This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8382103.stm
The article has changed 23 times. There is an RSS feed of changes available.
| Version 14 | Version 15 |
|---|---|
| US shares slide over Dubai fears | US shares slide over Dubai fears |
| (29 minutes later) | |
| US shares have opened lower on worries about Dubai's debt problems, with the Dow Jones index down 107 points, or 1%, at 10,357.01. | US shares have opened lower on worries about Dubai's debt problems, with the Dow Jones index down 107 points, or 1%, at 10,357.01. |
| It was the first chance for markets in the US to react to news that state-owned Dubai World had asked for more time to repay its debts. | It was the first chance for markets in the US to react to news that state-owned Dubai World had asked for more time to repay its debts. |
| US markets were closed for a holiday on Thursday when other world markets suffered steep losses. | US markets were closed for a holiday on Thursday when other world markets suffered steep losses. |
| However, the main European markets recovered from earlier falls. | However, the main European markets recovered from earlier falls. |
| The main share indexes in the UK, France and Germany had all fallen by more than 3% on Thursday. But after falling further in early trade on Friday, the UK's FTSE 100 closed up 1%, and both Germany's Dax index and France's Cac 40 were up more than 1%. | |
| Earlier in Asia, Japan's Nikkei index had closed down 3.2% and the Hong Kong Hang Seng ended 4.8% lower. | Earlier in Asia, Japan's Nikkei index had closed down 3.2% and the Hong Kong Hang Seng ended 4.8% lower. |
| UK Prime Minister Gordon Brown described the fall in the markets as a "setback" but said it was "not on the scale of previous problems". | UK Prime Minister Gordon Brown described the fall in the markets as a "setback" but said it was "not on the scale of previous problems". |
| "The world financial system is stronger now and able to deal with the problems that arise," he told reporters on his way to a Commonwealth leaders summit. | "The world financial system is stronger now and able to deal with the problems that arise," he told reporters on his way to a Commonwealth leaders summit. |
| Holiday hiatus | Holiday hiatus |
| Dubai World is the centrepiece of the Gulf state's economy. David Buik, senior partner at BGC Partners, said: "You can't just say to the world: 'I don't want to pay my debts'. There is no income coming in from any of these properties. I think this is shocking PR." | Dubai World is the centrepiece of the Gulf state's economy. David Buik, senior partner at BGC Partners, said: "You can't just say to the world: 'I don't want to pay my debts'. There is no income coming in from any of these properties. I think this is shocking PR." |
| The news shook markets that are recovering from the collapse of the US housing market and contagion that threatened to rupture the global financial system last year. | The news shook markets that are recovering from the collapse of the US housing market and contagion that threatened to rupture the global financial system last year. |
| Certain London-based hedge funds who had bet on Dubai World being bailed out could have an uncomfortable few weeks ahead Stephanie Flanders | Certain London-based hedge funds who had bet on Dubai World being bailed out could have an uncomfortable few weeks ahead Stephanie Flanders |
| BBC Economics Editor | BBC Economics Editor |
| Read more from Stephanie What spoiled the party in Dubai? | Read more from Stephanie What spoiled the party in Dubai? |
| It was the timing of the announcement as much as the lack of clear information that heightened nerves. The first news emerged late on Wednesday, as the Muslim world was preparing for its Eid celebrations. | It was the timing of the announcement as much as the lack of clear information that heightened nerves. The first news emerged late on Wednesday, as the Muslim world was preparing for its Eid celebrations. |
| It also coincided with the closedown of the world's most important share market, with US markets winding down for Thursday's Thanksgiving holiday. | It also coincided with the closedown of the world's most important share market, with US markets winding down for Thursday's Thanksgiving holiday. |
| Uncertainty of the scale of banks' exposure to Dubai hit banking shares at first. However, bank shares recovered strongly throughout Friday morning. | Uncertainty of the scale of banks' exposure to Dubai hit banking shares at first. However, bank shares recovered strongly throughout Friday morning. |
| Threat to confidence | Threat to confidence |
| The biggest underlying fear is that Dubai's problems could reignite the international financial turmoil of the credit crisis. | The biggest underlying fear is that Dubai's problems could reignite the international financial turmoil of the credit crisis. |
| WHAT IS DUBAI WORLD? The emirate's flag bearer in global investmentsHas a central role in the direction of Dubai's economy Assets include DP World, which caused a storm when trying to take over six US portsProperty arm Nakheel built The Palm Islands and The World developments What is Dubai and who runs it? Dubai views: 'The end of the dream' Send us your comments | WHAT IS DUBAI WORLD? The emirate's flag bearer in global investmentsHas a central role in the direction of Dubai's economy Assets include DP World, which caused a storm when trying to take over six US portsProperty arm Nakheel built The Palm Islands and The World developments What is Dubai and who runs it? Dubai views: 'The end of the dream' Send us your comments |
| Chris Skinner, chairman of the Financial Services Club, said: "We're very heavily interlinked. Dubai is the key financial centre in the Middle East." | Chris Skinner, chairman of the Financial Services Club, said: "We're very heavily interlinked. Dubai is the key financial centre in the Middle East." |
| Any knock to economic confidence could lower global demand for a whole range of commodities, including oil. | Any knock to economic confidence could lower global demand for a whole range of commodities, including oil. |
| Oil prices dropped sharply. US crude fell about 5% to $73.64 a barrel and London Brent Crude was down $1.56 to $75.31. | Oil prices dropped sharply. US crude fell about 5% to $73.64 a barrel and London Brent Crude was down $1.56 to $75.31. |
| Dubai, which has less oil money than many of its neighbours, became a trading and tourism hub with global ambitions. | Dubai, which has less oil money than many of its neighbours, became a trading and tourism hub with global ambitions. |
| Dubai World, the conglomerate that led the emirate's expansion, had $59bn (£36bn) of liabilities as of August, a large proportion of Dubai's total debt of $80bn. Its subsidiary Nakheel was the builder of the landmark palm tree-shaped island developments off Dubai. | Dubai World, the conglomerate that led the emirate's expansion, had $59bn (£36bn) of liabilities as of August, a large proportion of Dubai's total debt of $80bn. Its subsidiary Nakheel was the builder of the landmark palm tree-shaped island developments off Dubai. |
| Are you in Dubai? What is your reaction to the Dubai World announcement? What effect is the economic recession having on Dubai? Send us your views using the form below. | Are you in Dubai? What is your reaction to the Dubai World announcement? What effect is the economic recession having on Dubai? Send us your views using the form below. |
| A selection of your comments may be published, displaying your name and location unless you state otherwise in the box below. | A selection of your comments may be published, displaying your name and location unless you state otherwise in the box below. |
| The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions | The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions |