November, 2009
LSE hit by outage and share plunge
Trading on the London Stock Exchange resumed on Thursday afternoon after a technology glitch halted transactions across the market for 3.5 hours. The outage was the worst since the almost day-long closure of the LSE in September 2008,
Darling: UK recession worse than forecast
Alistair Darling will admit in next month’s pre-Budget report that the recession has been much deeper than he forecast in March, the FT has learnt. The chancellor is expected to say that the economy contracted by 4.75% in 2009,
Softbank eyes Carlyle’s Willcom
Softbank, Japan’s third-largest mobile phone operator, is a frontrunner in bidding for struggling telecoms firm Willcom, reports Reuters, citing Japan’s Yomiuri newspaper. Willcom, which is being sold by US buy-out firm Carlyle,
China Pacific sets $3.4bn IPO
China Pacific Insurance gained approval from the listing committee of Hong Kong’s stock exchange for its $3.4bn Hong Kong IPO, reports Reuters. The development clears the way for China’s third-largest life insurer to launch its long-delayed Hong Kong listing.
Lachlan Murdoch ties up with DMGT
Daily Mail & General Trust has sold half of DMG Radio Australia, its Australian radio business, to Illyria, Lachlan Murdoch’s private investment vehicle, for about £63m. Murdoch, son of News Corp chairman Rupert Murdoch,
FSA names panel to review executives
Five top UK business figures have been appointed by the FSA watchdog to vet directors and other top appointees at UK banks and insurance companies. The FSA said on Thursday that the advisers would help assess people applying for key positions at regulated financial groups.
HK jails 4 for market manipulation
A Hong Kong court on Thursday sentenced four people to up to 30 months in prison for conspiring to boost the market value of Asia Standard Hotel by HK$4bn ($500m) in the city’s largest market manipulation case.
Goldman Asia chief in stock sale
Michael Evans, head of Goldman Sachs in Asia, sold $12m of stock in the bank this week, less than a fortnight after his counterpart in Europe, Michael Sherwood, sold more than $27m. News of such large disposals by the two Goldman vice-chairmen is likely to fuel public anger over how much bankers are paid.
Overnight markets: Turmoil
Stocks dropped around the world, reports Bloomberg, as Treasuries jumped and CDS climbed after Dubai’s sudden attempt to reschedule its debt. The dollar briefly fell below Y85, a 14-year low, boosting speculation Japan will intervene.
Guess who’s back
FT Alphaville could not let the day pass without commenting on the news that Anthony Bolton is deferring his retirement and returning to running money.
And the reason for the comeback? The Fidelity man is very excited by the investment opportunities available in China.
Caveat emptor: Risk factors from the Nakheel prospectus
A quick perusal of the risk factors section in the Nakheel ’09 bond prospectus shows investors were warned about many things.
Firstly, Dubai World, the parent company of Nakheel, “is not required to,
The clairvoyant Nakheel short sellers
It seems that Wednesday’s surprise decision by the Government of Dubai to ask for a debt standstill agreement at Dubai World — and by association its property arm Nakheel — did not shock everyone.
Some people were preparing for a fall in Nakheel Development’s sukuk.
CSI Dubai
It all looks so simple (click to enlarge):
And some snippets from the prospectus (our emphasis):
1 The Dubai World Guarantee guarantees all of the Co-Obligors’ payment obligations under the Transaction Documents.
Can nothing go right for Dubai?
Hello, is anybody there?
From Reuters on Thursday afternoon:
A conference call for bond holders of Dubai-owned property firm Nakheel was postponed on Thursday after phone lines were overwhelmed by too many people calling in.
Sterling, Dubai: a liquidation love story
In case you were wondering why sterling might be suffering on the back of the Dubai story, Reuters reports on Thursday:
LONDON, Nov 26 (Reuters) – The Dubai government could be forced to hold a firesale of its international real estate if creditors to two of its flagship companies reject proposals to put near-term debt obligations on ice until May 2010.
Lunch Wrap
On FT Alphaville on Thursday morning,
- A forced seller at the LSE?
- A friend in need…is a friend in de(fault)?
- Barclays Capital ‘changes its view’ on Dubai.
- Problem at the LSE.
I’m a celebrity, get me out of Dubai!
Presenting a list of the more colourful names understood to have invested in Nakheel’s Dubai Palm development (Source: tabloids and press).
David Beckham (footballer, international fashion icon)
Markets live transcript 26 Nov 2009
Markets live chat transcript for the chat ending at 12:18 on 26 Nov 2009. Participants in this chat were: Neil Hume, FT (NH) Bryce Elder (BE) NH:hola NH:it’s 11.03am
Problem at the LSE (now updated seven times)
In addition to Thursday’s LSE share price fall — triggered by concerns about the 20 per cent stake held by Borse Dubai — the exchange is also having some technical issues, which has left many traders flying blind.
Dubai: the Kerzner International connection
One of the big names associated with Dubai’s Palm development is Kerzner International — the hotel and gaming group part-owned by South African magnate Sol Kerzner and Nakheel, the government-owned developer arm of Dubai World.
Minsheng’s dubious distinction: ‘Worst’ Chinese bank IPO of the year
It was a far cry from the hype surrounding the Hong Kong IPO plans of China Minsheng Banking Corp. On Thursday, Minsheng gained the dubious distinction of becoming the first Chinese lender in four years to fall on its Hong Kong trading debut.
Moody’s statement on Dubai downgrades
Selected highlowlights from Thursday’s early statement.
Emphasis ours.
Moody’s downgrades Dubai GRI rating
DIFC, November 26, 2009 — Moody’s Investors Service has downgraded the ratings of all six government-related issuers (GRI’s) in Dubai and left them on review for possible downgrade.
A friend in need…is a friend in de(fault)?
Dubai’s government stunned the debt markets on Wednesday by asking for a 6-month standstill on the debts of its flagship holding company Dubai World.
The shock move came just hours after the Government of Dubai raised $5bn via a bond issue,
A forced seller at the LSE?
Shares in the London stock exchange have taken a beating in early trading on Thursday.
See if you can figure out why.
From Bloomberg:
Traders obviously fear the Borse Dubai stake will be dumped in the market.
Further reading
Elsewhere on Thursday,
- Behold the $9bn check that saved Morgan Stanley.
- More on China’s garlic rush.
- China: an overcapacity monster.
- The new consumer-focused Fed (TV ad included).
Pink picks
Comment, analysis and other offerings from Thursday’s FT,
John Gapper: A healthy appetite for the right price
If British takeover battles were decided on personal chemistry and corporate culture,
AV after dark
On FT Alphaville late on Wednesday,
- “For the general purposes of the Dubai Financial Support Fund…”
- Anna’s story.
- Doth a global natgas glut come (already)?
Over in the Long room,
Snap news
Breaking pre-market news on Thursday,
- Tate & Lyle completes £200m bond issue and partial repurchase of 2012 bond – statement.
- Anthony Bolton to manage new Fidelity China fund – report
- Department of Transport will not extend National Express East Anglia franchise beyond March 2011 – statement
- Ofwat final pricing determination – statement
- Corporate: