Confusion in Dubai
The Dubai authorities have injected a large amount of confusion into worldwide money markets after the government refused to guarantee the debts of Dubai World which many believed had a direct connection to the Dubai authorities. The company has built up a debt pile which is now standing at £36 billion and the Dubai government believes that lenders should feel part of the pain rather than the authorities step in to bail out the company.
This is not what the money markets and investment markets wanted to hear and we saw the UK market fall further after a brief rally on Friday. There is concern that the government is distancing itself from the debt mountain which is being built up by "connected parties" and so far the Abu Dhabi authorities have refused to step in to save the day. The situation has affected worldwide stock markets and there is concern regarding further enormous write-offs for European banks.
While the UK government has refused to acknowledge this is a potentially enormous problem there is concern behind the scenes about the possible repercussions. If the situation is not resolved in the short to medium term this has the potential to create a domino effect bringing down weakened companies in the process.
Share this..
Related stories
D2 Jeans announces move into administration
Today saw the first post-Christmas casualty in the UK retail sector when D2 Jeans, the company set up by Sir Tom Hunter, announced a collapse into administration. The company was acquired by a management team back in January 2008 although there have been concerns for some time about the company's rental arrangements which were considered to be relatively high and were causing financial difficultie...
Read MoreUK’s employment rate falls as wage growth slows
16/12/2015 The UK’s unemployment rate has fallen to the lowest level in nearly 10 years to 5.2% in the three months leading to October. The Office for National Statistics (ONS) released the figures which showed the lowest jobless rate since the three months leading to January 2006. 110,000 people became employed in the three months to October, leading to the number of unemployed people fa...
Read MoreAre we on the verge of a Europe wide taxation system?
The recent appointment of the first European president has brought about the potential for a European wide taxation system to come into play in the short to medium term. Despite the fact that the European Union will hold massive of power over European member states, there was no vote and none of the parties who have been appointed into the top positions were in anyway accountable to any voters acr...
Read MoreDoes the UK really need a green strategy?
It seems that each and every company and each and every political party in the UK have jumped on the green bandwagon over the last decade. We have seen everything from green credit cards to green bank accounts, from recycling bonuses to recycling points and everything else in between. But does the UK actually need a green policy and will it be beneficial to everybody in the long run?
...
UK Households Sinking Under Debt Burden
It is only after the mist has cleared on one of the longest running economic booms in the history of the UK that the fuller picture is now visible. As house prices were moving higher and employment was pushing ahead it seemed as though there was not a cloud in the sky. Then the dark clouds of the credit crunch moved in and it began to rain and rain. So what is the overall debt picture in the UK...
Read More