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| Dubai uncertainty grips markets | |
| (9 minutes later) | |
| Worries over Dubai's debt problems have driven down Europe's share markets for a second day running. | Worries over Dubai's debt problems have driven down Europe's share markets for a second day running. |
| The main share indexes in London, Paris and Frankfurt all opened more than 1% lower before recovering slightly. | The main share indexes in London, Paris and Frankfurt all opened more than 1% lower before recovering slightly. |
| The falls followed news from the state-owned Dubai World that it would delay repaying some of its debt. Earlier, Asia's markets were down sharply. | The falls followed news from the state-owned Dubai World that it would delay repaying some of its debt. Earlier, Asia's markets were down sharply. |
| Tokyo's benchmark Nikkei fell 3.2% to 9,081.52. In Hong Kong, the Hang Seng index ended down 4.84% at 21,134.5. | Tokyo's benchmark Nikkei fell 3.2% to 9,081.52. In Hong Kong, the Hang Seng index ended down 4.84% at 21,134.5. |
| 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." |
| Holiday hiatus | Holiday hiatus |
| 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. |
| 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 | |
| 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 Greater 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 Greater 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. |
| The biggest underlying fear is that Dubai's problems could reignite the financial turmoil of the credit crisis. That would lower global demand for a whole range of commodities, including oil. | The biggest underlying fear is that Dubai's problems could reignite the financial turmoil of the credit crisis. That would lower global demand for a whole range of commodities, including oil. |
| Oil prices have dropped sharply. US crude fell 5% to $74.23 a barrel and London Brent Crude was down $1.47 to $75.42. | Oil prices have dropped sharply. US crude fell 5% to $74.23 a barrel and London Brent Crude was down $1.47 to $75.42. |
| 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. |
| 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 |