Categories: Bidaai Tags: , 2009, 30, 30th, Babul, Bidaai, Full, Ka, November, on, Part, Parts, Sapna, watch
Dubai World debt ‘not guaranteed’
The Dubai government has said it will not guarantee the debt of Dubai World, which caused global panic because it cannot pay back creditors immediately.
The statement came after stock markets in Dubai and Abu Dhabi saw sharp falls.
“[Creditors] think Dubai World is part of the government, which is not correct,” said finance minister Abdulrahman al-Saleh.
Abu Dhabi’s main stock market lost a record 8.3%, while Dubai dropped 7.3% – the most in a year.
“Creditors need to take part of the responsibility for their decision to lend to the companies,” Mr al-Saleh told Dubai Television.
The central bank of the United Arab Emirates (UAE) has said it is setting up a facility to provide banks with extra liquidity, as it seeks to battle perceptions that Dubai cannot support its own companies.
 |
 Greece and Latvia are paying more for their debt, thanks to Dubai  Stephanie Flanders, BBC economics editor
|
Mr al-Saleh’s statement caused some surprise in Dubai as people who invested in Dubai World effectively did so on the assumption that the government would guarantee them, BBC Middle East business reporter Ben Thompson said.
There is a very grey area between business and government in Dubai, he added.
‘West exaggerates’
On the Dubai bourse, construction and financial stocks slumped nearly 10%. The debt-ridden Dubai World fell 15%.
|
ANALYSIS
By Ben Thompson, Middle East business reporter, Dubai
When it came the fall was hard and fast. After the Eid holiday, this was the first opportunity investors here had to make their feelings known. And that they did. Foreign investors, it seems, were the ones pulling out their money. Locals were choosing to sit out the storm. But whilst the falls were severe, it wasn’t the bloodbath that had been expected. Some analysts had predicted that a 10% fall was all but inevitable. And so there is some comfort that the losses weren’t as steep, but there’s still unease. The biggest concern here is what this does to Dubai’s international reputation. Investors have left. Will they ever come back? |
Dubai’s property developer, Nakheel, asked for the trading of some of its Islamic bonds to be suspended.
“This was expected because markets have panicked over exaggerated reports in the Western media,” Hamam al-Shamaa from Al-Fajr Securities said.
He added that many foreign investors were withdrawing from the market and that Tuesday would probably be a similar day.
European markets were all lower. The UK’s FTSE 100 closed down 1.05%, Germany’s Dax also fell 1.05% and France’s Cac 40 slid 0.99%. US shares were similarly muted with the Dow Jones barely changed, opening down 0.1% to 10,298.81 points.
Banks fell more sharply in the UK. RBS was down 4.45% while Lloyds was even worse hit – falling by 5.89%.
While shares in the Middle East dropped sharply, Asian shares rebounded on Monday on hopes the Dubai debt crisis would not spread to other financial markets after the UAE’s central bank said it would support banks when necessary.
Bank assistance
On Sunday, the UAE central bank said it was setting up a facility to provide banks with extra liquidity.
What went wrong in Dubai
- Dubai does not have the enormous oil wealth enjoyed by its neighbours such as Abu Dhabi. Its main source of wealth has historically been as a port.
- In recent years it has sought to make money from property development and luxury tourism, building impressive hotels such as the Burj al-Arab.
- The global downturn left many financial workers unemployed. The population fell an estimated 17%, meaning there was little demand for new properties.
- There was also less demand for luxury holidays. Dubai companies have borrowed money to fund huge building projects such as “The World” and are now unable to repay it.
- There are jitters on financial markets about who lent all the money. European banks are estimated to have lent more than £50bn to the whole of the United Arab Emirates.
- Dubai state-backed companies may also have to sell-off some of their assets overseas such as luxury property in London and the Turnberry golf course in Scotland.
BACK
{current} of {total}
NEXT
{current} of {total}
NEXT
The liquidity will be available to all UAE banks as well as foreign banks operating in the Emirates.
The bank added that the banking system in the UAE was more sound and liquid than a year ago.
That came after Wednesday’s announcement from Dubai World asking for a suspension on its debt repayments, which sent world stock markets tumbling.
Meanwhile, neighbouring Abu Dhabi has said it will “pick and choose” how to assist Dubai.
“We will look at Dubai’s commitments and approach them on a case-by-case basis,” an Abu Dhabi government official said on Saturday.
“It does not mean that Abu Dhabi will underwrite all of their debts,” he added.
Paying the price
The BBC’s economics editor Stephanie Flanders said the situation in Dubai had alerted investors to the idea that you can lose money on government bonds – even if they appear to have implicit guarantees.
The repercussions of Dubai’s debt problems are already making it more expensive for countries with large deficits to sell their debt.
“There are lots of other governments out there who don’t have rich neighbours with oil to bail them out, who may have trouble in the next few months or years,” she commented.
“Greece and Latvia are paying more for their debt, thanks to Dubai.”
Greece’s finance minister George Papconstantinou told the BBC that he understood international concern about the country’s credibility but said that was down to the actions of the previous government.
He said that the Socialist government, which was elected 50 days ago, has a plan in place to reduce the deficit and that by “2010 you will be seeing a reduction”.
Categories: News Tags:
US police officers’ killer ‘will be caught’
A gunman who shot dead four US police officers as they sat in a cafe in Washington State will be brought to justice, a police chief has vowed.
Lakewood Police Chief Bret Farrar described the four victims as “good people and great officers”.
Earlier, police laid siege for several hours to the Seattle house where the chief suspect in the case, named as Maurice Clemmons, was believed to be.
But when officers stormed in, the property turned out to be empty.
Police said warrants for first-degree murder had been issued against Mr Clemmons and the search for him was continuing.
Police have issued arrest warrants for Maurice Clemmons
|
Chief Farrar, his voice breaking with emotion, told a news conference that he had visited the families of the murdered officers.
“It was the hardest thing I have ever done and I hope I never have to do it again,” he said.
“We will get through this, although it is a very difficult time for us and the families.”
He praised police teams involved in the hunt for the killer and added: “There is no doubt in my mind that this person will be brought to justice.”
The four police officers – Sgt Mark Renninger and officers Ronald Owens, Tina Griswold and Greg Richards – were shot dead at the cafe in Parkland, 40 miles (65km) south of Seattle, on Sunday morning.
On Monday, detectives revealed that the killer had himself been shot during the attack.
“We don’t know if he’s still alive,” Pierce County sheriff’s spokesman Ed Troyer told CBS television.
 |
“If he isn’t, it’s because he succumbed to the wound he received yesterday when he was in the struggle with the police officer that managed to get a shot fired at him before he was killed.”
Acting on a tip-off, officers sealed off part of the Leschi area of Seattle on Sunday night, while armed Swat team members ringed the house where Maurice Clemmons was believed to be holed up.
As the siege continued through the night, witnesses heard loud bangs, breaking glass, explosions and shots.
But it was later revealed that Mr Clemmons was not in the house.
The Seattle Times reported that police were also searching the University of Washington campus following a reported sighting of Mr Clemmons.
US media said Mr Clemmons has a long criminal history including a recent arrest for allegedly assaulting a police officer in Washington state.
Categories: News Tags:
My job is to score runs: Gambhir
NEW DELHI: Gautam Gambhir can do no
wrong these days. The opener has gone from strength to strength over the last
year or so, becoming a bigger scourge for the bowlers every passing month.
wrong these days. The opener has gone from strength to strength over the last
year or so, becoming a bigger scourge for the bowlers every passing month.
Fresh from leading India to a landslide win over Sri Lanka in the
Kanpur Test, Gambhir, who will be skipping the third Test in Mumbai (beginning
Wednesday) to attend his sister’s wedding, spoke to TOI on Monday over a host of
issues.
Excerpts:
It
must have been a tough decision to skip a Test when you are in the form of your
life…
At times, family comes first. This is one occasion,
you don’t want to miss. I tried to adjust the timing, but it was touch and go
and eventually, it didn’t work out. Earlier, I thought of taking an evening
flight to Delhi and then fly back to Mumbai next morning. But with weather
conditions uncertain, you can’t take a chance. Such an event doesn’t happen
again and again and so I decided to skip the
Test.
Virender Sehwag had said that
you are the best opening batsman India have produced after Sunil Gavaskar. Your
response.
It’s quite a compliment from Sehwag, even though I
don’t believe in comparisons. Right now, I have a lot to achieve. It’s been two
years that I’m regular Test opener. I have a long way to go. It’s good that I am
able to score consistently and in my opinion, that is my
job.
Many cricket pundits feel you
are now India’s best batsman. How to do react to such praise when the likes of
Tendulkar, Dravid, Sehwag are a part of the same team?
As I
said earlier, I don’t believe in comparisons. If I am able to contribute to my
team’s fortune, that makes me the happiest
man.
You are also the BCCI cricketer
of the year…
I consider myself lucky. Getting awards
motivates a player, but for me the biggest motivation is to play for the
country.
Apart from cricket, what do
you share with Sehwag when you two are batting together?
We
try to keep each other relaxed by cracking jokes and singing some tunes other
than discussing cricket. When the overs start, we get into our shells and
concentrate intensely on our batting. So, the breaks between overs actually help
us relax.
You are playing fewer Test
matches nowadays. Do you think that there should be better balance between
Tests, ODIs and T20s?
Personally, I prefer Test cricket
because that is the ultimate test for any cricketer in matter of skills, stamina
and temperament. But if we play Test after long gaps, it’s slightly tough to
adapt initially. Something of that sort happened in the first innings against
Sri Lanka in the first Test at Ahmedabad. But in the second innings, I was a lot
more confident.
Who is the biggest
fan of your batting in the Indian dressing room?
(Laughs) I
don’t think anyone enjoys my batting. When there is so much flair, so many
strokemakers and record-holders in the team, there is little opportunity for
them to watch me bat. I am the batsman with the least talent in the team. My job
is to socre runs.
No.1 Test batsman
in the world, four hundreds in last four Tests…did you imagine all this
happening three-four years ago?
I knew I could make it big.
But I was in and out of the side. Once I got a longer run, I started scoring.
Now, I don’t want to get complacent and relax. For me, it’s important to give
good starts to my team and I will do it to the best of my
ability.
Was it a ploy to attack the Sri Lanka spinners from the word
go…
When I go out to bat, my natural instinct is to play
aggressively. On top of that, the pitches were flat. So it was easy for me to
dominate the Lankans spinners.
Do
you think Muttiah Muralitharan is losing his edge?
Not at all.
He is too great a spinner to lose the edge. Don’t forget his record and never
underestimate his ability to take wickets. Right now, like any other cricketer,
he is going through a lean patch, but a wicket or two can make a big
difference.
Have the Indians sorted
out Ajantha Mendis?
If you are playing international cricket
for sometime, it’s natural that the opposing teams are going to study you. We
have also done our homework.
Unlike
some of your teammates, you are not very emotive on the field. Is this your
natural being?
Well, that is how I am. I don’t express too
much on the field. But in front of my family and friends, I am a different
person. This is my basic
nature.
Your thoughts on Sreesanth’s
bowling spell in the Kanpur Test?
Sreesanth was fantastic. He
is very talented. If he can stay away from controversies, he is a great asset
for the Indian team and can lead the Indian pace attack with Ishant
(Sharma).
Some reports claim that
Sreesanth is still a loner even after his Kanpur
performance?
These are all rumours. When you are playing for
India, everyone has a common goal and there can’t be any loner in that. He is
very much part of the team and has shown what he can do for
India.
Coming to Ishant, how do you
see him getting back to form?
Look, Ishant is just 21 and if
he is going through a low phase, it’s going to help him come back stronger. He
is immensely talented. Not only that, he is going to break a lot of records.
Even I have gone through similar stages. In the end, it only makes us stronger
and wiser.
Categories: Cricket Tags: