Posts Tagged Nakheel
Abu Dhabi Rushes To The Rescue
Posted by Belisarius in Markets on December 14, 2009
Looks like Nakheel PJSC bonds will be paid off in full. Bloomberg link: Abu Dhabi Bails Out Dubai World With $10 Billion.The move has prevented Asian stock exchanges from going into negative territory; Europe is trading up around 1% in average.
Short follow up on last weeks U.S. economic data: Jobless claims ticked up reaching 474.000 vs. 460.000 consensus and 457.000 the week before; Trade deficit was lower at $-32.9bn than expected ($-36.4bn) and last reported ($-36.5bn); Consumer sentiment for December surprised to the upside coming out at 73.4 vs. 68.2 consensus and 67.4 in October; Business inventories in October rose 0.2% vs. consensus of -0.2%, and -0.4% in December; Retail sales rose 1.3% in November, the consensus was at 0.9%, prior reading for October at 1.4%; Retail sales ex-autos rose 1.2% vs. the consensus of 0.5% and a prior reading of 0.2%.
New Stimulus
Posted by Belisarius in Markets on December 8, 2009
After Germany (the U.S. is stimulating all the time), Japan announced some sort of stimulus. Telegraph story: Japan unveils $80bn of direct spending in $274bn stimulus package. $80 is peanuts for a Japan size of economy. The monetary stimulus was also small. Looks like politicians are trying to convince people they are doing something.
Yesterday’s Mr. Bernanke speech brought some relief to gold as he repeated “extended period” term when talking about interest rates.
Correlation Divergence
Posted by Belisarius in Markets on December 4, 2009
Well I must admit that I don’t have a clue what’s happening in the markets now. The markets opened positive on large positive surprise in non-farm payrolls and in mid of trading everything reversed. Three reasons come to my mind: first is a deeper look in unemployment numbers; the second one would be the new low in Nakheel bond indicating a stall/collapse in Dubai World debt restructuring efforts and the third would be distorted correlations at opening today that disoriented algorithm driven trading.
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