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’A closer look inside Nakheel
Nakheel’s unaudited interim condensed consolidated financial statements for the six months ended 30 June 2009 have become available on the Nasdaq Dubai website.
Unfortunately the formatting is not suited to copy and pasting.
CDS report: Greece and Dubai spark risk aversion
Markit’s Gavan Nolan wrote this CDS report
In what is becoming a familiar story sovereigns again drove direction in the financial markets, with nations in Europe and the Middle East causing volatility.
Tuesday Dubai doom and gloom
Dubai doom and gloom comes in the form of two things on Tuesday morning.
First — a mass Downgrade of Dubai Inc. companies by Moody’s, the text of which is below:
Moody’s announces further downgrades to Dubai Inc.
Dubai who?
How quickly the world forgets.
Just 13 days ago, markets were reeling from Dubai World’s request for a debt standstill.
But last week investors were already clamouring to ratchet up the risk, according to UBS’s Global Risk Radar.
Snap news
Breaking pre-market news on Tuesday,
- China central bank reaffirms loose monetary policy – Reuters.
- Dubai shares tumble to lowest in five months – Bloomberg.
- Corporate: Tesco, Xstrata, SABMiller,
Sovereign CDS liquidity snaps
Did the events of last week in Dubai really send jitters through emerging markets?
Here’s something to ponder in the emerging vs developed market debate — an issue aptly summed up in Deutsche Bank’s 2010 outlook on Wednesday.
Dragon Oil big vote countdown
Emirates National Oil Company said on Wednesday morning it was sticking with its Scheme of Arrangement (SoA) structure for its ₤1.1bn bid for Dragon Oil.
This is a key development in the deal for one reason — an SoA requires a shareholder vote in which ENOC cannot participate with its own 52 per cent stake.
The Dubai fear factor
Last week — when Dubai World announced it was seeking a debt standstill — was probably the first major bout of market jitters in recent months
Which means it’s time to test the fear gauges!
First we have the industry standard fear barometer — the Vix,
Na-kheeled over
Here’s an updated version of short interest in that Nakheel sukuk — courtesy of Data Explorers:
The thing to focus on here is not necessarily the spike in active utilisation in November but the slow decline in lendable quantity.
CDS report: Sovereign index rallies as risk aversion retreats
Gavan Nolan of Markit wrote this CDS report
Credit and equity markets across the world resumed their rally as risk appetite returned after a brief hiatus. The Markit iTraxx Europe index tightened to 84bp,
The shifting sands of UAE bank capital
Here’s some useful data from ratings agency Fitch – a breakdown of how the capital of banks in the United Arab Emirates is likely to be impacted by the Dubai World debt restructuring.
It’s basically an updated version of Fitch’s capital sensitivity test for UAE banks,
The wisdom of Sheikh Mohammed bin Rashid
Sheikh Mohammed bin Rashid is in a contemplative mood.
Instead of lashing out at the parades of guffawing international press presently camped out in his kingdom’s crumbling hotels, Sheikh Mohammed has taken to expressing his thoughts in haiku form.Only the tree that
Bears fruit becomes a target
For the stone throwers
DISCLAIMER:
For sale in Dubai soon
As the $26bn debt workout at Dubai World gets underway, Reuters has produced a list of assets the Emirate’s flagship investment company might look to sell. And it is quite a long list.
However, the key question is whether anyone wants 300 islands in the shape of the world’s continents,
Dubai World – the $26bn debt workout begins
An overnight press release, with our highlights:
Dubai World (“Dubai World”) and its subsidiaries (the “Group”) would like to update their lenders on recent developments relating to their debt obligations.
Port in a storm: DP World’s London Gateway struggles for funds
The flagship UK development of DP World, the port arm of the troubled Dubai World, looks to be sinking as it struggles to raise financing for the project, based on the Thames at Thurrock in Essex.
The London Gateway project,
CDS report: Dubai has more in common with Latvia than Iceland
Gavan Nolan of Markit wrote this CDS report
European credit and equity markets suffered a torrid session today as the debacle in Dubai sparked a fresh bout of risk aversion. The Markit iTraxx Europe index ended the day at 89.5bp,
Camel finance
No, that’s not an outrageous slur. It’s a reference to this — the Souk al-Manakh.
This was former camel trading venue was home to the 1982 stock market crash in Kuwait, which wiped out many billions in regional wealth at the time. Older investors in the Gulf will see it as a history lesson for Dubai in how one localised problem can suddenly become much wider and deeper.
RBC: Dubai is just another case of irrational exuberance
RBC’s emerging markets team have published their view on the whole Dubai debacle.
And in their opinion it was always abundantly clear there was never going to be any recourse back to the sovereign’s assets for Nakheel bond investors.
Could the Dubai debacle trigger a Dirham devaluation?
Highly unlikely, is the sensible answer.
The UAE dirham, which has been pegged to the US dollar at a rate of 3.6725 since 1997, has the full faith and wallet of the state of Abu Dhabi behind it.
With Abu Dhabi estimated to have billions of dollars of foreign currency reserves,
The issue of shariah compliance and the Nakheel sukuk
When is a sukuk not a sukuk?
When it fails to be shariah compliant, of course.
And the key issues, it seems, that may or may not make a sukuk shariah-compliant relate to principal protection and the bondholder’s unsecured status.
UAE post-holiday hit
As expected, the Abu Dhabi and Dubai stock exchanges have been hit with a wave of selling on their first day open since the Dubai debacle broke.
But with brokers having predicted the indices to be suspended limit down,
Haircuts in Dubai
So the United Arab Emirates has sort-of-but-not-quite stepped in to save Dubai — pledging liquidity support for UAE banks.
At the same time, however, speculation over just what sort of debt restructuring lies in wait for Nakheel bond investors continues apace.
Snap news
Breaking pre-market news on Monday,
- UAE stock market opens 5.9 per cent down – FT.
- Mitchells & Butlers notes press speculation regarding “increasingly difficult relationship” between Board and some shareholders – statement.
UAE push to head off debts damage
The United Arab Emirates on Sunday stepped in to shore up its banks and head off any potential capital flight as the nation’s authorities attempted to counter concerns over Dubai’s debt problems, the FT said.
The intrinsic unimportance of Dubai World
Dubai is not systemically significant, according to the FT’s “Maverecon” blogger Willem Buiter. Still, the crisis in the emirate may yet do some systemic good by alerting fiscal policy makers to the vulnerability of their nations’ fiscal-financial positions,
UAE vs NewsCorp
The leaders of the United Arab Emirates don’t take too kindly to criticism, according to a report by Zawya Dow Jones:
The Sunday London Times newspaper was removed by authorities from shelves in the United Arab Emirates on Sunday amid intensive reporting of Dubai’s debt problems,
UAE: ‘the best banking model to weather the financial crisis’
Statement from the UAE central bank:
Central Bank of the UAE announced today that it stands behind UAE banks and branches of foreign banks operating in the UAE .
Central Bank has issued a Notice to UAE banks and branches of foreign banks operating in the UAE,
Of silver linings and messages from the Sheikh
From the editorial columns of The National, the Abu Dhabi-based English language newspaper edited by former Telegraph editor Martin Newland:
A silver lining in Dubai World
…But as the dust settles,