Dirhams & Dollars

US politics are spilling over into global markets a wee bit more than usual this week. First, the loss of the House of Representatives to the Democrats in last week’s US election and the impending gridlock it is expected to have on Washington seems to have markets more than a little on edge. All it took to start a selloff was Apple’s announcement that the sales of iPhones failed to show any growth in the previous quarter. It wasn’t long after that the entire tech sector, and then US markets, were getting hit hard. But if stock markets are getting it bad, then oil markets are even worse. After the US sanctions on Iran failed to have the desired effect thanks to some last minute exemptions, the oil market is now facing a glut. Prices have fallen almost $19 a barrel since September. What’s going on? Sarah, Ed and I hash it out, trying to figure out a reason - and then arguing about it.