Which is the fund crashed the exchanges in Europe?
The indexes in Europe recorded a very poor day today. The main reason for this was the news that the government of Dubai investment fund will be reorganized, it will cease to perform his regular payments for at least six months. This news was particularly strong and dragged down stock indexes in Asia and Europe. Tomorrow is expected to see its impact on the U.S. market, which remained closed for Thanksgiving today. The reason for stock decline is the huge risk of losses for major banks in the world. According to the estimates of Wall Street Journal only European banks are facing the risk of losing larger amounts as their exposure to the fund is about $ 40 billion. Currently, most banks have denied positions at Dubai World and claim that they are small. But the fact is that many of them have relations with the Fund on whose behalf are 60 of these 80-billion dollar liabilities to Dubai. Credit Swiss estimates of the state that at least half of them to European banks. According to the analysis of NCB Stockbrokers Standard Chartered is a British bank, which has the highest exposures to the UAE. About 7 percent of all loans of the institution were directed towards this region. HSBC Holdings in this figure is 2 percent, but with around 1 per cent are Barclays, Royal Bank of Scotland Group and Lloyds Banking Group. Calculations of Credit Suisse suggests that banks in Europe may prove to need to increase by 5 percent in provisions for bad loans in 2010, or to obtain total losses of around 5 billion euros, in case you lose 50 % 40 billion from its exposure to Dubai.
Dubai World investment fund is defined as the flagship of Dubai’s investment in the world. The news that authorities in one of seven emirates forming the United Arab Emirates, plan to restructure the fund literally shook the markets. Expected to be stopped all payments on the debt of the Fund for the next six months. By their nature, Dubai World is a holding company wholly owned by the Government of Dubai. It has positions in the real estate sector, transport, logistics, natural resources, etc. One of the fund companies - Dubai Nakheel develops residential, commercial and holiday construction. She stands behind projects such as the World, which is one of the most spectacular construction projects in the world, and behind the palms. It is these projects have become the business card of construction in Dubai in the world. The World is a project of 300 islands located in the shape of the continents on Earth. They are located in the sea off the coast of Dubai. The idea is similar to palms, which are artificially created islands in the shape of palm trees. In the portfolio of Dubai World is the company Leisurecorp, which is concentrated in the construction and development of golf courses. It is owned by Chris Evert tennis centers and Jumerirah Golf Estates. The transport sector is also strongly represented in the state investment fund. The company DP World is one of the largest port operators in the world. It has 49 terminal, and projects for construction and development of another 12 terminals, the business and covers 31 countries worldwide. In the financial sector, Dubai World owns Istithmar - alternative investment company. It acquired Barneys New York, one of the best-known companies for luxury service in 2007. The company also has investments in shares of a number of markets, and porfeylat is over 2,6 billion dollars. Not missing and investment in the sector of materials - Dubai Multi Commodities Centre is a subsidiary of Dubai World, which is a market for gold, diamonds, steel, tea, industrial metals and other key raw materials. Dubai Natural Resources, which is also part of the fund, invests in natural resources and participate in joint companies for the extraction and marketing of oil and gas in Russia and Nigeria.