Bank bailout fails to rescue markets



Gulf markets continued their relentless downwards spiral today, after the false dawns of the UAE central bank's credit line and the US The GCC is now on course to wipe out all the gains it made on Saturday and Sunday, following the brief euphoria that accompanied the US government's planned $700bn (Dh2.6 trillion) bailout of investment banks' toxic securities. New York's Dow Jones market yesterday lost 3.3 per cent of its value, after the GCC had closed, on fears that the $700bn bailout will not be enough to stop the rot in the financial system or prevent a severe global recession.

Yesterday's announcement by the UAE that it would provide Dh50bn of loans to the country's banks produced little reaction in the markets - the Dubai Financial Market (DFM) lost 3.56 per cent, while the Abu Dhabi Securities Exchange dropped 2.84 per cent. With the exception of Doha, which gained 0.08 per cent, the rest of the GCC was down. Kuwait fell 2.04 per cent, Muscat was down 1.21 per cent and Bahrain suffered a 1.48 per cent drop.

A drop in value of this size for the DFM would ordinarily be regarded as significant, but this was only the second-largest one-day fall this month. The rest of the world has been plunging today, with all eyes now on the opening of New York this evening. The London FTSE index has lost 2.4 per cent of its value in morning trading, while the Hong Kong market shed 3.87 per cent and Singapore lost 2.66 per cent.

afoxwell@thenational.ae

Company%20profile
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In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

COMPANY%20PROFILE
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WHAT IS A BLACK HOLE?

1. Black holes are objects whose gravity is so strong not even light can escape their pull

2. They can be created when massive stars collapse under their own weight

3. Large black holes can also be formed when smaller ones collide and merge

4. The biggest black holes lurk at the centre of many galaxies, including our own

5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

Company Profile

Company name: Yeepeey

Started: Soft launch in November, 2020

Founders: Sagar Chandiramani, Jatin Sharma and Monish Chandiramani

Based: Dubai

Industry: E-grocery

Initial investment: $150,000

Future plan: Raise $1.5m and enter Saudi Arabia next year

COMPANY%20PROFILE
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'The Woman in the House Across the Street from the Girl in the Window'

Director:Michael Lehmann

Stars:Kristen Bell

Rating: 1/5