Daily Archives: November 30, 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