Welcome to the Morning Meeting, a look at some must-read news on deals and deal makers
European banks put back in the spotlight
Just over a month after the European stress tests made it seem like most the region's banks were in the clear, new fears of their weaknesses have cropped up in the past few days. On Thursday, Bloomberg reported Deutsche Bank AG is set to raise as much as €9-billion ($11.8-billion) in a rights offering and Commerzbank AG's chief executive officer hinted at raising money to help pay back the almost €20-billion it owes the German government.
Not all banks are in a panic, but Germany's are especially worried because their government has been the most lax with capital requirements. These capital ratios are at the forefront of bank executives' minds heading into the a weekend meeting in Basel, Switzerland, that is expected to finalize the new global capital standards for financial institutions.
Spring 'flash crash' was no error
Canadian regulators have taken a comprehensive look at Canadian stock market activity on the day of the "flash crash" this spring and found no evidence of erroneous orders, computer glitches or excessive futures or options trading. Instead, a high volume of sell orders at the opening of trading, the withdrawal of electronic traders and a wave of investors' stop-loss orders played the biggest roles, according to the Investment industry Regulatory Organization of Canada (IIROC).
Dubai World close to $25-billion (U.S.) restructuring
Ninety-nine per cent of Dubai World's creditors have approved the terms put forward by the emirate's state-run investment arm and a restructuring is expected in coming weeks. Dubai World ignited fears around the world in November, 2009, when it announced it would delay interest payments, but the entity signed a preliminary deal in May that included paying back $14-billion of debt over eight years and the Dubai government agreeing to convert $9-billion of loans into equity. Major asset sales are expected to be part of the new restructuring.
Traders who take a very, very long lunch
The Wall Street Journal has a fun profile of Briargate Trading, a New York firm that is only glued to the markets at the open and close. For the hours in between, the traders - former New York Stock Exchange floor specialists - do things like play tennis in Central Park or work out at the gym. And their behaviour makes some sense, given than the two hours before and after market close make up more than half of a days' trading volume, according to Thomson Reuters. Though, the activity may not be the best thing to disclose for the firm's public image, considering middle America is still reeling from high unemployment.
Canadian firm will drill hole to free trapped Chilean miners
This isn't exactly a "deal," but it's very cool nonetheless. Canada's own Precision Drilling Corp. has been tapped to drill a hole to help free the 33 Chilean miners trapped in a mine. Precision was asked to help because its drills are capable of punching much wider holes into the ground than standard mining rigs.