Short-selling Dubai
John Sfakianakis, chief economist at Banque Saudi Fransi-Credit Agricole Group, said comments from Dubai’s ruler , "although very broad, should be welcomed by global markets at a time when they are thirsty for clarity, reassurance and information.”
Dubai's Sheikh Mohammed bin Rashid al-Maktoum, who is the United Arab Emirates' vice president, prime minister and defence minister, said the global reaction had shown "a lack of understanding."
Reuters reported that: “Gulf markets dropped again on Tuesday, taking little comfort from Dubai World's plan to restructure £15.6bof debt and despite reassurances on economic resilience from the rulers of Abu Dhabi and Dubai.
Dubai stocks fell a further 5.6 percent and the Abu Dhabi bourse lost 3.6 percent on their second trading day since Dubai last week asked creditors of Dubai World and its property arm Nakheel for a six-month delay on debt repayments. Qatar's bourse was also more than 8% lower.”
The Bottom Line:If Mr Cable has his way...
"If Mr Cable had his way, all the big banks would be broken up and bonuses would be virtually eliminated - a sure-fire way in my view of guaranteeing an end to the UK’s ability to compete as an international financial centre. Let’s not forget that this is a man who is on record as saying that everyone who works in a bank has an ‘aristocratic lifestyle’ clearly demonstrating his lack of understanding of the sector." A tough line on bankers’ bonuses could make a brain drain of financial talent a distinct possibility, warns Paul Marsden. Read more