The oil rich government of Abu Dhabi has decided to help save Citigroup from its credit woes. The IHTreports that the Abu Dhabi Investment Authority is purchasing a $7.5 billion stake in Citigroup.
By agreeing to purchasing a $7.5 billion stake in the faltering banking giant Citigroup, the secretive, government-controlled Abu Dhabi Investment Authority is breaking with tradition.
As the largest sovereign wealth fund in the world, with assets estimated at $650 billion, it poured money in the past into low-return, low-profile investments or small emerging market deals, unlike its flashy emirate neighbor, Dubai.
But a falling dollar and a growing cash pile are spurring Abu Dhabi to change strategy, according to analysts, economists and deal makers, who said that more big-ticket deals might be ahead.
Flush with cash from its oil exports, Abu Dhabi turned to Wall Street, using a complicated transaction late Monday to buy 4.9 percent of Citigroup, acquiring high-yield, convertible stock that must be exchanged for common stock between March 2010 and September 2011.
Abu Dhabi will obtain a 4.9 percent stake in Citigroup with the investment. The move comes just after Citigroup's shares hit a five-year low.
The stock market has been having a tough time moving in the right direct. This is especially true for the tech-laden Nasdaq. Today, the Nasdaq dropped 43 points, or 1.7%, to 2,584. Reuters reports on the Nasdaq's woes in this video clip.
DMNews reports that the National Retail Federation (NRF) is predicting holiday sales to increase by 4% this year to $447.5 billion. Technology will once again be a hot item. Even fashion is getting more high tech this year according to the NRF.
In the fashion and apparel categories, expect to see evening wear and diamonds driving sales. In addition, tailored denim products - across men's, women's and children's wear - will be a hot item. Women's boots also will help drive sales this holiday season, with a focus on three-quarter length boots rather than knee length.
Interestingly, fashion will be getting more high tech this season.
"Technology is having an impact on fashion," said Dan Butler, VP of retail operations and merchandising at the National Retail Federation. "Whether its sweaters or vests designed to hold handheld accessories and iPods, or handbags, which are designed for these devices, we are going to see a lot more of these kinds of products this season."
IPod and cell phone accessories will be popular tickets this year, including a new breed of accessories designed to hold these items in the home. Expect to see more widescreen televisions under the tree this year, along with widescreen computer monitors, as the prices of these products have come down.
Online sales - which have been rising year after year - will surely grow again this year.