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The Wall Street Greek blog is the sexy & syndicated financial securities markets publication of former Senior Equity Analyst Markos N. Kaminis. Our stock market blog reaches reputable publishers & private networks and is an unbiased, independent Wall Street research resource on the economy, stocks, gold & currency, energy & oil, real estate and more. Wall Street & Greece should be as honest, dependable and passionate as The Greek.

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Monday, November 30, 2009

Dubai Development Disaster

Dubai development disaster
Morning Markets

Visit the front page of Wall Street Greek to see our current coverage of Wall Street, economic reports and global financial markets.


Wall Street, the GreekThe situation in Dubai has financial press busy this morning, but overseas exchanges are indicating the extent of this crisis may be limited. US stock exchanges and the dollar are exhibiting stability this morning in the wake of a still dangerous Dubai disaster. Overseas markets started the day shaky, especially in Dubai where the Dubai Financial Market General Index is off 7.3%. Europe is also off at the hour of publishing, with the DJ Euro Stoxx 50 down 0.8%. However, US stocks started the day flat, while Asian shares exhibited strength.

Dubai Development Disaster

Adding kindling to the fire this morning, a representative of the United Arab Emirates (UAB) said Dubai World's debt is not guaranteed by his nation. These guys obviously need to take their cue from the penguins over at the US Treasury Department and Federal Reserve.

The UAB is not setting its financial markets at ease this morning, as it should be. This first of trading since the news broke could have been controlled, since time allowed for it thanks to religious holiday. Instead the whole of Dubai is up in arms, and Middle Eastern shares are shaky across the board.

Dubai World is looking for a six month reprieve on $60 billion in debt. The nerve! You do not see American companies acting so brazenly... well AIG (NYSE: AIG)... oh and Citigroup (NYSE: C), J.P. Morgan (NYSE: JPM), Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), Fannie Mae (NYSE: FNM), Freddie Mac (NYSE: FRE), Bank of America (NYSE: BAC) among others... well okay then.

Remember how Dubai once bragged about its world leading development, with its skyline cluttered with giant cranes? Yeah, not no more... Real estate prices are reportedly 50% lower in the UAB, and this crisis ain't helping. We suspect that in the end Dubai World's debt situation will get a lift from its parent state, and this crisis will blow away like sand in the wind. In other words, don't panic here at home.

Washington News

The surviving Thanksgiving Day turkeys are returning to Capitol Hill to debate health care reform beginning on Monday. With at least a full week's preparation, the cackling Congressmen should be loud from the start.

Economic Data

The day's only economic report is due for publishing at 9:45 AM Monday morning. Economists forecast November's Chicago Purchasing Managers Index will have deteriorated to 53.0 (53.3 based on Barron's), from 54.2 in October. Manufacturing activity was reported lower in the New York region two weeks ago, according to the 11 point lower Empire State Manufacturing Index. However, Philadelphia area activity improved in November.

At 3:00 PM, the Department of Agriculture will report on Farm Prices. This report for November provides a nice read into food prices, and perhaps the renewed advent of inflation in the future.

Corporate News Drivers

Monday's EPS report schedule includes data from Compania Cervecerias Unidas S.A. (NYSE: CCU), Alloy (Nasdaq: ALOY), Golar LNG Ltd. (Nasdaq: GLNG), Inergy Holdings (Nasdaq: NRGP), Knightsbridge (Nasdaq: VLCCF), Linktone (Nasdaq: LTON), Omnivision Technologies (Nasdaq: OVTI), Telvent (Nasdaq: TLVT), Unify Corp. (Nasdaq: UNFY) and more.

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Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

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