Dubai’s debts spook lenders November 26, 2009 THE POOR credit status of Dubai’s main banks has sent shockwaves through the financial world. Investors are running scared as the emirate – which has experienced huge economic growth over the past decade – runs into trouble. Emirates Bank International, National Bank of Dubai, Mashreqbank and Dubai Islamic Bank were all put on credit watch [...]
Q & A : What next for DubaI? November 26, 2009 Q. WHY ARE WORLD MARKETS NOW SO CONCERNED ABOUT DUBAI’S DEBT PROBLEM? A. European banks are exposed to about half of Dubai’s $80bn (£48.5bn) debt pile. The emirate’s debt moratorium triggered fears that those banks’ bad debts could worsen again, endangering the global recovery. Analysts at Credit Suisse said European banks could face a 5 [...]
Concern over Dubai’s debts takes toll on Britain’s shares November 26, 2009 Britain’s top shares ended at a three-week closing low yesterday, pressured by hefty falls in the banking sector as concerns over Dubai’s ability to pay its debts took a toll on confidence. The FTSE 100 ended down 3.2 per cent, or 170.68 points, at 5,194.13, its lowest close since November 6, and losses on the [...]
European shares in 3.3 per cent slump November 26, 2009 European shares slipped 3.3 per cent yesterday to record their biggest one-day percentage drop in seven months as concerns about debt problems in Dubai weighed on the market, with banks the major fallers. The pan-European FTSEurofirst 300 index of top shares closed down 33.81 points at 988.14 – its lowest close in three weeks. “The [...]
Take a punt on how much further British banking stocks can rise November 25, 2009 THE Bank of England’s secret deal which saw it lend ailing Royal Bank of Scotland and HBOS an astonishing £61.6bn last October was a timely reminder of just how bad the situation was this time last year. The global financial system was struggling to rebalance itself and many banks had either collapsed entirely or been [...]
Vodafone to close final salary scheme November 25, 2009 VODAFONE is set to shut its £755m final salary pension scheme to 4,000 staff, in a fresh round of cost-cutting by chief executive Vittorio Colao. Colao is aiming to offset plummeting revenue at the mobile phone operator. The firm is following the lead of Barclays, Whitbread and Fujitsu, who are also blocking current workers from [...]
United Utilities feels the pressure in the recession November 25, 2009 UNITED UTILITIES, the biggest water company in the UK, yesterday said its profit had risen by one per cent to £370m, but that it had been hit by tumbling demand from businesses and homes in the downturn. Turnover rose 0.5 per cent to £1.2bn in the six months to 30 September, and the group proposed [...]
Kraft asks its bankers for exclusivity November 24, 2009 KRAFT has sealed “exclusivity” deals from the banks it is using to finance its £10.3bn ($17bn) bid for Cadbury – leaving other contenders with fewer lenders to bankroll their proposals. The US food giant has tied banks including Citigroup and Deutsche Bank into agreements where they cannot operate for its rivals. Family-owned Ferrero of Italy and US [...]
The FSA must make sure that its tough new approach doesn’t backfire November 24, 2009 FINANCIAL services firms have come under the increasingly intense gaze of the Financial Services Authority (FSA) in recent months. Its supervisory approach has changed dramatically as a result of the credit crisis. The upshot of this is that the risks for somebody who is FSA authorised, or is an “approved person” at an FSA authorised [...]
Ex-FSA boss to grow deals at JC Flowers November 24, 2009 JC Flowers, the US private equity firm, has strengthened its ranks in the City and Europe by hiring former Financial Services Authority boss Callum McCarthy and veteran Australian banker David Morgan. London managing director Ravi Sinha will step down to make way for the high-profile recruits to the $11bn (£6.6bn) fund. JC Flowers was founded [...]