London has opened better than forecast after panic on Asian markets overnight over the problems in Dubai.
Japan’s Nikkei was down 301 points to 9,081, a new four-month closing low. Banks were bashed on worries about the financial sector’s exposure to a debt default by Dubai World. Hong Kong fell over 1,000 points as big banks like HSBC tumbled on fears about the situation in the Gulf state.
Miners are bearing the brunt of the selling in London, with the dollar rallying and investors having big profits to lock in. Kazakhmys, Fresnillo and ENRC are the worst hit.
Gulf-related worries have also knocked Royal Bank of Scotland, Petrofac, while fund manager Schroders is also under pressure.
In a piece of possibly appropriate timing gvien concern over its Dubai exposure, RBS today also officially signed up up for the government's asset protection scheme (APS). The bank said in a statement that the agreement was signed on Thursday, 26 November, on the terms summarised in the announcement published on 3 November.
Elsewhere, mobile phone retailer and broadband provider Carphone Warehouse has provided some cheer. It upped its full year guidance after posting better than expected half year figures. The group increased its headline EPS guidance for March 2010 to between 14.0p and 15.0p.
Holidaybreak has suffered a big drop in full-year profit, but the firm's education business had a better time of it as parents refused to let their kids go without. Headline profit before tax for the year to 30 September fell by 12.9% to Ł28.4m, while statutory profit slumped to Ł5.4m from Ł23.4m in 2008. Revenue rose to Ł473.4m from Ł455.1m.
Things are not looking a lot better in the business travel world, where the recession hit travel agent Hogg Robinson in the first half, with profits almost halving.
Domino's Pizza is higher after it scrapped its tender offer, announced last week, because the shares have fallen about 7% below the tender price. A straightforward share buy-back might now be on the cards.
Respiratory inhaler firm Vectura reported a 67% reduction in half year pre-tax losses and said it plans to establish an infrastructure in the US market
Accident Exchange expects a first half loss and has warned it needs to refinance as insurers continue to drag their heels over settling claims.
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