to wait and see whether, in the future, China’s Internet regulations, controlled by Lei Wei, will turn a new leaf.

Starbucks Plans Expansion

USD/JPY Tops 121

Over the past 2 years, the USD has continued to climb against the Japanese Yen. With the unbelievable numbers coming in on American Non-Farm Payrolls this past Friday, analysts were not shocked that the pair topped 121 in reaction to the data. Keep your eyes on the USD, and have a look for yourself below at a 2-year chart of the USD/JPY pair.

This month’s Non-Farm Payrolls report astonished financial analysts all across the board. Just listen to what these three influential analysts said in the video below.

In short, at 5.8 percent, the jobless rate has hit a six-year low.

In addition, payrolls increased by 321,000, surpassing the expected number of 225,000. This strength in the US jobs market is especially important because it complements November’s number of 243,00, which beat the estimated 214,000,

Riding on these numbers and other factors, the US Dollar Index is currently hovering around a 6-year high.

Comcast and Netflix fight over House of Cards

The hit show starring Kevin Spacey is currently being fought over by two communications giants, Netflix and Comcast. Netflix, a subcription-based, online-streaming service had the rights to distribute the show for the first two seasons, but its monopoly over the political drama which follows the naughty pursuits of Frank Underwood (played by Kevin Spacey) is soon coming to an end.

Comcast, meanwhile, is a cable giant, which makes its money via television sets, not the internet. House of Cards is produced by Sony, and by simultaneously offering the rights to House of Cards to Comcast, Netflix will have to pay a little more to reserve the exclusive distribution rights.

Last week, the European Parliament voted (384 against 174) to back a motion against the giant search engine, Google. By licensing technology through subsidiaries across the world, Google has been tactically cutting costs in tax fees. The official complaint against Google also includes accusations that the search engine favors certain businesses above others even when objective searches are made on the platform. For example, when someone searches “buy a scarf” on Google, Google manipulates which companies appear on the first page of the search.

The ramifications of Google’s monopoly are far spread, and run deeper than the surface. Some analysts are speculating that a broader American-European political relations game is also being played out here. European officials are irked that Google, an American company, dominates 90% of the search-engine market in Europe.

Much like the recent Microsoft-China clash, major corporations are continually gaining both economic and political influence which sometimes make the corporation seem more like a political entity (resembling a state), and not just a revenue-generating organization. Reports state that the EU’s fine against Google could be as high as $5 billion.

Apple’s iPod Under Heat

A class-action anti-trust law-suit against Apple is currently in motion. The case covers Apple’s behavior between 2006 and 2009, allowing only music purchased from iTunes to be played on iPods. Apple has said that the exclusivity granted to iTunes music was for security and quality purposes, and not aimed at annihilating the competitors. Check out the story and more tech news in the video below:

AUD/USD News

Data releases from Australia are showing a positive recovery of the economy as a whole. Here are some key points to keep in mind, affecting the AUD:

• Australia’s GDP is around $1 trillion, and analysts expect a third-quarter annualized growth rate of 3.1%.
• 1 AUD is currently trading for about 0.84092 USD.
• The Reserve Bank of Australia confirmed this week that the AUD is overvalued.
• Australia’s commodities exporters have taken a hit recently due to a decrease of demand from Chinese importers.