## Global Markets in Turmoil: Oil Plunges, TGI Friday’s Files Bankruptcy, and Political Tensions Rise
The global markets experienced a turbulent week, marked by a sharp decline in oil prices, a major restaurant chain filing for bankruptcy, and escalating political tensions. Let’s delve into the key developments:
Oil Prices Take a Dive:
Crude oil prices witnessed a significant drop, declining by 4% in the last five days. This downturn was primarily driven by record-breaking US crude output, outweighing a potential retaliatory strike by Iran against Israel. While Brent futures saw a slight rebound on Friday, closing at $73.10 a barrel, and WTI crude gained 23 cents to settle at $69.49, the week overall witnessed a notable decline in both benchmarks.
Berkshire Hathaway’s Cash Pile Soars:
Warren Buffett’s Berkshire Hathaway Inc. announced a record-breaking $325.2 billion cash pile for the third quarter. This significant increase reflects Buffett’s cautious approach to acquisitions while trimming some of his major equity stakes, including a 25% reduction in his Apple Inc. holdings.
TGI Friday’s Files for Bankruptcy:
Adding to the economic woes, TGI Friday’s, a popular casual dining chain, filed for Chapter 11 bankruptcy in Texas. The company attributed its downfall to shifting consumer habits amidst a cost-of-living crisis and intensified competition from fast food options.
India Warns Canada Amid Diplomatic Tensions:
India issued a strong warning to Canada, deeming allegations made against Union Home Minister Amit Shah by the Canadian minister as ‘absurd’ and ‘baseless’. The Ministry of External Affairs spokesperson, Randhir Jaiswal, emphasized that such irresponsible actions would have serious consequences for bilateral relations, prompting India to summon the Canadian High Commission representative. These allegations stem from a claim by Canada’s Deputy Foreign Affairs Minister, David Morrison, who accused Shah of orchestrating a campaign targeting Sikh separatists in Canada.
Trump Victory and the US Fed’s Independence:
With the US election outcome looming, concerns have arisen regarding the independence of the US Federal Reserve if Republican candidate Donald Trump wins. John Hardy, chief macro strategist at Saxor, expressed concerns that Trump’s economic policies, particularly his inclination towards tax cuts, could potentially compromise the Fed’s autonomy and lead to further expansion of the US deficit.
Political Apology in India:
In a political development within India, Shiv Sena (UBT) leader Arvind Sawant issued an apology for his alleged ‘imported maal’ remark against Shaina NC, a candidate from the Shiv Sena party. He attributed his comments to being ‘deliberately targeted’ and denied any intention to insult a woman. The apology comes after a day of controversy surrounding his derogatory statements.
India Dominates in Mumbai Test:
On the sporting front, India’s Ravindra Jadeja and Ravichandran Ashwin combined to take seven wickets as New Zealand struggled to 171/9 in their second innings on Day 2 of the third Test in Mumbai. The Indian bowlers put on a stellar display, demonstrating their dominance in the series.
