Top 10 News Items 11/23-11/27: Dubai Debt Fallout; Gold; GDP Revised Lower; Diedrich Coffee Bidding War

November 27, 2009 12:36 PM EST

1. On Wednesday, the Dubai government said it would restructure its corporate flagship, Dubai World, and asked creditors to accept delayed payments. Dubai World is seeking a six-month moratorium on interest payments. The news sent world markets tumbling Thursday and Friday.

2. Gold (NYSE: GLD) continued to new all-time highs earlier in the week, but sold off at the week's end as the dollar strengthened on a 'flight to quality' trade following the debt concerns in Dubai.

3. The FDIC released their third quarter banking profile, which showed that while profits rose so did troubled loans. The number of insured institutions on the FDIC's "Problem List" rose from 416 to 552 during the quarter. The Deposit Insurance Fund (DIF) decreased by $18.6 billion during the third quarter to a negative $8.2 billion.

4. Third quarter GDP was revised down to 2.8 percent growth, versus the first estimates of 3.5 percent. Still GDP was a significant improvement from the 0.7 percent drop in the second quarter.

5. The bidding war for Diedrich Coffee (Nasdaq: DDRX) heated up between Peet's Coffee (Nasdaq: PEET) and Green Mountain Coffee Roasters Inc. (Nasdaq: GMCR). Green Mountain currently has the 'Superior Proposal' with its $32 per share cash bid.

6. The FOMC minutes showed that Fed governors and regional-bank presidents predicted the unemployment rate will range from 9.3-9.7% in next year's fourth quarter, down from the June projection of 9.5-9.8%. The staff raised its projection for real GDP growth over the second half of 2009 but left the forecast for output growth in 2010 and 2011 roughly unchanged. Fed officials said low rates may spur "excessive" risk taking, saw a decline in dollar as "orderly."

7. Vietnam devalued in currency 5% and hiked interest rates from 7% to 8%, in a move to combat inflation, rein in lending and bolster its currency. The timing of the move surprised analysts, who had not expected Vietnam to start nudging up rates until early 2010.

8. Sales of pre-existing homes rose 10.1 percent in October to a seasonally adjusted rate of 6.1 million according to the National Association of Realtors on Monday. The pace set in September was 5.64 million.

9. The Consumer Confidence Index increased slightly to 49.5 in November, from the revised figure of 48.7 for October. The October numbers were revised from the original report of 47.7. The numbers were better than expected, as analysts forecasted 47.0. Later in the week, the November Reuters/University of Michigan consumer sentiment index was reported at 67.4, vs. the consensus of 67.

10. Tiffany & Co (NYSE: TIF) has boosted its fiscal year earnings forecast after the company reported stronger-than-expected results in the third quarter as consumers get back into the luxury goods market.

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• FOMC Minutes
• Federal Open Market Committee
• Consumer Confidence Index
• University of Michigan Consumer Sentiment Index
• StreetInsider.com Top 10 News Items for the Week
• FDIC

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