Dubai World lenders may accept extending the maturity of debt

from MoneyTrading.com.au

Dubai World's creditors have rejected the idea of taking a "haircut" on $22 billion of debt with preliminary discussions shifting towards extending the maturity of existing loans and bonds, bankers familiar with the matter said. Dubai World has agreed to keep paying interest on the debt and to reschedule maturities of the principal as local banks are not in a position to handle any losses on their exposure to Dubai World.

It was feared that Dubai would try and force creditors into taking a 40% "haircut" on their exposure to Dubai World but these initial discussions were universally rejected by lenders, the bankers said.

Uncertainty over the outcome of talks between creditors and Dubai World regarding $22 billion of debt, that's equal to almost half the U.A.E.'s estimated oil revenue last year, has weighed on the emirate since November when the need to restructure was first announced.

The last week has seen representatives of Dubai World hold informal meetings with creditors in London and Dubai as both sides edge towards a deal. A spokesperson on behalf of Creditors stated that the restructuring has entered the final phases and they agreed on the terms and now have to discuss it with the other banks. Major creditors are hopeful that the terms of formal deal will be made public next week.

Disappointing new jobs number sends Australian dollar lower

from MoneyTrading.com.au

The number of unemployed people rose by 10,700 to 615,900 in February, while the number of employed rose slightly by 400 to 10.971 million, the ABS reported. The rise in employment came thanks to an increase in full-time employment, which was offset by a decrease of 11,000 people in part-time employment, the ABS said.


But number of jobs created came in below market expectations. Australia's employment data showed the creation of 400 jobs versus expectations of 15,000. Just prior to the release, the Australian dollar was trading around 0.9145USD before falling to a low of 0.9115USD.

Commodity gains drive Australian shares, dollar higher

from MoneyTrading.com.au

The Australian share market is continuing to gain ground after a positive lead from Wall Street and a rise in commodity prices. The market has also benefited from a $3.3 billion takeover offer for Arrow Energy by Royal Dutch Shell and PetroChina.

Arrow's shares were more than 45 per cent higher at $5.06 by 1:38pm (AEDT). The All Ordinaries Index was up 1 per cent at 4,820 just after 1:30pm, and the ASX 200 was up 43 points to 4,810. Firmer prices have pushed the gold miners higher, Lihir Gold was up 1.4 per cent at $2.95 and Newcrest has added 27 cents to $34.24.

The two biggest miners on the local market, BHP Billiton and Rio Tinto, have also climbed more than 2 per cent. And the Australian dollar has jumped almost a full cent from Friday's close to 91.10 US cents.