The Dubai bombshell

"Dubai World?s surprise request for a freeze on debt payments provided the focus for world financial markets yesterday, hitting bank stocks and the price of oil, but lifting the dollar on a day when US and most Gulf markets were closed.
With the US on holiday for Thanksgiving, the region observing Eid al Adha, and trading on the London Stock Exchange temporarily closed for technical reasons, the environment was ripe for rumour and sensation as markets eschewed risk for gold and US dollars.
The day began with credit ratings agencies downgrading several government-related companies, such as DIFC Investments and Emaar, citing questions over Government support. Gold, a traditional refuge for investors in a storm, hit a record high of nearly US$1,200 before falling back.
Dubai then issued a statement to the market clarifying that DP World, the profitable ports division of Dubai World, would be spared from a restructuring that was announced along with the debt freeze request." (The National)


































