Sunday, November 29, 2009

More Dubai and Futures

by Calculated Risk on 11/29/2009 10:55:00 PM

From the WSJ: Worries Grow Over Gulf Rift

The central bank said it "stands behind" U.A.E. banks and would make available funds to local institutions, including local subsidiaries of foreign banks.

But the statement pointedly didn't mention Dubai, disappointing many market observers.
And from the NY Times: Crisis Puts Focus on Dubai’s Complex Relationship With Abu Dhabi
Despite the announcement by the emirates’ central bank on Sunday that it would make more money available to local and foreign banks in Dubai, analysts say such imprecise promises — the bank did not say how much, or that it would back all the debt of Dubai or Dubai World — may not be enough to placate investors.

Many have been left wondering, again, if the Emirate’s debts are worse than most of the world suspects. Analysts estimate Dubai’s total debt at around $80 billion, but some here say it could well be closer to $120 billion, or more.
But looking at the stock markets, investors don't seem to be worried ...

In Asia, the Hang Seng is up over 3%, and Nikkei is up over 2%.

In the U.S, the S&P futures are up about 6 points (Dow futures up 50). Some sources:

Bloomberg Futures.

CNBC Futures

Best to all.