| CATEGORY: MARKET REPORT - EUROPE SECTOR: BANKING |
European midday: Dubai woes weigh |
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Thu 26 Nov 2009
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LONDON (SHARECAST) - Debt problems in Dubai have added to the downbeat mood in Europe, while trading on the London Stock Exchange has been suspended due to technical difficulties.
Equity and currency markets were gripped by uncertainty as investors tried to get to grips with the threat of a debt default by Dubai World, one of Dubai's leading firms.
The country stunned financial markets late yesterday when it announced that Dubai World and its subsidiary Nakheel were seeking a debt standstill ahead of a restructuring.
Meanwhile, the LSE says it 'continues to investigate the root cause' after trading was halted at 10.38am and all order-driven securities placed in an auction call period.
Across the markets, the Dax is 102 points lower in Frankfurt at 5,701, while the Cac is 68 points down at 3,742. The Swiss market has dropped 80 points to 6,342.
Banks are among the worst performers. Credit Agricole, BNP Paribas and Societe Generale are down in Paris, while Deutsche Bank and Commerzbank are among the three top fallers in Frankfurt.
Elsewhere in the sector, UK banks should be forced to disclose the number of employees earning more than £1m, a government sponsored review by city grandee Sir David Walker has concluded.
Banks boardrooms could also face a number of changes, with proposals including the annual re-election of the chairman, better training for non executives and greater shareholder scrutiny.
CAC 40 - Risers
France Telecom (FTE) 17.44 +0.23%
Sanofi-Aventis (SAN) 52.29 +0.15%
Vivendi (VIV) 19.73 +0.10%
CAC 40 - Fallers
Lafarge (LG) 55.14 -5.09%
Saint Gobain (SGO) 36.53 -4.55%
Dexia (DEXB) 4.99 -3.76%
BNP Paribas (BNP) 54.59 -3.76%
Societe Generale (GLE) 46.48 -3.70%
AXA (CS) 16.27 -3.67%
ArcelorMittal SA (MT) 25.59 -3.03%
Accor (AC) 36.11 -2.96%
Credit Agricole (ACA) 14.14 -2.85%
EADS (EAD) 11.94 -2.69%
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