It’s been well-known for some time that Dubai had found itself in a severe and precarious financial state.<\/p>\n
In early October, for example, S&P warned<\/a> that it was nearly out of cash.<\/p>\n But yesterday the once high-flying Emirate confirmed that it’s reached zero-hour.<\/p>\n MarketWatch<\/a>: Dubai late Wednesday said it would restructure Dubai World and announced a six-month “standstill” on repayments of the state-run wide-ranging conglomerate’s debt. Ports operator DP World and its debt is excluded from the standstill plan.<\/p>\n ….<\/p>\n “I don’t see this as a massive issue but it’s another warning to where the world got itself last year with loose monetary conditions [and] loose lending,” said Naeem Wahid, market strategist at Lloyds TSB. “And, in a few cases, the problems are still out there and we could continue to see these kinds of nasty surprises” in the future.<\/p>\n Government-owned Dubai World is a conglomerate with interests in real estate, ports and the leisure industry. The firm carries around $60 billion in liabilities.<\/p>\n Despite the issues being out there, financial markets, including Brazil and London (when it’s open) are pulling back, the pound is tanking and — uh-oh — the greenback is rallying<\/a>! That could be bad news when stocks open on Black Friday.<\/p>\n Dubai itself isn’t necessarily huge, but that’s not exactly the point. What people are most likely freaked out about — as Rick Bookstaber might point out — is that people who own Dubai World debt may be forced to sell something else in unison to raise cash, triggering a bigger reaction.<\/p>\n Follow the story further at FT Alphaville<\/a> >><\/p>\n Join the conversation about this story »<\/a><\/p>\n See Also:<\/b><\/p>\n It’s been well-known for some time that Dubai had found itself in a severe and precarious financial state. In early October, for example, S&P warned that it was nearly out of cash. But yesterday the once high-flying Emirate confirmed that it’s reached zero-hour. MarketWatch: Dubai late Wednesday said it would restructure Dubai World and announced […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-49136","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/49136","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=49136"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/49136\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=49136"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=49136"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=49136"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n