Friday, 27 November 2009

Dubai debt fears: experts react

Dubai debt fears: experts react
Financial markets have been rattled on fears that Dubai could default on its debts after one of the Government's leading companies asked for a standstill on its debt.

Published: 6:41AM GMT 27 Nov 2009

Asian stocks fell for a second day on Friday, with the Nikkei 225 down almost 3pc and markets in Hong Kong and Australia all weaker. The FTSE 100 fell 3.2pc on Thursday, matching declines across European markets.

Mark Mobius, Chairman of Templeton Asset Management:

Dubai debt worries grip financial markets “If Dubai has to default, that could start a wave of defaults in other areas. This may be the trigger to allow for the market to take a rest and pull back.”

Nader Naeimi, a strategist AMP Capital Investors in Sydney:

“People are worried about the contagion effect from Dubai. Events like this bring back all the bad memories from the global financial crisis.”

Mitul Kotecha, head of global foreign-exchange strategy at Calyon in Hong Kong:

“Dubai has prompted a wave of risk aversion globally. This might prompt a short sell-off in the won but I think that’s what it will be. It’s not going to be a huge fallout because Asia looks more solid in terms of fundamentals.”

Francis Lun, general manager of Fulbright Securities in Hong Kong

"The panic button's been hit again."

Robert Rennie, strategist at Westpac Global Markets Group

"This an important reminder that the credit crisis is forgotten but not gone,"

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