Posts Tagged ‘Abu Dhabi’

Dubai Debt News Sent a Shudder Throughout World Markets

Just a year after the global downturn  derailed  Dubai’s explosive growth, the  city is now  so  swamped  in  debt that  it’s  asking  for a  six-month  reprieve  on  paying  its bills.

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Dubai Debt Fears Grip World Markets

 

This has cast a shadow on a world only just emerging from the worst economic crisis since the 1930s,  knocking markets  from Sydney to Sao Paulo and raising questions about Dubai’s reputation  as a magnet for international investment.

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For India, which has tens of thousands of its citizens living  and working in the emirate,  the concerns are more direct:  thousands of its expats staring at job losses and  the economy, sharply reduced trade.

India, which gets nearly a quarter of the remittances from the United Arab Emirates and  has lakhs of laborers working in the region, could be worse off than most other nations  if the crisis escalates into a full-blown one  like the Russian or Argentinean crises of the past.🙂

India’s exports to the UAE stood at $23.92 billion in FY09.

It is very likely that we may see one more leg of job losses in Dubai.

The only consolation for the region is that Abu Dhabi is booming.

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Indian shares and the rupee fell in sync with other global markets where investors are fleeing for safety after Dubai debt trap concerns.

The Bombay Stock Exchange benchmark Sensex on Friday tumbled over 451.63 points to 16,403.30 points in the first ten minutes of trading on hectic selling by funds in line with weak global cues and concerns over Dubai’s debt.

Similarly, the wide-based National Stock Exchange index Nifty dropped by 140.50 points to 4865.05 points.

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Brokers said the selling focus was more on banking and realty stocks after Dubai’s debt problems revived concerns about the global financial system and rattled markets across Europe and Asia.

Indian rupee fell 24 paisa to 46.55 against the dollar.  The MSCI Emerging Markets Index lost 1.4%.

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Most European indices were about 2% lower after Asia tumbled.

The Shanghai Composite Index slumped 3.6%, its biggest drop since August, and Brazil’s Bovespa Index slipped 1.1%. U.S. markets were closed for the Thanksgiving holiday.

Credit-default swaps tied to debt sold by Dubai rose as much as 131 basis points to 571.

“Dubai isn’t doing risk appetite any favours at all and the markets remain in a vulnerable state of mind,” said Market analysts.

“We’re still in an environment where we’re vulnerable to financial shocks of any sort and this is one of those.”

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India had no role in shifting 2011 WC matches from Pak: ICC

ICC Chief Haroon Lorgat stressed on the fact that India had no role in shifting 2011 WC matches from Pak

ICC Chief Haroon Lorgat stressed on the fact that India had no role in shifting 2011 WC matches from Pak

ICC on Thursday dismissed Pakistan’s claims that India was behind the shifting of their 2011 World Cup matches and said the decision could have been avoided if the security apprehensions in the strife-torn country were responsibly addressed during the ICC Executive Board meeting.

“India had nothing to do with the decision. The decision was taken after consulting all the member nations. There are all together 16 member nation’s in ICC and India is just one of them,” ICC Chief Executive Officer Haroon Lorgat , who belongs to Pakistan himself, said.

Had Pakistan done half as they are doing right now before the ICC meeting, the decision could have been avoided.

We know many countries won’t tour Pakistan. Pakistan is now trying to defend their own position,” he told reporters.

On the possibility of shifting Pakistan’s share of World Cup matches to neutral venues like Abu Dhabi and Dubai, Lorgat said the ICC had not received any such proposal from the PCB.

“We have received no such proposal on neutral venue,” he said.

But Lorgat said in the coming days more security checks would be carried out in the venues of India, Sri Lanka and Bangladesh.

“It’s a normal part of our process. We will still review the security in the other three host countries,” he said.

The ICC CEO also denied Indian Premier League (IPL) Commissioner Lalit Modi’s claims that Champions League Twenty20 and other domestic tournaments would be a part of ICC’s Future Tour Programmes.

Asked about ICC’s plans on organising the much talked about Day and Night Tests, Lorgat said, “It’s still early dates for Day and Night Tests, but we encourage the concept. We are conducting thorogh research on the concept at the moment.”

The ICC CEO announced that as per the new contract signed between the two parties, LG would remain ICC Global Partner for all ICC events till 2015.

Source: PTI