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Off the Ground in Dubai
By Graham Summers
May 16, 2007

If it weren't for the boarding gates, you'd think you'd walked into a high-end mall.

I've just arrived in Dubai, the city that's quickly becoming the financial capital of the Middle East. The Dubai International Airport is massive, with four stories of shops, kiosks, and, of course, check-in terminals. Everything is spotless, polished, and reeking of wealth.

The boutiques gleam with luxury clothes and watches. The travelers are relaxed, strolling from shop to shop, buying gifts, and talking to friends. Unbelievably, even the food looks appealing. Everything is written in English.

You can read about it, hear about it through gossip, or watch the Discovery Channel special, but nothing fully prepares you for Dubai. You're hit with its luxury and hospitality even before setting foot on land.

In Dubai, someone is always giving you something: assistance, directions, a smile. The airport's staff makes you feel as though you're a personal guest in their home. I've never felt so welcomed in all my life. Passing through customs takes all of five minutes. Despite the bustling airport, the lines are at most three people deep.

Having passed through customs, you immediately walk into an unending row of airport check-ins for Dubai's luxury hotels. The gentleman at the Fairmont desk was a Filipino immigrant named Alex. Alex moved to Dubai in 1991. "When I first got here, there were only three hotels in Dubai. Today, there are dozens." He smiled, "Dubai is a great opportunity."

In the United States, when you seek help in locating transport from the airport to your hotel, you're usually just pointed toward a waiting place outside the terminal. In Dubai, the liaisons personally walk you to your ride: a Rolls Royce, a Mercedes, or an Audi.

From the ground level, Dubai looks and feels like Miami if Miami underwent a multibillion-dollar makeover. The land is flat, the weather is beautiful, the traffic is bad, and palm trees and construction cranes are everywhere.

The difference is that, in Dubai, everything is brand new (it was all built in the last 10 years, and the city just oozes wealth.

On the ride to the hotel, the beginnings of the Burj Dubai, scheduled to be the world's tallest building, are visible. Originally planned to be 2,651 feet tall, the Burj Dubai's floor count continually changes as its builder, Chicago-based Skidmore, Owings and Merrill, learns of other planned projects and increases its numbers to maintain its status as the world's tallest building.

The vertical mentality borders on the pathological. Having spent centuries on very flat terrain, Dubai's residents seem almost obsessed with living as high off the ground as possible. High rises and skyscrapers cluster everywhere. My hotel is 34 floors high.

Everywhere you look, there's some new massive building going up, all of its units sold out long before the ground was even broken.

Good trading,

Graham

Junk Bond Bubble Looms
Never have so many made so much money from junk bonds, and that worries Dan Fuss. Fuss, whose $10.7 billion Loomis Sayles Bond Fund has been the best performer among its peers the last 10 years, says high-yield, high-risk securities are showing unmistakable signs of a bubble.

Yields are near record lows relative to government securities even though sales of the riskiest bonds increased 39 percent from last year, debt has grown faster than earnings and the economy is expanding at the slowest pace in five years.

"I haven't felt this nervous about a market ever," said Fuss, vice chairman of Loomis Sayles & Co. in Boston, who's been working in the banking and securities industries since he joined Wauwatosa State Bank in Wisconsin in 1958. Read on…

Web-Based Agriculture Paves Way to Consumer Wallet Chander Singh and six other farmers huddle around a computer in the village of Bhaukhedi watching soybean prices rise. While the nearest road is a kilometer away, a portable satellite receiver connects them to the Internet.

Singh tripled his income over the past six years by selling beans to ITC Ltd., a 96-year-old tobacco and food company that has built a network of computers to provide information to farmers and convince them to buy the company's products. Growers who use the service say they receive higher crop prices, cheaper pesticides and scented hair oil that keeps their wives happy. Read on…


Expensive coffee and groceries take a beating… Whole Foods and Starbucks at yearly lows.

Nokia up 30% in 2007. At new 52-week high.

Transport companies soar to yearly highs: Arlington Tankers, Tsakos Energy Navigation, Heartland Express, Canadian Pacific, Canadian National Railway, DryShips, Excel Maritime, and Guangshen Railway.

Oil-service ETF nearing all-time high on exploration spending.
Last Change 52-Wk
S&P 500 1501.19 -0.13% 15.97%
Oil (USO) 48.99 0.89% -26.47%
Gold (GLD) 66.54 0.39% -1.29%
Silver (SLV) 131.23 0.56% -1.11%
US Dollar 81.78 -0.29% -3.16%
Euro 1.359 0.32% 5.99%
VIX 13.96 7.80% -1.62%
HUI 331.00 -2.02% -10.20%
10-year yield 4.69% 0.02 -0.50

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Company Sym Industry

McDonald's

MCD

fast food

Verizon

VZ

telecom

DaimlerChrysler

DCX

German auto

Apple

AAPL

computers

Nokia

NOK

cell phones

Burger King

BKC

fast food

Humboldt Wedag

KHDH

holding company

AT&T

T

telecom

Cigna

CI

insurance

EnCana

ECA

oil & gas

Chevron

CVX

Big Oil

Arlington Tankers

ATB

shipping

Texas Instruments

TXN

education tech

Reliant Energy

RRI

utilities

Sonoco Products

SON

paper prod

Marathon Oil

MRO

refining

Tsakos Energy Nav

TNP

shipping

United Stationers

USTR

wholesale

TESCO

TESO

oil services

Goodrich

GR

defense prod

Hewlett Packard

HPQ

computers

Crocs

CROX

boots

Southern Union

SUG

utilities

Diamonds Trust

DIA

Dow ETF

Energy Select SPDR

XLE

ETF

Celgene

CELG

biotech

Macquarie Inf

MIC

wholesale

Heartland Express

HTLD

trucking

Edison Intl

EIX

utilities

Merck

MRK

Big Pharma

Bolt Technology

BTJ

oil services

Ingersoll-Rand

IR

machinery

Inergy Holdings

NRGP

propane

Black Hills

BKH

utilities

International Paper

IP

paper prod

Viasys

VAS

medical equip

Oil Serv HOLDRs

OIH

ETF

Constellation Energy

CEG

utilities

Perdigao

PDA

meat products

Genesis Health

GHCI

health care

Deere

DE

farm equipment

Loews

LTR

insurance

Eni

E

Big Oil

Monsanto

MON

agriculture

MedImmune

MEDI

biotech

Canadian Pacific

CP

railroads

Quanta Services

PWR

contractors

DryShips

DRYS

shipping

Granite Construction

GVA

construction

Brookfield Asset

BAM

holding company

Excel Maritime

EXM

shipping

Akzo Nobel

AKZOY

Medical equip

BG Group

BRG

Big Oil

Can Nat Railway

CNI

railroads

Guangshen Railway

GSH

railroads

Lafarge

LR

cement

iShares DJ utility

IDU

ETF

3M

MMM

conglomerate

WW Grainger

GWW

electronics

Oneok

OKE

utilities

Leucadia National

LUK

holding co

Sadia

SDA

meat products

China Petroleum

SNP

oil & gas

SK Telecom

SKM

telecom

Textron

TXT

conglomerate

Brasil Telecom

BRP

telecom

McGraw-Hill

MHP

publishing

Aeropostale

ARO

clothing

Everest Re Group

RE

insurance

Canadian Dollar Trust

FXC

ETF

Company Sym Industry

Starbucks

SBUX

coffee

Liz Claiborne

LIZ

clothes

Whole Foods

WFMI

grocery stores

Dean Foods

DF

dairy products

Amgen

AMGN

Big Pharma

Komag

KOMG

Disk drives

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