• Abu Dhabi gives Dubai $10 billion bailout
  • Dubai World says Abu Dhabi support provides funding and a stable basis for the ongoing restructuring process. Must negotiate a standstill agreement in order to receive financial support to cover working capital, interest expenses
  • Citigroup to repay $20 bln of TARP securities, end agreement with U.S.
  • Austrian FinMin says reached deal to rescue Hypo Group Alpe Adria
  • ECB’s Bini Smaghi: Greece must take steps to recover debt rating by end of 2010
  • Shanghai share index ends up 1.7%, reverses early losses after Dubai support announced
  • Cadbury says has had indications of interest from third parties, which include possibility of business combinations
  • Swiss November producer import prices flat m/m, -3.3% y/y
  • ECB’s Liikanen: Changes in the range of liquidity measures are in no way a signal of our monetary policy stance. Markets have understood our message well
  • ECB’s Nowotny: Global financial system still faces major challenges, must be tackled immediately
  • Euro zone October industrial output -0.6% m/m, -11.1% y/y vs median forecasts -0.7%, -10.9% respectively. Euro zone Q3 employment -0.5% q/q, -2.1% y/y
  • Dubai Ruler says to establish tribunal to decide disputes related to Dubai World and subsidiaries. To be based in Dubai international financial center and use DIFC law
  • Japan draft budget guidelines: Will keep new JGB issuance at around Y44 trln or below for 2010/2011

The JPY and USD have firmed during the morning session, reclaiming ground lost on the announcement of the Dubai bailout (see above) during the Asian session.

EUR/USD having started around 1.4670 is down at 1.4633, but it’s been pretty slow going. Talk of BIS buying around 1.4630 has helped limit losses.

Overnight in Asia ACB buying was seen at the 1.4600 low. Sell orders now noted up at 1.4680 up through 1.4700, with buy stops seen on move through 1.4710.

Cable has been hit hard, down at 1.6225 from an early 1.6305. UK clearer selling decent amounts of GBP/CHF has not helped sterling’s general cause. That cross is down at 1.6765 from early 1.6820.

EUR/GBP is up at .9015 from early .8995 having run into good selling interest up at .9050 technical resistance.

USD/JPY is down at 88.45 from early 88.75. So far well-touted technical support at 88.30 (or is it 88.31) has held. Talk of buy orders at 88.20 down through 88.00, with stops just below there.