I’m watching the news. I think Dubai is a big event. The reason indexes are off
their lows is because most fund managers are global players and already got out
of their overseas positions.
And I think we could see further stock market weakness. Remember, the subprime
crisis was supposed to be contained. For traders the question raised by Dubai
is, who’s next and how badly will the crisis spread? Until we have more clarity
I expect investors will likely buy US dollars for safety.
The analysts at Commerzbank in London believe these companies and others are
now facing losses of up to 50 percent on their investments. Luis Costa from the
EMEA debt team believes Abu Dhabi will come to the rescue, but only on terms
that suit it and its lenders.
Global banking giants like HSBC, Citi, Standard Chartered and Barclays all have
significant exposure to the UAE, of which some will be exposed directly to
Dubai.
Dubai's Debt Woes Signal New Era for Creditors ...
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