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Monday, December 14, 2009

Abu Dhabi gives Dubai $10 bn in surprise bailout

Abu Dhabi stepped in to help fellow United Arab Emirates member Dubai with a $10 billion injection, of which $4.1 billion was allocated to troubled state-owned conglomerate Dubai World to pay immediate obligations, Dubai said on Monday.

The move was the least expected of all options Dubai had on the table after requesting a standstill on $26 billion in Dubai World
debt on Nov. 25, alarming markets and shaking the image of the emirate as a regional business hub.

"The government of Abu Dhabi has agreed to fund $10 billion to the Dubai Financial Support Fund that will be used to satisfy a series of upcoming obligations on Dubai World," the chairman od the Dubai Supreme Fiscal Committee said in a statement.

"As a first action for the new fund, the government of Dubai has authorised $4.1 billion to be used to pay the sukuk obligations that are due today." The yen fell sharply against other
currencies on the news, while the dollar shot up to 88.90 yen and the euro also jumped to 130.43 yen.

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Economic Event Calendar

GMT+5:30 Event Vol. Actual Consensus Previous
Saturday, Jul 19
01:00 CFTC Gold NC Net Positions 1 $213.1K $203.0K
01:00 CFTC Oil NC Net Positions 1 162.4K 209.4K
01:00 CFTC S&P 500 NC Net Positions 1 $-167.8K $-140.0K
01:00 CFTC GBP NC Net Positions 1 £29.2K £33.2K
01:00 CFTC AUD NC Net Positions 1 $-74.9K $-74.3K
Monday, Jul 21
04:15 Consumer Price Index (QoQ) 3 0.6% 0.9%
04:15 Consumer Price Index (YoY) 3 2.8% 2.5%
04:31 Rightmove House Price Index (MoM) 1 -0.3%
04:31 Rightmove House Price Index (YoY) 1 0.8%
18:00 Raw Material Price Index 1 -0.2% -0.4%
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