The Big Picture - Macro Perspective on the Capital Markets, Economy, Technology, and Digital Media

If Dubai World can achieve success in its debt discussions (defined as pushing out its maturity schedule), amend and extend is the official global bank strategy in dealing with over leveraged situations as buying time to a better economic environment is the preferred path as opposed to debt writedowns and bond holder haircuts. We’ll see if its creditors don’t demand some skin in return as opposed to just a higher interest rate. Either way, the $26b of debt that needs to be reworked is nominal in the context of things. The RBA raised rates 25 bps again to 3.75%, as expected, but taking quite a proactive stance in balancing their economy. India’s Q3 rose 7.9% y/o/y, above estimates of a gain of 6.3%. China PMI measuring state focused co’s was flat with Oct and a touch below forecasts but the private sector weighted # rose again. The BoJ said they will offer 3 month loans at .1% to commercial banks, a form of QE and the Yen is lower in response.