Monthly Archives: November 2009

All eyes on Abu Dhabi: the focus has shifted from the health of companies to the relationships between emirates. On this, the consensus is that Dubai’s oil-rich, older, wiser brother may “ride, but not race” to the rescue. The UAE central bank has offered to make funds available, improving liquidity. But investors want more, ideally a debt guarantee: “This isn’t just a liquidity crisis, it’s a solvency crisis.”

It’s also a confidence crisis. Read more

Reuters has just announced that the FT’s Maverecon blogger, Willem Buiter, is to become Chief Economist at Citigroup from January 2010. Details:

NEW YORK, Nov 30 (Reuters) -Citigroup Inc <C.N> on Monday named Willem Buiter as the bank’s new chief economist replacing Lewis Alexander, the bank said. Read more

Today, Bank of England figures show that, by its own yardstick, quantitative easing is falling short. In the Bank’s bluffers’ guide to QE, the goal of the policy, which creates money to buy assets, was described as “the degree to which the cash injection boosts the growth of money and spending by households and businesses.”

But the measure of the money supply that the MPC has pointed to in the past fell at 5.3 per cent annualised in the three months to October. Read more

On Dubai:

Other news:

“Investors view this as shockingly bad news”: one assessment of Dubai’s request for a freeze on all financing to Dubai World, the government’s heavily indebted flagship holding company. The requested freeze would last till May 30, and would cover DW’s troubled property unit Nakheel, which is due to pay back $4bn on an Islamic bond on December 14. Dubai sovereign CDS spreads rose 130bps from an overnight level of 318 and LSE shares fell – the exchange has a 20 per cent stake in Borse Dubai.

Meanwhile the “gold up, dollar down” trends continue. Sri Lanka has bought 10 tonnes of gold from the IMF Read more