BP can meet the costs of its huge oil spill in the Gulf of Mexico without issuing new shares, the company said on Monday, rejecting recent speculation that it is seeking a bail-out from strategic investors, The Financial Times reports Tuesday. Well, the big banks said the same thing in 2007/2008. “Our stock is cheap, why not buy some?”

When Abu Dhabi agreed on Monday to provide Dubai with $10 billion to settle some of its debt obligations, it may have temporarily soothed the concerns of major creditors. But the bailout, and a... Money Morning is here to help investors profit handsomely on this seismic shift in the global economy. Money moves markets. But Money Morning lets you move first.

Moody’s Investor Service will review all government-related issuers, GRI, in The United Arab Emirates for possible dowgrades. The rating agency takes action after the government of Dubai has separated themself from their partly owned companies and their financial obligations. The CDS’ are skyrocketing. “The ratings under review currently benefit from very high implicit government support assumptions [...]

The Government of Dubai has refused to honour the debt obligations of its largest company, Dubai World.  The authorities says that investors end media misunderstod their previous statement to back the state owned conglomerate, and by disconnecting themselfs from the companies involved the governments debt is redused from 80 to USD 20bn. The cost [...]

Gold rose above $942 per ounce on Monday, strengthening as the dollar turned lower against six major currencies with slight caution toward riskier assets also proving supportive.

Gold was at $941.75 per ounce at 1256 GMT, up from $938.05 quoted late in New York on Friday. The precious metal earlier hit an intra-day high at $942.50 but is some way off a two week high of $948.20 hit last Friday.

A cautious approach to risk kept global stock market gains in check, while crude held under $70 per barrel following a bearish report on demand from the IEA, sapping gold’s appeal as a hedge against oil-induced inflation.

Analysts said the precious metal was holding onto gains but lacking upward momentum as currency markets would be indecisive until U.S. non-farm payroll data was released on Thursday.

“The dollar is going to be critical, and as long as it continues to weaken that tends to mean that gold

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MF Cuts Global Outlook; Brazil Hedge Fund Sells Banks, Homebuilders; February Home Prices Up 0.7%; Home Prices in Dubai Could Fall 70%; Apple Tops Forecasts; Feds Search Siemens’ Offices; Freddie Mac CFO Found Dead; E-Bay Beats Street

In its latest global outlook, the International Monetary Fund (IMF) slashed the growth forecast for every major country and urged more recovery actions. The IMF said the global economy will likely contract 1.3% this year and post a 1.9% gain next year, Reuters reported. Mercatto Estrategia FI, a Brazilian hedge fund that is beating 97% of its peers, is selling assets of the country’s largest homebuilders and banks, saying they are overvalued, Bloomberg reported. “Since we’ve lived through a liquidity crisis, it shook up the economy ...

Property prices in the UAE will likely drop by another 15% (adding to the 25% decrease in the fourth quarter of 2008), according to a report issued by Nomura Securities, an investment bank. “The property sector is maturing at breakneck speed and a shakeout will see more casualties, with this year marked by consolidation as companies struggle to stay afloat,” noted one analyst. That said, Nomura gave the region’s top property developer, Emaar Properties, a “buy” rating, with a target price of Dh2.87. “Emaar is the largest and most liquid company under our coverage and benefits from strong government support,” the report said, adding that Emaar is now entering the second stage of its maturity cycle, and expects to derive 12 -15 % of its net profits from recurring income streams. Furthermore, Emaar has low net debt gearing and no apparent ...

Credit-default swaps (CDS) associated with the Dubai Holding Commercial Operations Group LLC, a firm owned by Dubai ruler Sheikh Mohammed bin Rashid al-Maktoum, rose 90 basis points yesterday, part of a record, growing trend in the cost of insuring against losses on debt sold by Dubai companies on speculation that Abu Dhabi, the richest of the U.A.E.’s seven states, will not come to the rescue of those emirate firms who struggle to refinance debt maturing this year.  Per Bloomberg, “lending and investment banking in the Persian Gulf have slowed as oil prices and stock markets in Dubai and Abu Dhabi face the worst global economic slump since the 1930s.  The U.A.E. is also bracing for a real-estate slump after a five-year boom as banks cut back on loans and speculators desert the market.”

Emaar Properties PJSC, the UAE’s largest developer, is one of several prominent Dubai firms seeking to borrow in order to fund expansion in the wake of a global financial crisis, tightened lending and plummeting property values.  Bloomberg reports today that “plans for a $2 billion euro medium-term note program guaranteed by Emaar and a $2 billion trust certificate program by a Shariah-compliant unit were approved by the U.K. Listing Authority.”  A unit of HSBC Holdings Plc will be the paying agent for both programs.  Analysts report that Emaar has about 9.1 billion dirhams ($2.5 billion) of outstanding debt, and cash and cash equivalents of 4.03 billion dirhams at the end of September. Other Dubai firms seeking cash include Dubai Bank, which announced in September that it planned to sell as much as $5 billion of Islamic bonds.  And Commercial Bank of ...

The UAE banking system is undergoing a period of stress. Many of the banks have been expanding rapidly, adding branches across the UAE. There has been a lot of product innovation and these products require an overhaul of existing IT systems at the same time as their in conversion to Basle II. br /br /Other key metrics include:br /br /1) Loan growth to stay below 10%, br /2) Capital adequacy will have to grow to 11% in 2009 and 12% in 2010. br /3) Significant wage inflation