Things we're reading today include:
First and foremost, the newspapers are off beam when it comes to Dubai. Yesterday, three news reports dellivered distinctly differing news. One said the UK banks had around $50 billion exposure, with HSBC, StanChart and Barclays taking the brunt. In another, the UK banks had no big exposure so no worries. And the third said that StanChart was going to take the biggest hit at around $8 billion (less than the $16 billion another paper said HSBC were exposed for).
Nice to see such concensus.
So today's must read is:
The ruler of Dubai hit out at international investors yesterday as his
government's impecunious investment vehicle revealed plans to
restructure $26bn of its debts. Sheikh Mohammed al-Maktoum said: "They
do not understand anything."
Note: this is the same man who has said until last week: "we have no issues here".
Meanwhile, in other news …
New rules will make banks take more risk – The Telegraph
Tax future house price bubbles, Bank of England tells Treasury – The Independent
City showdown likely as Treasury seizes control of RBS bonus pool – The Times
We are in charge now, Sarkozy tells the City – The Times
Hands off City, Darling warns EU – BBC
Europe and US split on derivatives reform – Financial Times
New fears of 'double dip' recession – The Independent
India to keep top spot in outsourcing – Financial Times
Quote of the Day:
Teacher – "Who would like to explain the meaning of the word 'economy'."
Student – "It's the basic form of ticket for air travel, sir."